I often seem to get caught with people lecturing me about how renting is a waste of money. I see it all over the papers, on the television (this morning I was watching Location Location Location and a comment was made about ‘throwing money down the drain’). It’s everywhere – no wonder people want to stay with friends and family whilst saving for a deposit for a house, they don’t want to hear or feel the perceived guilt of paying rent.

Personally I wouldn’t be where I am now if I hadn’t rented for a while. At university I rented throughout my degree, I learnt to stand on my feet, pay bills, maintain a now well kitted out house (wiping damp from unventilated rooms, kick-starting the boiler every time it turned off) and when my outgoings got too big I got a job on top of my studies to pay the bills, and a stint travelling afterwards. I learnt the value of money, time management and life skills. When I moved to London I rented for the first three years, it’s expensive yes and I had to learn to live with flatmates who were on completely different schedules (not always easy) but I learnt about the city, where I wanted to live, where to go, what suited my lifestyle and as a result I have a beautiful flat that I own with my partner in an amazing location – I couldn’t have made that decision without testing the area. Renting had downsides but I feel like I have come out the other side a stronger person with clear ideas of what I want from a house and furthermore it has meant that I know what counts as good quality stock for my own #BTL portfolio.

With this in mind I have put together my top 10 list of the benefits of renting:

  1. Speed – If you need to find somewhere to live quickly you can often go from starting your search to moving in within 7 days – this could be quicker if you are looking to move into someone’s Spare Room!
  2. Cost – Buying a property comes with huge expenses, legal fees, stamp duty, mortgage costs ect. Whereas when you rent a property you only need to find the deposit (usually 6 weeks rent) which you will usually get back if you look after the place and agency fees (this will vary depending on agent – always investigate prior to using an agent)
  3. Flexibility – You aren’t tied in for an overly longer term. You can test an area and house size/style to see if you like it and if it isn’t for you then you can move on.
  4. No Building Expenditure – When you are renting you aren’t paying for any building defects or repairs, which can be costly. Your landlord is responsible for this sort of expenditure and therefore you should only be one call away from getting things fixed.
  5. Security – I’m fed up of people saying renting a property isn’t secure. Landlord and Tenant law give tenants a lot of protection as long as you look after the property and pay rent on time. Check out my blog for tenancies starting after the 1st October 2015. There are so many sources of help as well if you get into difficulties along the way, Citizens Advice, Shelter, property forums such as Property 118 and The Tenant’s Voice. My advice is have a great relationship with your Landlord and your Neighbours and you should be absolutely fine.
  6. Saving Money – When you rent you choose how much it will cost you per month vs your income, so you can budget for how much you will save – you are in control of your expenses and savings account. I have seen rent a room schemes which include all bills and even throw in a cleaner and come fully furnished. So you have fixed monthly expenditure which is even more useful for budgeting to increase savings.
  7. Shared Ownership Opportunities – When you rent in an area you are more likely to get help through the local authorities shared ownership schemes – you become first priority. So pick your desirable location, rent for a while and you will find help for getting on the property ladder – check your local council website for more info.
  8. Social – You can meet great people when you rent and you get experience the variety of life. It is an easy way to live with friends and get to grips with the local area together and it is a great way of testing if you can live with a new partner before jumping into the buying pond – it is harder to get out of a property you have brought together! Even if you don’t get on with everyone you meet along the way you learn who you are compatible with and even negatives you can put down to experience (remember renting is flexible so you either you or they can move on!)
  9. Life Skills – This gives you a chance to learn about handling a household – it’s not easy but actually doing is the best way of learning. Once you know what you are doing, buying somewhere doesn’t seem so daunting. Also I don’t believe you can be a #BTL Investor without having experienced what it is like on the other side, yes you can make money out of your tenants but I’m a firm advocate of treat others as you would like to be treated, how would you know this without having tried tenant’s shoes on?!
  10. Less Risk – Finally there is more to lose if you fall behind on your mortgage payments, your home could be repossessed. With renting get in contact with your Landlord immediately if you cannot make payments and pay as much as you can and then look to change our situation – you can do this and it can be manageable just be open and honest and be prepared to do something to manage the situation – it’s a lot less scary than your mortgage company debt collecting.

I firmly believe that renting can really be positive and the benefits above highlight this. When the time is right and you have the money then it’s definitely time to buy, there is so much help out there to get you on the property ladder and you probably won’t need as much as you think (5% mortgages, help to buy, shared ownership – all you have to do is look). However in the interim, get out there, rent a little make your rental your home and really enjoy it, reap the benefits. You are doing absolutely fine if you are renting and there should be no stigma attached to it at all.

If you need any help not he renting route then get in contact with us at NC Real Estate or follow us on Facebook or Twitter.

Happy renting!

NC