Renting might be a better solution than owning a home for some retirees. Here are some of the situations where it could make sense to rent in retirement.
Many Americans envision retirement as a time to live in a house with a paid-off mortgage. Homeownership is a great way to build wealth over time, but some retirees have recently found renting to be a more suitable option.
Here are 5 reasons why you should consider renting in retirement:
1. Enjoy a home that better suits your needs
When you rent, you can choose a house or apartment that suits your current needs.
If you bought your current residence when you were raising a family, for example, you may find that a smaller home may be more practical. Now that everyone has moved out, there’s no need for all of the extra space. If this is the case, then it may be time to consider downsizing as an option. This was a more popular factor than you may think. 10% of buyers ages 67 to 75 reported downsizing as the primary reason for moving in 2021.
As many of us get older and near retirement, physical challenges can make a once-comfortable house difficult to navigate. Climbing stairs and clearing a snowy driveway can become difficult for some. If you are experiencing accessibility issues in your current home, it might be time to consider renting a single-floor home to eliminate some of the risks of falling.
Related: Best Places to Retire, According to Our Sellers
2. You expect to move soon
Renting makes it easier to move quickly. This is especially true with out-of-state moves. If you’re unsure you’ll like the culture of a new town, renting allows you to get a feel for things without having to commit. The last thing you want is to make a long-term commitment to a place that doesn’t fit your needs.
Additionally, renting in retirement may even help you save money if you plan on moving every couple of years or so. If you’re planning on several moves in the future, then renting should definitely be considered.
If your family is spread across the U.S., it might be time to move closer to them in order to connect more.
Many retirees decide to prioritize connecting with family members. It is not uncommon for grandparents to relocate closer to home in order to spend more quality time with their loved ones. Retirement allows people to spend all of their time doing what they love.
Baby Boomers ages 67 to 75 accounted for 12% of the buying pool in 2021 according to the National Association of Realtors (NAR). The primary reasons for moving were the desire to be near family, retirement, and downsizing.
If you have multiple children who live in several different cities, consider moving closer to each one over the next couple of years. Not only would this open the door to new and varied experiences, but it would allow you to travel comfortably. With no obligations such as a mortgage, retirees find traveling to be a great use of their time.
See more: Best Coastal Cities to Retire
3. Gain more location freedom
Flexibility is a key advantage for anyone who rents.
For older adults, flexibility means having more options than you would if you were a homeowner. Traveling becomes much easier when you aren’t financially tied down. Additionally, reducing costs allows you to spend more money on the things you enjoy. Being free of significant financial obligations is an experience that
If you need to move at the drop of a hat, you can since you aren’t locked into the property. Your landlord cannot stop you from moving, but you may have to pay a fee for breaking the lease. No one wants to pay fees, but many retirees choose this slight headache over dealing with the alternative: selling a home. Selling a house on the MLS can take several months, which can add unnecessary time if you need to get moving. Free yourself of the financial burden of owning a home and experience a more stress-free lifestyle. When you rent during retirement, you’re free to move at any time, so long as you can find another rental!
4. Avoid home repairs and maintenance
A great thing about being a renter is that when something breaks, you don’t have to worry about fixing it yourself. You won’t be paying for major repairs like replacing the roof or fixing some faulty pipes.
You will, however, have to pay your landlord a fee for the repairs, but those costs compared to the overall repair bill are usually much, much smaller.
Many retirees rarely miss the time-consuming chores associated with maintaining a home, such as lawn care, tending to the garden, updating light fixtures, and more. When you rent, all of those headaches will disappear since you don’t own your rental.
Retirement is a time to relax and prioritize what’s important. Owning a home is stressful, and unexpected repairs and maintenance can be a headache. The stress many homeowners experience can actually be detrimental to your long-term health. Stress is a common cause of many health related issues in adults.
Avoid the stress entirely by opting to rent versus own. Renting offers retirees security, as neighbors and community staff can keep an eye out for health or safety emergencies. There are many benefits to being part of a community versus being alone – both for physical and mental health. Having a community to rely on helps set many renter’s minds at ease.
Read more: Your Quick and Easy Guide to Home Maintenance
5. Fund your retirement by tapping into your home equity
If your home is worth a lot of money, but you have no access to cash for living expenses, selling the property and renting instead can be a good option.
Sundae is here to help retirees looking to tap into the equity of their homes. If time is of the essence, or you don’t have the funds to get your home market ready to sell on the MLS, Sundae provides an excellent alternative. We can help you sell fast and on your timeline.
If you’re curious to learn more about how much your home is worth, give us a call and we’ll send a Market Expert over who will help you determine the value of your home. The best part? There’s no obligation to use Sundae after the fact. If you want to go another route, we’ll happily provide you with the resources you need to get the best outcome.
Finding the right solution
While there are many benefits to renting in retirement, it’s not a solution for everyone. At the end of the day, only you know what’s best for you. Whether it be renting, owning, or joining a community, retirement can be whatever you want. Retirement is an important chapter in your life and is full of transitions and new possibilities. Today is the first day of the rest of your life – spend it doing what you love most!
Learn more about how you can sell your home with Sundae.
Zach Child is a recent graduate from the University of Washington with an interest in digital marketing strategy. At Sundae, Zach is part of the team that distributes editorial content across social channels and is responsible for the creation of visual content that helps grow Sundae’s brand.