Making the Transition from Owning a Home to Renting One
While owning a home is an excellent investment when the time is right, certain life events can make renting a better choice. From moving to retirement and even divorce, sometimes it’s simply not a good financial decision to continue homeownership. If any circumstances have led you to make the change from renting to owning, there are many adjustments that you can anticipate. Fortunately, the transition doesn’t have to be too difficult if you prepare for what’s down the road ahead.
Since most rentals are smaller than standard homes, it’s important to downsize and get rid of belongings that you don’t need or want. A good rule of thumb is to sell or donate anything you haven’t used in the last one or two years. This should include bulky furniture that is difficult to move and unlikely to fit in your new apartment. If you choose to donate, many companies will schedule a time to pick things up so you don’t have to make a trip to drop off.
- Find Functional Furniture
If you are going to be tight on space, then dual functional furniture is worth the investment. Things like storage ottomans and benches are some of the best pieces to start with, as these can hold extra linens, clothing, and even shoes so they aren’t left on the floor. Shelves with storage cubes or carefully placed sideboards are also great for apartments because they are stylish, take up little space, and can hold quite a bit.
- Find an Insurance Policy
When you own a home, you’re required to have homeowner’s insurance if you have a mortgage. With an apartment or home rental, things are a little bit different, with many renters opting not to get similar coverage. While you aren’t required to have it, an affordable renters insurance policy is easy to get and provides an umbrella over your personal belongings in the event of fire, theft or some other form of loss. It essentially replaces the coverage you had as a homeowner minus the protection over the dwelling itself.
- Talk to Your Landlord
Talk to your landlord about the rules of the home you’re going to live in. This is particularly important if you plan on making changes, such as painting the walls or installing new floors. In addition to this, talk to the owner or property manager about any issues you have with the property right away. You should also discuss the terms of the lease and what options you have when renewal comes around. If you plan on staying a long time, then it’s important to rent from a landlord who doesn’t plan on selling in the near future.
- Go Through Your Finances
In most situations, renting is more affordable than owning. If this is the case for you, then it’s a good idea to go through your finances and speak to a financial planner. They can help make sure the funds that are freed up will go to a worthwhile investment or are put in the right account. Fortunately, since you won’t have to pay for maintenance like you would if you owned, you can also stop adding savings to an account for this.
Starting Life in a New Home
Just because you rent doesn’t mean you can’t enjoy the home that you live in. While it might be different because you have a landlord, there are many perks for making this change. However, make sure you protect yourself by taking out renter’s insurance and discussing lease terms with your landlord. By doing so, you’ll be ready to begin a less stressful life in a home that you love.