5 Things Renters Should Know About Owning
For renters who aspire to be home owners, transitioning from an apartment to a house requires a shift in their thinking that they may not be prepared to make. The financial changes that come with owning, the need to consider planting longer-term roots in a neighborhood, and new neighborhood rules are things renters may not be thinking about enough.
Moving can already be one of the most stressful times in a person’s life, but it may be doubly so for a new home owner. Check out these helpful tips to make your transition from renter to owner as smooth as possible.
You need to understand how your financial investment is changing.
Renters may see an increase in their monthly rent every lease term, but they don’t see exactly where it goes — toward property taxes and insurance, even “luxuries” such as trash pickup. As home owners, they don’t have a landlord who handles all those details, so they need to be ready to juggle the financial responsibilities of home ownership.
You may need to be happy with your location for the long-term.
As a renter, you can bounce around from home to home every year if you want. But when you own a home, you have to stay put — unless you plan on renting it out, which most home owners don’t. Realize that location is going to play a much more significant role in your future, so you should think about evaluating school districts, access to amenities, and commute time now as you search for a home.
You may need to abide by new rules.
Renters don’t think about possible homeowner association rules they may be governed by, such as trash pickup rules or any curfews or rules pertaining to animals. Make sure to get all the information on neighborhood rules and associations to understand what your new obligations may be.
You’ll need to get into the mindset of an owner.
Life as you know it is about to change. Once you purchase a new home, you will no longer have a landlord to tend to your many needs, including lawn care and plumbing. You will eventually need certified specialists ranging from HVAC companies to carpenters to electricians.
You should know your neighbors can affect the value of your home.
Renters don’t care who their neighbors are as long as they’re quiet (enough). But, you may want to know whether their new neighbors are renters or home owners. This knowledge can help you gauge current and future home value in the neighborhood. If the neighborhood consists mostly of rental properties, it is likely a home owner will lose money on their house in the future. Renters do not always feel responsible for maintaining their properties the way home owners do. Property value comes down to curb appeal. Less-appealing neighborhoods often have more-appealing prices, which is not always good for buyers and home owners.