Why You Should Rent A House After Retiring Instead Of Owning One

Monday, January 28th, 2019
benefits of renting a house in amarillo tx

Once you have reached the age of retirement, owning a home may not be the dream that you once thought. There are a few benefits available when owning a house, like using tax breaks or being able to tap into your equity. However, you may find there are more benefits with renting. Renting a house in this stage of your life will provide you with bigger and better benefits.

Renting may be better from a tax perspective

One of the goals throughout your life has probably been to pay off your mortgage before you retire. This goal is common for homeowners 65 and older. However, after paying off your mortgage, you will no longer be able to take the tax deduction for it. With this gone from your tax filing, you will not see the benefit of interest paid.

Property taxes used to be deductible in full, but this tax law has changed. Tax changes are now in effect that make state and local tax deductions, including property taxes, capped at $10,000. If you are living in a higher tax state, the write-off is now less appealing. By renting a house, you will avoid having to pay any property taxes.

Renting is easier when you have fixed costs

Even if you have been able to pay off your mortgage, homeowner costs are still present. Property taxes are a significant cost, and these amounts can continue to rise even when your income has become stable. Repairs and maintenance costs are always unpredictable, and some of them can be costly as well. If you have paid your home’s mortgage in full, this indicates your house has aged and probably needs maintenance.

Experts estimate a homeowner will spend about four percent of their home’s value taking care of repairs and maintenance during a year’s time. There are also repairs outside of this estimate that pop up unexpectedly, such as the furnace needing replacement or a roof that needs to be re-shingled. These repairs or replacements will have you facing a huge financial burden.

Renting a house at this stage of your life ensures you have only a fixed monthly payment, no matter what breaks down or wears out on the house. As a renter, you not only have less financial worries, you do not have to worry about the work involved in maintaining the structure. Other costs you will save are on insurance premiums, as renter’s insurance is much less than homeowner policies.

You will have more time to focus on enjoying retirement

Retirement is intended to be a time you spend doing things you enjoy. You should not be spending days repainting your house, resurfacing your driveway, or fixing plumbing or HVAC systems that have broken down. Renting a home gives you time to spend golfing, visiting family, playing tennis with friends, or any other activity that gives you joy.

Renting a house will still provide you with the day-to-day tasks of caring for a home. These include replacing burnt out bulbs, sweeping off the steps, or other minimal functions that go along with living in a dwelling. The larger tasks, which are time-consuming and wallet-draining, will be handled by the owner or landlord of the property. This is one of the best benefits of renting a house during retirement.

If you ever feel like moving to a different city or state, renting a house gives you more flexibility than owning one. Many leases are six months or one year, which means you will not have to wait long before moving. Although you will have more ability to move around, you should never break lease while renting, because your rental history should stay in good order.

You will have more amenities with less space to maintain

When you retire, you most likely will not need four or five bedrooms. This time in your life should include downsizing if you do not want to clean too much extra space. Renting a house with less space than your previous home also means it will cost less to heat and cool, which will help you save money.

Thinking about renting a house in Amarillo, Texas?

If you are interested in renting a house in Amarillo or have questions about our properties, call Highland Park Village in Amarillo, Texas today. You can reach us at (806) 335-1451 or Contact Us by email to find out more about how we can help you. You can also check out our available Floor Plans and our Specials, or visit us in person at 13300 Bandera Dr in Amarillo to see our unique rental community.