Landlords may miss out on the following benefits when they vacate their rental.
There are pros and cons to renting and owning. Buying a home is a huge life decision, and for many it is a great choice. But it is essential that you think carefully about this choice to make sure that homeownership is the right decision for you. The life of a landlord is slightly different from that of a tenant, and it comes with more responsibilities. I have been a tenant for over a decade, but now I am a landlord. Here are four things I miss about leasing.
1. Less expenses
Rental costs are increasing across the country. But while rental prices can be high, tenants often pay less overall expenses than landlords. Most tenants pay their monthly rent plus utility charges. Some rental properties also charge fees for pets, parking, activities, and amenities. But owners usually cover many other expenses that are the responsibility of the owners.
Property taxes are a major expense. This cost is unique to homeowners and taxes can be high. Mortgage insurance is another added expense for homeowners who haven’t made a 20% down payment on their home. Some homeowners also pay a Homeowners Association Fee (HOA). All of these additional costs can easily reach several thousand dollars a year.
2. Don’t worry about the financial impact of repairs and maintenance.
As a tenant, you are not responsible for repairs or maintenance. This creates a generally carefree life situation. When you own a home, you have to take care of it. If you don’t keep your home in good repair and take care of necessary repairs, minor problems can turn into costly problems. Ignored issues can also result in a lower property value.
Homeowners should be prepared for repair and maintenance costs. They can do this by opening a savings account and regularly depositing money for future expenses. Without adequate savings, finding a way to finance expensive home repairs can be stressful.
3. Cheaper insurance costs
Insurance is essential, whether you are a tenant or an owner. If you don’t have a policy, it’s a good idea to purchase coverage. Without insurance, you could find yourself in a difficult position when an unexpected situation arises.
I have had both tenant insurance and home insurance at different times in my life. I have found that I pay a lot more for home insurance than for tenant insurance. The higher cost makes sense since home insurance includes coverage for the house itself and the personal belongings inside. But you will have to budget for this additional cost.
If you’re thinking about buying a home soon, compare insurance options so you don’t overpay for coverage. To get started, check out our list of the best home insurance companies.
4. No need to handle repairs, maintenance or yard work
The rental buildings I lived in took care of all the repairs, maintenance and gardening for me. I never had to worry about a problem or keeping up with tasks like mowing the lawn or clearing snow. If a problem arose, I requested maintenance. Now that I am the owner, I am responsible for planning the work and paying for repairs.
When you own a home, you will need to plan repairs, maintenance, and yard and property work yourself, or you will need to hire someone to take care of these tasks for you. Even if you don’t plan to meet the maintenance needs yourself, you will need to find qualified, trustworthy and reliable professionals.
Whether you are a tenant or an owner, your living situation has advantages. But if you are thinking about buying a house, first think about how your life is going to change. You want to make sure that you are prepared for the additional responsibilities, including the financial obligations of home ownership. Are you starting the home buying process? These are the best mortgage lenders to choose from.