Is Renting From a Private Homeowner a Good Idea?
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Renting a home is a big decision that comes with many factors to consider, like whether to rent from a private homeowner or a corporation. Private homeowner property rentals have gained popularity in recent years as an alternative to rental options provided by larger businesses.
While there are advantages to renting from a private homeowner, there are also some drawbacks. To help you make the best decision for your housing needs, check out these pros and cons to consider before signing on the dotted line.
Pros: Easier Communication and Personalized Service
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Private homeowners typically have a smaller number of rental properties, which allows them to provide more personalized service to their tenants.Some landlords will lease properties that they used to live in and are more emotionally attached to. In this case, a landlord will often do what is necessary to keep a property as well-maintained as possible.
As private landlords often have fewer properties than a corporation would, tenants are more likely to get individual attention. Contact with the landlord will be direct, and their issues may be solved quickly.
Pros: Flexibility in Negotiations
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Private homeowners may be more willing to negotiate on rent or lease terms, especially if they are renting out a single property.
Corporations, on the other hand, do not typically offer this option. They are generally less willing to negotiate terms with perspective tenants, as they often have set policies and pricing structures.
Pros: Rentals with More Character
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Most of the time, private homeowners take pride in their rentals and may have add unique touches or features that distinguish them from more corporate rental options.
While corporations have policies in place to ensure that all of their properties meet a certain level of quality, their units often have the same layout, features and colors.
There may be rules in place, like a homeowners association (HOA) would have, that prevent a tenant from showing individuality in their choices. For example, a building may not allow patio furniture or outdoor plants.
Pros: Potentially Lower Rent
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Corporate housing is usually newer and more expensive. Sometimes units rented by private corporations have other fees for amenities like an onsite gym or a pool.
Private homeowners may have lower overhead (they may have paid off the mortgage on a rental property), which can result in lower rates for the renter.
A landlord may also be willing to reduce a tenant's rent if they do some work around the property themselves by maintaining a lawn or painting a unit.
Pros: More Privacy for the Renter
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Depending on the rental property (it could be a single-family home, granny unit or garage apartment),the renter may have the luxury of not sharing walls with another tenant and may be some distance from anyone else.
That may mean you don't have to be as cautious about noise or lights as you would when sharing a property with other renters.
Cons: Limited Resources
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We're all aware that a private property owner will not have the money that a corporation does. That means that when something needs to be fixed or maintained, they'll try to spend as little money as possible.
For landlords with smaller budgets, issues with a unit may take longer to get resolved than they they would under corporate management.
Cons: You May Live Closer to Your Landlord Than You Would Like
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A landlord may live just a few feet away from a rental property. While this may be convenient for repairs, it may be intimidating for the tenant when inviting people over.
Some landlords are known to pay very close attention to the comings and goings of their tenants. This doesn't always make renters feel comfortable.
Cons: Less Management by Professionals
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You may find and love a place that's privately owned and checks all the marks on what you're looking for, but you may also find that a landlord, while owning the perfect property, may not have the experience needed to rent it.
As private landlords don’t have other entities to report to or people they hire to maintain their properties (like a property manager), they may take on issues they don't understand or don't know how to fix.
The renter may encounter obstacles that they never considered and may end up looking for a new place sooner than they thought they would.
Cons: Privately Owned Rentals Are More Difficult to Find
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Property management companies often have dozens of units or buildings to choose from and advertise rentals frequently, making them easier to find.
Private property owners will have a limited amount of options for renters to choose from, and they may not advertise. That means to find what you're looking for, you may have to drive around a neighborhood you like or get a referral.
Searching for a private rental typically takes more time, and renters will sometimes have to widen their search.
Cons: There Are Less Legal Protections When Renting from a Private Landlord
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Corporate entities have to abide by federal and state law when renting properties. While this is also expected of private property owners, they may not be as familiar with laws and regulations, which may result in a lack of protection for renters in legal disputes.
Sometimes, a private landlord may even ignore laws and regulations and be unscrupulous. While this can also happen with a corporation, it is less likely to be the case.