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Your needs and living arrangements often change after you retire. Some seniors move to be closer to family or to soak up the sun in a warmer climate. Others want to downsize if they feel they own too large a home. Renting is an option seniors might explore after they retire. This guide breaks down the pros and cons of renting and what you should consider.

Pros of Renting During Retirement

Some of the perks of being a renter later in life include:

• Consistent monthly costs: You have a set rent amount each month without worrying about high-cost extras like property taxes or repair fees. This makes it easy to budget without a lot of unexpected expenses.
• Included maintenance: The property owner typically handles maintenance and repairs when something goes wrong, which makes your life easier. It helps you financially by avoiding repairs, and it's less demanding physically.
• Access to equity: If you currently own your home and have equity in it, selling and renting gives you access to that money. That cash can help if you're in a difficult financial situation or simply want to have more money on hand.
• Flexibility: You aren't tied to your home when you rent. You'll likely have to sign a lease, but once it's over, you can easily move to a different home. This is a benefit if you're not sure where you want to live long-term.
• Variety of options: Renting lets you choose from a variety of options, including apartments, condos, townhouses, duplexes and single-family homes. You can find an option that works well for your situation.
• Accessibility: Another perk of having multiple living options is finding one that's accessible. You might find an apartment building with elevators so you can easily reach your home even with limited mobility. Look for a unit that matches your accessibility needs so you don't have to do major renovations to your home.

Cons of Renting During Retirement

Renting seems like a good deal with the perks, but it's important to look at potential drawbacks, too. This can help you make a clear, informed decision. Some cons of renting include:

• No equity: When you own your home, your monthly mortgage payments help you build equity. It's an investment you can eventually cash in on when you sell. Renters pay similar amounts each month, but they don't get any equity from it.
• Less control: As a renter, you most likely can't make major changes to your home. You may not be allowed to paint or do home improvement projects. Even hanging items on the wall could potentially get you in trouble with your landlord.
• Potential need to move again: Your lease might not last forever. The property owner might decide to sell or simply not renew your lease. That means you could have to move sooner than you want.
• Increasing rent rates: Renting means you pay a fixed amount each month, which can help you budget and avoid unexpected expenses. However, rent rates can increase once your lease is up. Some landlords implement big price jumps that could suddenly make your home difficult to afford.
• Loss of tax benefits: Owning a home might come with some unexpected expenses, but it also comes with tax perks. In many cases, you can deduct the interest you pay on your mortgage.

When Renting Might Be an Ideal Situation

Some situations could make renting a better option than buying a home. Examples include:

• You want a consistent monthly fee with no surprise costs.
• Maintenance and upkeep are difficult for you physically or financially.
• You're not sure where you want to live or how long you want to stay in one place.
• You're moving to a new city or state and want to learn more about the area before buying.
• You want to liquidate the assets in a home you own.
• You want to downsize and have fewer responsibilities.
• Traveling often is a favorite pastime, which makes home upkeep difficult.

Renting vs. Buying vs. Senior Living

An alternative to renting and buying is moving to an independent or assisted living community like Bethesda Gardens in Arlington, Texas. Assisted living offers some distinct advantages over traditional rental situations and buying a home, including:

• Included amenities: You get access to a variety of amenities and services with your monthly fee. They make life more enjoyable and easier without any additional costs.
• Safe environment: Senior living communities are designed with safety in mind. Assisted living communities have 24/7 staffing, so you can call for assistance when you need it.
• Additional support: Many senior communities offer different levels of care. If you choose assisted living, the support you receive is customized based on your needs and preferences. When you rent or own a home, you either don't get extra support or have to pay for in-home care.
• Socialization: Living in an assisted living apartment means you're surrounded by other older adults. You can attend planned community activities to meet new people or plan your own activities with friends you make within the community.
• Dining options: Assisted living communities typically provide three meals per day, which helps you meet your nutritional needs while making life easier.

Choosing where to live in retirement can be an exciting decision. Evaluate your situation, including your finances and what you want out of life, to help you decide if renting is right for you.