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The Pros and Cons of Renting a Home After Retirement

The Pros and Cons of Renting a Home After Retirement

One big part of retirement planning involves figuring out where you’ll live and what it will cost on a monthly and yearly basis. Many retirees stay put in their home—particularly if it’s paid off or close to it, avoiding one major cost-of-living expense in the post-work years.

But then, many others choose to move. Common reasons include to downsize, to find a place more suited to the lifestyle they want in retirement, to relocate for any number of reasons (e.g., proximity to family, more desirable weather, a large senior population), and so on.

If you’re involved in retirement planning and intend to move once you stop working, you have a lot of decisions to make. One of the choices you’re faced with is whether to buy a new home or rent. There are a number of pros and cons of renting a home after retirement, so weigh which ones matter most to you, and of course your personal preferences affect what’s right for you.

So, here’s a quick look at some of the most significant pros and cons of renting a home after retirement. But one caveat: These assume that you sell your home; the lists would look different if you kept your home and used it as a rental property and moved into your own rental, which could be a sensible option in certain circumstances.

Pros of Renting a Home in Retirement

  • Eliminate the debt of a mortgage
  • Avoid the stress and expenses of home and yard maintenance and repairs—especially the serious (and seriously costly) unforeseen headaches when something big breaks or needs replacement
  • Travel more freely without being as tied to home maintenance
  • You can gain access to amenities like a pool, fitness room, etc. without associated costs (either from adding/maintaining them at home or paying membership fees)
  • Renter’s insurance costs much less than homeowner’s insurance and property taxes
  • There’s far less pressure and a simpler process when picking out a rental than when choosing a home to buy
  • Depending on your location, you may have many more home options by renting
  • It’s much easier to move, should you decide to for any reason
  • Renting is a good way to sample life in a new location without the major commitment of purchasing a home

Cons of Renting a Home in Retirement

  • There’s sometimes an element of insecurity, like in a situation where the homeowner could decided to sell or stop renting out the home
  • Monthly rent payments are often higher than mortgage payments (though again, this can often balance out or still be cheaper when you factor in insurance and taxes)
  • You lose some tax advantages, like deductions for mortgage interest and property taxes
  • You give up a significant asset and access to your home’s equity
  • There’s less predictability in your annual housing cost
  • You’re at the mercy of a landlord when you need maintenance, how much your rent increases when your lease is up, etc.
  • There’s usually more noise and less privacy if you’re in an apartment, condo, townhouse, etc.
  • You have less control over customizing your home to make it exactly as you want it
  • You no longer have the status of “homeowner,” if that’s important to you


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