What Everyone Should Know About Renting Houses
The Basisc Ins and Outs of Renting Houses
Over the past four or five years many people have gone from being homeowners to renting homes. Renting houses is different from owning a home, but is very much the same in some ways.
Top way renting houses is like buying
People do not realize a landlord will require a credit report when renting anyone a house or apartment. When you are buying a home, a mortgage company always reviews an applicant's credit report and credit score. A lender will charge a lower interest and offer a lower payment for someone with a good credit score. A landlord is not any different than your local bank. If you have good credit, the landlord will be renting houses to you at a lower rate. Now you can pick the home, which fits into your budget just like when buying a home.
Utilities are always a concern
Whether you're renting or buying, utilities are going to be something you must deal with. Most landlords when renting houses will have the person who leases a place pay for utilities. Depending on the home, the cost of utilities can be very expensive. In this manner renting is the same as owning a house since you are responsible for utilities when you own a home. However, you should look at the cost of an apartment versus the costs of renting homes, because utilities may be included in the apartment. This alone could make an apartment more affordable than renting houses. Utility costs definitely have to be considered when renting homes.
# 3 Upkeep of a House
The landlord is ordinarily responsible for the upkeep of the home. For example, a furnace or air conditioner goes out the landlord has to replace it, not the renter. Not having to be responsible for such repairs can be a huge benefit of renting homes instead of being a homeowner. By renting homes, you can hand over the risk of expensive repairs to the landlord. The roof starts leaking. Call the landlord. A tree falls down in a storm. Call the landlord. Renting homes can be great, since a lot of the routine maintenance costs are the responsibility of the landlord, not the renter.
Now it's important to take into consideration some of the disadvantages of renting houses.
Main Disadvantage of Renting Houses
When you rent, you are not building any equity in the house. Yes, I know the past five years house prices have decreased in most cities. Decreasing home prices is not the norm. Usually homes increase in value 3% to 6% a year depending on the area. By always renting houses instead of buying you will always have a home payment. Owning a home you can eventually not have a home payment when you go to retire. By not having to make a house payment when you retire is one of the biggest advantages of owning a home instead of renting somewhere to live.
Renting Houses Doesn't Build Credit Like Owning Them Does
When you are renting a home or apartment the rent payment will frequently not be reported to credit agencies to help increase your credit score. In fact, the only time renting homes is reported is when you are evicted. Evictions definitely will not improve your credit score. When you pay on a mortgage loan, each time you make an on-time payment you can increase your credit score. why is this important? A high credit score can help you receive lower car payments and lower interest rates on your credit cards.
per the information you've read here, there are some advantages and disadvantages to renting homes. More and more people today are looking at renting homes instead of buying since their credit was damaged due to the home foreclosures.
As a renter you need to make sure your credit reports are accurate before renting houses.
Over the past four or five years many people have gone from being homeowners to renting homes. Renting houses is different from owning a home, but is very much the same in some ways.
Top way renting houses is like buying
People do not realize a landlord will require a credit report when renting anyone a house or apartment. When you are buying a home, a mortgage company always reviews an applicant's credit report and credit score. A lender will charge a lower interest and offer a lower payment for someone with a good credit score. A landlord is not any different than your local bank. If you have good credit, the landlord will be renting houses to you at a lower rate. Now you can pick the home, which fits into your budget just like when buying a home.
Utilities are always a concern
Whether you're renting or buying, utilities are going to be something you must deal with. Most landlords when renting houses will have the person who leases a place pay for utilities. Depending on the home, the cost of utilities can be very expensive. In this manner renting is the same as owning a house since you are responsible for utilities when you own a home. However, you should look at the cost of an apartment versus the costs of renting homes, because utilities may be included in the apartment. This alone could make an apartment more affordable than renting houses. Utility costs definitely have to be considered when renting homes.
# 3 Upkeep of a House
The landlord is ordinarily responsible for the upkeep of the home. For example, a furnace or air conditioner goes out the landlord has to replace it, not the renter. Not having to be responsible for such repairs can be a huge benefit of renting homes instead of being a homeowner. By renting homes, you can hand over the risk of expensive repairs to the landlord. The roof starts leaking. Call the landlord. A tree falls down in a storm. Call the landlord. Renting homes can be great, since a lot of the routine maintenance costs are the responsibility of the landlord, not the renter.
Now it's important to take into consideration some of the disadvantages of renting houses.
Main Disadvantage of Renting Houses
When you rent, you are not building any equity in the house. Yes, I know the past five years house prices have decreased in most cities. Decreasing home prices is not the norm. Usually homes increase in value 3% to 6% a year depending on the area. By always renting houses instead of buying you will always have a home payment. Owning a home you can eventually not have a home payment when you go to retire. By not having to make a house payment when you retire is one of the biggest advantages of owning a home instead of renting somewhere to live.
Renting Houses Doesn't Build Credit Like Owning Them Does
When you are renting a home or apartment the rent payment will frequently not be reported to credit agencies to help increase your credit score. In fact, the only time renting homes is reported is when you are evicted. Evictions definitely will not improve your credit score. When you pay on a mortgage loan, each time you make an on-time payment you can increase your credit score. why is this important? A high credit score can help you receive lower car payments and lower interest rates on your credit cards.
per the information you've read here, there are some advantages and disadvantages to renting homes. More and more people today are looking at renting homes instead of buying since their credit was damaged due to the home foreclosures.
As a renter you need to make sure your credit reports are accurate before renting houses.
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