Owning a home has long stood as a milestone for success. Real estate agents and individuals alike encourage young families and individuals to take on the challenge of finding and buying a home as a way to mark their entry into professional and social maturity. Renting, in contrast, seems like a stopgap housing measure: suitable enough for now, but certainly not a permanent option. But while young adults (i.e., those under 35 years of age) remain the most likely demographic to rent, our homeowner-goal culture has taken a hit over the past decade. According to a Pew Research data analysis conducted in 2017, rental rates among both the under-35 and 35-44 demographics have risen significantly in the course of the last couple years. Currently, more households are led by renters than have been reported since 1965. Renting can’t be considered merely as a stopgap measure for younger households anymore – but should you turn away from home ownership entirely? Here, Jason Cohen Pittsburgh considers the pros and cons of renting a home.
Renting can be great for those who can’t or don’t like to be tied down. Students, temporary workers, and those with jobs that require them to move are better-suited to renting because they only need to be in a certain town or city for a short period of time. After their leases end, they can easily pack up and take off for their next opportunity – and leave the landlord to find a new tenant. Renting also provides greater flexibility to those who want to live in neighborhoods outside of their purchase price range.
Renters don’t have to worry about the nagging details of property management. When a problem with the hot water heater or electrical system arises, all they need to do is reach out to the landlord and wait for her to solve the issue at hand. Homeowners, in contrast, need to arrange for trash removal, sewer, water, and insurance costs on their own time and dime.
Don’t like an apartment’s lime-green walls? Want to adopt a dog? You might be out of luck on both fronts. Tenants have limited control over what they can do with the property without the owner’s express permission. Before you sign a lease, make sure to read it thoroughly to understand a landlord’s restrictions. Otherwise, you may find yourself facing a hefty fine – or even an eviction notice.
A landlord can choose to sell their property at any time they please, leaving their unsuspected tenants in the lurch. Unlike homeowners, renters don’t have the security of knowing that they have a place to live months or even years down the line – or that they’ll continue paying what they are if they choose to stay. Even well-behaved tenants have no guarantee that the housing market won’t demand a rent hike or that their lease will be renewed.
Ultimately, the choice between renting and buying will come down to individual circumstance. Figure out what your situation and budget allows before making a decision!
There are certain benefits to renting an apartment instead of buying a home, including free maintenance, access to communal facilities and no long-term commitment. However, it’s important for prospective tenants to choose the right apartment. The following tips can help first-time renters select the best apartment for their needs.
Set a Budget
Prospective tenants should first set a budget by determining exactly how much they can afford to pay in rent each month. According to Quicken, a good rule of thumb is to pay no more than 25 percent of income before tax on rent. If a tenant earns $3,000 per month, for example, his or her monthly rent should be no higher than $750. However, this estimate is a suggestion, not a hard-and-fast rule; if a tenant has other significant monthly expenses, they might be better off choosing an apartment that costs well under 25% of their total income.
The location of an apartment will affect the cost of rent, accessibility to other businesses and the tenant’s daily commute. Apartments outside of the city are usually cheaper than those within the city, but this can also make daily commutes longer. Therefore, prospective tenants should choose an apartment that’s within a reasonable driving distance from their place of work.
Look at Multiple Apartments
When searching for their first apartment, prospective tenants should look at least five properties. Even if one apartment offers all the right amenities and is within the tenant’s budget, others may offers better features at an even lower price. The only way a prospective tenant will know, however, is by considering multiple properties.
How secure is the apartment complex? Prospective tenants should consider security features like perimeter fencing, gates, video surveillance, patrols and alarm systems.
What About a Roommate?
To help offset the cost of living in an apartment, prospective tenants should consider getting a roommate. Assuming it’s allowed, this can reduce the cost of reduce the cost of rent by up to 50 percent. If a tenant decided to get a roommate, though, he or she should carefully vet the person to ensure they are capable of paying their share of the rent and utilities.
Review the Lease Agreement
Arguably, one of the most important steps in renting an apartment for the first time is reviewing the lease agreement. This is the legally binding document that explains the terms of rental. When reviewing the lease agreement, prospective tenants should look at the duration, security deposit and the fee for breaking the lease.
About Jason Cohen Pittsburgh
Jason Cohen is a real estate investor in Pittsburgh, Pennsylvania. He created Jason Cohen Pittsburgh, a group of real estate enthusiasts committed to helping others invest in real estate, and he has thrived in the area since 2002.
As Jason’s career has grown and flourished, so has Pittsburgh itself — transforming from an industrial “rust belt” city into a major cultural center abundant with high-end multi-family rental properties. Jason has seamlessly handled the dynamic nature of Pittsburgh and of the real estate industry in general. A research-driven professional, he consistently enables smart and profitable investments in the area, helping to transform modest properties into high-end rentals in Pittsburgh’s hottest neighborhoods.
Jason Cohen first entered the world of real estate shortly after his graduation from college. He started out by investing in distressed properties in Pennsylvania. After some experience working full-time for a real estate company, he decided to pave his own path in the industry. He has worked as an independent real estate agent and developed the Jason Cohen Pittsburgh team ever since. The team consists of highly qualified investors, property managers, leasing agents, and contractors.
Over the course of his career Jason has become highly proficient in acquisitions, joint ventures and partnerships, multifamily real estate investments, asset repositioning, real estate management, real estate brokerage, and new construction. He has excelled in high-level investment strategies, but is also no stranger to “ground work” when it comes to the industry. He is well-versed in each step of Jason Cohen Pittsburgh’s unique system: researching local areas and investing in properties, performing renovations to transform these properties from dilapidated eyesores into high-end units, and ultimately repositioning the properties for maximum profit in renting and selling.
Jason Cohen Pittsburgh is the group of choice for anyone who needs advice, analysis and due diligence, and general expertise in matters of investing, whether they are short-term or long-term. Jason Cohen Pittsburgh has dealt with properties in a variety of neighborhoods throughout parts of Pittsburgh, including the South Side, Oakland, Shadyside, Squirrel Hill, Mt. Lebanon, and Regent Square. Each and every one of these locations, paired with Jason’s overall knowledge of real estate investing, has allowed him to play a part in restoring Pittsburgh’s place as one of the most popular cities in the United States.
This blog will share news, updates, and insights regarding Pittsburgh and its real estate market from the perspective of Jason Cohen Pittsburgh. Stay tuned!