The Life of a Tenant: The Ups And Downs

As much as everyone would like to have a house of their own. Not all of us can afford a house as and when we want to. Many Australians see the sunny side of renting as they take their time to save up a healthy deposit and wait for approval of loans and save up for additional costs that come with the purchase. Basically, the decision to rent a space is either a choice or happens due to numerous circumstances.  Here are the pros and cons of renting out a house;

The Bright-Side of Tenancy: Maintenance Is Not On You

The tenant needs to take care of costs covering the contents of his/her home. All other maintenance costs including homeowner’s insurance will be paid the landlord.

Flexible

Relocation is always a possibility if you’re changing jobs, schools or even exploring new neighbourhoods. Beside you can even live in an area where you can’t afford to buy.  Unlike the landlord, the tenant is free from the stress of finding new tenants or even buyers. You can always get the assistance of a local real estate agent in Randwick, if you happen to look around the area.

An Opportunity to Save Up

Apart from paying a rent and a deposit, any additional income that a tenant receives can be invested into other sources of income or just put aside towards a home purchase fund which will provide you with a healthy deposit as time progresses. In any case if your retirement time is up, you’re free from debt and can choose to spend your money towards other options or priority areas in your life.

The Not So Bright-Side of Tenancy: Paying Off For Someone Else

Tenants are mostly paying off someone else’s mortgage and tenants don’t have a legal claim towards the property so there’s no return on investments or wealth creation. Besides these, annual rental fluctuations do occur as a result of inflation which may result in the tenant’s income being compromised to a certain extent.

The Uncertainty

Leases should be renewed and there’s no guarantee if it’ll happen every time leases end. Tenants may need to move often than expected or at some instances even forced to move.

Limitations

Tenants are legally bound by the rules of an agreement which limits their freedom when it comes to using certain facilities and making any changes or renovations. Every move that the tenant makes outside of the agreement needs the permission of the landlord.

Reality vs. Expectations

It’s not always easy to find a property which suits all the needs of a tenant. There are a number of factors that may hinder the tenant in finding a suitable place such as affordability, lack of space, security or even a bad landlord.

Conflicts and Disagreements

Some conflicts and issues can go a long way if left unresolved and cause harm to the relationship. This may result in costs of time, energy and resources for both parties.

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