While owning a home is a lifelong goal for many people, renting also has many advantages. Hosting is not for everyone. Especially for holidays, short-term rentals can provide more advantages. For some people, leasing may be more economically profitable. The advantages of rental villas for short-term use are much more.
What is the advantage of renting the villa instead of buying it?
1) No maintenance or repair invoices
The most important of its advantages is the absence of maintenance costs or repair bills. When you rent a property, the landlord is responsible for all maintenance, development, and repairs. If an appliance stops working or your roof starts leaking, call the villa owner to have it repaired or replaced. Villa owners are responsible for all home repair, maintenance, and renovation costs. Depending on the nature of the task, the costs can be quite expensive.
2) Access to amenities
Another financial benefit of renting is access to amenities that would otherwise be a huge expense. Luxuries like the pool or gym come as mid-range standards at no additional cost to tenants. If villa owner wants to access these amenities, they will likely have to spend thousands of dollars on installation and maintenance.
3) No property tax
One of the biggest advantages of owning a rental villa is that tenants do not have to pay property taxes. Property taxes can be a heavy burden for homeowners and can vary by county.
Although property tax calculations can be complex, it is determined by the estimated property value of the house and the amount of land. With newly built homes getting bigger and bigger, property taxes can be a significant financial burden.
4) No down payment
Another area where tenants have a better financial deal is the upfront cost. Tenants usually have to pay a deposit equal to one month’s rent; this deposit will theoretically be refunded when they are moved, as long as they do not damage the rental property.
5) More flexibility in where you live
While tenants can live almost anywhere, landlords are limited to the spaces they can buy. For example, while choosing a villa in Gocek for your holiday this summer, you can spend your holiday next year in one of the villas in Antalya.
6) Worry about property value declining
Property values rise and fall, and this greatly affects landlords, not tenants. Your home value can affect the amount of property tax you pay and your mortgage. In the rental housing market, tenants are not as adversely affected as landlords.
7) Shrinkage flexibility
Tenants have the option to downsize to a more affordable living space. This kind of flexibility is especially important for retirees who want a smaller, less costly alternative that fits their budget. Getting rid of an expensive home is much more difficult because of the fees associated with buying and selling a home. Also, if a homeowner has invested a significant amount of money into remodeling, the selling price may not cover these costs, rendering them unable to sell and move.
8) Fixed Rent Amount
Rental rates are fixed for the duration of the rental agreement. While landlords can increase the rent with advance notice, you can budget more efficiently because you know the amount of rent you have to pay. Fixed-rate mortgages also allow for efficient budgeting, but adjustable-rate mortgages can fluctuate, often resulting in increased loan payments due to higher interest rates. Property taxes are another variable that can increase costs for landlords, not tenants.
9) Lower insurance costs
While landlords are required to get a homeowners insurance policy, the equivalent for renters is one that is much cheaper and covers almost everything found in the rental villa, including furniture, computers, and valuables.
Owning a villa can be beneficial for homeowners in the long run because of the amount of equity they have in their homes. Tenants have nothing tangible to show for years of rent payments. However, for those who want to avoid the hassle of owning a house, maintenance costs, and property taxes, renting a villa may be a better option. Of course, this may vary according to each person’s lifestyle and economic situation.