Real Estate

The Shift From Owning to Renting

While many would think that a downward spiral in home prices would result in more homes being purchased, the trend right now in housing appears to be in renting over buying. Part of the reason for the move toward renting could be

because banks have made it harder for individuals to secure financing to buy a home.

The surge toward individuals renting rather than buying properties has been at a new high since it was measured last in 2007. Owner occupied households have decreased and statistics show that 719,000 rental households were formed from 2007 to 2010 while only 148,000 owner-occupied households were formed.

Property management companies have seen an increase in growth to meet the demand from tenants. Property managers handle all rental-related items ranging from screening potential tenants, setting the rental rates, mediating disputes between tenants, caring for the property and addressing maintenance issues. The owners of the property are charged a percentage of the monthly rent for these services.

For eons, owning a home was part of the American dream and while many people still look to home ownership as an ideal, they are happy to be renters for much longer periods of time than in the past. The decision to purchase a home is not one to be taken lightly because with homeownership comes the responsibility to not only make the mortgage payments but to perform maintenance and upkeep and pay for repairs to any items that break down.

Renters know that if the heater breaks, they simply call the landlord or property manager and sit back and wait for it to be taken care of. Renters don’t have to worry about mowing the lawn or shoveling the sidewalk in some instances. Regardless of the decision you made on where to live, you can make any dwelling a home.