Should You Become a Renter After You Retire?

Beoming a Renter After Retirement in San Diego, CA

Many people look forward to reaching retirement age because it allows more time for relaxation and enjoying life. For some older adults, relaxation may mean not having to take care of a home they own. Instead, they turn to renting. However, there are some advantages and disadvantages to this decision. The staff at American Tri-Star in National City discusses a few of these pros and cons.

Pros

You Can Move Around Freely

When you rent, the long-term commitment usually attached to home ownership is nonexistent. Therefore, you are free to move or stay anywhere you please. A lease can range from monthly payments to a contract lasting between six months to a year. Because life can change on a whim, this level of flexibility is a great option for sudden situations or emergencies, and it’s equally beneficial for budget-conscious retirees searching for less expensive options.

It Costs Less

Renting means there are no worries about fixing broken appliances or leaky pipes because that’s the property owner’s job. This benefit also extends to not having to pay for property taxes. Taxes can reach hundreds or thousands of dollars per year, which can reduce retirement accounts when the money could be better spent on something worthwhile. The third component of maintenance is insurance. The average spent on renter’s insurance costs less per year than the average National City home insurance policy.

Cons

You Can’t Control the Look of Your Home

Retirees gain flexibility and lose control in rental housing. The word ‘control’ in housing means customization. For the most part, retirees cannot alter their rental home’s appearance to suit their tastes. They need to accept the way it looks or move. Additionally, if the landlord chooses to alter the property, you must accept these changes. Sometimes, property owners alter the property to plan a forced move on tenants. This move is legal if the lease says so, and this sudden dilemma can be a stressful change for comfortable retirees.

Your Rent Might Go Up

After a lease expires, property owners often raise rent prices due to inflation or personal need. Tenants have two choices: pay the higher rent or move. Negotiating is rarely successful. The rental process gets tricky once tenants leave in search of another rental property. References are mandatory in many places, and landlords can use this opportunity for payback. Legitimate excuses like outstanding rent and arguments can count against you.

If you’ve made your decision on renting or owning in the retirement years and are looking for an affordable insurance option, get in touch with American Tri-Star. We also offer health, commercial, RV, and motorbike insurance in National City. Call 619-474-3900 to speak with one of our agents and receive a free quote.