If you’re considering the idea of renting, there are many factors to keep in mind. From the location you plan to rent to the unit you choose, there are many different financial and lifestyle aspects to consider. Whether you’re renting your first apartment or considering renting as an alternative to a mortgage, your unique situation will play a pivotal role in deciding if renting is suitable for you. To help you decide, here are some considerations.
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You Have No Other Option
If your credit isn’t great and your income is limited, renting might be your only option at this time. Many people choose to rent while they work on repairing their credit and building their income. There are even lease management services that allow landlords to submit their tenant’s rent payment records to help renters improve their financial circumstances.
You can also get renter’s insurance to further protect yourself financially. Some rental units cost more than a standard mortgage for a single-family home, but there are cheaper rentals depending on where you are located and the size of the rental. Studio apartments and one-bedrooms are typically cheaper than units with two or more bedrooms.
You Live In A Popular Area
If you live in a popular area, things are expensive! Many people in major cities like Los Angeles and New York cannot afford to buy homes, even with good credit. Instead, they choose to rent. Rental units in these areas are not cheap, but they are much more feasible than paying a mortgage for a house that’s millions of dollars.
You’re Exploring New Locations
If you are moving to a new area, you might consider renting as a way to get familiar with the place before permanently settling down. Some rentals allow for temporary stays and short-term leases.
These options make it more feasible for people who are not yet sure where they want to be within the new area they’ve moving to. Even when you are tied to year leases, this is still a temporary situation, giving renters more freedom to decide what their next step might be.
You Want To Downsize
If you’re looking to embrace minimalism or aspire to live a more simplistic lifestyle, you might also be interested in renting. By renting an apartment, you only have so much space to work with, and you’re not financially tied to the property the same way the owner is. If you like exploring what renting offers, go for it! If you’re traveling long-term in a given area, renting an apartment might also be a good option to consider.
You’re Getting A Divorce
If you are separated from your marital partner, you might look at renting to make ends meet. Renting is cheaper than taking out a mortgage. Divorce will require splitting finances, which may leave you in a less abundant financial situation. In these cases, renting can be a great way to build up your income as you finalize the financial end of things.
You’re Going To College
If you’re starting college, you might want to rent an apartment rather than stay on campus. Renting is a great way to start building independence and financial accountability. Look for apartments close to your college so that everything is convenient for you.
The Bottom Line
Deciding if renting is right for you requires considering what you’re trying to accomplish with your living arrangements. You might rent out of necessity or for a change of pace. Whatever your interest in renting may be, consider it a sure-fire way to live authentically and make the most of your space and financial capabilities.
