If you find yourself wanting to move to a new area but don't want to weigh yourself down by purchasing a home, there are options available. These options include leasing or renting a home, often with the option to buy the home once you find that you do want to stay in the area. This article details some facts about leasing and renting versus buying, including what the differences are between leasing and renting, and why they may be the right choice for you.
Leasing vs. Renting
Leasing is a contract that specifies exactly how long you will be renting a home. It includes everything including how much you will be paying per month and for how long, and whether or not you have the option to purchase the home when your lease expires. This serves as a contract between you and your leasing agent, ensuring that you are both responsible for certain pre-agreed portions of the lease.
Renting is the act of renting a home, be it under the umbrella of a lease or not. Renting without a lease does not guarantee you all of the protection that a leasing contract offers. For instance, should you rent without a lease, the monthly rent may increase without warning, as there was no set amount that you both agreed to under a contract.
Therefore, it is always safer to establish a lease, given that you thoroughly read over the document and ensure that you both agree to it. However, your particular circumstances may cause you to have to move. Renting, in this event, is safer because it gives you more options for moving. Breaking a lease comes with penalties that can be costly and time consuming, as you may need to find someone to fulfill your lease for you if you cannot afford to break it.
Why Leasing can be Better than Buying
Let's say that you landed an exciting new job, but said job is in a state that you are unsure that you want to live for an extended period of time. Buying a house in this instance would be silly because you may decide you don't want to live there in a year. You might decide that you don't like your job, or the state is just not for you.
Leasing a home or apartment gives you the opportunity to try before you buy. Often, you can find great move in deals that will allow you to enter into a full year lease at a good price. You can try out the area and your new job without investing in a home and tying yourself down.
Also, renting or leasing comes with perks that homeowners don't usually have. If the pipes break or your toilet won't flush, the landlord is contractually obligated to fix it. If your toilet breaks in your purchased home, there is no one obligated to get it fixed but yourself.
Moving can be an ordeal. However, if you are looking to try out an area before you settle down, leasing or renting in that area can be an excellent alternative to buying a home.
Beverly Manago is a freelance writer focused on the real estate industry. She is also a consultant for My Single Property Websites, a web 2.0 marketing tool that lets real estate agents create stunning virtual tours and single property sites easily, with a free version available for listing presentations. She also contributes to the Real Estate Encyclopedia there.
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