Traditionally, if a couple planned to start a new family, they would tread a well-trodden path; get married, buy a home, and have kids. However, with buying becoming an unobtainable dream for many new parents, there’s been a significant increase in new parents continuing to rent.
Indeed, renting can offer a wide array of benefits to modern parents. Plus, with an increase in single-family homes to rent, new families can enjoy many of the boons of buying a house, without the downsides.
This guide looks at whether renting a single-family home is a good idea for new parents, before examining some key questions to ask before committing.
Renting vs. Buying: The Benefits for New Parents
Up until recently, for many couples, buying a home and settling down went hand in hand with starting a family. However, things have changed recently, with a huge shift in lifestyle choices and working practices.
Nowadays, it’s not uncommon for a young family to remain renting instead of buying a house. And there are many good reasons why renting can be a great choice for modern families.
1. Lower Upfront Costs Make Renting More Affordable
The upfront costs of renting a house will always be lower than buying one. Normally, renters need to come up with the security deposit and the first month’s rent, alongside a few other relatively small costs. Meanwhile, buyers will need to stump up a down payment—as well as numerous hidden costs—which as house prices increase, can soon run into the tens of thousands of dollars for even moderately priced homes.
2. Fewer Responsibilities
New homeowners will find they suddenly have a lot more responsibilities than when they were renting. Maintenance is the big one, an ongoing task that costs time, money, and effort. Pairing this with all the stress and responsibilities of bringing a child into the world can be a jarring and sometimes overwhelming experience.
Meanwhile, renters don’t need to worry about maintenance, since the landlord is responsible for ensuring the home is habitable, giving them more time to focus on their family.
3. Greater Flexibility
Buying a house is a commitment and while it certainly offers benefits in terms of stability, it’s also somewhat constricting. If things don’t work out or circumstances change, it’s much more difficult to sell up and move compared to moving out of a rental. Nowadays, flexibility is prized among younger renters for a myriad of reasons.
But for parents, being able to adjust and adapt with ease is extra important. For example, a couple may have more kids than they initially planned for, or they may find that the local school system isn’t what they’re looking for. As renters, parents can switch things up with relative ease, while homeowners are somewhat trapped in the house and location that they’ve bought until they can afford to sell up.
Financial flexibility is also important. Without worrying about maintenance costs and other homeownership fees like insurance or HOA fees, parents can spend more of their money on their kids.
4. Easier to Budget For
In general, it’s much easier to predict the monthly costs of renting a home compared to owning one. Normally, renters need to budget for the monthly rent and utilities, typically a fairly set price each month. Homeowners don’t have that luxury and may come across unexpected costs such as fixing maintenance issues.
With young children, childcare costs can be significant when taking into account clothes, food, medical care, and essential supplies. So, the fewer unexpected costs the better, making renting a top choice.
The Downsides of Renting Rather Than Buying
While renters can enjoy numerous benefits, it would be remiss to not mention the downsides:
Disadvantages of Renting a Single-Family Home Rather than Buying:
- Less stability: From rent increases to the landlord selling, renters don’t benefit from the same sense of permanence that homeowners do. With kids, this can be a concern. For example, having to move schools because the landlord has put the rent up can be stressful for the child and parents alike.
- Less control: Renters must abide by the terms in their lease agreement. Often, this makes it harder to have pets or decorate the house. Young children are also prone to damaging rentals. Whether it’s scribbles on the walls or breaking appliances, having kids in a rental can reduce the chance of getting a full security deposit back at the end of the lease.
- Renters don’t build equity: The money spent each month on rent is not saved in any way. Whereas homeowners will eventually pay off their mortgage and have an asset to show for it, renters will be required to pay rent indefinitely.
There are ways to mitigate these downsides, but in some cases, the benefits outweigh the negatives regardless. Deciding whether to rent or buy as a parent comes down to various factors, such as the need for flexibility and their current financial situation. There is no right or wrong way, just what works best on a case-by-case basis.
The Advantages of Renting a Single-Family Home vs. an Apartment
The next decision for new parents to make having chosen to rent rather than buy, is what type of rental property to go for. Apartments tend to be cheaper, but single-family homes have considerably more benefits to enjoy.
1. More Spacious
The major perk of renting a single-family house is the additional space on offer. Compared to a typical apartment, single-family homes generally boast more bedrooms, larger living spaces, and bigger kitchens. This additional space can be invaluable for new parents, who may be adjusting to a difficult new sleeping pattern, need extra room for baby supplies, or plan to have more children down the line.
2. No Direct Neighbors
Footsteps from upstairs, TV from next door, and music from downstairs can all sound even louder when sleep-deprived and tired while looking after a newborn. It goes both ways too. A crying baby isn’t the nicest sound to hear through the walls, and while most people are understanding, there’s a chance of complaints.
Meanwhile, a single-family house is fully detached, meaning no noise from the neighbors and no chance of noise complaints.
3. More Likely To Offer Outside Space
A lot of single-family houses have access to a private yard, which is ideal for kids of all ages, not to mention their parents. An outside space can offer brief moments of solitude and peace after a long night of minding the baby. Not to mention the further benefits of having a private yard, such as BBQs, garden parties, and talking up hobbies such as gardening.
4. Location
Most single-family homes for rent are located in residential neighborhoods, normally outside of the hustle and bustle of the city center. This brings a sense of peace, but beyond that, such neighborhoods tend to attract like-minded people and other families, making it easy to forge connections and build relationships.
3 Questions To Ask Before Deciding on a Single-Family Home for Rent
So far, renting a single-family house sounds like the best choice that parents can make for their family. However, it’s important to take time to contemplate the decision to ensure it really is the best move.
Asking the following questions before deciding anything can help parents ensure they’re making the right choice for their family.
1. Is it Affordable?
Renting a single-family house might be cheaper than buying, but it tends to be more expensive than other rental options. As such, it’s essential that parents make sure they can comfortably afford the cost, alongside the extra cost that having kids entails.
2. What’s the Long-Term Plan?
Starting a family inevitably requires some long-term planning. Buying a home is a long-term choice, so if things are settled, it could be the right move. However, those who wish to relocate, don’t have job security, or aren’t sure if they’ll want to grow their family further, can normally benefit from renting.
For parents who do want to buy in the not-too-distant future, it could be beneficial to continue renting a more affordable apartment, even if they already have a baby. Babies don’t take up so much space, and it can enable them to save up for a down payment quicker.
3. Is the Local Rental Market Secure?
The flexibility of renting can be a fantastic advantage, however, most families want some stability. It’s important to ensure the local rental market is secure and if possible, get hold of a long-term lease. This way, the worry of eviction and having to find a new place to live isn’t so pressing.
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