To rent or to buy? The pros and cons of rental housing – Rental prices are rising inexorably and more and more families are asking themselves whether buying is a good alternative. In most cases, the answer to that question is yes. However, there are definitely cases where renting serves as a safer and cheaper alternative. Rental properties offer the advantage that you don’t have to worry about maintenance or upkeep. In concrete terms, this means that apart from the monthly rent payment including operating costs, you do not incur any additional costs for the living space. Waste disposal charges and hot water are included in the warm rent, as is building insurance against fire and water damage. As the owner, you bear these costs yourself, as well as the expenses for maintenance and repairs. Whether buying is more advantageous than renting depends on various factors. For example, if you want to stay in your home permanently, you can consider buying and use a simple example to calculate how much it pays to buy a home. If you live in rented accommodation, you have to expect rent increases and also accept that an owner may declare a deductible or schedule a refurbishment in the occupied state. To find out the advantage or disadvantage of renting, put your rents paid over the last 20 years in relation to the purchase price of a home in your desired area. If the purchase price exceeds the rent over the 20-year period, you will receive more benefits from renting than from buying. If the ratio is balanced or if the property is even cheaper than the estimated expenses for rent, you should buy and create property for yourself.
The rented flat: old or new building?
Newly built apartments inspire with their comfortable, modern and often luxurious furnishings. The old building enchants with its charm and high ceilings, often stucco decorations at the wall transition to the ceiling and frescoes on the walls. In the past, the rental apartment in the old building was considered an inexpensive alternative to the new apartment. Today, price differences are hardly noticeable, so you can choose the apartment according to your personal taste. In metropolitan areas, finding an adequate rental apartment can become a real challenge. As a private searcher, you must expect group viewings and assume that the search will take longer than desired. In this case, it is advisable to let an experienced real estate agent search for you and find a rental apartment according to your ideas in a short time. With Lukinski, you will be invited to individual viewings and receive recommendations that match your search specifications and match your desires in both price and amenities. If you are interested in rental apartments in new construction and don’t want to move in right away, it pays to look for an apartment that is just being built. Our experienced brokers maintain good contacts with builders and property managers, so that you can get into your new apartment much faster than is the case on the public market. Through our cooperation with owners, we also continually receive listings that are available for rent and that may be right for you.
What to look out for when searching for rental accommodation
If you are looking for rental apartments, it is not uncommon to have to deal with a longer-term search, rejections or higher rents than planned. In order to find a suitable apartment for you, you should proceed according to a checklist and clearly define the monthly costs warm and cold, the radius of the search and the demands on the equipment. Set yourself a limit that you will not exceed even after several viewings. With the right search algorithm and a little patience, you will find an apartment for rent, for which you will not pay more than possible and where you can be sure that you will not spend half your salary as a rent payment. Take a good look around the apartment and try to get a one on one inspection. You should take a longer look at the heating, the windows and the walls, as well as the floor and the sanitary facilities. The best time for a viewing is in the afternoon. Then all the neighbours will be at home and you can find out how busy the street in front of the property is and what the noise from outside is like in general. If an apartment has aroused your interest, you express this and show the owner that you are the right choice due to your professional appearance and the complete documentation. It is a good idea to bring a certificate of your creditworthiness and the last three income statements, as well as the completed and signed self-disclosure form to the viewing. Owners appreciate the reliability of potential tenants, so with complete documents you can prevent rejections and increase your chance of getting the coveted rental apartment. To make sure you don’t notice things afterwards that you overlook during a viewing, it’s best to take a camera with you and watch the footage from the flat at home at your leisure. Do not make an emotional decision, but consider the search for a suitable rental apartment rationally and optimized for your needs.
Move into a rental property or buy property?
At some point in life, everyone is faced with the question of whether they should continue to rent or prefer to buy. The financial aspects of a decision have already been explained in the first paragraph of this article. In addition to calculating whether renting or owning is more profitable, there are the personal needs of the individual. Young people in particular are often overwhelmed with buying a condo. There may be career or personal changes and an associated move. If one has bought an apartment, one commits oneself firmly to one’s place of residence or, if a move is planned, one has to seek an apartment sale. With a rented apartment, personal wishes or professional moves can be realized more easily. You are practically location-independent and can adapt the place of residence to your life perspective. So rental apartments are definitely a practical choice, especially since you are faced with a wide range of options. From a small apartment to a large family home with an adjoining garden, you can rent and move within the financial range based on your means. If you go about your search for a rental apartment without rushing or rushing to make a move, you are guaranteed not to overpay and not to have to compromise on your choice of apartment. If you are renting a renovated apartment or apartments in first-time occupancy, you should explicitly deal with the requirements when moving out in the rental agreement. The legislator has defined clear guidelines here, which you can also refer to if the lease agreement contains information to the contrary. If the contract has the severability clause, which is present in all modern tenancy agreements, all other contractual points remain binding even if a single point, for example in the case of cosmetic repairs, is not valid according to the law. As a tenant, you can also seek advice on the contract and obtain information that clarifies the validity of the individual points and your rights, as well as your obligations. In order to feel comfortable within your four walls and to make the right decision, it does not necessarily have to be the purchase of property. After all, around 80 percent of all Germans live in rented accommodation, which shows a clear preference and makes rented accommodation an attractive option.
Offering rental housing: Challenges for owners and landlords
The topic of rental property is not only for potential tenants, but also for owners with some expenses. If you want to rent out, orientate yourself on the local comparative rent and calculate all factors of the furnishings. It has proven helpful to let through a local estate agency and pre-select potential tenants. Especially for fairly priced rental properties, demand is very high and can leave you as the owner stressed out and with little time to do anything else, away from answering emails and phone calls. Prospective tenants will also negotiate and make you offers to lower the cold rent or waive a deposit in full, or proportionately. If you outsource the letting of your apartments, you will save a lot of time and nerves. At Lukinski, we use our expertise and know-how to visit properties, talk to prospective tenants and check the documents we receive. You ultimately make the selection after we have saved you a lot of work and made a preliminary choice. We will gladly assist you in estimating a suitable rental price and in offering the apartment neither too expensive nor too cheap. Private letting is an option, but it requires a holistic effort from you as the owner. Rentals through a brokerage agency are ideal for individual apartments, but also for construction projects with many apartments that are just being built. While you dedicate yourself to your core business, a Lukinski real estate agent takes over all rental tasks and relieves you by providing full service with competence.
How local real estate agents can help tenants and landlords | Lukinski
When selling a house, hiring a real estate agent is common. However, owners looking to rent out apartments can also opt for a professional service from the local real estate agent. Your house sale supports landlords in their search for tenants and is a point of contact for prospective tenants looking for rental apartments. Through a large network of partners, market knowledge and professionalism, you as an owner will find solvent tenants in a timely manner. As a potential tenant, we can simplify your path to your new apartment and do the searching for you. Are you still considering whether renting or buying is the best decision for you? We would be happy to advise you at Lukinski and work with you to find the solution that fits your life and personal needs.