There are several circumstances in which it makes more sense to rent a home than to buy one. The most obvious savings is in repairs and maintenance. Renters usually just pay rent and perhaps utilities, including water, heat, electric or whatever the landlord specifies. Renters usually do not have to pay for expensive repairs, major appliances or garbage pickup. The landlord is mostly responsible for hiring maintenance personnel and ensuring that the work is satisfactorily completed.

Renters do not have to pay property taxes, which can be thousands of dollars per year, and do not have to worry about fluctuations in variable mortgage interest rates. While renters do not need home insurance, it is advisable to invest in the much less expensive renters insurance, which protects the renter’s possessions inside his apartment in case of loss. Because renters do not have to pay for taxes and repairs, they may be able to save money for a down payment for their own house in the future.

Rent is generally less expensive per square footage of living space than a mortgage. A two-bedroom home, for instance, usually costs much less to rent than a two-bedroom home would cost to purchase. If the rental is in a condo complex, the renter benefits from amenities like a swimming pool and gym, either included in the rental price or for a nominal fee.

Renters have the flexibility to move when needed, rather than having to sell their home first. Even renters who sign a one-year lease have more flexibility to move to a new place (after the lease is up) than homeowners responsible for an ongoing mortgage. Some landlords require only a month-to-month lease. Renting is ideal if you relocate a lot for your business, are in the armed services, travel a great deal for your work, or are a free spirit who does not intend to live in the same place for years or decades.