There are many wonderful yet affordable neighborhoods to choose from in Calgary. Leasing and renting are both popular options when it comes to housing.
It’s important to know the difference between leasing vs renting in order to understand which option is better suited for you and your needs.
Leasing refers to a long term contract or agreement where the property owner grants the tenant a right to occupy the area for a period of time, typically over a year. It is often used for residential properties and commercial spaces.
On the other hand, renting refers to the short term occupancy of a residential or commercial property that is owned by someone else, also referred to as the landlord. Unlike leasing, renting offers flexibility with its short-term agreements, ranging from monthly arrangements to fixed-term contracts.
Once you have chosen between leasing vs renting your desired property, most landlords require you to purchase tenant insurance before coming to terms and agreement.
Attaining tenant insurance has the ability to protect you and your properties whether you are leasing or renting. Surex can help tenants find the most competitive tenant insurance quotes in Calgary.
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What are the advantages of leasing and renting in Calgary?
Here are some of the advantages of leasing and renting in the city of Calgary:
Leasing
The benefits of leasing include:
1. Stability
Leasing offers a sense of security as it involves a long-term agreement. This is highly beneficial to individuals and families who have no immediate plans of moving to a different area, avoiding the hassle of frequently searching for a rental property which shows the difference of leasing vs renting.
2. Fixed payment terms
Usually, leasing comes in fixed monthly payments. Because the rent amount remains constant during the lease term, barring any stated rent increases, tenants can have a predictable budget and financial planning. This can be helpful for budget allocations when it comes to leasing a house vs renting.
3. Maintenance
This is beneficial for individuals and families that prefer having control over the maintenance of rented properties. Tenants are responsible for maintaining and taking care of any possible repairs if needed.
4. Owning potential
Some of these schemes offer lease-to-own or rent-to-own agreements which allows tenants to eventually own the property after a certain amount of time.
Advantages of Renting
The benefits of renting include:
1. Flexibility
The main difference between leasing vs renting a house is the flexibility. Renting allows individuals to explore new places. With the flexibility of renting residential properties, renters have the option of shorter-term agreements, such as month-to-month rents, which give them more mobility and freedom to move.
2. Lower upfront costs
Renting generally costs less than when purchasing properties. Renters also aren’t responsible for maintenance, repairs, and taxes. Generally, when comparing renting vs leasing, renting is the more affordable option.
3. Little to no maintenance responsibility
Since maintenance is the landlord’s responsibility, this can save renters time and money into repairing utilities.
4. Access to amenities
Many rental properties like apartments or condominiums come with amenities such as pools, gyms, event spaces, and even laundry facilities. These amenities are usually maintained by the landlords and renters are given access without the additional fees.
5. Access to luxurious neighborhoods
Renting gives way for tenants to occupy a more desirable location without the financial burden of leasing or owning properties within the location.
6. Safety from declining markets
Sometimes, property values may vary and can be very uncertain. Renting provides security from the possible decline of property values and renters are not directly affected.
Check this forecast to see Canada’s housing outlook.
Which one is for you?
Vacancy rates in Calgary’s new purpose-built rentals are known to be increasing, and rents are rising. Rents in Calgary are likely to increase further in 2023 as the city’s rental market expands. It is also crucial to note that when picking between leasing vs renting a home, factors such as funds, location, and amenities must be considered.
There are numerous pros and cons to both leasing and renting. It is best to choose one that is likely to fit both your lifestyle and budget.