Property rental has its ups and downs, much like house ownership does. Maybe you didn’t quite like the bathroom tiles, and perhaps the heating was temperamental. But renters know that rental properties can have a bad rep, especially those who’ve never had to sign a lease.
Whatever issues you might have with specific property features, renting is a perfectly acceptable housing choice. So let’s clear up those misconceptions about rental properties and renting.
Renting means throwing away money
As a renter, you probably hear this one a lot – that an investment property is a better use of money, that purchasing a home is better for your financial resources. But that’s not necessarily true.
Renting can be a good decision for people depending on their financial situation. It also means you don’t need to take care of maintenance or property taxes since the property owner pays those.
It’s also significantly cheaper upfront than buying a home, which is attractive to many people.
You’re at a negotiation disadvantage.
People tend to assume that the landlords or property managers have all the power regarding renting. But as a prospective tenant, you can negotiate rental prices! Search property prices around your area to have a benchmark for your rent price. It always pays to have information on your side.
You could also lower rent prices by negotiating a longer lease, usually driving the price down. Landlords prefer retaining a good tenant versus constantly having to find someone new.
Finally, ensure you read the contract from page to page, so you don’t miss any details. Check for mortgage and relocation clauses to prepare for any future incidents. And if you see any terms that you want to adjust, don’t be afraid to speak up!
You can be evicted at any time.
Your lease will protect you from sudden eviction without due cause or notice – as long as the clause is there. Your landlord cannot simply throw you out unless they justify, such as breach of contract. That justification should come with conclusive evidence; otherwise, they cannot evict you from your home.
You can’t exit your lease.
It’s not ideal, but you can exit your lease after signing on the line. If you find yourself in a situation where you have to move, you should provide your landlord with at least 20 working days’ notice that you’re canceling your lease.
Another option is to sublet your unit on real estate portals or Airbnb. If you have the permission, this could provide you with some passive income while maintaining your previous apartment in your name.
Before vacating your apartment unit, talk with your property managers to explain your situation. They may even be able to connect you with a partner management company for property alerts in your new location.
Keep in mind, though, that you may need to pay specific fees due to your early exit. Before initiating the exit process, get all the information upfront so you don’t get tripped up by unexpected costs or clauses.
People rent because they can’t own a home.
This can be true – the down payment for a home is expensive, and many people don’t have the financial capital to purchase one upfront. They may also not have the appropriate collateral for a home loan. But that isn’t the case for everyone, and even if it is, it’s not a bad thing!
Some people choose to rent by choice since they like the freedom and flexibility of renting a property versus owning one. They may also choose a lower rent price versus a high property market price.
Certain opinions about renting are misconceptions born from a lack of information. But renting is a viable option for plenty of people, especially for buildings that have reliable landlords and property managers. If you’re looking into renting, make sure you have all the information to make a decision that suits you and your lifestyle.