The share of older renters has risen substantially over the past decade, with households aged 55 and over contributing 42 percent of renter household growth. That rate is expected to increase as more Baby Boomers retire. However, there are factors to consider before deciding to trade your home for an apartment. Here are some of the advantages to becoming a
renter when you retire.
No more mortgage!
Tired of slowly chipping away at your home loan? Your monthly mortgage payments will become a thing of the past when sell your home and start living life as a renter. Depending on your financial situation, this could even mean you’re entering retirement completely debt-free.
You’re not tied down
If your dream retirement involves traveling, you’ll appreciate the flexibility renting gives you. Since you don’t have a house to maintain, you can come and go as you please.
You’ll stress less over maintenance
One of the biggest burdens of home-ownership is property maintenance, which becomes more cumbersome as you age. If you own a single-family house, you’re probably the person responsible for not only making repairs, but also handling the manual labor, such as mowing the loan, shoveling snow, or cleaning the gutters. When you sell your home and move into a rental,
the landlord or property management company is generally responsible for these tasks.
You get amenities (without the fees)
If you currently live in a single-family home, moving into a rental might give you free access to amenities such as a swimming pool, fitness center, party room, lounge, and private parking. If you plan to travel a lot during retirement, living in a building with a concierge who can accept packages for you is a nice perk, too.
Cheaper insurance
The average renter’s
insurance policy costs between $180 and $360 per year, according to the National Association of Insurance Commissioners. Meanwhile, homeowners insurance costs significantly more.
Are you retired and renting? Let us know the pros and cons you experience.