Choosing a Landlord Over a Lender Part II
Part II: Financial Perks of Renting
A mortgage loan is potential 30 year commitment that some may not want to deal with later in life. If you've found yourself free of debt, it stands to reason you would't want to add this to your clean slate. There is less concern for the unexpected when you're a tenant rather than a home owner. When the roof needs replacing or you're blindsided by a major plumbing repair, there is peace of mind knowing you can call the property owner to cover the repairs. Many living on social security, or pension income don't have the financial cushion to face exorbitant fix-it bills, particularly singles juggling life on one source of income. Senior living rental communities, and some with options to rent provide exterior home maintenance, as well as any necessary repairs within the home. One caveat to renting is taking into account the potential rent increase, and the cost of renters insurance. Many insurance companies offer a discount when renters insurance is purchased with an existing auto policy.
You want to be in the heart of the where the action is but buying a home in your dream town is out of the question. Cities like New York, or Miami are exciting, and ideal spots for entertainment, amenities, and more, but real estate prices can be off the charts with limited availability. Retirement rentals are the perfect way to take advantage of what these destinations have to offer when purchasing isn't an option. Retirees seeking a weekend getaway may find that a timeshare rental, or over 55 apartment community is a good choice for a home away from home.
Consider a Roommate
The Golden Girls had the right idea to pool together, and share living expenses. Baby boomer singles may find it's more affordable to split the rent between one another especially if they're seeking a pricier home in a highly desirable active adult living community. Aside from the money saving aspect of living with friends, it offers a sense of security having others looking out for you. With many senior living communities offering a wide array of amenities, having friends to enjoy them with makes it that much more fun!
According to Property Management insider, 60% of the renter population is 55 and older. Apartment communities are seeing a growth in the number of baby boomers, and retirees choosing to go the rental route. Other housing options include single family, and manufactured homes depending on the development. Whether you're a weekender, a snowbird, or are just looking for more flexibility during your retirement years, renting is the perfect way to go. Do your research to find the active lifestyle community that offers the amenities, and lease option that's right for you.