An increasing number of Canadians are choosing renting vs. buying in today’s economy. Why are we seeing this shift? And what are the advantages of rental living?
1. Fewer Upfront & Ongoing Costs
Buying and maintaining a home is expensive. You require funds for a down payment, property taxes, home insurance, ongoing repairs and maintenance and utility costs. You also have additional costs to furnish a larger space, since most homes are larger in size than the typical rental home. However, renting a home involves no maintenance costs or repair bills and in many instances your monthly rent includes partial or full utility costs. Budgeting for your lifestyle is simpler with one fixed payment per month compared to the many payments required with home ownership.
2. Flexibility in the event you need to relocate or change homes
In the event that you need to relocate for a job or personal reasons, renting allows you the ease of simply providing 60 days notice to vacate. This is much less labour intensive than selling a home and renting may allow you to take advantage of career opportunities with more ease. Renting also allows you choice in terms of the type of home you live in. If for example, you need to upsize or downsize you can do so much quicker than if you were selling or buying a new home for the same reasons.
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3. More Free Time
Renting a home means that the landlord takes care of the most time consuming aspects of maintaining a home—exterior repairs, snow removal, large renovations, appliance replacement, painting, plumbing, etc. This allows you more free time to pursue other interests. Many renters are choosing rental homes specifically for the lifestyle it affords them: more free time and less stress.
4. Access to Amenities
Another benefit to renting over buying a house of your own is having access to amenities that may not be included in the purchase of a home or may be cost prohibitive when owning a home. For example, many landlords provide amenities such as fitness centers, saunas, community rooms, underground parking and more at no additional cost to residents.
5. More Options
Today’s rental market has a wide variety of homes that are not always present in the home buying market. High-rise or low-rise apartments, townhomes with backyards, 1, 2, 3 or 4 bedroom homes and many more variations are available to renters.
6. Community
Increasingly we live in a busy, modern world and many people feel disconnected. Often people seek out renting because of the communities that many rental providers offer. For example, Sifton provides community and social events atThe Berkshire Clubfor all London residents, allowing residents to get to know each other and form a connection as neighbours. Many apartment buildings often have social events in their community rooms or shared spaces also, encouraging people to socialize and get to know each other.
Related Post: Tips for Decorating Your Modern Rental Apartment
FAQs
Benefits of renting often include:
- Rent payments tend to be lower than a comparable house payment.
- Utility costs may be included in rental fee, creating additional savings.
- Relocation is easier.
- Maintenance and repairs are not your responsibility.
- Credit requirements are less strict.
Often the least expensive housing option -offers a set monthly expense, has minimal maintenance responsiblity, provides the ability to relocate easily when lease expires. Generally offer similiar amenities to apartment complexes.
What are some advantages and disadvantages to renting a place? ›
The Pros and Cons of Renting a Home
| Pros of renting | Cons of renting |
|---|
| Cheaper upfront costs | Less control over your living space |
| Not responsible for covering repairs and maintenance | Rent can continue increasing |
| Predictable home expenses each month | You could be evicted |
| No property taxes | Possible restrictions on pets |
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One of the biggest benefits of being a tenant is that you are not responsible for property's maintenance and repair that comes with home ownership. You can call your landlord or the letting agent to resolve common issues like leaks on the roof or plumbing issues.
What are advantages and disadvantages of leasing? ›
Leasing eases the monthly cost to a more manageable number. It also allows you to drive a more luxurious vehicle than you might otherwise be able to afford. But keep in mind the mileage restrictions and potential excess wear-and-tear charges that come along with leasing.
Which of the following are advantages of owning rental property? ›
Here are a few perks to becoming a landlord:
- Passive Income Source. Perhaps the biggest benefit to owning rental property is that it's a passive income source. ...
- Greater Security. ...
- Flexibility to Sell at the Right Time. ...
- Option to Move Back. ...
- Property Value Appreciation. ...
- Diversification of Investments.
Renting: It provides flexibility, fewer immediate financial responsibilities, and relief from property maintenance.
Which of the following is a key advantage or renting? ›
Key takeaways
Renting offers more flexibility and less upfront costs, but it does not build equity or offer tax benefits.
What is an advantage of renting a place to live brainly? ›
Final answer:
An advantage of renting is lower up-front costs, flexible monthly payments, and no need to build equity.
What are two advantages of owning a small rental property? ›
Rental properties can be financially rewarding and have numerous tax benefits, including the ability to deduct insurance, the interest on your mortgage, and maintenance costs.
Final answer: The potential for building equity is not an advantage of renting, as equity pertains to property ownership which grows as a mortgage is paid down. Rent payments do not contribute towards this.
What are the advantages and disadvantages of living in a house? ›
The advantages of living in a house include access to basic amenities and improved living conditions, while the disadvantages may include higher costs and maintenance responsibilities.
What are two advantages of renting? ›
Unlike homeowners, renters have no maintenance costs or repair bills and they don't have to pay property taxes. Amenities that are generally free for renters aren't for homeowners, who have to pay for installation and maintenance.
What makes you a good renter? ›
The ability and willingness to: pay rent, care for the rental property, avoid creating disturbances, and avoid drama. Good tenants care enough to at least try to make a good impression. They are friendly, show up on time, display some level of excitement for the rental property, and are respectful to the landlord.
What are two advantages of renting quizlet? ›
The main benefits of renting a place of residence is having fewer responsibilities than homeowners since they do not have to deal with maintenance and repairs. It also offers mobility when a location change is necessary or desirable. Taking possession of a rental house is cheaper than buying a home.
What are two advantages of renting Ramsey? ›
Renting Pros
When you rent, you don't have to stay in the same location. Plus, it's much easier to get out of a lease than a mortgage. You don't have to pay for maintenance.
What are the three types of rent? ›
Categories of rent
In general one can distinguish three different kinds of rent, which can also occur together: differential, scarcity, and entrepreneurial rent. Differential rent (also called quality or Ricardian rent) arises because of differences in the quality of similar goods or inputs (e.g. production sites).
What is the purpose of renting? ›
Reasons for renting
Financial inadequacy, such as renting a house when one is unable to purchase, i.e "renting by necessity". Reducing financial risk due to depreciation and transaction costs, especially for real estate which might be needed only for a short amount of time.
