I moved down to Florida a little over two years ago. I was fresh out of college and I had enough money to buy some peanut butter and jelly sandwiches, and that was about it. At the time, I would have loved to find a house I could call my own, but it was simply not an option. I had little money saved and had no income, so it was inevitable that I would move into an apartment and become a renter. I really had to grit my teeth and bear it, because I had always told people that if they rented, they were throwing their money away. I didn’t see the point in it when after years of renting, the apartment is still not yours and you have nothing to show for those efforts in making the payments.
After having been in the situation of making those monthly payments, I have to admit that there are a few great benefits in being a renter.
1) No Yard Work – I think my wife and I would dread the idea of waking up on Saturday, knowing full well that the yard needed our attention. It has been a wonderful experience doing what we please, when we please.
2) No Home Insurance or Taxes – I understand that the rent price most likely includes these items, but there are times when landlords rent out the property because it was willed to them by a relative. If this is the case, they are just happy to have someone responsible that is taking care of the home, even if it means that the rent isn’t quite high enough to cover all the expenses.
3) Flexibility – There are a lot of home owners that feel trapped right now. Since the value of their home has decreased, they may no longer have equity in the property, making it quite impossible to relocate. With a rental property, most often you just need to give 60 days notice and you can move onto that bigger and better job, and it may even be in a more desirable location.
4) Fewer Unexpected Expenses – Since you do not own the property, you do not have to worry about the usual expenses such as a blown air conditioner or a broken shower. These issues will be taken care of by the landlord, at no expense to you.
5) Extra Time For Generating Income – Somewhat tying into point number one, if my wife and I had yard work and home repair on our plate, I’m not sure we would be able to generate the income that we do today. I use the extra time to write articles and update my website, and she is able to take classes (which she is taking for free by the way) at the local college.
6) Less Junk – When you live in a rental, the option of moving is always more enticing (and simpler). For this reason, it often causes renters to keep an eye on the items they accumulate. When my wife and I are at the store and we see the new in-season decorations, we know it would look nice in our place, but if we ever move we really don’t want to move those thousands of decoration pieces with us. For this reason, we keep it simple and our ‘junk’ closet will never overflow with items of rare use.
While I still realize that renting an apartment may not be the ideal way to live, there are certainly benefits to making such a decision.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.