Everything You Need to Know About Rent to Own Homes

Sometimes, mortgage is not the best option for you right now. This is when rent to own homes can be a perfect way to gain home ownership in a non-conventional way.

Kitchen,luxury home,construction,real estate,free pictures - free ...

Rent to own homes are a popular concept these days because it gives people an opportunity to come a step closer to their dream home.

In this article, we will tell you everything you need to know about rent to own properties to help you make an informed decision.

What are rent to own homes?

Rent to own homes are lease options that give you a choice between buying the property or a requirement to buy it at some point in the future. The rental payments paid towards these homes include rent and funds that partially contribute towards a down payment in the future. If your credit scores are not up to the mark or you do not have the finances to pay for the down payment right now, then you can use this opportunity to hold the property till you do.

How to find a rent to own home?

Rent to own home is not usually find on the listings because they only happen under very specific conditions, such as:

  • When the owner is unable to sell the property even though it has been on the market for a while. In this case, they may list the property as rental with a rent to own option.
  • If the tenant is happy in their home, but the landlord wants to put it on the market, then the tenant may request them to have a rent to own agreement.
  • If a certain property has been on the market for a while, then a home buyer may approach the seller with a rent to own offer.

If you are trying to Find Rent To Own In Edmonton, then you can either start looking at rental listings that come with this option or a sale listing that has been around for a while.

How does it work?

Here is how the rent to own homes work:

  1. You sign an agreement with either of the two options: There are two types of agreements for someone who wants rent to own homes – a) a lease agreement with an option to buy which gives you the right to buy the home at end of your lease but it is not an obligation. But be prepared to lose all the money you paid for the rent; b) lease with purchase agreement makes you legally obligated to buy the property at the end of your lease. However, before you sign up for this contract, make sure you have a home inspection done. You may also want to get pre-approved mortgage to ensure that you will qualify for a loan when the time comes. 
  2. The purchase price is decided by you and the landlord: The purchase price of the property is negotiable and set up front. Traditionally, this price is determined by the real estate agents who negotiate on your behalf. However, agents rarely every get involved with rent to own home transactions because they have no way of getting paid until the home sale concludes. Therefore, you must do all the research and legwork before discussing prices with the landlord.
  3. You have to pay an option fee: While this fee is negotiable, it is mandatory as well. The option fee can be anything between 1-5% of the purchase value that needs to be paid up front. It is one-time and non-refundable fee that gives you the option to buy at an agreed upon price in the future.
  4. You decide the duration of rental term: At the end of your rental, you should be in a sound financial position to buy the home. The rental agreement can be anything from one to three years, depending on how long you need to sort your finances and be ready to qualify for a mortgage. 
  5. Maintenance roles should be defined: Since rent to own homes are a unique situation, the tenant and the landlord are both obligated to maintain the property and keep in good shape until the ownership is transferred. So, be sure to iron out these details in advance.
  6. Your monthly payments cover down payment and rent: You can discuss with your landlord to define these monthly payments that are usually 25% to 30% above the market rent. This additional payment is applied towards your future down payment.

Whether you are in a rent to own home situation or a regular rental, keep an eye on your finances to make yourself eligible for a mortgage down the road.

Author: Eernesto T Felder

How to avoid Real Estate Scams

Our real estate portal can be a great way to find somewhere to rent, to buy a cheap property or to sell your house. But with any online space there’s always a risk of hoaxers being active and attempting to trick you.

With thousands of live ads at any given time, it’s hard for our real estate websites to stop every fake ad or block every fake user instantly. Therefore, being aware of what to look out for is a big help to avoid real estate scams.

What does a Real Estate Scam look like?

Real Estate scams trick potential buyers or home sellers into thinking they are dealing with a legitimate contact but it is actually a scammer.

Unfortunately, there isn’t just one method that fraudsters use.

For Sellers

So far, the only known scam on our website are fake enquiries. This means someone sends a message to the advertiser through the contact form on our website.

Once the advertiser replies to the enquiry the scammer can use his email contact to spam him with emails.

He might tell a story of “being a soldier in Iraq that likes to invest in your country” or “being the widow of president so and so who likes to move to your country with all her millions”. Stories like that definitely ring a warning bell.

We also recommend that you discontinue communications with the enquirer if he/she:

  • doesn’t want to travel to see the property or asks you to come and see him
  • wants to buy the property for a higher price than asked
  • likes to know your bank details or to wire funds via money transfer services
  • wants to pay in advance

For Buyers

As we have no way to check the authenticity of an advertised real estate, we recommend caution before giving sensible information to anyone you don’t know. This is standard online practise.

Scammers will usually pose as genuine sellers and post fake ads. That’s why they are very difficult to spot.

The ad can be for anything, rental properties or real estate for sale. Most probable, it will even include pictures and other details – maybe copied from a genuine seller’s ad.

We recommend that you discontinue communications with the seller/landlord if he/she:

  • asks for rent payments or deposits in advance
  • seller claims to be unavailable and insists on payment before you can inspect the property
  • seller is very interested to get all your personal data

Also, if you are still not sure, you can do an internet search using the exact wording in the ad, many well-known cheats can be found this way. If the advertiser is a real estate agent you can also look up his business information to see if he is legitimate.

How to protect yourself from Real Estate Scams

Being informed about possible dangers in itself is already a protection. It helps you to be cautious and to look out for warning signs.

We all heard this many times, if something sounds too good to be true, then it probably is.

We focus on advertising cheap properties for sale our website, therefore many times it looks too good to be true. But of course, that does not mean they are fake ads.

A good indicator is to search for similar properties for sale in the same location. Also see if the real estate needs major works. You might be looking at a fixer-upper. Only if the price seems far lower than the competition you may question its authenticity. Often the reason for one real estate being cheaper than others is its condition, location or legal problems.

Use a safe legal procedure to buy Real Estate

Fortunately, most countries have a certain procedure in place when it comes to buying properties.

This makes it almost impossible to go through with a Real Estate Scam until the end. For example, in many countries it is mandatory to use a notary or lawyer to deal with the sale. Even if the seller requests a deposit as a down payment before the sale, this can already be handled through a trust account of a notary.

Sticking to the official process is a simple and very effective way to safeguard yourself against real estate scams.

How to report a Real Estate Scam

Have you spotted a fake ad on our site? Please, drop us a quick message in our contact form.

Do you like to report a scam? Depending on the country you are from there might be different places that are best for you to report the scam.

Here are just a few

Australia – https://www.scamwatch.gov.au/report-a-scam

UK – https://www.citizensadvice.org.uk/consumer/scams/reporting-a-scam/

USA – https://www.usa.gov/stop-scams-frauds

How to Save Money When You Own a Home

Owning a home is a smart investment that allows you to build wealth and equity for yourself. It gives you the freedom to live and decorate how you want on your own property, a far cry from the typical rental experience. That said, it can also be financially demanding in a variety of ways, some of which you may not find out about until after you close escrow. In order to maintain your financial stability, you may be searching for ways to reduce your homeownership costs. To figure out how you can reduce your expenses, we must first look at some of the most troublesome areas in your homeowner’s budget. 

Some of the largest expenses of homeownership include:

  • Mortgage payments (and mortgage insurance): Mortgage payments are based on the cost of the home, your credit score, income, type of home loan you have, and more. According to the latest U.S. Housing Survey, the median mortgage payment is $1,100. 
  • Property taxes: Property taxes are required for state and local taxes. Property tax is based on the value of your home and is determined by an assessor. These taxes are used to fund programs and services within the city or county you live in. Property taxes can range from several hundred dollars to several thousand.
  • Maintenance and Repairs: The need for maintenance and repairs is an inevitable aspect of homeownership. While some may be on the cheaper side (insulating the attic), others can throw a wrench in your monthly budget (pipes bursting). According to Discover, you should plan on setting aside 1% of your home’s value per year to go towards repairs.
  • Utilities: From keeping your house cool during summer to enjoying hot showers after a long day, not to mention having the family stream all day, utilities can add up. Combined, utilities can cost upwards of $300 per month.
  • Homeowners association fees: In some communities, HOA fees are required in order to help maintain the operations and aesthetics on behalf of residents. According to Investopedia, these can average around $200 a month, but can be as high as $700 per month. 

Whether you are a new homeowner or have had your family home long enough to have raised your children in it, saving money in any way you can, can lessen the burden of homeownership substantially. While it might seem difficult—let’s face it there are many costs of homeownership that aren’t so flexible (HOA fees and repairs)—there are a variety of ways to save money when you own a home, starting with these 3 tips. 

#1: Refinance or Pay Off Your Mortgage

Mortgage payments are likely one of the biggest expenses in your monthly budget. Depending on your mortgage terms, you may be able to save money by refinancing. If you are in a better financial position when you refinance (like having a significantly higher credit score), you can qualify for a lower interest rate. Lowering your interest rate can save your substantially over the lifetime of your mortgage.

However, if a lower mortgage payment isn’t sufficient to help with your financial situation, you may also want to consider a reverse mortgage. Reverse mortgages, like those offered by GoodLife, are loans available to senior homeowners who need to supplement their retirement income. If you fall into this category, this type of loan may allow you to pay off your current mortgage, so you can eliminate it from monthly expenses.

#2: Reduce Your Property Tax Bill

While property taxes can vary significantly by state, and even sometimes by county, they are still a notable cost that virtually every homeowner has to pay. According to WalletHub, the average property tax bill in the U.S. is $2,279. For some homeowners, like those who live in states like New Jersey or Connecticut, property taxes are more than double the average.

Whether you live in a state with high property tax rates or considerably lower property taxes, you can benefit by finding ways to save when tax season arrives. There are several ways you can save on your property tax bill: 

  1. Exemptions: Exemptions can apply to a certain group of individuals, such as senior citizens, or a percentage of the property. For example, some states exempt a portion of the home’s value from taxes. 
  2. Deductions: Deductions are a tax benefit that reduces your taxable income, and in turn, lowers your total tax bill. Some common tax deductions homeowners qualify for include mortgage interest and insurance, property taxes paid (on your home, land, or a rental property), and home equity loan interest.
  3. Credits: Credits are a tax benefit that directly reduces your tax bill. There are a variety of tax credits that may apply to property owners such as energy efficiency credits and local tax credits. 

If you’re unsure of whether you qualify for one of these tax savings methods, you may want to speak to a tax professional who can help you make that determination. 

To avoid large increases in your tax bill, make sure to do research before making additions or upgrades to your home. For example, adding a pool or expanding the size of your home may increase the value of your home, meaning higher property taxes.

#3: Make Your Home More Sustainable

According to Move.org, the average cost of utilities for U.S. homeowners is $398.24. This includes: 

  • $110.76 for electricity
  • $72.10 for natural gas 
  • $70.39 for water
  • $14 for trash and recycling
  • $85 for cable TV
  • $60 for internet

If you’re looking for long-term ways to save money as a homeowner, making your household more sustainable may be an effective way to cut down on your bills (now and in the future). From lighting and appliances, to more eco-friendly materials, you can use sustainable alternatives to save money and reduce  your household’s carbon footprint at the same time. 

While it might be hard to see how this would be an effective way to save money on your home when you’re making a substantial financial investment, the savings you’ll see over time is well worth the trade-off. And, with more and more of these solutions available, the more affordable options there are. If you don’t have the money to invest in making these changes on-hand, there are special types of loans that can be used to make updating your home possible. 

Some examples of ways to create an eco-friendly home include:

  • Installing solar panels
  • Switching to a low-flow toilet and faucets 
  • Using a smart thermostat
  • Upgrading your insulation 
  • Adding ceiling fans 
  • Updating lighting fixtures with energy-efficient bulbs

If you’re not sure where to start in your home, determine what utilities are costing you the most and start by taking steps to integrate more energy-efficient solutions in your home.

Start Saving

While it might seem like a lot of effort, even implementing one of these strategies can have a big impact on your budget. Finding ways to cut down on your expenses in these three areas can also help you start a fund for the inevitable repairs and maintenance over the years, college savings, or retirement planning. Whether you are simply trying to live a more frugal lifestyle or have specific savings goals, navigating the expenses that accompany homeownership can help you make the most of your investment.

Author Bio

Alexis Maness has a Bachelor of Science in Integrated Marketing Communications and is a contributing editor for 365businesstips.com. As a professional content writer, she has over five years of experience and is a contributing writer for several San Diego magazines. Alexis specializes in topics related to business, marketing, finance, and hospitality and tourism.

Pandemic House Hunting: What To Do

Since the COVID-19 pandemic started, most industries slowly (or abruptly – depending on the industry) came to a grinding halt. Adjustments for the new normal had to be made for businesses deemed essential. Meanwhile, more frivolous ones have no choice but to wait until everything blows over.

How is real estate faring while all of this is going on? Are people looking for a new home going to have to shelve their future until further notice? The good news is that there are practical ways to adjust to this situation without compromising your health and others’.

Do shelter-in-place research

Like most businesses, real estate all over the world has turned to digital means to keep going during lockdowns and quarantines. Now is the actually best time to do your “home” work.

While you are sheltering-in-place, go online and do some research.

  • Bookmark reliable real estate sites, blogs, forums, and social media pages.
  • Use choice keywords to narrow down your search for the following factors:
    • Locations – Google Maps is a great tool for scouting locations.
    • Neighborhood – Areavibes.com is a good way to check the safety of the neighborhood.
    • Dimensions
    • Price range
    • Proximity to schools and businesses
    • Amenities
    • Yelp rating
    • and other factors to help you determine the best possible candidates for your future home.
  • Lookup reputable Property Managers to help you fine-tune your search and provide a pre-approval list.

Go on virtual house tours

Plenty of real estate agencies currently feature virtual house tours using creatively edited videos and slideshows to highlight the properties’ best assets. This is when you can fill in your research with visuals and see if everything is a good fit for what you’re looking for.

These properties are ones where you can go on a virtual tour, and end up getting a good idea of their important aspects:

  • A house tour that offers a 3D walkthrough experience where you can navigate the interiors with ease (like you are in an actual showing).
  • Properties that allow 360° virtual tours so you can “see” all the corners and areas typically not show on traditional slideshows and picture galleries.
  • A virtual tour or “unboxing” of new properties where a presenter does the touring and describes the look and feel of each room and amenities for you.
  • Home and property tours that also give visual information while you “tour”, as if an agent is walking and explaining things right there beside you.

Does the house have the kind of curb appeal you want? Is the layout making the most of the property’s floor plan and dimensions? Is the neighborhood quiet, clean, and offering the kind of convenience you need? Are there unexpected features like sophisticated finishes, natural lighting, a garden, and other factors that other properties do not have? You can go on as many virtual house tours as your heart desires to look for that perfect house (and all its amenities) today.

Avoid red flags

Here is a section on what not to do. Since it has become easy to window-shop for properties with a few clicks, it has also become easy to get scammed by shady real estate agents hard-selling iffy properties. So as not to get conned, consider the following red flags and do your best to investigate (or avoid them altogether):

  • There is no video tour or even enough pictures to give you a clear idea of how the property looks and feels like.
  • If there are pictures or a slideshow, the dimensions are exaggerated or warped.
  • The location leaves much to be desired – such as near busy, noisy roads or somewhere with an unsavory reputation.
  • It has recently been renovated after a disaster – and is back on the market right away.
  • The house has been listed for sale for quite some time (and nobody seems to be interested).
  • The price tag seems too good to be true.

Consult with a reputable Property Manager

A Property Manager can help you fine-tune the research and home tours you have done so far. They are professionals who are well-versed in the language of real estate and all of its requirements. They can help you come up with a list of what to accomplish prior to the actual viewing and purchasing of your future home.

Look for a Property Manager with experience in crisis situations and have exhibited adaptability in seemingly unforeseen circumstances. Those are the best ones who will have your back no matter what. They can help you with controlling costs and negotiating contracts to your favor. And given the current situation, they will insist on safety and health protocols for everyone involved – and not jeopardize it with haphazardly thrown-together site viewing and hard selling.

Fortunately, everything can be found with just a series of clicks. You can look up Property Managers with impressive portfolios and impeccable reputations with just a few keywords and reviews. Now more than ever, the Internet is your best tool for preliminary house-hunting. Use it freely to your advantage.

Bio: Elisha Finman is an experienced RE executive proficient in operations, finances and team building. His track record includes managing a portfolio of New York City multifamily residential buildings. Skilled in all areas of RE management including setting rents, leases, collections and legal, evictions, violations hpd-dob-ecb, building maintenance and instituting cost savings and efficiency measures.

A cheap pool for your home

Summer means pool time. For many of us, a pool is the epitome of having a good time. Especially in summer holidays a pool is one of the things we don’t want to miss.

But if you usually visit a public pool or leisure centre, that might not be an option right now. On the other hand, building your own pool at your home is a big and expensive venture.

As we have around 39ºC (102ºF) right now, I happen to find myself desperately searching for a cheap pool solution. Little did I know I would find the hot trend of the summer.

What about a stock tank pool at your home?

What is it, you may ask. Well, it happens that these inexpensive farm items were originally designed to water livestock. Now, it seems people have discovered them for their own pleasure. They are appearing in gardens across the world.

It’s a great idea, inexpensive and has a certain charm to it. How can you get one?

Choose a “pool” size

First step would be to find your local farm item supplier and see what options are available. In most areas the biggest round troughs are the most popular. Naturally, they would offer the best swimming experience.

Pick the right spot

Next or at the same time you need to decide where to set it up. You will need a spot with a level foundation. This means it needs a solid, level base free of any rocks or sharp edges.

Add pumps and chlorine

Of course, you like to enjoy your pool for as long as possible. Therefore, you will need to add a few things to keep it clean and safe. I found a very detailed description on how to do it (it has very nice pictures of stock tank pools as well that might give you some ideas). Check it out at Hey Wanderer blog

If you rather buy a house with a pool, check out find cheap holiday homes.

You have a house for sale? List it with us for free.

Why Should You Invest in Software For Property Management?

If you own investment properties, you probably do not need anyone to tell you that you have plenty to keep you busy! From tenants who pay late, to complying with various laws, to vacancies, property managers always have something to keep them busy.

But there is good news! You can invest in software for property management that will ease your burdens, save you money, and reduce stress. Property management software helps you to perform routine property management chores, such as handling maintenance and collecting rent.

What are some of the other things that software for property management can do for you?

Handling Your Accounting

Did you ever wonder what life would be like if you did not have to update Excel spreadsheets with financial data? With the right software, you can track your income and expenses and run vital financial reports anytime.

Taking Rental Payments

Have you ever had a tenant say they sent you a check but you never got it? What a hassle. With software for property management, tenants can make their payments online. You can pay your bills through the software too. Trips to the bank will rarely be necessary anymore.

Accessing Your Information Anywhere

The great thing today about modern property management software is it is all mobile. You do not have to take your laptop everywhere you go. You can just check your smartphone and learn everything you need about repair requests, rental applications, and payments.

Screening Tenants

Some software systems let you to mostly automate listing your properties for rent on Zillow or Craigslist. It also will deal with your rental applications and even run background checks. Once your applicant is a renter, the software lets you manage that so it benefits both of you. You also might be able to run a credit check, file various tax forms, and more.

Having Happier Tenants Means A Happier You!

If you have not been completely convinced as a property manager, consider this. If you use property management software, you will increase your efficiency and you make life simpler for your renters. If you streamline basic, regular tasks, you can focus on more interaction with your tenants and getting better relationships with them.

You also can invest more in the people living in your properties rather than having to regular search for new renters. This cuts down on your churn and vacancy costs.

Author: Iris Iniguez

Smart Home – what does it mean?

We encounter the expression “smart home” everywhere today. But it means much more than clever refrigerators and intelligent lighting. Smart home is when your house “thinks” and makes your everyday life as easy, safe and pleasant as possible. Thanks to a smart home, you save precious time. Smart devices organise annoying routine tasks for you. The goal is comfort, entertainment, energy saving and security.

Smart Home how does it work?

The principle can be summed up in the following; Various electrical devices and sensors are interacting and communicating with each other. Often, you can control Individual devices and even entire systems remotely. In this way, a simple and complex process can be automated.

How does the communication work?

Lying by the pool and starting the oven with a roast for dinner? Or making a coffee while still in bed with your smartphone? With Smart Home, such comforts have long ceased to be a vision of the future. At home, the devices communicate using standards such as WLAN, Bluetooth, KNX data cables or even directly via the power line.

All are proven standards and almost all current smart home devices and systems can be installed and operated very easily today – via an integrated display, smartphone, tablet or even a voice control.

Which devices can be controlled in a smart home?

In principle, every electrical device and system can be controlled smartly. Therefore, it is often possible to optimize comfort, safety or efficiency at once. Lighting, heating and air conditioning systems are typical areas of application for smart homes such as controlling canopies, blinds and shutters. Entire lighting concepts can be conveniently controlled and automated.

A message on your smartphone as soon as your laundry is finished?

Thanks to Smart Home, this is not a problem.

But it gets even better, entire home security systems can be controlled as well. While you are away, it is very easy to check that everything is fine at home using your smartphone. If someone rings at your door you can even see who it is and answer at the intercom. You simply access your intercom and cameras at home via the Internet.

Want to buy or sell your home? List it with us today.

How to Find Cheap Land for Sale in Texas

You are making a wise decision if you are planning to find cheap land for sale in Texas because buying a property in the other states can break the bank. If you see the estimated value of the combined areas in the United States, the total will be around 23 trillion dollars. 

If you will look for land in Texas, the average value per acre is only around 7,500 dollars. The agricultural property is one of the reasons for its reasonable price, which makes Texas one of the ideal places to look for cheap lands.

Why Buying Land in Texas Is More Practical

There are a few reasons why buying land in Texas is more practical. The most obvious is that most areas in Texas are agricultural. Moreover, here is why purchasing an estate in Texas is the right choice, especially if you will use it for agricultural purposes.

  • Local government is less strict on controlling the state’s real estate development.
  • Agricultural lands provide a massive amount of reduction in annual taxes.
  • Financing companies are willing to lend to farmers and landowners.
  • You can be eligible for the Federal income tax Schedule F.

As you can see, if you will use the land for farming, wildlife conservation, and timberland, you can save a great deal in Texas.

How to Find a Cheap Land

Now that you know that Texas offers a better deal than with any other estates, you can lower the price more if you know how to buy one at a lower price.

Aside from paying for the land, you also need to consider the other variables like tax receipts and land surveying. Most often, the new owner pays for tax receipts. You also need a service of a land surveyor to ensure that you are getting the exact land measurement for the price you paid.

Image by David Mark from Pixabay

The common types of properties that are cheap are the property, foreclosed, and government-owned. The only con is that it is not easy to find these properties on your own. You need to contact a bank to ask for foreclosed properties or ask help from mediators like land brokers, auctions, and realtors.

Sometimes, you can find the best deal on e-commerce websites like e-Bay and Craigslist.

The best way to acquire the lowest price is to buy a land that is away from the city and establishments offering essential goods, such as grocery stores, schools, and gas stations. Next is to find the owner and haggle directly. If you are lucky, you can come across the owners who are willing to bargain for a low price to get rid of the property.

As you can see, it is not difficult to find cheap land for sale in Texas.

Author: Kelsey Mickens

Keep your home covid-19 free

Many things changed since the arrival of the Covid-19. This is also true when it comes to your home. Many took measures to make it easier to keep the house clean. Most important of all, many changed their behaviour of what they do first when they come home.

There are some basic procedures you should do to protect your home.

In order to do that, you need to organize the entrance of your home and observe a few guidelines. Traditionally, in some countries people already do this for many centuries.

It doesn’t need to be a big space, only large enough to be organized in a “dirty zone”, an “in-between zone” and a “clean zone”.

The “dirty zone”

There should be a space right at the front door, where we can take off your coat, leave your bag and keys, take off and put away your shoes. Ideally, you would clean the soles of your shoes with disinfectant.

In this area you always keep a rug on the floor, a hanger to hang your bag and coat, a trash can with pedal, a bottle of disinfectant or diluted bleach and a disposable paper roll (to clean/disinfect your shoes). If you like to add some comfort and you have some additional space you can put a chair as well.

The floor and the rug should be washed regularly.

The “in-between zone”

In the “in-between zone”, always keep some alcoholic gel. Here you disinfect your hands or even better, if you have the possibility, wash your hands with soap here.

The “clean zone”

In the “clean zone” you put on your slippers and maybe other comfortable clothes you only use at home. Now you are all ready to use the rest of your home.

What if you have a dog?

If you come home with your dog, you should also clean the animal’s paws every time.

Do not use alcohol or bleach to sanitize the dog’s paws as he might lick it.

Did you create different areas at your home? Leave a comment below and let us know.

Do you like to buy or sell your home. List it on www.listproperty4free.com

Who Likes To Rent

The letting industry is booming. The average rent across the UK rose by 2.5% in September 2019 when compared to the same month a year previously. If you’re comparing letting agent fees, landlords are also seeing favourable prices due to the influx of online letting agent offerings.

Increasing average rent and lower letting agent fees are however being offset with tax break cuts & tenant fee bans. So, while there are ever changing variables being faced by landlords, renters are pushing forward unfazed.

It’s clear that in the long term, buying your own property/investing in a buy to let will put you in a better position financially. Aside from those that can’t afford the infamous property deposit, there are those that actually choose to rent.

In this article we look at some of the people that choose to be renters, as opposed to renting due to limited financial options.

The Bachelor

Picture the young, career driven and smart individual (male or female!), enjoying life and exploring where they want to end up in the future.

Rather than buying a long-term property, say a 3 bedroom in the outskirts of London, they may decide they want to rent a modern apartment close to the city.

Now these types of property can be valued in the £1,000,000’s! While the bachelor may not have the financial backing at this stage, their lifestyle may not yet suit a property that’s further out away from the city nightlife.

Schools

Parents consider nearby schools as a high priority when deciding where to live.

The best schools are in the most prominent areas, where the houses come at a premium. In addition, parents already located in the region are unlikely to move, lowering supply of houses in that particular area and therefore adding to the price premium.

Parents are willing to pay premium rents in these areas. The extra rental cost can be judged as offsetting costs that would have occurred in putting their child(ren) into a costly private school.

The Renting Landlord

Commonly, a landlord has a property that for various reasons, they don’t want to live in. It could be too close to parents, too far from work or not big enough.

When not wanting to sell, an option is to let out the property, while renting in a property more suitable to themselves.

This allows them to live in a suitable property, while still reaping the rewards of rental income.

Vitally, if you’re one of these individuals looking for a letting agent for your property, you can use Rentround when comparing letting agent fees & performance to get yourself the best deal.

The Divorcee

Sadly, divorce is a part of life.

During or straight after a divorce, the former husband or wife will have a period of instability in their lives. They may be using the opportunity to think about moving to the city or looking to stay near what used to be their family home to stay in close proximity to their children.

During this period, a rental property would be suitable vs. committing to buying a property.

The Contractor

Rather than being a permanent employee with a regular job, the contractor is set up under a private limited company. The person may move from company to company when their contract expires. The benefit of this type of working is high day rates and pre IR35, lower tax vs. a permanent employee.

As a new contract is taken on, the location may vary drastically compared to the contractor’s previous location.

Therefore, renting makes sense in this situation, in comparison to constantly buying & selling or living in hotels.

“I’ll get married soon”

Some people are in long term relationships or single and have their fingers crossed of finding someone soon with the aim to get married. With this mindset and possibility, buying a property as a married couple makes sense.

A couple is likely to have a larger deposit and making it a joint decision on which property to buy, makes the moving in transition easier.

The Speculator

These savvy individuals may be predicting a future down turn in the market. So instead of buying while the price is high, they decide to pay rent up until a potential crash hits prices. The individual can then buy a property at a better price, increasing their profit substantially.

In addition, after a crash it’s common to see interest rates cut and tax subsidies from the government, to re-stimulate the economy as per the 2008 crash fallout. This adds to the benefit of buying after a crash.

However, predicting a crash isn’t easy. If you get it wrong, you could see yourself on the wrong side of property price increases.

All in all, there are many reasons why people prefer to rent as opposed to buying a property. Financially, yes the favour is usually in buying a property. However, for personal, family & work-related reasons, renting provides the flexibility that is often required in people lifestyles. 

About the author: Raj Dosanjh is the founder of letting agent comparison site Rentround. Wearing many hats, Raj also runs a consultancy in the banking industry and his own martial arts club.