1. Renters' Guide: Introduction
  2. Renters' Guide: Tenants, Landlords And Types Of Leases
  3. Renters' Guide: Who Rents Property?
  4. Renters' Guide: Benefits of Renting
  5. Renters' Guide: Considerations When Finding A Rental
  6. Renters' Guide: Living With Roommates
  7. Renters' Guide: The Rental Process
  8. Renters' Guide: Renter's Insurance
  9. Renters' Guide: Trading Rent For Mortgage Payments
  10. Renters' Guide: Conclusion

People who rent property rather than purchase a home do so either out of necessity or by choice. People who rent out of necessity may do so because they are:

  • Saving for a down payment on a house
  • Unable to get approved for a mortgage
  • Required to relocate frequently for work, making owning a house impractical
People who rent by choice – an increasing percentage of the renter population – may do so because:

  • They are attracted to the many benefits of renting including flexibility
  • They wish to downsize and simplify their housing situation
  • Owning a home is not a priority
Retirees
Many retirees sell their homes and choose to rent in order to downsize. In addition, retirees are often attracted to the reduced maintenance responsibilities. As any homeowner knows, taking care of routine maintenance – such as mowing the lawn and cleaning the gutters – and unexpected repairs – like a leaky roof or cracking foundation – are both expensive and time consuming. Many homeowners who have been responsible for the maintenance and upkeep of their homes for many years look forward to handing off those duties during retirement.

SEE: Retirement Living: Renting Vs. Home Ownership

Frequent Travelers
Frequent travelers may find renting appealing because of the reduced maintenance responsibilities and the convenience of having neighbors to keep watch over the empty unit. Additionally, travelers may be able to benefit from amenities like an on-site business center and a 24-hour fitness center.

College Students
College and graduate students often rent in order to move out of campus housing. Renting may offer students more privacy, a more productive atmosphere for studying and the ability to cook their own meals (rather than use the school's cafeteria). Renting may also enable students to bring cars to school (some colleges do not allow students to have cars on campus because parking is so limited), as well as sporting equipments such as bikes or kayaks.

Singles
Individuals may prefer renting because of the simplicity, reduced financial obligations and access to social events. Singles may also appreciate the sense of community and the feeling of security that comes from having many neighbors nearby. In some cases, a down payment and the financial obligation of a mortgage might encourage single people to continue renting.

Young Couples
Young couples may choose to rent while they are saving for a down payment or before they decide on a location to settle down. While many couples continue to enjoy the benefits of renting indefinitely, others may use renting as a stepping stone to homeownership. Like most renters, young couples may also be attracted to the lack of maintenance responsibilities, freeing up time for social activities and work obligations.

Small Families
Small families may be attracted to renting because of the amenities, financial flexibility and the limited maintenance responsibilities. Many apartment complexes, for example, now offer after school care for children, which is a valuable convenience for working parents. Children and families may enjoy such amenities as on-site swimming pools, playgrounds and game rooms.


Renters' Guide: Benefits of Renting
Related Articles
  1. Investing

    The Complete Guide To Real Estate Renting

    Everything you need to know about renting property.
  2. Investing

    Reasons Renting Is Better Than Buying

    Owning a home is much more expensive than renting. Here are the places where the costs differ greatly.
  3. Investing

    Renting vs. Owning: Which is Better for You?

    Despite the conventional wisdom, renting might make more financial sense than you think.
  4. Insurance

    Can You Make Money Renting Your Property?

    Current market conditions may make your home a tough sell. It could be time to consider renting your property until a profitable sale is possible.
  5. Investing

    Can't Sell Your Home? Rent It

    Find out how to profit from your property when the housing market dips.
  6. Investing

    4 Reasons Why Renting a Home is a Wise Decision

    We've all heard that a home is a great investment, but is it really? In this article, we will look at four reasons why renting could be wiser than homeownership.
  7. Investing

    Is Homeownership A Smart Investment Again?

    Homeownership remains cheaper than renting across the nation. However, these findings speak broadly to the national market, and there are several situations where it still makes more sense to ...
  8. Insights

    What is Economic Rent?

    Economic rent typically occurs when a product, service or property is in short supply, but demand is high.
Frequently Asked Questions
  1. What are Common Examples of Monopolistic Markets?

    Discover what causes real instances of market monopoly, how it persists and where monopoly privilege is most common in the ...
  2. What is the gold standard?

    The gold standard is a monetary system where a country's currency or paper money has a value directly linked to gold, but ...
  3. What's the most expensive stock of all time?

    The most expensive publicly traded stock of all time is Warren Buffett’s Berkshire Hathaway.
  4. What is a "socially responsible" mutual fund?

    As the name suggests, socially responsible mutual funds invest exclusively in socially responsible investments.
Trading Center