LAST LOOK

“RENT BY CHOICE”

Anew generation of renters has emerged, and the trend is called “rent by choice,” which means that renters are electing not to purchase a home. Choosing to rent versus buy has become a lifestyle choice. Many people from younger generations, Millennials and Gen Z, are not striving toward homeownership. This lifestyle choice means these renters are not considering properties solely for the reason of needing a place to live.

Why do people opt to rent than make an investment in a home?

Maintenance and repairs are the responsibility of the property own-

ers/managers. Renters don’t have to pay frequent unforeseeable expenses. Not only do renters not have to figure out who to call or how to fix items like broken appliances or sprinkler systems, but they don't have to pay for these costs outright—increased operating costs are paid over time during the lease term in some cases. It’s a desirable option, especially for single people.

Access to amenities that the renter might not otherwise be able to af-

ford. Many upscale complexes include swimming pools, fitness centers, and recreational facilities. Renters not only don’t have to do the upkeep for these additional luxuries, but they get to use and enjoy them as a part of their rent. In the case of remote workers where their homes have also become their offices, extra amenities available on the property become more valuable and a key differentiator between properties.

No property taxes or down pay-

ments necessary. Yes, renters pay a refundable deposit, but it’s not nearly as much money as a down payment, which can be up to 20 percent of the property’s value. Renters who don’t have that kind of money, opt to pay a less expensive deposit.

Embracing a nomadic lifestyle. Now that remote work has become so popular, workers aren’t chained to a particular region. This means they can work from wherever they want. As a result, renters want more flexibility and freedom to easily move around. They may even embrace short-term rentals like Airbnb or Vacation Rental By Owners (VRBO) to enable them to move from different geographic locations and sometimes more desirable locations.

Lower overall costs help those

renters on a budget. Extra costs like property insurance (renter’s insurance costs much less), fluctuations in interest rates for non-fixed loans, and utilities fees for bigger homes (most rental complex units are smaller) reduce expenses.

For all of these reasons and more, renting is becoming more popular. Property owners can market and cater to this crowd to keep units full. They mean even modify some of their rentals to accommodate these wants and needs. In other words, it’s a good time to be a property owner with plenty of renters to fill homes.