Most people look forward to purchasing a home at some point in their life. However, buying a home takes a lot of time, money, and effort. That said, renting is an excellent option for people who want to save money and don’t want the responsibility of owning a home yet. So, let’s go over some of the benefits that renting property gives prospective tenants.
Why Should Prospective Tenants Consider Renting?
While purchasing a home has many benefits, renting a home can offer financial stability and less responsibility. Leasing is an excellent option for prospective tenants looking to save money before purchasing a home. Let’s go over why renting property poses multiple benefits and opportunities for people who aren’t quite ready to shop for houses.
- Less Responsibility
- Saving Money
- One Simple Payment
- Less Commitment
- No Down Payment
Renters have their fair share of responsibilities, but not nearly as many as homeowners. For example, while you may need to call for maintenance requests every now and again, you typically don’t have to worry about completing repairs or renovations. Instead, the property owner is in charge of hiring maintenance and getting repairs done throughout the home.
The responsibility ends with contacting your landlord or the maintenance company for tenants. That said, when it’s time to buy your own home, the duties add up quickly. After all, you don’t have a landlord to contact, and if you’re unable to fix the repair yourself, you could be spending a lot of money.
Another reason people prefer to rent property instead of buying is to save money. After all, you typically only need to worry about one payment per month to cover rent and utilities. Being able to focus on saving money is one of the most significant perks for prospective tenants looking at a rental property.
In addition, the money you can save while renting can help you secure a property in the future. On the other hand, when you own a home, the bills add up quickly, and there are more payments to save for each month.
One Simple Payment
As stated before, when you live in a rental home, you generally only have one payment each month. If utilities are included in the rent, which is common in most rentals, then tenants can focus on only one bill. However, you need to pay for a mortgage, separate utilities, property taxes, repairs, and more when you own a home.
The simplicity of one payment is a huge perk and selling point for prospective tenants who want to save up money for a home in the future.
Another perk of rental property is flexibility and less commitment. For example, you’re typically responsible for a 12-month lease term when you rent a property. However, when you obtain a mortgage, you’re typically committed to paying it off for 30 years.
Renting a home allows tenants to pack up and move after the lease term ends. So whether you need to relocate for work, move closer to family, or explore the world, renters have more flexibility to do that.
No Down Payment
When you move into a rental home, you typically must pay a one-time security deposit equal to your monthly rent. This ensures that property damages are taken care of if they occur while a tenant resides in the home. If no damages occur, tenants can get this sum of money back at the end of the lease.
On the other hand, when you purchase a home, you are required to have a large down payment ready. Typically this equals around 20% of the home’s value, which is a significant expense compared to a security deposit for renters. For example, if you’re looking to purchase a home for $300,000, you’ll need to come up with a $60,000 down payment.
What do Prospective Tenants Look for in a Good Rental?
These days, the perfect rental is hard to find. However, there are certain things that all prospective tenants look for in a rental home. Keep reading as we go over a few factors that make rental homes desirable.
- Favorable Rental Rates
- Up-and-Coming Area
- Desirable Amenities
Favorable Rental Rates
One thing that all prospective tenants are hoping for in a rental is favorable rental rates. Although inflation is making it hard for rental property owners to keep rates low, it’s a competitive market. So, property owners should pay attention to other prices in the neighborhood and set rental rates accordingly.
Another quality that tenants look for in a rental is an up-and-coming area. After all, location is one of the most important aspects to consider when choosing where to live. So, choosing an up-and-coming area to invest in is best for landlords who want to make a profit while offering a desirable rental property.
Finally, the amenities that you offer in a rental property are extremely important to prospective tenants. For example, some rentals offer storage space, on-site parking, fitness centers, and more. The more amenities you offer, the more desirable your property will be to those looking to rent. So, if you’re looking for ways to gain quality tenants, consider thinking like a renter and choosing amenities wisely.
Are There Any Downsides to Renting Property?
Like almost anything in life, there are also a few downsides to renting property as opposed to buying a home. For example, when you don’t own your living space, you undeniably have less control over the appliances, policies, and rental rates. Here are a few reasons people would rather purchase a home than living in a rental property.
- Increasing Rental Rates
- Less Control Over the Property
- No Property Tax Benefits
Increasing Rental Rates
Unfortunately, inflation is unavoidable, especially while coming out of a pandemic. That said, rental rates are rising, which is one of the main downsides of renting. As prices keep going up, renters may be paying similar amounts to a mortgage payment in rent each month. So, keep this in mind while deciding whether to rent or obtain a mortgage.
Less Control Over the Property
Obviously, when you don’t personally own something, you don’t have much control over what happens to it—for example, a rental property. Landlords typically set rules and boundaries over who may occupy the home, pet policies, and other expectations that tenants must adhere to. On the other hand, when you own a property, you have control over these aspects of the home.
No Property Tax Benefits
Investing in a property for yourself creates a ton of benefits. One of the largest benefits for homeowners includes tax benefits. Most homeowners are able to deduct expenses such as mortgage interest, property taxes, and refinancing situations.
Streamline Your Experience With a Property Management Company
If you own a rental property and need help marketing toward prospective tenants, you may benefit from the help of a rental property management company. While homeownership is a goal for many people, plenty of people want to rent until they are ready. So, how can you streamline your rental business to gain more tenants?
Bay Property Management Group is a top-notch leasing team that can help you get the most out of your rental business. You don’t have to worry about tenant screening, maintenance, rent collection, eviction services, and more when you hire us. We’ve got you covered through it all!
Contact one of our Northern Virginia property managers today for more information on how BMG can help you.