Evaluating Renting or Buying Housing

If you were to walk throughout your neighborhood you most likely would see a variety of housing types. You would probably see single family dwellings, but might not know whether or not they were owner occupied or rentals.  You could possibly see some apartment building but might not be able to tell if they are apartments or commodious. We have different styles of housing because we have different lifestyles.

Every decision to purchase something you make is a statement concerning your lifestyle. Likewise personal preferences are fundamental in the decision you make concerning housing.

It used to be taught that your personal budget for housing should be 25- 30 percent of your take home pay but with the rising cost of housing it not uncommon that individuals pay 35% or more.  

The choice between renting or buying also has its effect of some of the choices you’ll make. Renter usually prefers something close to work or school whereas buyers lean more toward stability rather than mobility. One group wants mobility whereas the other desires stability, safety for their loved ones and ease of resale. The cost of housing is normally less expensive in the short run for renters, but buyers tend to do better down the stretch, and are able to take advantage of the tax advantages. Renters feel freer to pick up and move to another location where as buyers are wanting allocation which will help increase the owner’s wealth. They also want to be able to resale this property and not suffer from the loss. Are you the handy fix-it type of person. Homeowners seem to wear many different hats. They are the agent rents the property, admittance man who repairs it. There are also disadvantages to renting. Renters do not have the tax benifiets offered to homeowners. Renters are limited in the changes they can make on their rented property.

If you’re anticipating renting a property Most renter need to sign a lease. This is a simple legal document that defines the conditions of the renting agreement. Things to look for:

• A description of thew property, which should include your new address.
• The name and address of the owner/ or property manager.
• The name of the tenant.
• The effective date of the lease and the length of the lease.
• The amount of the security deposit, and the amount and date of monthly rent.
• The date and the amount due for late payment charges.
• Restrictions (pets, remodeling, tenant’s rights.
• Charges for damages, or charges for moving out of or into the unit earlier or later than the date on the lease.
• A list of utilities, appliances, furniture, or other conveniences which are included in the rental fee.
• The condition under which the manager or landlord may enter the unit.
• There is a website hosted by First Tuesday that has many proper forms. If you desire to view a residential lease agreement, please visit the First Tuesday Residential lease agreement.
• The amount of the security deposit required is what it is used for and how to have it returned when moving out.

Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity), color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status. He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.