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The Financial Benefits Of Renting A Home

Renting a home or an apartment can be a great step toward independence or, perhaps, even to save a bit of money. Not everyone can afford to drop around 540,000 USD, the average price of a Portland family home, which is why renting is great for many individuals and families. The average sized apartment is around 765 square feet; usually for people wanting a one bedroom apartment. However, studios are the most affordable while remaining slightly smaller, renting 2 and 3 bedroom apartments can be more costly while offering much more space. Houses can also be a great option for someone looking to rent; with the best part the fact you don’t have to worry about neighbors sharing walls.

There are so many great financial benefits of renting and The Lindley Team are here to help you find the right place for you. Although, within the past year or two, there has been a spike in people needing assistance with their bills. We don’t want anyone to be thrown out in the streets because of a sudden job loss and are offering people the chance to acquire one of our potent financing options. Contact us if you want to learn more about how we can do this or to see what we have available.

Best Place To Rent From

Buying a home is a massive milestone but there might be reasons why you can’t achieve this and there’s nothing wrong with that. There are many reasons why renting is the chosen option for a huge percentage of the population, especially certain financial obligations. Other people don’t like being hunkered down in one location for too long and, with the overwhelming shift to working remotely and the skyrocketing home prices, renting has never been more popular. However, choosing the best place to rent can be quite difficult if you don’t know what to look for.

We have put together this list of factors to be aware of; almost a checklist of elements to be aware of. Your number one concern should be whether or not it is safe to live in. Some places may have a lobby you need to go through and a key to unlock the entrance but there are businesses who can’t be bothered to fix these locks. The lack of security can increase your chances of being in danger, however, there are any number of rentals who do their best to make you feel safe if you know where to look. 

This also includes going out at night. In Portland, Oregon, many people walk or use public transportation to get to their destinations and use this as a time to think about things or explore the city. See how it is to walk around at night and whether or not it’s a safe place to be during this part of the day. Things can always seem safe and secure during the daytime hours, which is why location is important. You want to make sure you can get to work without spending days in traffic or be too frightened to experience the social scene of the city. 

Parking can also be quite difficult to deal with, especially in big cities like Portland which is why a place with a designated parking place for your car while you rest at home is important to find. Walking a mile to and from your car can be a huge hassle, but, fortunately, most properties have a space reserved for tenants. You should try to find a place with covered lots or a booked garage under your name to prevent any potential problems from forming. 

You should also make sure all of the utilities are working and payment arrangements are clearly defined. There is no reason you should have to visit the nearest restaurant to go to the bathroom until the handyman decides to make an appearance nor should you have to sit in the dark because it isn’t business hours. Most places will have a handyman you can call but make sure this is the case. Even something most people take advantage of, like a HVAC, may not be available in some places; causing you to buy your own appliance to keep you comfortable during the harsh weather conditions.

You also need to make sure the walls, ceiling and floor are in good condition because some landlords, as you can’t readily see inside walls, will try to pass this off as in good repair. They might try to hide chips or mildew damage while you do a speedy look through only to find these issues when you finally settle in, at which time you will be responsible. Thoroughly examining every portion of an apartment will prevent this situation from appearing later on. There are overwhelming benefits to renting a home or apartment though. Let’s talk about those.

Advantages Of Renting A Home

Don’t feel discouraged about coming up financially short when purchasing a home as renting can be the ideal way to save money and avoid maintenance issues that come with home ownership. For instance, renting is substantially less expensive in up front costs. You usually have to pay for first and last month’s rent and a deposit, but you don’t have to deal with title transfers, agency fees, closing costs, home inspections and so much more. However, there are a few more, even larger, financial perks you should be aware of when it comes to leasing or renting a home.

Flexibility To Move

Sometimes, a job or relationship opportunity in another city or state presents itself and it would be completely illogical to turn it down. Renting, as opposed to purchasing, will allow you to more easily pack up your belongings and leave. There is no long-term commitment to renting an apartment or house. Sure, most leases run for an average of a year but you can get out of these contracts with the right negotiating. You won’t have to figure out how you are going to sell your home in order to live in a different city or state. Additionally, if you like to travel from city to city then there are leasing options available for month-to-month contracts and it’s still cheaper than a mortgage.

No Maintenance Or Repair Costs

One of the perks of renting a property is being able to go about your time without having to spend money on maintenance or repair costs. Having to fix an HVAC system can be quite pricey when owning a home but, usually, in your rental contract is a business you can contact to help you. These companies are specifically contracted to fix your apartment and understand all of the problems capable of appearing so they are always prepared. 

Being familiar with your property, they will always have all the right tools and parts ready to fix any issue. If your oven breaks then you can call them and get a new one, or at the very least, get it repaired. If there are issues with your plumbing, simply call and have it fixed. They will even provide you with new locks if yours starts to malfunction. With the right rental, you’ll never have to worry about another repair.

Lower Utility Costs

For the most part, utility costs are going to be lower if you live in an apartment. Houses are drastically bigger than a 700 square foot apartment, which means that apartment takes less energy to heat and cool down. What’s more, some places will even throw in some of the utilities into your rent so you can pay a fixed rate for these costs. You’ll be able to save money in the long run and can spend it on other things you may want.

Free Amenities

One of the perks of living in an apartment complex is that you have many “free” amenities. It may be included in your rent but it prevents you from having to pay third party businesses for their use. Many properties will have a gym for people wanting to work out but who don’t spend the extra money and extra time going to an outside gym. Or perhaps you love to swim, finding a property that has a pool as an amenity would be a plus.

Often, it is safer to live in apartment complexes as they have security systems and features that the average homeowner can’t afford. These security features can include a gate you need to have the key or passcode for, various cameras spread throughout the property or a security guard stationed in the lobby. Don’t have a washer and dryer? No worries, many apartment complexes offer a laundromat, making doing laundry simple.

Lower Insurance Costs

As you purchase a home, you also need to decide on a homeowner’s insurance to ensure you are covered in case of a natural disaster or a man made complication. Thankfully, for people renting out an apartment or house, they only need to pay renter’s insurance and it is drastically cheaper than what homeowners have to deal with. This contract can cover your furniture, rare antiques or expensive television set. 

No Hidden Costs

Finally, are the most beneficial parts of not owning a home yourself. For one, you don’t have to pay the government any taxes in relation to the property. Property tax is meant for people who own a house and the tax is determined by determining the estimated value of the property, but the rate can also vary depending on state. There are places in Hawaii where property tax is around .28 percent of their property’s worth while people in California are taxed as high as .71 percent. However, the average annual property tax bill people will probably have to pay is around 2,471 USD. But, people who are renting don’t have to worry about this since they are just renting the property.

One of the most frustrating things to deal with as a homeowner is the HOA (Homeowners Association) since they make demands when you live within their boundaries. Some of these restrictions can encompass what you put on your lawn, how tidy your lawn is or even the color of your home. One of the best parts of owning a house is being able to personalize it to your tastes, but not when there’s an HOA involved. 

There are also some people who don’t qualify, for whatever reason, for a mortgage to own a home. Being denied a mortgage puts most of the financial burden on you and not many can afford a house in one payment. Additionally, even if you do get approved, your interest rate and monthly bill can far outweigh what you are comfortable spending. This is why, if you are serious about buying a house, you should consider reaching out to The Lindley Team. They have many desirable options; conventional financing, government financing, jumbo financing and mortgage refinancing.

Nonetheless, when it comes to renting an apartment or house, you don’t need to come up with a huge down payment to be noticed and trusted. Renting an apartment only requires your monthly payment and a deposit, but you will usually get your deposit back when you move out; as long as the apartment is clean and there is no damage. A down payment may only be a few percentage points off of the asking price of a home, but 2 percent of 540,000 USD is still a whopping 10,800 USD, which is more than most homeowners looking for a house in Portland are wanting to spend. 

Many people derive great pleasure in caring for a garden or lawn but most dread having to wake up early to mow their grass. No need to worry, when you rent there is no yard work required. That being said, many rentals allow you to keep plants indoors or provide a communal garden all of the tenants can use. Sure, you can hire a landscaper for your new home, but this can be costly, which is just another reason why renting is preferred for those with a brown thumb. 

Even something as inconspicuous as the roof can be something many homeowners aren’t prepared to spend money on. Many people just don’t even consider their roof and think it will hold forever, but environmental impacts can be harsh and extremely damaging. This can cause significant damage to your personal property and home if left untreated. People who rent don’t have to worry about this since the landlord will usually call someone when repairs are needed. Altogether, there are many reasons you would choose to rent a property over buying a home. But, it ultimately falls upon what you are looking for and wanting to sacrifice.

Contact The Lindley Team Today!

Don’t feel bad about not being able (or not wanting) to afford your dream home. There will be many opportunities lined up in your future. Renting a property may be the best option for you right now and that is fine. Millions of people are in this same situation, which is why there are some mortgage lenders who can assist you if you happen to lose your financial stability. The Lindley Team is a group of professionals who understand many of the complications people face when it comes to homeownership and finances. Contact us if you have any questions about how we can help you or if you want to schedule a consultation to discuss your living situation.

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