Four reasons why renting property could be right for you

If you're interested in knowing why more and more people are choosing to be long-term property renters than homeowners, just ask any member of Generation Rent. For people between 21 and 35 years of age who are moving out of their parents' home for the first time or moving in with a partner, renting is proving more popular than homeownership. Their reasons range from the difficulties in saving up a deposit to a desire to explore the world now and settle down later. For Generation Rent, the freedom that comes with being a renter is more important than the security that older generations have found in homeownership. Here are just four of the advantages that come with being a tenant rather than a homeowner.

1.    Flexibility and the freedom to move around

Signing a lease is typically a twelve-month commitment, whereas if you buy a home, it typically doesn't make sense to even think about selling it for at least five years. In a world in which people are emigrating and semigrating more than ever, renting makes sense. Deciding to not renew a lease is simple, whereas trying to sell a home can be costly and time-consuming. For many of us, there is a prevailing feeling of uncertainty about the future - which has been exacerbated by 2020 and COVID-19 - and being a renter gives you the flexibility to chase your dreams and the opportunities that will come your way.

2.    Renting can be more affordable

We are in the midst of troubled times, during which many families need to save money in every way they can. Being a property renter means that you are not responsible for payment of rates and levies. Between that and the fact that many rental properties have prepaid electricity meters, being a tenant puts you in charge of your short-term finances in ways that homeownership does not. Being a tenant can also make it easier to save towards meeting your long-term goals. For example, if a couple was considering starting a family five years from now and is looking to buy property, they would need to buy a home large enough to accommodate the children they plan to have. If they were renters, however, it would be possible to rent a smaller home for the next five years.

3.    In most cases, maintenance is not your financial responsibility

At some point, just about all of us will experience a household disaster such as a burst geyser. If you're a homeowner, these unforeseen expenses can put a sizeable dent in your savings account. As a tenant, on the other hand, this expense will not be yours to worry about. While your lease is likely to stipulate that you are responsible for day-to-day maintenance of the home, garden and pool, it is the owner's responsibility to organise and pay for repairs to damage caused by most unforeseen occurrences. As the tenant, you also won't need to worry about finding the right contractor to do the job.

4.    Being a tenant involves less financial risk

Whether you are a tenant or a homeowner, life comes with some level of financial risk. Being a homeowner, however, can come with longer-term risks, such as the possibility of making low or no returns on your investment, or having the property depreciate over time.

If you're looking for a great rental property to call home, check out the properties available to rent by the CSi Property Group. Contact us for assistance in finding and renting the home that's right for you.