Rental homes are odd, if you think about it. You live in and grow attached to a house for rent, spending enough time there to eventually call it “home.” Yet, with houses for rent, you’re paying hundreds — maybe even thousands depending on where you live — just to stay there. That place is no more yours than your cubicle is.
So then, why rent a home, when you could reasonably be paying on a mortgage? That way, you do get to eventually own the house, after all.
Rental homes’ tenants are responsible for two things: rent, and utilities. That’s it. Homeowners, however, have to take out massive home loans, which take years upon years upon years to pay off. Rental homes won’t set you back hundreds of thousands of dollars, and won’t strain your credit and budget. So while rental homes aren’t quite a long term investment, they’re excellent for people who need more economic flexibility.
The responsibility to care for the house is on the owner’s shoulders; not yours. When the basement floods from a burst pipe, or when there’s a leak in the ceiling, or when a window breaks, it’s the homeowner who has to pay and replace it; not you. Were you to own the house, those repair fees would be coming out of your own pocket, throwing hundreds or thousands more on to the mountain of debt you already have from the loan.
Lots of Freedom.
With economic flexibility comes freedom. Most rental homes have six month or one year leases, which means tenants are only legally bound to stay there for that long. In the event that they have to take an extended absence, they can sub-let. Homeowners, on the other hand, have to stay in their house. It’s financially unadvisable to abandon an investment that costs hundreds of thousands, and even if homeowners were forced to move for medical or family reasons, they’d then have to go through the whole buying and selling process again. All you’d have to do is find other rental homes you might like to move in to.
If you’re still unsure whether or not rental homes are for you, then you may want to look into rent to own homes, which might be what you’re looking for. If you have any questions about the benefits of rental homes, feel free to ask in the comments.