Is it worth renting? Discover the benefits!

Is it worth renting?

Many people believe that renting is the same as throwing money away. However, in this article we will show that this idea is completely wrong.

Choosing to rent a property is extremely economically advantageous. Just do a little research on the average purchase price of apartments. Even in more affordable neighborhoods, the amount you will spend on small properties is increasing.

This even happens in cases of property financing. Anyone who chooses this option clearly sees the huge amount of interest and fees involved. This also increases the chances of getting into debt and the time it takes to pay off the entire amount.

During the pandemic, this difficulty became even more evident. According to a survey released by the Central Bank , Brazilians who purchased properties between February 2020 and August 2021 financed their homes for around 20% more.

In this scenario, renting properties is a much more advantageous option. It is also a solution in the midst of crises and financial difficulties that many have been experiencing in the last year.

If you want to know the reasons why it is worth living in a rental property, then follow us in this text! Here, we will explore the advantages of this housing model, and the types available on the market.

See the topics that will be covered:

• Is it worth renting? Learn more about this model;
• What are the advantages when considering whether it is worth renting?
• What are the disadvantages of renting?
• Types of rental contracts.

Happy reading!

Is it worth renting? Learn more about this model

Yes. The main message we want to convey in this text is that it is indeed worth living in a rental property. To understand why, let's first explain in more detail how this model works.

Renting a property is still a big taboo among many people. Mainly for the reason we mentioned at the beginning of this text, because they consider it an option that only involves unnecessary spending of money.

However, opting to rent a property brings several benefits, especially for those who don't have the money to pay for their own apartment, like younger people.

Or even those who travel a lot for work and need to move constantly.

In Brazil, property rental is governed by Federal Law No. 8,245, better known as the Tenancy Law . It determines all the rules that must be followed when signing a rental agreement .

However, it is also largely responsible for determining all the rights and duties of the tenant and the owner. As bureaucratic as they may be, they serve to provide security for everyone involved and the best possible housing experience.

What does the law say about the rental agreement?

Among the items that must be included in this document are:

• Term: determines the standard term for the 30-month contract. However, it can be redefined for shorter periods through negotiation;
• Fine: applied in cases of termination of lease before the established term. Its value is calculated based on the following formula: (rent value x 3) ÷ months of contract x months remaining in contract
• Adjustment: change in the rental value of the property, calculated using one of the inflation indexes available on the market as a reference;
• Fees: cover painting/renovations of the property, for example.

In addition, the Tenancy Law also states that the contract must contain a rental guarantee. These guarantees are used to ensure that the owner is not economically harmed in cases of default by the tenant.

In the market, the most common and used guarantees are the guarantor , the security deposit and the surety insurance . Each one has its benefits and particularities, which must be analyzed on a case-by-case basis.

Although they are extremely important for financial security, the law also allows this document to be signed without using these items.

Renting without a guarantee , although it is not the most widely used model, also has its advantages for renting properties.

These include greater practicality and agility in the rental process itself. To ensure that the landlord is not disadvantaged, this model requires advance payment corresponding to a rental amount.

All of these rules are essential for a safe property rental. With them, it is definitely worth renting.

What are the advantages when considering whether it is worth renting?

There is no shortage of benefits if you are unsure whether it is worth renting. From greater savings to greater contractual flexibility and other advantages of the contract itself, such as the right of first refusal to purchase.

All of these points, as well as the disadvantages of this model, should be weighed up before making your decision. Let's start with the positive aspects of renting properties.

Is it worth renting: save more money

Renting means saving a lot every month. And the reason is simple: in addition to the huge purchase price of a property, the mortgage payments are also high.

All of this ends up making the purchase of an apartment even more expensive. However, when you choose to rent a property, the monthly installments you will have to pay are much more affordable.

Let's put this into practice, assuming an average mortgage payment of R$2,500.00. If we compare this amount with the rental options available on the market, it is possible to find many apartment rentals with much lower monthly payments.

There are apartments available for around R$1,500.00. Some are even furnished with everything the tenant will need, especially in models such as studio apartments.

Furthermore, all additional costs such as renovations, repairs or maintenance are the sole responsibility of the landlord. This is a duty established by the Tenancy Law, a great advantage for tenants as they do not have to worry about incurring additional expenses if any of these problems occur.

Is it worth renting: contractual flexibility

One of the most valued benefits for those who are unsure whether it is worth renting is the flexibility that the contract provides to tenants.

In general, its validity period is much shorter than that seen in real estate purchase contracts. Furthermore, the Tenancy Law allows changes to the contract through negotiation. For example, a shorter stay period than the standard 30 days.

All of this allows tenants to have greater freedom to move whenever they want, or even renew it without major concerns or bureaucratic processes.

This way, if an irresistible job offer or opportunity to study in another city arises, for example, you will not be tied to a long-term commitment.

Quality of life is also greatly improved by this flexibility. This is especially true for people who move to a property located in a noisy neighborhood, where there is difficulty getting around, or where there are few leisure options.

Any of these issues that cause discomfort do not need to be dealt with for long. Just choose a new location and move as soon as possible.

Is it worth renting: right of first refusal to purchase

One of the tenants' rights provided for in the Tenancy Law is the right of first refusal to purchase.

In practice, this means that the landlord must inform the tenant of the intention to sell. From the moment of the notification, the tenant has 30 days to state whether or not he wishes to purchase the property and to carry out the procedures for the acquisition.

Is it worth renting: a variety of property options

One of the biggest advantages that confirms that it is worth living in a rental property is the wide variety of properties available on the market.

There are several options to suit all profiles and tastes. From the most compact and simple models such as studio apartments, to the largest and most luxurious ones such as penthouses, garden apartments, duplexes and triplexes.

For young college students with a busy schedule, studio apartments can be excellent options for their daily lives. For couples who plan to have children, standard apartments or lofts may be more recommended.

There are many points and characteristics that must be analyzed on a case-by-case basis. All of them offer great freedom to move in and out of the property without many obstacles or concerns.

What are the disadvantages of renting?

As much as renting properties brings countless benefits, we cannot fail to address the other side.

When analyzing whether it is worth renting, it is also important to take into account the disadvantages of opting for this model.

The main points that should be highlighted are the lack of guarantee of staying at the location, obstacles to personalizing the environment, and the rent adjustment provided for by law.

Let's understand each of them better:

No guarantee of permanence

On the one hand, the flexibility of the rental contract is an excellent housing advantage, as it allows the tenant to leave the place more easily.

However, this characteristic also has its negative side. In this case, it is non-permanence.

This means that, at the end of the stipulated period of residence, the owner has the right to ask for the property back to live there, or even sell it or rent it to another tenant.

Renting does not provide 100% assurance that the tenant will be able to renew the lease at the end of the contract. Even if you pay your rent well, the landlord may choose not to continue with the agreement.

Personalization and decoration

We all want to make our homes look like our own. When renting, it is possible to decorate the property with objects and accessories of your choice, making the environment more cozy.

However, this personalization ends up being more restricted than if you had your own apartment. This is one of the main rules present in the Tenancy Law.

It is very clear that the property must be returned in the same condition in which it was delivered. This includes not only all furniture in perfect condition, but also other objects, paintings and decorations.

Tenants cannot make any structural changes to the property without the owner's consent. Even if both parties agree, this change is not economically beneficial.

After all, you won't own the property. And therefore, you won't be living there for long. It would be an expense to move that, in the end, might not be worth it.

Rent adjustment

Every year, the rent value is adjusted based on the General Market Price Index (IGP-M) or other indexes stipulated in the contract, such as the IPCA.

Even if you end up renting an apartment for an affordable price, the price will tend to increase with each year you spend there. This change can end up weighing on the wallet for many.

Or, you may have to look for another apartment at a lower price that fits your budget. This is a big disadvantage for many people, but it should not be overlooked when evaluating whether it is worth renting.

Types of rental contracts

If you've come this far, then you've seen how many things are important to take into consideration when renting a property. But, in addition to these, there is still a very important point as a starting point in this search.

Anyone looking for a property to rent will find three types of rental available on the market: residential, non-residential, and seasonal rental.

Check out each of them in detail:

Residential

The residential rental agreement is one of the most widely used in the real estate market. Aimed at residential rentals, it allows the document to be adjusted throughout the process.

This flexibility may be agreed verbally or in writing, for a fixed or indefinite period, and for a period of less than or more than 30 months. This is provided that it is mutually agreed between the parties.

Non-residential

Non-residential leasing, in turn, covers the rental of properties that are not linked to any residential activity. This includes, therefore, commercial, industrial and office activities, for example.

Unlike residential leases, here the tenant can renew the contract for the same term as the first one. This is provided that the document was signed in writing and for a specific term.

Seasonal

Finally, seasonal rentals are intended for temporary residence, that is, for tenants who do not intend to stay in the property for a long time.

As an example, it is very common for this model to be sought by people who are looking for leisure activities, courses, health treatments, carrying out works on their property, or any other purpose.

Its main rule is that its maximum rental term is 90 days.

Conclusion

The real estate market offers countless possibilities, models and rental agreements. All of them offer several advantages for landlords and tenants, especially in the financial sphere.

When evaluating whether it is really worth renting, it is important to seek to understand this model in depth. In other words, the main rules provided for in the Tenancy Law, the types of properties available and how to sign this agreement.

To learn more about this option, we have many other articles on property rentals on our blog . Be sure to take a look and find out everything you need to know when starting this search!

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