According to the National Multifamily Housing Council, of the individuals that rent their homes, 37% of those homes are apartments. Apartments are a popular housing choice for people that want to live alone, for young adults, such as college students, as well as starter families. Typically, this housing option is the most financially savvy.
Regardless, choosing a temporary home is a big decision.
To help with the decision-making process, keep reading to learn all the pros and cons of leasing an apartment.
What Does “Leasing” Mean?
A lease is a contract agreement in which one party, the tenant, agrees to rent property owned by someone else, often called a tenant. In this case, a tenant may own an apartment complex, one floor of an apartment complex, or one singular unit apartment. The landlord dictates the terms of the contract, such as length of stay, monthly payments, and included utilities or amenities.
Leasing is similar to renting but generally indicates that a tenant is planning on staying in an apartment for an extended time, such as 6 months or a year.
Benefits of Leasing an Apartment
Some of the benefits of leasing an apartment include cost efficiency, flexibility, low responsibility, as well as amenities.
When comparing leasing vs buying, the monthly rental fees for an apartment are much less expensive than a mortgage. Additionally, leasing an apartment allows for greater flexibility. A lease, though the length of rentals may vary, can be ended by the tenant or landlord.
Leaving an apartment lease is much simpler than worrying about selling an owned piece of property.
Furthermore, leasing an apartment is a lower responsibility. Since someone else owns the property, they are responsible for general maintenance, and any costs this might require. Apartments also have amenities, such as gyms, pools, business centers, and laundry units that are included in the rental fees.
Cons of Leasing an Apartment
The primary con of leasing an apartment is that tenants have to abide by the conditions set by the landlord. Some tenants may find this restrictive, depending on the stipulations outlined in a contract. For example, landlords have the right to raise rent and can refuse a tenant’s request to make changes in the apartment.
Rent To Buy an Apartment
Arguably, the pros outweigh the cons when it comes to leasing an apartment. However, one final pro, especially when comparing renting vs buying, is that many homes have a rent to buy option. In these contracts, tenants agree to rent a space for a specific period.
Before their rental period ends, they have the option of purchasing an apartment or home.
This is an option for individuals who are unsure about their intent to own a home or for people who don’t yet have the financial security to purchase a home. If this sounds appealing, this article discusses some other benefits of rent to buy homes and how to find them.
Home Sweet Home
Like with every long-term decision, leasing an apartment requires a lot of thought and consideration. There are pros and cons to every housing choice, but the pros for leasing may outweigh other options.
For more information on leasing, or homes in general, check out the rest of our site!