There are several benefits involved with leasing a home from its owner, including a lack of responsibility for most maintenance costs and the possibility of a rent-to-own setup in which monthly rent payments act as proceeds toward the purchase price of the house, allowing the renter to buy the house from its owner without taking out a mortgage. Additionally, renting can be a more financially effective choice for some people, particularly those who live in an expensive housing market, notes Time.com.
There is a variety of home ownership costs that renters do not need to pay. For example, leasing typically means avoiding property taxes, homeowners' association fees, mortgage interest, property insurance and other potentially expensive costs. Additionally, leasing a home usually requires very few up-front costs, which stands in opposition to the high down payments many homeowners must pay in order to secure a mortgage, states Investopedia.com.
Leasing also gives tenants the flexibility to move to a new place if they encounter a sudden financial hardship. Additionally, because property taxes and mortgage payments can unexpectedly change, leasing can be more secure on a month-to-month financial basis, particularly if the leasing party signs a lease that guarantees a certain rental price for a specific amount of time.