There are multiple reasons why you may not be ready to buy a house. Maybe your budget does not allow for it. And, when you aren’t ready, you’ll want to look into temporary living situations instead. This, however, leads to a very important question: Should I rent or lease an apartment? What is the difference, anyway?
Renting an apartment and leasing an apartment are very different.
Leasing an apartment:
– You sign a “lease agreement,” which is basically just a document that says you will live in this apartment for a certain length of time. The lease also details the responsibilities you will uphold as a tenant as well as those the landlord will uphold.
– Signing a lease means your landlord cannot cease renting the space to you — unless you do something specifically to violate your lease. It also sets your renting fees in stone for a certain period of time.
– Your landlord can’t change the terms of responsibilities for any party until the lease ends.
Renting an apartment:
– When you rent without signing a lease agreement, this is usually on a monthly basis.
– You are not committed to that property for any longer than the month you’ve paid for.
– The landlord is also not committed to renting you the property beyond the time you paid for.
So what do I do? Should I rent or lease an apartment?
The answer to this is honestly based on your financial situation and future plans. If you know you’ll be living somewhere for a while, you could sign a lease for an apartment at a price you can afford and rest assured that your rent will not go up. If you aren’t sure if you’re going to be staying in the area, you may need to take the chance of rent inflation and rent an apartment without a lease agreement.
Need To Consult An Expert?
Ultimately, the answer to this question is up to you and your individual situation. If you need assistance deciding or budgeting for your living situation, TalkLocal can connect you with high-quality accountants in your area who can help.
