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While renting has always been and continues to be an interim option during the home purchase process of a relocation, more and more it is becoming a long-term preference. Frequent moves, greater flexibility, rising ownership costs and amenities available through renting are great advantages. People today are renting in greater numbers, not just as a temporary step on the way to home ownership, but for the lifestyle they enjoy through renting.
Some of the factors to consider when deciding whether to rent or buy are:
- your job situation and likelihood of moving again
- initial and monthly costs of both options
- tax savings and advantages
- the availability, lifestyle and desirability of properties to rent or buy
- current interest rates and mortgages available
The cost, availability and variety of rental housing possibilities will vary tremendously in different parts of the country. While a large city will offer a far greater number of rental properties and a greater variety of styles and amenities, they will also be much higher priced and may even have an extremely low vacancy rate. On the other end of the spectrum, small towns also tend to have a very low rental vacancy rate, simply because of the lack of rental housing there. Mid-sized cities will generally have the greatest choices available.
Initial costs on a rental property usually include the security deposit, additional deposit if you have a pet (many rentals do not allow pets), first month's rent, credit report fee, and an application fee. Be sure and get renter's insurance; if you don't, your personal belongings will not be protected in the event of a burglary, fire or any other loss.
Read lease agreements thoroughly, as they can vary greatly between states and even individual landlords. It is wise to have an attorney review leases. Be sure you understand what you and the landlord are each responsible for when it comes to utilities, maintenance and repairs. And, be sure you understand your responsibilities upon move-out --- do you have to clean the carpets? clean the drapes? You need to know!
Although the most typical lease term in the United States is one year, this can be negotiable too. Know what your liabilities are if you have to break your lease early.
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