Rental properties make up a significant portion of housing units in the United States with up to 37% of U.S. households being renter occupied. Over half of all renters are under the age of 30 and either believe that they are not financially capable of owning a home or elect to rent to save money. Since the average American moves around 12 times in their life, chances are that you or someone you know has lived in a rental property at some point; here are some facts to better understand the advantage of renting a housing unit.
The Problem With Buying a Home
Since the housing market collapsed in 2008, many Americans are skeptical when it comes to purchasing a home. Although the housing market has strengthened itself in recent years, it is still difficult for many to secure the means they need to take that crucial plunge as a home owner. High interest loans offered by banks and mortgage companies almost guarantee that a significant amount of the population with virtually no established credit will be unable to make payments and avoid foreclosure. Establishing a decent credit score and offering a good down payment on a home (typically around 10% of the home’s value) can help to keep interest rates low and guarantee that you can afford the payments. Of course, one of the best ways to establish credit is to prove that you are capable of paying debts on-time; for this reason many homeowners start out as renters.
Different Kinds of Rental Properties
Not all rental properties are treated the same and many offer the same amenities, bills, and expectations that are placed upon homeowners. Apartments, duplexes, single-family houses, townhouses, and condominiums are just some of the options available to renters and each offers a wide range of benefits and factors. Many apartment complexes have community facilities like pools, recreation rooms, and others; at the same time, many apartment complexes have a high density of renters making them noisy and intrusive at times. Single-family homes are nice rental options as renters enjoy their own private building and yard — by the same token however, an unpredictable or neglectful landlord and a high rental price may turn many renters away from single-family homes. For those who are looking for a middle ground, they may want to consider renting townhomes or condominiums to get the best of both worlds.
The Advantage of Renting Townhomes
Unlike a standard apartment, townhomes are terraced and typically have an upstairs and a downstairs. Many people enjoy renting townhomes as they feel they are larger than apartments and offer significantly more privacy than a crowded apartment complex. In addition, townhomes usually have personal yard space that apartment renters do not have; this opens up the possibility to grill, have a fire pit, or enjoy other outdoor recreational activities. Likewise, condominiums offer many of the benefits of a townhome although the landscaping is typically taken care of by a renters or homeowners association. For those looking for independence and comfort without the expense of owning a home, consider renting a townhome or a condo to satisfy all factors.