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Pros and Cons of Renting When You Retire
There are several Pros and Cons of Renting When You Retire, especially when considering homes in Indian Lake Ohio. Older renters are on the rise, with households aged 55 and over contributing 42 percent of renter household growth as reported by the Joint Center for Housing Studies at Harvard University in 2015. The rate will only increase as more Baby Boomers hit retirement age. Consider some of the pros and cons of renting in retirement.
Pro: no more mortgage
People who choose to rent in retirement are no longer making monthly mortgage payments. Depending on the financial situation, this may mean entering retirement debt-free.
Con: No more taxes
Homeowners receive tax incentives including deductions for property taxes and mortgage interest. Savings can add up in states with high property taxes.
Pro: No longer tied down
Dream retirement looks different for people but many enjoy the freedom of not being tied to a home. Renting offers flexibility since there is no house to maintain.
Con: Losing 'homeowner' status
A sense of pride comes with being a homeowner. Emotional attachment may occur with a home so mental preparation is required before selling and moving on.
Pro: Less stress over maintenance
Property ownership comes with a huge burden of maintenance which becomes more cumbersome with age. A single-family home may mean responsibilities for repairs, manual labor, mowing, shoveling snow or cleaning gutters. A rental means the landlord or property management company generally takes over those tasks.
Con: Expenses
Renting can be more expensive than owning one's own home, depending on location. Interest rates for mortgages may make it more affordable to consider home ownership.
Pro: Amenities and no fees
A single-family home may provide stability but renting may offer amenities such as a swimming pool, fitness center, party room, lounge and private parking. If traveling in retirement, a concierge can accept packages as a nice perk when people are away.
Con: Dealing with landlords
It takes getting used to having someone else in charge while renting. Having a landlord or property management company can feel oppressive. Screen potential places before signing a lease, talk to previous tenants and find out how the landlord responds to maintenance issues. The landlord or property management company can decide to raise rent once lease is up.
Renting versus home ownership is a personal decision for people entering retirement. Many factors must be taken into consideration including age at retirement, health, economic status and any desires to travel. It is up to each individual or couple to decide what will work best in retirement and provide for their individual needs moving forward.