The housing market is showing signs of cooling down, but prices are still high. If the market has you wondering if renting could be better than owning, you’re not alone. Here are some benefits to renting that you could miss out on when you buy.
No Maintenance Costs
Owning a home or apartment is full of expensive surprises. When the fridge breaks — you’re paying for it. Leaking roof? Break out your wallet. When you rent, you avoid all the repair and maintenance costs that come with owning. To figure out how much you’d spend on maintenance if you owned a home, experts suggest using the “square foot rule.” That guideline says you should save at least $1 for every square foot of your home. If your home is 2,000 square feet, you’ll need to have $2,000 saved — about $166 per month.
Lower Insurance Costs
The average cost of renters insurance is a lot less than homeowners insurance. How much you pay depends on where you live. For example, the average cost of renters insurance in Colorado is $13 per month, but in Georgia it’s $20. Meanwhile, the average cost of homeowners insurance in Colorado is $195 per month and $165 in Georgia. That’s quite a large difference.
As USA Today points out, when you rent a home, you can move much more easily. Sure, you’ll have a lease, but you can plan around that lease and simply not sign another contract. If you own a home, you have to go through the selling process, which can be long and exhausting.