Advantages & Disadvantages Of Leasing A Property
Most of the time people confuse lease purchase Atlanta and rent-to-own a house with one another and actively use these terms interchangeably, while both carry different meanings.
If you are one of those who do this often then here is a concise definition to help you differentiate between these terms.
First, leasing a house means signing a contract with the property owner to use their property for a definite period by paying a specific amount, it is similar to renting.
While the latter means to invest in a property with the intent to earn own the property. For doing so a person needs to pay a significant portion of the full price of the property, usually, it is between 2.5 to 07%. By depositing money and paying rent credit, the renter can become one of the promising candidates to purchase the property. Although he or she is not obliged to buy but remember the deposit and rent credit are non-refundable.
So, if you are confused about what conditions necessitate that you should lease or rent-to-own. Then there is a simple answer. In leasing, you own a house for a specific period, pay the complete payment for the particular duration. Eventually, you have to return the property to the owner at the end of the lease. On the other hand, rent to own property means the renter can earn a chance to purchase the house after a specific period.
But here in this article, we are focusing on the lease purchase Atlanta, for this very reason we have listed some pros and cons of leasing a property, along with some tips, to help you make an informed decision when it comes to leasing a property.
Advantages of Leasing a House
Whether you are looking for a commercial property for your baking shop or a condo in Atlanta, leasing offers so many benefits, especially to people who aim for a temporary stay. Let get into this!
1. Dream Location
The primary advantage of leasing a property is a dream location. This means if you like a particular spot for your shop which is not available for sale, then you can rent. In other words, lease it for a particular time, establish your business and shift it to another prime location.
Hold on! Lease a property also save the lessee a huge amount and tension to pay rent at a designated time no matter the business making a profit or experiencing a loss.
2. Dream Property
Another advantage of leasing property instead of renting is, reserving an ideal property for a specific duration. For instant, you are required to live in a county for few years, and renting a property cause more than the lease amount, on top you have to manage the commuting expense and food expenses too. Hence, leasing allows the lessee to save money on rents.
3. Flexibility To Purchase A House
Unlike rent-to-own property, leasing a house offer flexibility. This means you can relocate from one place to another with no string attached. Moreover, lease property has a long possession period than rent-to-own.
4. Tax Benefits
When it comes to leased property, the lessee enjoys many benefits in the form of property tax payments. In most of the leasing agreements, the lessee has to pay for most of the taxes, and the leaser pays only agreed taxes. This means while signing a lease agreement, the lessee can modify the tax and other property-related expenses.
5. Sense Of Security
Last and the most essential advantage of leasing a property is a sense of security. Wonder how? Well, unlike paying rent the lessee reserve a property for a specific time by paying a one-time payment. This reduces the tension from the account of the lessee as they don’t have to pay for the rent on a specific date and just focus on the essential tasks at hand. So, if your business is not making any profit then no worries, just invest your time in stabilizing your business until your lease expires.
Disadvantages Of Leasing A House
In addition to the advantages, here are some disadvantages that you need to consider while weighing the decision to opt for leasing a property.
1. Hefty Cost
The first thing that slightly makes leasing a bad option is, the lessee has to pay for the complete amount at once. So, if you are planning to lease a property then it is recommended to invest time in the pool the money require for lease payment
2. No Property appreciation
Another disadvantage of leasing a property is associated with property appreciation. Wondering why? Because it only benefits the actual property owner. Unlike this, the lessee only enjoys the momentary benefit of staying at the leased place with no benefit whatsoever.
3. Penalties
In addition to property appreciation, be vary of the contract penalties. While leasing a property the lessee sign an agreement that contains all terms and conditions which the lessee has to adhere to during the duration of the lease. Not doing so or violating any term and condition results in a serious penalty. In some cases, the lessee has to either pay a certain amount or let the leaser deduct a portion from the deposit.
4. No Control Over Other Tenants’ Activities
The last thing on our list of leasing disadvantages is, the lessee has no control over what other tenants are doing in the building. This means, despite warnings or requests to lower the volume down the lessee can’t do anything.
Tips To Make Lease A Worthwhile Investment
If you plan to lease property, then it is recommended to go fully prepared. Here are some tips that will help you in your quest to strike the right deal.
1. Research property
2. Know your lease options
3. Start hunting early to strike a good deal
4. Consult a professional
Conclusion
Leasing a property and rent-to-own a property has unique pros and cons which everyone has to way while making a decision. So, if you are planning to live in a country for a few months or years then instead of paying regular rent, it is recommended to lease a property. For this very reason, you can visit the Dream America website. We have a wide range of programs that you can opt for if you think buying or renting a property is out of your reach.
