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Buy vs. Rent -Why Buy? |
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Why Would Anyone Want to Rent?
It used to be that people chose renting as short-term solution because, after all, renters spend their money, month after month, for a home which ultimately isn't theirs. Renting was considered a waste of money. Not so anymore. Many professionals are finding that renting their homes provides them with a degree of financial freedom which usually saves them money.
A few economic factors driving the multifamily surge: interest rates are increasing, homes aren't likely any time soon, new tax rates have changed the structure of deductions, and the cost of landscaping and home maintenance have increased in terms of both materials and labor.
Flexibility remains one of the most compelling reasons to rent. Home owners, on the other hand, must find buyer before they pack up and head to their next residence.
Rent increases for apartments have been kept to a minimum level during the last few years. Those who own homes, however, face either slow home apprecation or depreciation which often reduces the value of homes far below their original purchase prices. Apartment-dwellers may take advantage of such amenities as swimming pools, fitness rooms, and various social activities at no additional cost.
Home owners know too well how their maintenance costs can represent an enormous and unanticipated expense. Although renters occasionally have difficulty obtaining timely maintenance, it's free and available with a single telephone call.
With that money you're probably going to save by renting an apartment, you can indulge in a few extra goodies.
Setting your rental priorities
Identifying your renting priorities will not guarantee that you find the perfect place, but it will certainly help you choose an apartment based on your likes and dislikes. Spending time on identifying what's most important in your next apartment before you go apartment hunting can save you big headaches in the long run. Prioritizing is a simple process of making a list of your preferences and ranking them. Once you have your list, you can apply it systematically to your apartment search. And when you're not leaving alone, you can combines priorities and ensure that both or all of you are satisfied with an apartment.
REMAINING OBJECTIVE. Sometimes we throw up out our priorities based on or intuition. If an apartment is extremely appealing but it missing an essential requirement, you might decide to go for it. Chances are if it feels right, it will be fine. Before you sign the lease, however, step back and try to be objective. Why do your instincts tell you it's the best place? Do you like the landlord better than any of the others? Remember that landlords are on their best behavior when they first meet you. That great landlord could turn into your worst nightmare overnight after you sign the lease.Brainstorm on paper Number the items on your list Apply your list to the rentals you're considering Making hard choices
How Much Rent is Too Much Rent?
Spend no more than 25 percent of your monthly gross income on your rent. The extra money you allocate for rent in a slightly more upscale complex means less money for your other expenses - utilities, loan payments,entertainment, food, and most important, savings.
Here's a short checklist of factors that you'll want consider when checking out a neighborhood.
First-time apartment renters share one thing in common: surprise at just how many hidden expenses they encounter. Here's a brief run-down of some of those hidden expenses - and pre-move procedures - of which many renters either aren't aware, or that they overlook in the excitement and bustle of moving:Is it close to your place of employment? Is the neighborhood safe? Is it close to a good school system? Is it close to a church? Is it close to stores, banks and the post office? Is it close to public transportation? What are the parking regulations (if you own a car)?
Security deposits. Security deposits range frm $100 to a full month's rent; the average deposit is approximately $250. Some apartments require separate deposits for roomates. Credit applicaton fees are generally $10 to $35.
Verifiable income. Verifiable gross monthly income is at least three times the monthly rent. For example, a rent of $500 would require a minimum of $1,500 gross monthly income.
Credit check. A credit check will be conducted by the apartment community or management company representing the community.
Rental history. Any previous rental history will be verified, and mortgage payments maybe included as rental history. Additionaly, some communities are also conducting criminal backgrund checks.
Leases. All apartments require a written lease. Lease terms typically seven to 12 months. Most leases are written for 12 months. Shorter lease terms and month-to-month options often are available at premium rates.
Utilities. Your rent will often include sewer, water trash, and pest control. Gas and electricity are almost always paid separately by the tenant.
Pet deposits. Although many apartment complexes allow pets, they require residents to pay dearly for the privilege of setting up house with Fido. Pet deposits are stiff, and tenants are charged per pet. Deposits range anywhere from $100 to $300 per pet, and either all or a portion is nonrefundable. Some complexes charge additional rent for pets - on top of the deposit. Pet size is commonly restricted to 20 pounds and 12 inches in height, although some communities do allow larger pets.
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