7 Benefits of Renting a Home in Retirement

Older couple riding bikes
Syda Productions / Shutterstock.com

Owning a home is a great way to build wealth over time, but some retirees find that becoming renters better suits their lifestyle and bank account.

Homeownership carries many financial responsibilities. In addition to paying off a mortgage, you have to maintain homeowners insurance, pay property taxes and budget for ongoing maintenance.

Renting relieves you of those burdens. Your only concern is paying the rent.

What follows are several reasons retirees should consider becoming renters.

1. Access your home equity

senior elder Indian asian business woman money saving
By espies / Shutterstock.com

It often makes sense to sell a home so you can use the proceeds to create a better life in retirement. If there are things you’ve always wanted to do but haven’t, now is the time to do them.

Some people worry that selling their home would leave them with less wealth to pass on to heirs. However, adult children often support their parents’ decision to tap into home equity to make their retirement more comfortable.

So, talk to the kids and consider “7 Unexpected Perks of Downsizing as a Retiree.”

2. Enjoy a dwelling that better suits your needs

Homebuyers
wavebreakmedia / Shutterstock.com

When you rent, you can choose a house, apartment or condo that suits your current needs.

If you bought your present dwelling when you were raising a family, you may find a smaller dwelling is more practical now. If you want to reduce your dependence on driving, it makes sense to move to a rental unit that’s close to public transportation and within walking distance of shopping. If you have mobility problems, you can rent a home without stairs.

You can try living in a different neighborhood or town — or discover what it’s like to live in a different size of home — by booking a stay in a vacation rental. You’ll find lots of properties listed at Homestay and VRBO.

3. Live closer to children and grandchildren

African American playing elder senior grandparents grandpa
By Monkey Business / Shutterstock.com

You may have been eager to see your children grow up and leave the nest, but things change as you approach retirement. You may have a strong desire to see your children more often and to play a greater role in grandchildren’s lives.

If your children live in different communities, you could divide your time among them, changing to new rental homes when it suits you.

4. Avoid home repairs and maintenance

senior man elder home repair african american hispanic
By Rob Marmion / Shutterstock.com

One great thing about being a renter is that when something breaks, you don’t have to fix it yourself — or pay someone else to fix it. In many rental agreements, the landlord is responsible for property maintenance.

You don’t have to seek estimates from several contractors and make sure they are properly licensed. And you won’t have to replace a faulty furnace.

5. Explore the world

Seniors abroad
Iakov Filimonov / Shutterstock.com

Do you plan to travel in retirement, sampling the lifestyles of several countries? If you’re planning extended stays, renting makes more sense than staying in hotels.

If you eventually decide to retire overseas permanently, renting a home, at least at first, gives you time to decide if the country you’ve chosen truly is right for you before you commit to homeownership.

Not sure where to start? Check out “5 Overseas Cities Where You Can Retire on Less Than $37,000 a Year.”

6. Gain more freedom

senior African American woman dancing elder
By Spotmatik Ltd / Shutterstock.com

When you own a home, you aren’t free to move anytime you’d like. Selling a dwelling is a major effort.

You likely will need to hire a real estate agent to help get the best price for your home. Perhaps improvements will be needed to raise your home’s value. If the economy is suffering, you may need to postpone the sale until you can sell the home for its full value.

When you rent, though, you’re free to move at any time, as long as you can find another rental.

7. Get help with daily tasks

Nursing Home
Photographee.eu / Shutterstock.com

If you need help with day-to-day activities, such as dressing or cooking, one solution is to rent a unit in an assisted living community. Many such communities offer private apartments with a wide range of services that are tailored to the needs of residents.

Assisted living communities offer residents greater independence than skilled nursing homes, which provide around-the-clock care.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
What is the Cheapest Grocery Store?
What is the Cheapest Grocery Store?

Aldi, Kroger and Walmart: Which grocery store is the cheapest?

12 Expenses You May Be Tempted to Claim as Tax Deductions — but Shouldn’t
12 Expenses You May Be Tempted to Claim as Tax Deductions — but Shouldn’t

Thinking of trying to deduct a few of these things on your federal tax return? That could be a costly mistake.

5 Ways to Put an End to Junk Mail
5 Ways to Put an End to Junk Mail

Here’s how to keep unwanted mail from clogging your mailbox and trash can.

70% of Older Adults Botch This Basic Retirement Question
70% of Older Adults Botch This Basic Retirement Question

Can you answer this fundamental retirement income question?

7 Surprising Ways Retirees Waste Their Savings
7 Surprising Ways Retirees Waste Their Savings

You can make your retirement money last a lot longer by avoiding these costly mistakes

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Mistakes Everyone Makes When Shopping on Amazon
9 Mistakes Everyone Makes When Shopping on Amazon

Are you losing money due to any of these missteps?

7 Changes Coming to Social Security and Medicare in 2021
7 Changes Coming to Social Security and Medicare in 2021

Recently, both Social Security and Medicare made some major announcements about benefits for 2021.

Can a Divorced Widow Claim Her First Husband’s Social Security Benefits?
Can a Divorced Widow Claim Her First Husband’s Social Security Benefits?

The rules are complicated when it comes to eligibility for survivors benefits.

Can a Twice-Divorced Woman Claim Social Security Survivors Benefits?
Can a Twice-Divorced Woman Claim Social Security Survivors Benefits?

Understanding survivors benefits rules is the key to getting the most from your benefit.

These Are the 10 Worst Cars for Depreciation
These Are the 10 Worst Cars for Depreciation

Two types of vehicles are especially likely to see steep plunges in value.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

10 Things I Always Buy at Trader Joe’s
10 Things I Always Buy at Trader Joe’s

From snacks to sweets to side dishes, stock your cart with these time-tested favorites on your next TJ’s run.

Longer Trips to This Type of Store May Raise Coronavirus Risk
Longer Trips to This Type of Store May Raise Coronavirus Risk

An airborne-disease expert recommends exiting these stores within 30 minutes.

5 Ways Social Security Will Change in 2021
5 Ways Social Security Will Change in 2021

These adjustments will affect both workers and retirees in the new year.

11 ‘Disposable’ Items You Should Be Reusing
8 Things You Should Buy at Restaurant Supply Stores
8 Things You Should Buy at Restaurant Supply Stores

You don’t have to be a chef or a restaurant owner to shop here.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

There are easy high-paying majors available in the U.S. — and no bachelor’s degree is required. We’re here to help you find easy degrees that pay well.

Stop Buying These 19 Things Online
Stop Buying These 19 Things Online

The internet has changed how we shop. But for some things, you’re still better off buying the old-fashioned way.

Cut These 11 Expenses Now If You Hope to Retire Early
Cut These 11 Expenses Now If You Hope to Retire Early

Like the idea of financial independence? Part of the FIRE equation is cutting costs.

27 Things You Should Never Pay For — and How to Get Them for Free
27 Things You Should Never Pay For — and How to Get Them for Free

When you know the tricks, you can save big on all kinds of useful things that others pay for.

4 Tax Credits That Will Be More Generous in 2021
4 Tax Credits That Will Be More Generous in 2021

If you are eligible for these tax breaks, they will slash your federal income tax bill — dollar for dollar.

7 Tips for Building an Emergency Food Supply
7 Tips for Building an Emergency Food Supply

A pandemic or natural disaster could leave you reliant on your existing emergency food supply. Is your pantry well-prepared for emergencies? Knowing what to stock up on for emergencies can be a difficult task and we’re here to help.

15 Things You Can Get for Free in December
15 Things You Can Get for Free in December

December is here, which means it’s your last chance to take advantage of fabulous freebies in 2020.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.