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Should You Rent or Buy a Home?

Compare the advantages of renting and buying a home.

By
Laura Adams, MBA
6-minute read
Episode #192

Renting Pro #3: Good Credit Not Necessarily Needed

Some people may have enough cash on hand to purchase real estate, but lack the credit score needed to get approved for a mortgage. I can’t say that credit is irrelevant when you submit a rental application, but some places may not run a credit check if you have impressive references and a steady income.

Renting Pro #4: Less Responsibility

Another benefit to renting is what most homeowners (including me) yearn for as soon as the air conditioner dies in the Florida heat or they hear a trickle from the ceiling after a gully washer downpour—less responsibility. Not only does fixing and maintaining all the appliances and structural parts of a home require money, but it also takes a lot of time. You have to call the professionals, get bids, decide whether to make a homeowner’s insurance claim, and take time off from work to oversee their work. The days of being able to calmly call a landlord to break the bad news about a roof leak or a broken toilet was really nice, I have to say.

Renting Pro #5: Amenities

Not only do you have fewer maintenance and repair hassles as a renter, but some apartments offer additional services to make your life easier. Some communities have on-site restaurants, a salon, or a dry cleaner, for instance, just outside your front door. It’s also not uncommon to have amenities like a clubhouse, pool, gym, theater, or a bowling alley. If you use these types of amenities regularly, think about what you’d have to pay for them if you didn’t rent.

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.