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Faced with the main moments of life’s decision, it is common to be in doubt if we are really making the right choice. And the truth is that, as much as we compare positive and negative points in each case, insecurity tends to take over. For one of the moments when this dilemma is most evident is when it comes to thinking about having your own place to live.

After all, buy or rent house, how to know which the best option is? Like everything in life, of course the answer to that question is not that simple. Each person is different and their reality is full of peculiarities. So if for someone it is advisable to decide to buy the property, for another person, on the contrary, it may be better to wait a little longer, remaining in the rent.

Thinking about the most common issues surrounding the issue is that we have decided to prepare this special post. Ready to weigh positive and negative points and make the best choice for your life? Then follow the next topics!

 

The ideal time to buy a home

Having a property of its own, starting to form a patrimony, is always a positive decision. So, buying a home is good anytime in life, right? Not necessarily. The truth is that we are not always ready to take this step. Believe: if there is no preparation, the shot may backfire. But let’s go in parts, because this preparation involves several factors. Check out the main ones now!

 

Your current habits

Do you like to move? Want to travel for a longer time? Can your job require you to move? All this (and more) influences this decision. The choice of buying (or not) the house does not only involve the formation of equity. There are more points to analyze.

People serving the military, for example, often have to move with an average frequency of 2 years. In the same way, many other companies and professional placements require a life of change. There are still those who enjoy traveling and spend months in other countries, for example. It’s basically a matter of priorities.

In practice, buying a property may be financially incompatible with this routine. Do you fit this profile? So unless you want to invest, there’s no reason to buy a house specifically at this point in your life! Before deciding, therefore, the ideal is to confront your habits and your current needs with the desire to have your own property.

 

Your prospects for the future

Following the same logic as the previous topic, you need to analyze what exactly you want for the next few years of your life. Do you know where you want to live or what standard of living do you want to have? It’s okay to dream up to high standards, but is your routine and financial capacity compatible with those dreams? Think: it’s no use picking up a high-quality property that you can not keep. After all, this will impact on several other points, such as:

Their quality of life, making them closer to or away from their places of leisure and work, as well as the people with whom they currently live;

Its cost of living, since each neighborhood practices a different range of values, consistent with the lifestyle of the people there.

Faced with this, before choosing a property that fills your eyes or that looks like an excellent opportunity, you need to assess whether this option matches your life prospects.

 

Your financial conditions

Your choice also needs to marry your financial conditions, as it is of no use if you decide on a property that will weigh more than your pocket can afford. Believe me: this is one of the main points to turn a good decision into a bad choice. If you finance a property with very high payments for your ability to pay, you may even lose your property and all the money paid.

Then understand right away: it is essential to assess your conditions well, to plan, to pay possible debts and even to collect some money before you hit the hammer to buy your own home.

 

Your view on the use of the property

We said you need to think about whether you’re traveling or having to move soon, right? But the scenario changes if you want to buy a property to invest! There are many people who buy a house only to rent then supplement the rent. And the good news is that the real estate market gives you numerous investment possibilities.

In this case, you can reconcile the purchase of the property with your traveling lifestyle, only needing to pay more attention to the financial issues. This is because maintaining a quasi-nomadic life and commitment to a benefit may be incompatible issues. So, depending on the junction of these factors (financial conditions, habits and expectations for the property), you can have a good idea of ​​what to do.


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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Home For Rent Sign in Front of Beautiful American Home
Renting involves dealing with various legal issues. With that said, we have to take into consideration who we are dealing with, keep check of all financial transactions we make, and go through the laws of the state that we are residing in.

Here are some legalities that you should consider whenever you are planning to rent.

The Terms of a Lease

The terms of a lease determine how often the renter will pay the rent alongside defining the time period the tenant will be responsible for paying the rent. There is a difference between leases and rentals. Leases often last a year with the rent paid on a monthly basis.

Generally, rentals are on monthly basis and even week to week occasionally.

The Obligations and Rights

Property owners have the right, according to state law, to take action against a tenant who is not paying the rent. These lease agreements are usually signed and agreed upon and bound both, the tenants and the property owner, together.

For example, if the tenant fails to keep the lawn in good condition, the owner of the property can take legal action.

Security Deposits

Even in the absence of a written lease, property owners can charge a security deposit. The security deposit is used to cover any damages that may occur in the household or if the tenant fails to pay the rent. The landlord can charge a maximum deposit equal to the rent of two months, according to law in California. This can vary from state to state.

Security deposits are to be returned to the tenant after the time period of the rent is finished. Any legal deductions are also returned back to the legal tenant after around 21 days from the day the tenant moves back.

Provisions related to lease

A lease or a rental agreement includes the following:

  • Renewal options
  • Whether the tenant is subject to any fees 
  • Rules regarding keeping pets or pet deposits
  • The time when the landlord may or may not enter the property.
  • Responsibilities related to maintenance

Some of these provisions may not be enforceable. For instance, it is a possibility that the landlord may not mention that they can enter the premises of the household without any prior notice or agrees that the renter has to pay for any damages that take place regardless of the fault.

Roommate Arrangements

The legal rights of the roommate of a renter differ from the legal rights of the tenant and the property owner. Similarly, like property owners, roommates do not have to engage in written arrangements.

Roommates can have a verbal agreement on splitting the rent including the supply of the utilities and bills that come on a monthly basis. Therefore, a verbal contract is formed between the tenant and the roommate which can be used against the roommate in case he violates it. However, it is always best to get everything in writing on an official contract.

Checklist of Damages and Issues before Renting

The lease will designate which party will be responsible for maintenance activities such as mowing the lawn or the maintaining the yard. Tenants agree to abide by local laws related to noise, nuisance, and enjoyment of the surrounding property. The lease may not allow the tenants to operate a business within the household premises. It is customary that a tenant walks through the house before moving in to document prior damages to the property so that they aren’t charged for them after their lease term.

Conclusion

Always make sure that you check the state laws wherever you plan to rent a house and never make a payment until you are completely satisfied with the landlord and property. Record rent payments, bills and all money spent in relation to the property in your bookkeeping records so that you have sufficient proof in any case that legal issues arise. 

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.