There has been a distinct lack of affordable housing in the sales market over the past few years. And with banks and lenders getting more and more wary of who they lend to, and hefty deposits needed to be able to afford a home, it is no surprise that more and more people are renting. In fact, in more urban areas, over a third of the population are renting (and that is even higher in bigger cities like London, that seem to have a housing market all of their own).
Although there may be some people that dream of owning their own home so they can do what they want with it and make an investment, renting really is becoming a natural choice for many people. And in a lot of ways, it does offer flexibility. Of course, getting on your computer to search rent house online isn’t going to be as easy and straightforward as you might think it can be, as nothing is ever a perfect option. But there are some benefits to renting. Here are a few of them, to see what you think. At the end of the day, you know what is right for you and your financial situation. So it would be interesting to hear what you think.
- One of the big selling points is that tenancy agreements can run from as little as six months at a time. So if things really aren’t working out for you, then you can move on. It will mean packing up again, but it is a much quicker process than having to sell up and battle with things like stamp duty if you move every couple of years. So when you don’t need to be tied down to a particular place, the short-term flexibility can be really attractive.
- On a similar vein, if you are renting with someone, whether that be a partner or a friend, or just renting a room in a shared house, it allows you to test things out. If it isn’t going well, then it is much easier to get out of, as you only need to give a small amount of notice to a landlord. If you had bought a home with a partner or even friend, and then things turn sour, it can be a long process to move and split everything up. So like the short-term flexibility being a selling point, it is also helpful if you are not sure who you want to be living with (and a more positive spin could be living with friends and then moving in with a partner. You only have to give notice, not get a solicitor and estate agents involved).
- As we know, the world that we live in has changed dramatically over the years, and even in the last decade in particular. Working patterns have changed enormously, with more people working flexibility or moving around the country (and even abroad), for work. And if you had to buy in every place that you moved to, the added costs could really add up and end up being a fortune! So for professionals, especially young professionals looking to get their career off on a good foot, being able to move around easily is a big plus, and renting makes that much easier.
- There is no getting away from the fact that homes cost you money. But if you are renting, other than the rental payment, you are having much more reduced costs that if you had to deal with every issue. If the boiler breaks, you simply have to report it and the landlord is required to fix it for you. If something else breaks or isn’t working right, then again, that is the landlord’s responsibility to cover it for you. If you were the homeowner and the garden fence gets broken during a storm, then that is all on you. Unexpected costs like that can really add up, and can make homeowners spend the majority of their earnings on their homes.
- Along the same lines, as a renter, you only need to cover the insurance for your items in the home (or contents insurance). The landlord will be the one footing the bill for the home insurance. So that can be a saving too. You just need to make sure that you get a good landlord, or agency that manage the property, so that they do repair things if they break, otherwise it can make it a hard place to live. This can be part of the contract too, so do check that carefully before you sign anything.
- If your work isn’t regular or can change from month to month, having a set budget can be important as you will be able to know what exactly you need to be paying for things each month. And renting, as your costs are pretty much the same each time, can give you some peace of mind about your finances. You are unlikely to get a large unexpected bill relating to your house when you rent. Whereas homeowners can experience high winds and then need their roof repairing (and be the ones paying for it). So knowing where you stand each month can be a big selling point for a number of people.
- On a similar note, there are even some rental properties that will offer an all-inclusive package, where everything is included like your energy bills and your broadband. This can be the case if the landlord has a few properties as it makes things simpler for them. But it even more so helps you to know where you are at financially, as it will only be one payment each month. So for people on a tight budget or families with children, it can help to know exactly what things are costing you, so you can work your money out accordingly.
- Depending where in the world you live, the cost is renting can be pretty high; there is no getting away from that fact. But comparing it to getting on the property ladder and needing a deposit for a mortgage, as well as mortgage repayments and being stuck in a thirty-year long contract, can actually end up being cheaper to rent. Your money is your own, and you can save for the things that you want to save for, rather than scrimping for years to get a deposit, to then be paying a similar amount of mortgage as you were for your rent.
- If you are a single person, then when you buy a house, you are likely to do so alone. But if you rent instead, you could rent and share with other people if needed. That can keep costs down, and in fact, could allow you to live in an area that would be out of the question if you were buying or even renting alone. So for some time at least, sharing a rental property could be a fun way to experience life. Think about a central London townhouse, for example; you could be living the dream (at a much reduced cost).
- Another point about rental homes is that they have to adhere to certain safety standards and guidelines. Your gas meter has to be checked and have a gas safe certificate issued, for example. But if you are the owner, it is on your own back to have your boiler serviced and request a gas safe certificate. If you don’t do it, there isn’t anyone that will chase you (unless you decide to rent your home out). Electrical standards need to also be complied with, so as a rule, you are likely to be in a pretty safe home when you are renting. A homeowner could be living in a home that they bought thirty years ago and have not done anything to it. Although they’re a homeowner, the chances of the home being unsafe are quite high. Homes need to stay relevant and need to adhere to the modern standards and guidelines as they are there for a reason.
- There are so many places that allow for shorter term lets as well. So even if you plan to get on the property ladder, you may rent for a short amount of time until you have found the home that you want. It can even be a good way to decorate or get a home looking as you want it, and renting somewhere short term. There really is a lot of flexibility when it comes to renting; it just depends on your circumstances and what is relevant to you and what works best for you.
This isn’t a post to tell you to not get on the property ladder. But you do need to make an informed choice, and if you want to buy, make sure that you are doing so at the right time for you and that you know the ins and outs of renting and buying. Hopefully, this has helped. It would be good to hear what you think. Have you found any of this to be true when you rent?
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