There are many reasons why people opt to rent or lease instead of buying a property. Though it doesn’t necessarily mean that tenants do not own any property at all. Some could be property owners already but staying on a rented condo or aparment unit. There are lots of reasons why, carefully check the benefits of renting below:
Benefits of Renting or Leasing
1. Saves you money
You can choose a place anywhere that’s nearest your job or school site. This way you saved on transportation or travel cost, especially if the spot is just a few steps away from your flat.
2. Saves you time and energy
You’ll have more quality time with your family, personal activities and makes you more productive at home or at work.
3. Freedom in choosing your community and neighbors
When you moved in to your newly owned house, that’s the only time you will be able to discover what exactly your community is and who your neighbors will be (and hoping it’s not a big regret!).
Unlike if you’re simply leasing a unit, you can look for another and go out anytime if you don’t feel like sticking around there any longer.
4. Low cash-out needed
The standard cash you need to shell out is equal to three months of rental rate, which will be your two (2) months deposit and one (1) month advance. Other landlord demands for four (4) months, but others are more lenient by asking for just two (2) months.
Example:
₱ 10,000.00/month (rental rate) x 3 months deposit = ₱ 30,000.00
₱ 10,000.00/month x 2 months deposit = ₱ 20,000.00
Security deposit for utilities might be required too, but you don’t have to shoulder the installation fee for the electricity and water meter connection.
The usual security deposit being asked in advance is equal to your 1-month bill in each utility.
Example: ₱ 1,500.00 (Electric Bill) + ₱ 250.00 (Water Bill) = ₱ 1,750.00
Note: Deposits are refundable, provided you don’t have any unpaid rental fees or bills, damages to fixtures and/or property, and depending on contract’s disclosures.
5. Less expenses upon unit turnover
If you prefer a lower total contract price (TCP) for the house or unit you are buying, you will settle for a bare type instead of a complete type unit (if not availing the fully furnished option). This implies you have to shell out for the building materials and labor costs, which needs a bigger sum of money or else you will be paying the monthly amortization simultaneous with your rental fees.
Application of the electricity and water meter’s registration shall be shouldered by your landlady as well, so you don’t need to worry about that, once you occupy the unit it’s all ready to use.
6. Lower maintenance and replacement expenses
Since you do not own the unit, your landlord will shoulder the expenses on some required damage repairs and maintenance depending on the conditions agreed upon in the contract by both parties.
7. Tax-free
You don’t have to worry paying the real property taxes incurred by the unit since it’s the owner’s liability.
For other helpful posts about real estate, you may also check on this site:
http://www.pottersplacerealty.com/category/resources/
This is good only when you are young. When you get older, it’s best to have your own place so you won’t have to worry about rent and you always have a roof over your head
I agree with some of these points.
But if you can afford just build a house so that you don’t have to worry about rentals
This post is super helpful. Making it very useful for those who are scouting for some places.
Wow it was quite interesting to know more about this..Do agree with some of the points..well Thanks for sharing these benefits..Great work..
When I worked in Sitel Ortigas I rent a dorm near to my working station and it helps me to save money but unfortunately I decide to go home because I miss mom laundry my clothes HAHAHHAH. Awesome post.
There’s definitely pros and cons to renting. It depends on so many factors.
Renting apartment can save money in many ways. But my daughter says, she had no rates to paint what color she wants in her apartment room. She hates it. Lol! But she enjoyed it because its near on her work.
Renting your own place is so important if you can do it. Such a great sense of independence and accomplishment!
I think I miss from renting is not having to worry about the upkeep. Something goes wrong and you just call the landlord!
Thanks for sharing the benefits. I’ve never tried renting an apartment, but we never know, I might do it someday. 🙂
I loved the flexibility of renting an apartment when I was younger. I often rented seasonally because I was back and forth between Vancouver and the Caribbean.
My daughter lives in an apartment. She prefers not having a yard to mow and enjoys several of the benefits you’ve mentioned.
There really are some great advantages. I sometimes miss renting.
We lived in an apartment before kids and enjoyed it.
Renting has a lot of perks and you’ve mentioned most of them! I love how it comes with lower maintenance.
We are renting and for 4 years now we still loves the place. Convenience and accessibility are our main concerns.
I am so agree that renting an apartment is such a great solution especially when you change your work places very often.
Most of my adult life I lived in an apartment but I appreciate a small home. We bought a home several years ago and I enjoy it a lot. It is a good investment too.
I owned when I was younger, but I sold up to live halfway across the world. I’ve saved so much money renting for the last 20 years and I’m not tethered to one place!
I am renting at the moment and it is great information for me when I make the decision to buy a house.
wow! amazing pros for renting an apartment although i don’t think an apartment is fitting for a family
There are definitely pros and cons to both renting and owning a home. For me, I chose to rent for a long time simply because I was moving quite frequently to different towns and areas of the city here following my jobs. It wasn’t until my husband and I found an area that we could see ourselves staying for a long time that we entertained the idea of settling down.
After having to replace my fridge today, i am ready to start renting! So frustrating how the costs of home ownership add up!
There are definitely pros/cons either way, depending on life’s circumstances. I’ve rented when it worked for that stage in my life, now I own.
These are all really good points. I loved living in an apartment when I had one. There are some great things that do come out of it.
Yeah, renting an apartment is good (for months) but not for long-term (years). What I don’t like about it is not having a freedom to redecorate the apartment.
I have been a homeowner for many years now. Although it may take more money up front, I have more than made that money back over the years. There are pros and cons of both renting and buying. It is a very individual decision based on goals and current needs. These are some good points.
My parents have rented their house, so I definitely know the benefits. They have been in transferable job, so it was essential for them to rent the house out
If I lived in a city, this would really apply to me. I live in an area where the housing market and land values are pretty good for a buyer. I love the info you gave because it does help those who are contemplating between the two!
Although I liked renting form our previous landlord, I’m glad that we bought our current house. It’s saved us quite a bit of money in the long run & we’ve been able to do what ever we want.
I am also renting out right now but I am planning to buy my own house soon. This gives me an idea to weigh the cons and pros. especially that paying the property tax – I need to research more about this. Thank you!
I’m very lucky because I am doing a rent to own with my parents, and it’s a home I could NEVER afford on my own. So it works out well1
I’m actually planning on moving into an apartment with my family, and this article has helped me clear my mind, thank you for sharing these with us! <3