What Owners Pay for that Renters Don’t

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What Owners Pay for that Renters Don’t

Posted by Candy Noel on Monday, September 14th, 2015 at 7:16pm.

What Owners Pay for that Renters Don’t

 When you pay rent each month, that money is gone out of your pocket forever.

Why not pay your own mortgage instead of someone else’s?  Isn’t that one of the big advantages of owning a home versus renting one?  Sure, you have to make a large mortgage payment each month, but that money is being invested into something that you actually own and can someday sell.

There are, however, lots of costs that home owners have to deal with that renters do not.  That said, buying a home is still often the best option for those who can afford to, especially if they are planning on staying in one place for an extended period of time.

If you are a prospective buyer, do not get caught off guard with these post-sale home ownership costs.

Homeowner’s Insurance

This one should be obvious.

Once you are under contract for a mortgage loan, your mortgage lender will require that you have homeowner’s insurance in order to protect the mortgaged asset, the home.

Even if for some reason it was not required, homeowners insurance is still a good thing to have.  When problems arise with houses—fires, broken pipes, damage from severe weather—the costs of repair are often in the thousands of dollars.  Many people do not just have that kind of money laying around, so homeowner’s insurance is a good option.

Mortgage insurance

Mortgage insurance is a bit less obvious.  Mortgage lending standards are looser now than they were in years past, though they have tightened since the housing market crash in 2007 and 2008.  These looser standards allow for down payments that are less than 20 percent of the value of the house.

Sure, you can get away with putting between five and ten percent down, but most mortgage lenders will require you to carry mortgage insurance until you have paid off enough of the loan to equal 20 percent of the value of the home.


Did the air conditioning malfunction in the middle of the summer?  Did your water heater go out? Is there a loose or broken board on the stairs going up to the front door?

Well, if you are a home owner the costs of fixing all of these minor issues comes out of your pocket. If you are a renter, you just report it to the landlord, and hopefully he will promptly take care of it at his expense.

Upkeep and maintenance of a home demands lots of time and money. It is worth it, though, to protect your investment.

HOA Fees

 Home Owners Associations are your best friend and your worst enemy.  Not all  neighborhoods have them, but many do.  And they cost money.

 HOAs are great for ensuring the aesthetics and security of the neighborhood, but they can  not only be a bureaucratic and power control nightmare, but they can also  cost hundreds  of dollars a month.

 Death and…

 Property taxes!

 Property tax rates vary widely depending on what area you live in, but one thing is for sure… you are going to have to pay them.  The average American household  pays over $2,000 a year in property taxes.  Don’t say we didn’t warn you.


If you're looking to sell your home or looking to buy a home, Contact Reno Sparks Tahoe Homes today!! We're here to help you with accurate local information and strong knowledge of our real estate market from all MLS Listings and New Construction

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