from owning home to renting

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RevFran
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from owning home to renting

Post by RevFran »

does anyone have experience selling a house you own and moving into a rented apartment? i am considering doing this, for ease of upkeep and to get rid of a yard. i think all told it would be a wash in terms of monthly outgo, but the devil there is in the details. i’d appreciate any wisdom!
chemocean
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Re: from owning home to renting

Post by chemocean »

Suggest you look at the several threads on apartment living recently. At not always about the money. Posters had concerns about noisy neighbors to the point that they had to move. Others indicated that their downstairs neighbors said the poster was too noisy.
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Watty
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Re: from owning home to renting

Post by Watty »

Comparing an apartment to a single family home is not a fair comparison.

It would be better to look at buying or renting similar properties. For example sometimes you can rent or buy similar condos in the same building.

When looking at the numbers also be sure to look at it in after tax numbers since one advantage of buying is that you will likely need less taxable income and pay less in income taxes.
mindboggling
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Re: from owning home to renting

Post by mindboggling »

About 10 months ago I sold a small house and moved to a one-bedroom apt. Yes, it's noisier and less private. It is something one just has to get used to (still working on it). All in, I pay about the same amount each month, but I have far fewer bills.

House: three tax bills each year, quarterly water bills, annual garbage fee, monthly electric & cable (internet-only), oil for heat as needed, propane for stove & water heater as needed, having the driveway plowed in winter, lawn-mowing in the summer, homeowner's insurance, PO box (no mail delivery in the village), "lumpy" expenses as needed (hey, it's a house).

Apartment: monthly rent, monthly electric/gas, renter's insurance. Monthly cash-flow much more regular. Downsides: lease uncertainty, noise, lack of privacy.

70 y/o, retired.
In broken mathematics, We estimate our prize, --Emily Dickinson
UM70
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Re: from owning home to renting

Post by UM70 »

RevFran wrote: Mon Jun 05, 2023 9:59 pm ....ease of upkeep....details....
  • Neighbors are much more transient so fewer social constraints on behavior, e.g., keeping common trash area clean or picking up after dogs
  • Dependent on property management for maintenance so only recourse to get service problem resolved, e.g., poor snow removal, is to complain
  • Hidden deferred maintenance: when my water heater broke down and flooded the basement of my townhome the contract plumber who came in disclosed the heater was 29 yrs. old and that the complex always waits for plumbing breakdowns before acting
Barsoom
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Re: from owning home to renting

Post by Barsoom »

What is your feeling about housing security?

I don't mean from a safety standpoint, but from the possibility of being evicted either through damage to the unit, selling of the apartment complex, or some other cause?

Would you feel more secure from owning your own home instead of living by the good graces of a landlord?

-B
Mr. Rumples
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Re: from owning home to renting

Post by Mr. Rumples »

For privacy, for potential noise issues and the lower cost of owning where I live to renting, I have chosen owning. That said, when we sold our home and rented for year it was relaxing. As noted above, no maintenance. Our building was quiet and well managed. But that is a gamble.
"History is the memory of time, the life of the dead and the happiness of the living." Captain John Smith 1580-1631
Topic Author
RevFran
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Re: from owning home to renting

Post by RevFran »

Thanks- this is all helpful, and in the main, discouraging of my rental fantasy!
Wwwdotcom
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Re: from owning home to renting

Post by Wwwdotcom »

On the margin, I've found renting easier if I am living alone and homeownership to be worth it when there is a partner to coordinate chores and contractors with.
chemocean
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Re: from owning home to renting

Post by chemocean »

UM70 wrote: Tue Jun 06, 2023 2:01 am
RevFran wrote: Mon Jun 05, 2023 9:59 pm ....ease of upkeep....details....
Hidden deferred maintenance: when my water heater broke down and flooded the basement of my townhome the contract plumber who came in disclosed the heater was 29 yrs. old and that the complex always waits for plumbing breakdowns before acting[/list]
I am a home owner. My hot water heater and furnace were 25 years old a couple of years ago. I did get my hot water heater replaced because of the contents on the floor around the hot water heater. But my strategy for the furnace is to wait for it to break down. Although, the notice of rebates from the utility suggest that I should do my research now, instead of waiting until next winter's freeze. Need to be ready to rent space heaters to prevent freezing pipes.
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quantAndHold
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Re: from owning home to renting

Post by quantAndHold »

The main thing is you’re giving up control. When you own, you take the risks in exchange for some autonomy. You decide when to fix the broken air conditioner, but you have to pay for it. In a rental, the landlord pays for the broken air conditioner, but you’re at the landlord’s mercy about when (or whether) it gets fixed. One rental house I was in had a dishwasher leak underneath the floor, and the floor needed to be replaced. We lived with the fridge in the dining room for three months while the cheapest handyman the landlord could find dinked around with the floor.

The other thing is that you can be evicted at any time. This isn’t such a big deal in an apartment, but if you’re renting a house or condo, the landlord may decide one day to sell or move back in himself. All of my longtime renter friends have gone through this at some point, sometimes multiple times in a short period.
protagonist
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Re: from owning home to renting

Post by protagonist »

An outsider's perspective....the difference between renting and owning comes down to a lot more than dollars and cents.
If you are here, you have probably already weighed out the financial implications in your market (which vary greatly in different markets, as well as on a specific basis).
So if you can afford both, consider lifestyle first, since renting has several benefits as well as several liabilities regarding lifestyle vs. owning....think of which suits you best. Even if one turns out to be more lucrative than the other in your analysis (a tough thing to accurately predict). It is impossible to predict how much home values will appreciate (or decline), as well as whether a landlord would refuse to renew your lease or how much rents will rise.
Think about how you want to live.
Hebell
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Re: from owning home to renting

Post by Hebell »

We absolutely don't want take care of a home or be part of a condo association any more. Renting for us, at a price point that gets us a higher level of amenities and service, in a location with immediate access to parks and trails.

This does limit your neighborhood choices, because you must find towns that have built luxury multifamily units next to or within their nicest neighborhoods. Zoning decisions vary widely.
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FreddieFIRE
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Re: from owning home to renting

Post by FreddieFIRE »

Is money an issue? If so, then that makes it a much more complex discussion. I can afford to own. I can afford to rent. I choose to rent, because after owning three houses a combined 33 years, I just got worn out from having to think about home maintenance and repairs. We live in a very nice apartment with good neighbors (don't rent at the cheapest place in town). I have access to a great exercise room and nice pool area. We use both at least three times a week and if anything ever needs attention, I put a workorder in and it gets fixed promptly. That's the life I choose to live. If for any reason we decide we no longer like it here, it will be extremely easy to find someplace else and move. That can be across the street or across the Country. Since we thoroughly downsized when we vacated our last house, our heirs will have next to nothing to deal with. 8-)
A house and a job. Once the American dream. Two things I'll never again have. Life is simple (and good).
abcdefg
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Re: from owning home to renting

Post by abcdefg »

Reading the replies here there is a lot of skewed comparisons by positioning a bad rental situation with a positive home owner situation.

Noisy neighbors can be terrible in both situations and can occur in either just as easily.

The questions I would ask yourself is;

1. Are you a handy person? Do you enjoy doing home tasks?
2. What are the tenant laws like in your state/city and who do they favor?
3. What is the main reason you want to switch from owner to renter? (i.e. is it a financial decision, a flexibility decision, a downsizing decision, a social decision, etc.)
4. Whatever your challenges are today, can they mostly solved by $$$ to meet your ideal living situation? And if so, is that ideal better as a renter or owner? (ie move into a luxury rental with round clock building support and amenities or buy something similar and/or buy services in your current owned home to take care of your ideal needs)


Ultimately you need an objective way to look at this rather than opinions based on other people’s own desires and biases for either living situation.
ddbtoth
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Re: from owning home to renting

Post by ddbtoth »

RevFran wrote: Tue Jun 06, 2023 8:19 pm Thanks- this is all helpful, and in the main, discouraging of my rental fantasy!
I wouldn't say that- I loved living in an one bedroom apartment after my divorce, ran the AC to keep it at 65 degrees all year long (burned out three AC units- not my expense) paid $500 a month, saved a ton of money, vs my sister who lives in San Diego CA in a great apartment, overlooking Balboa park, and her rent has gone from $1000 a month to $2500 a month- which is driving her crazy (and probably bankruptcy) but she is unable to make up her mind and bail-
Really depends- don't be in a highly desirable rental area.
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BrooklynInvest
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Re: from owning home to renting

Post by BrooklynInvest »

My friend's mother did this. After slowing down a bit and having some health issues, sold her rather large and expensive brownstone and moved into a beautiful rental with a view of the skyline.

Yes, the rental is expensive but the income kicked off from the sale proceeds more than covers it. No stairs, zero maintenance... both of which were becoming a problem, doorman for safety and convenience, parking on site. Enough - but not too much - room for visitors. What's not to like?

A very different way of life than what she was used to and, I'd argue, probably not the most cost-effective approach in general. But one size does not fit all. Later in life what's the money for if not to make life easier and, in her case, better?
TN_Boy
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Re: from owning home to renting

Post by TN_Boy »

RevFran wrote: Mon Jun 05, 2023 9:59 pm does anyone have experience selling a house you own and moving into a rented apartment? i am considering doing this, for ease of upkeep and to get rid of a yard. i think all told it would be a wash in terms of monthly outgo, but the devil there is in the details. i’d appreciate any wisdom!
For me it's not about the money, it's about the advantages of being in a house. You could certainly save money by downsizing to a smaller apartment. Or spend a lot and get really really nice big apartment.

I get that many people don't like yard maintenance, but it wouldn't be that expensive to have most of that done for you. You could also look at condos to get rid of outside maintenance.
chassis
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Re: from owning home to renting

Post by chassis »

RevFran wrote: Mon Jun 05, 2023 9:59 pm does anyone have experience selling a house you own and moving into a rented apartment? i am considering doing this, for ease of upkeep and to get rid of a yard. i think all told it would be a wash in terms of monthly outgo, but the devil there is in the details. i’d appreciate any wisdom!
Yes, we have done this for the past 5 years and it has been a great decision. Comparing the house we sold to the houses/condos we have rented, renting has been a lower cost living situation. We downsized from an owned 4 bedroom relatively large family home in the top school district in the area, to half the square footage rented 2 bedroom houses or condos in average school districts. We are empty nesters and school district bears no relevance to us as renters.

Cash has been deployed in the market to good result.
THY4373
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Re: from owning home to renting

Post by THY4373 »

Bought last year after renting for nearly 7 years. In my case I both rented and eventually bought a single family home so the pros/cons of apartment vs house didn't play in it for me. Prior to renting starting 7 years ago I was a homeowner for 20.

Straight up without a single doubt renting was cheaper. Part of this is just in my area now with interest rates my mortgage is about $400-500 more than my rent per month (due to a number of reasons the vast majority of my wealth is locked up in retirement plans so not paying cash for house at this time though I could theoretically if I could access the funds. But the maintenance of the house adds a lot of cost. I got the house at a discount because it had some aged systems (roof, 2xHVAC, etc). So I have been putting money into those systems. The house I bought and the house I rented were probably similar in value. My house I bought is much nicer/better built but setup for a retiree vs the house I rented which was more family oriented. Which is why I think they are similarly priced despite a significant disparity in construction quality.

I personally loved renting, it was freeing on many levels. I didn't worry about replacing old systems. I spent less (no) time thinking about improving the place. That said I am happy I bought because like mentioned by some others I wanted more control. More control over the space I lived in (making changes as I saw fit) and more control over when I had to move. I basically didn't want to enter retirement renting.

To me rent vs buy is a absolutely a lifestyle decision with a financial component. I think renting in our society gets downplayed a bit too much because there is so much bias/preference/whatever to home ownership.
Badinvestor
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Re: from owning home to renting

Post by Badinvestor »

Important potential disadvantages of an apartment or other multifamily living arrangement are possible inability to charge an EV and inability to have one's own solar cells and battery and gasoline generator.
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goodenyou
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Re: from owning home to renting

Post by goodenyou »

We owned for 25 years. Last house for 20 years. Had it built. Rented a brand new home for the past 3 years that is less than 1/2 the size of the one we sold. It has been very nice to write one check at the end of the month with no worries about repairs, insurance etc......but......no privacy, small lot and not enough room. No room to park both our cars in the garage. I like renting and having the liquidity of the sale of our home in our portfolio, but we have begun the process of home ownership again. Building another house...no pool and less landscaping this time....
"Ignorance more frequently begets confidence than does knowledge" | “At 50, everyone has the face he deserves”
chassis
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Re: from owning home to renting

Post by chassis »

THY4373 wrote: Fri Jun 09, 2023 8:51 am Bought last year after renting for nearly 7 years. In my case I both rented and eventually bought a single family home so the pros/cons of apartment vs house didn't play in it for me. Prior to renting starting 7 years ago I was a homeowner for 20.

Straight up without a single doubt renting was cheaper. Part of this is just in my area now with interest rates my mortgage is about $400-500 more than my rent per month (due to a number of reasons the vast majority of my wealth is locked up in retirement plans so not paying cash for house at this time though I could theoretically if I could access the funds. But the maintenance of the house adds a lot of cost. I got the house at a discount because it had some aged systems (roof, 2xHVAC, etc). So I have been putting money into those systems. The house I bought and the house I rented were probably similar in value. My house I bought is much nicer/better built but setup for a retiree vs the house I rented which was more family oriented. Which is why I think they are similarly priced despite a significant disparity in construction quality.

I personally loved renting, it was freeing on many levels. I didn't worry about replacing old systems. I spent less (no) time thinking about improving the place. That said I am happy I bought because like mentioned by some others I wanted more control. More control over the space I lived in (making changes as I saw fit) and more control over when I had to move. I basically didn't want to enter retirement renting.

To me rent vs buy is a absolutely a lifestyle decision with a financial component. I think renting in our society gets downplayed a bit too much because there is so much bias/preference/whatever to home ownership.
Excellent post, thanks for sharing your experience.
dh
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Re: from owning home to renting

Post by dh »

There have been some excellent pros and cons replies. I just wanted to add another comment. I owned a house and now rent an apartment. It is extremely quiet, no one lives above or below me (there are garages below), and we have a great exercise room, and pool. My rental insurance is ridiculously low (paired with my auto policy). One big advantage is the freedom to travel. I didn't worry about my residence while away and didn't need to hire anyone to take care of the place. For me, renting has given me a great deal of freedom and I would never go back to being a home owner. I wish you the best in making the decision right for you.
Ktorrence
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Re: from owning home to renting

Post by Ktorrence »

Basically a personal choice. It’s a hard pill for me to swallow to go back to renting. Signing a lease full of rules to follow for a place to stay and humble myself is not going to work for me. I understand that it doesn’t bother a lot of people but I’m not signing any contract to pay for someone else to overlook my living situation. And as far as renters thinking they are not paying for something that needs repair or replacing think again. You pay those expenses in a number of ways, both financially and emotionally.
stoaX
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Re: from owning home to renting

Post by stoaX »

dh wrote: Fri Jun 09, 2023 10:28 pm There have been some excellent pros and cons replies. I just wanted to add another comment. I owned a house and now rent an apartment. It is extremely quiet, no one lives above or below me (there are garages below), and we have a great exercise room, and pool. My rental insurance is ridiculously low (paired with my auto policy). One big advantage is the freedom to travel. I didn't worry about my residence while away and didn't need to hire anyone to take care of the place. For me, renting has given me a great deal of freedom and I would never go back to being a home owner. I wish you the best in making the decision right for you.
I had a very similar experience. For a variety of reasons I made a cross country move and went back to home ownership. It was the right decision for me but I do miss the freedom you describe.

When my life circumstances change I may very well go back to renting.
evelynmanley
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Re: from owning home to renting

Post by evelynmanley »

I'm 68. After owning homes while my kids were growing up, I then loved the freedom of apartment living, the ability to move to many wonderful places and have a simple life. As I got older, I found that I couldn't tolerate the noises of apartment living, not only the close proximity of living near so many people, but the leaf blowers that were nonstop, the garbage trucks that would make so much noise at 6:30 a.m. in the parking lot, etc. Especially irritating were the sudden "amenity" charges by management - $25/month for Amazon boxes, $75/month for parking, $25/month for water, visitor parking removed from the parking lot, and on and on, not to mention the incredible rental increases of $100-200/month each year. It was maddening. I should have bought a house at that time, but I still liked the idea of being able to move closer to my kids (in other states) if I wanted to. So I decided to rent a house, and it was the solution to all the hassles of apartment living. Lots of room, beautiful backyard, privacy, quiet, washer/dryer in house, reasonably stable rent (increase of $50-150/month each year - my Social Security covers all my rent and increases). One warning: never move into a duplex, because that can be total hell if you have loud or rude neighbors. Looking back, I wish I had bought a house when I became dissatisfied with apartment living, not only for the investment, but mainly the security of really having my own place. As much as I like the house I'm renting, I never know what could happen with my landlady and if she might have to sell the house or stop renting at some point. It's unnerving, especially at my age.
single2019
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Re: from owning home to renting

Post by single2019 »

dh wrote: Fri Jun 09, 2023 10:28 pm There have been some excellent pros and cons replies. I just wanted to add another comment. I owned a house and now rent an apartment. It is extremely quiet, no one lives above or below me (there are garages below), and we have a great exercise room, and pool. My rental insurance is ridiculously low (paired with my auto policy). One big advantage is the freedom to travel. I didn't worry about my residence while away and didn't need to hire anyone to take care of the place. For me, renting has given me a great deal of freedom and I would never go back to being a home owner. I wish you the best in making the decision right for you.
We must be neighbors 😊
pharming2017
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Re: from owning home to renting

Post by pharming2017 »

I’d never go back to living in an apartment. It made sense on paper, but when I was attached 3 other neighbors I just couldn’t stand the noise.
sailaway
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Re: from owning home to renting

Post by sailaway »

The last time I lived in a townhouse, the issue was a neighbor from a whole different building. Could have just as easily had the same issue in a sfh. We were renting and it was very nice to not be the one to pay for the water heater or the garbage disposal when they rusted through.
Topic Author
RevFran
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Re: from owning home to renting

Post by RevFran »

Thanks for all these great replies. I have been researching apartments in my are and have identified one to look at sometime this summer. I live in an area with a lot of students and have determined that - not surprisingly - the more expensive apartments are those that don’t attract students. I have also realized that it is germane that I own rental property I town- two of which I could imagine living in myself. So if I decide in the next year or so to move to an apt and hate it, I have an easy out.
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RevFran
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Re: from owning home to renting

Post by RevFran »

I have now gone to look at the apt in question. There was an awful lot I liked about the possible style of life there - the doorman; it having to think about my digs at all when I am out of town; no yard; etc. I have also tried to do a more granular cost comparison but have felt stymied because I don’t have a good sense how much I spend on house maintenance year to year, I don’t really know what the utility difference would be (though there would clearly be some savings) etc. I am going to shelve thinking about it for 6 months because the earliest I’d put my house on the market, for local market cycle reasons, would be Feb. But I feel good - freer, somehow - having identified an option I feel good about. Thanks again for all the input.
Applerunner
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Re: from owning home to renting

Post by Applerunner »

I used to live/own a condo and dealt with a neighbor below me who was noise sensitive (the condo did not have good insulation) and moved because of her. I now live in an apartment and live it. I live in a very walkable town center with restaurants and shops. I love walking out my door and seeing people. Things get fixed right away. I have dealt with some noisy neighbors but I have a good sound machine and try to live on the top floor. It's important to read apartment reviews to see what people say about the noise level in the building. My apartment itself is very nice and has a gym, pool and doorman. Prior to Covid, we had a lot of social functions and I made some really good friends. I like having a very set payment each month and low electricity bills. People often comment that it feels like they are on vacation when they visit. Some downsides are increasing rent (though often times they will decrease the percentage if you ask),, we had a new management company come in and they have not been as competent and have imposed some changes that are annoying.
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