Housing usually is the largest line item on your budget. You do your best to stick to the under 30 percent guideline to make sure you’re being financially smart, but you’re still not sure if you’re making the best decisions for your financial security. It can be difficult to suss out the details of renting versus buying, so we’re here to help you with a few financial benefits of renting an apartment.
1. Lower Monthly Rent
When you set up your monthly budget, the biggest financial benefit you’ll see is the difference between rent and a mortgage. In most cases, monthly rent is cheaper in an apartment community. In addition, you don’t have to worry about the financial burden of a large down payment like you would with a house. Even if you have to pay a small application fee or deposit, this will be more affordable, especially if you’re living in the apartment short-term. However, if you plan on staying in one place for a long period of time, it may be more cost effective to buy. Check out this Zillow article for more details on the long-term differences.
2. No Maintenance Costs
Another major financial benefit of living in an apartment community is that you don’t have to pay for maintenance or repairs. If they oven breaks, you simply call the leasing office to take care of it with no additional charge to your rent. Same thing goes for landscaping, paint, appliances, plumbing, and all the other items that can add up when you own a home. Maintenance and repairs also is an area where you can save in an apartment versus a private landlord. If you rent a home, for example, you may be responsible for the upkeep.
3. Added Amenities
Instead of paying for a gym membership, pool maintenance, a barbecue, and landscaping at a house, you get all of these amenities for free in an apartment community. You have plenty of outdoor space (and maybe even a clubhouse) to host parties without worrying about cramming everyone into a small kitchen. You have a business center where you can print and scan documents. Apartments offer a lot of extra bonuses that you don’t have to pay for, making them worth the rent money.
4. No Property Tax
Even though it’s necessary, nobody likes paying taxes. By renting an apartment you can avoid at least a little bit of your money going to taxes because you don’t have to pay a property tax. While this may not be a large expense, every penny adds up in your budget.
5. Lower Insurance Costs
Just like taxes, no one likes paying more for insurance than they have to. With apartment communities you typically need to have renter’s insurance to protect your belongings in the case of a fire, break in, or natural disaster. But compared to homeowner’s insurance, it is much less expensive.
Even though you have a lot to consider when it comes to your finances and renting versus buying, there are many ways apartments are easier on your budget. Be sure to look into all of your options and choose what works best for you and your family.