Rent vs. Lease: Which is Right for You?

Rent vs. Lease: Which is Right for You?

Although mortgage rates are at an all time low and inventory is plentiful, some potential buyers find themselves faced with a situation in which purchasing a home is not practical for the time being. For example, Northern Virginia is well known for being home to many government employees who are on short-term contracts for employment or will be sent overseas for an extended period of time. Typically, if you can not foresee living in your home for more than 5 years, renting or leasing may be the best option for your housing needs.

You may be asking yourself, “well, what it the difference between renting and a lease?” Below is a description on both:

Rent: This is a short term, temporary agreement between you and a landlord. Terms are pre-determined but may be flexible. Rent-to-own situations may be worked out in which the renter is given an option to purchase the home at a set price and some of the monthly payment goes towards the purchase price of the home.

Lease: This is a long term, contract between you and a landlord. Terms are pre-determined and are not flexible, giving both the lessee and lessor stability in the agreement. Rent-to-Own is similar to Lease-to-Own, however the significant difference is the former is an OPTION whereas the latter is an obligated contract.

As you can see, both options may be a wonderful way to home ownership in situations where credit may be a factor or you anticipate extension of a short-term employment contract. Which option is best for you will depend on your plans for the future and what you desire for your path to home ownership.

Would you like guidance on your Loudoun County Real Estate housing options? Contact the experts at Ask Gina & Company today and let us unlock the possibilities!