5 Benefits of Renting vs. Owning Property
Homeownership is the archetypal American Dream, but should it be? While there are benefits to owning a home, renting a property has clear advantages, too. As the premier home rental agency in Tucson, Arizona, Bancroft & Associates have years of experience in the home rental business. Here are five significant benefits of renting over owning property.
If you buy a house, you are stuck in a long term commitment, therefore one spot. If you rent, it’s relatively easy to pack up and move to a new location — even across the country — as soon as your lease is up. There is a greater sense of freedom overall when it comes to renting.
2. No Property Taxes or Homeowners Insurance
If you rent, your landlord pays the property taxes, not you. The landlord will factor the cost of property taxes into your rent, yes, but you still don’t have to worry about sudden property tax increases. You also don’t have to fret over annual property assessments that could increase the tax liability. Renters also don’t have to buy home owner’s insurance. The landlord is responsible for that. Renter’s insurance is probably a good idea, though.
3. No Maintenance Costs
The cost of maintaining a home can be all over the place. When you own a property, you must budget for things like roof replacement, HVAC maintenance, plumbing repairs, and lawn care. If you rent, your landlord foots the bill for malfunctioning appliances, leaky toilets, and everything in between. Tenants assume no risks associated with owning the property.
4. No Pest Control Costs
Pest control can be an expensive part of owning a home. Paying an exterminator to provide regular treatment and preventative treatment for termites, ants, cockroaches, or bees can get expensive quickly. Tenants don’t assume those costs. It’s all on the landlord to pay.
5. No Depreciation
One of the inherent property risks faced by homeowners is depreciation. True, the value of most homes increases over time, especially with remodeling. But there’s always a chance the value of a home will decrease. The surrounding neighborhood area could decline or a huge shopping center could be built in the backyard. Those things can easily cause a home to lose its value and actually be worth less than you paid when you’re ready to sell it. Renters don’t have to worry about value loss since they don’t own the property.
Now, we haven’t painted a very favorable picture of owning property. But here’s the good news. Buying property and renting to tenants can actually be quite a lucrative endeavor. You just need to consult the right experts to help you manage all that comes with investing in rental properties.
A professional home rental management company in Tucson, like the experienced team here at Bancroft & Associates, is ready to meet your needs. We make it easy for you to earn an income from rental properties without having to take on much of the associated work. We’ll do everything from marketing your property to handling tenant issues and complaints, arranging for maintenance, and evicting tenants if necessary. Learn more about how we can help you invest in Arizona real estate today.