From relocating to downsizing, or simply relieving yourself of a mortgage to pay, there are a number of reasons why renting in retirement can be a good idea.
While renting a property is sometimes more typically associated with younger generations, renting among the older generations is on the rise – and in this blog post, we’re going to consider exactly what it means to rent when retired.
Why might you decide to rent in retirement?
When it comes to retirement, while there are many benefits to owning and eventually paying off a mortgage on a property that is entirely yours, renting presents the kind of flexibility that is otherwise unmatched by home ownership.
Whether it’s moving to be closer to family or renting in order to enjoy life in a quieter location that’s further away from the job you have now retired from, renting affords the possibility to be more flexible in your living situation. Best of all, once you hit retirement age you can benefit from a vast array of diverse and community-focussed retirement rental options which are not only cost effective but often include some level of support when required and allow you to forge real and lasting connections with those around you.
So, what are the pros and cons of renting in retirement – and could it work for you?
The pros of renting in retirement
The first and most obvious benefit of renting in retirement is that, by moving away from a permanent and fully owned residence, you allow yourself the freedom to move closer to family or into the kind of home that supports your retirement lifestyle.
While renting comes with the inevitable monthly rental payments, renters who sell a previously owned property will see a significant boost to their finances and pension pots from the money that comes with selling a home. In addition, when you rent you will benefit from less hassle in terms of maintenance – with landlords typically responsible for the upkeep of the facilities in the property – and may even find a rental property or home with added amenities to support your chosen lifestyle.
For example, if you opt for a property as part of a retirement village or complex, you may benefit from access to a residents swimming pool or gym, and other facilities.
Other benefits and pros include:
- Fewer running costs and less expense of renovations – as this falls to the landlord
- Freed up capital that can be used to treat family, enjoy holidays, and invest in experiences
Of course, there are a selection of potential challenges that you will need to consider as well.
The cons of renting in retirement
The number one disadvantage of renting in retirement is that you do not benefit from the stability that home ownership presents – especially if, by retirement, you could have paid your mortgage off and be living in a fully owned home.
This type of insecurity can prove off-putting for some individuals entering retirement, as despite the flexibility that renting offers it can be disconcerting to live in a property owned by someone else. Another challenge to consider if you are looking at renting in retirement is the cost of rent itself, with rental rates varying depending on your location and the type of property you are looking for.
To keep costs at a minimum, those in retirement are often drawn towards renting in retirement communities and developments because these tend to offer more for your money and keep costs at a low rate. From healthcare support to onsite facilities, retirement communities are a great in-between for those who struggle with some aspects of life at home but do not need full-time care.
And finally, to the cosmetic challenges of renting which include many landlords aversion to pets, and their lack of understanding when it comes to personalising and decorating the space. If you are someone who wants to turn your property into a unique home that reflects your personality, or you want to live with a pet, these are things you will need to check on a rental agreement.
Is renting in retirement right for you?
With an ever-increasing market in the retirement rental space, here at Pat Robson & Co. we can offer advice, support, guidance, and hands-on assistance in finding the perfect home for you in retirement, whether it’s rented or otherwise.
