Both owning or renting a home have long lists of pros and cons, but the cons of renting seem to be vocalized a little more. The arguments can be a touch heavy-handed.
Let's level the playing field. Here are some common myths about renting and a realistic discussion to help you decide what's best.
Myth #1: Renting is a waste of money.
One of the biggest criticisms of renting is the lack of opportunity to invest. When you buy a home, your monthly mortgage payments go toward the overall cost of the property. Then, one day, you own the property and even a little equity. When it’s time to sell, you watch the market and list it when you’re most likely to make money, or maybe you choose to rent it out. Regardless, everyone knows that owning real estate can be a great investment.
Renting a home isn't considered a long-term investment. But that doesn’t mean that renting is always a bad thing. Renting allows far more flexibility and freedom. You don’t have to worry about the market or paying back a home loan. And when you're a military family with orders to move, you don't have to add selling your home to your long list of to-dos.
When you’re active-duty military dealing with PCS moves every few years, the lessened responsibilities associated with military rentals can be attractive.
Let’s say that instead of renting a home, you buy one to avoid "wasting money." If you're stationed in the same place for a few years, that decision could make sense, but it's not the only factor indicating it's a good time to invest. You must consider the current market, location, and resale value/rentability before determining if buying a home is more sound than renting.
Myth #2: Rental terms are non-negotiable.
Rental prices and terms aren’t set in stone. While negotiations have a more apparent role in a home sale, rental agreements have a decent amount of leeway, especially if it’s a renters' market.
If there are more rentals than renters in the area, you may be able to negotiate the rental price and other terms like the length of the lease, pet policy, pet deposits, etc. A stable job in the military reduces a landlord's risk and can work in your favor to negotiate small details and/or secure a rental.
And even if the market isn’t booming with rentals, it certainly doesn’t hurt to ask. The worst that can happen is the landlord or property manager says no.
Myth #3: Landlords are responsible for all repairs and maintenance.
Landlords care for and solve many problems around the property, but they aren’t responsible for everything around the home.
Your landlord is responsible for maintaining the rental in a livable state, but fixing cosmetic issues such as stained grout or worn-out carpet isn't legally mandated. Problems that affect safety or functionality, like loose tiles that make the shower unusable or carpet holes that could cause someone to trip, require the landlord’s attention.
Ultimately, just because you’re not the homeowner doesn’t mean you can’t change a burned-out light bulb, replace dead batteries, clean the washer and dryer, or unclog a drain. These small tasks are all results of normal wear and tear, don’t pose a more concerning problem, and are generally your responsibility to fix.
Learn more: 15 Home Maintenance Tasks and Repairs Everyone Should Know How to Do.
Myth #4: Landlords can come and go as they please.
Privacy is a big concern when it comes to renting. However, while you might assume that landlords have the right to enter their property at any time, they don't. Checking on the property from time to time is reasonable, but most states require that landlords provide at least 24 hours notice before entering unless there is an emergency.
Note: State laws vary. While most suggest landlords give notice, others don’t. Research your state’s tenants' rights.
Photo by PIKSEL from Getty Images via Canva.com
Myth #5: Your landlord can't sell the house while you're in it.
Your landlord can sell the house even while you're living in it. And they can sell for any reason; profiting from market conditions or exiting a landlord role are both examples. But don’t worry, the landlord can't terminate your lease agreement without notice. However, they may ask you to keep the house show-ready or cooperate for inspections. And, while that can be inconvenient, it's their right. Most states allow landlords to show the home during reasonable business hours with a 24-hour notice.
If you have a month-to-month lease, the landlord can terminate the agreement without explanation, but they’re still required to give you 30-60 days of notice, depending on the state laws where you live.
Why Renting Might Be the Right Path for You
1. You don’t want added debt.
Homeownership is a huge financial responsibility. You might not be able to afford homeownership right now, even if a bank pre-approves you for a loan. Only you know if you can maintain mortgage payments, homeowners insurance, and the costs associated with property maintenance.
Beyond the generic expenses every homeowner faces, military homeowners have another component to consider, "What happens when we move?" In an ideal world, you’d sell immediately and make money in a stellar sellers’ market or have a line of tenants ready to move in. But that’s not a guarantee. It’s important to consider whether you can afford a mortgage in your current location if you receive military PCS orders elsewhere and your home sits vacant. Have an exit plan if you're unable to sell your home.
2. The location isn't stellar.
Not every duty station is a gold mine of real estate property. While some areas have frequent turnover of military service members, nearly guaranteeing a never-ending pool of potential tenants, others don't. Finding a rental might be the best decision if the location doesn’t offer homes with great resale value or rentability.
3. You want to keep things simple.
Owning a home can be complicated with maintenance, repairs, and other expenses. Maintaining a home can add unnecessary stress on a service member and their family, especially if they're going through a long deployment.
And when you have PCS orders to move on, you can easily part ways with your military rental. But with a property you own, you’re responsible for deciding whether you want to sell or rent it, then do the work to make that happen.
Renting isn’t the right option for every family, but neither is buying a home. It's one of those topics that requires constant evaluation as the variables change. Understanding the realities of both sides of renting and buying will help you make the best decision.
Ready to find your next home? Whether you're looking for military homes for rent or houses to buy, head to MilitaryByOwner for the perfect home near your duty station today.
main image from iStock.com/jacoblund
