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Luxury Homes as Rental Property: A Renter’s Guide

New HomeIn a previous blog entry, we detailed what it means to put a luxury home up for rent and what the owner of the property needs to be aware of. This time around, we’ll look at matters from the renter’s side. Maybe you’re viewing a luxury rental as a chance to get away for an extended period of time, or maybe you’re using it as a test run before seeking out your own luxury home. Regardless of what your plans are, there are certain things you need to consider first.

Why Consider Renting?

Typically, renting a home is a way of saving money short-term, since the cost of rent tends to be lower than the cost of a mortgage payment and maintenance of a home you own. However, that isn’t true of a luxury home, since the high cost of rental tends to eclipse what you would normally spend as a homeowner of a non-luxury property. The big benefits of renting come if you plan to stay for a short period of time and want to experience a little extra extravagance during that time. Another possibility is if you are interested in becoming a luxury owner but don’t want to dive right in. Renting can give you a feel for what it takes to be an owner without worrying about every piece of maintenance and fine detail.

Your Responsibilities as a Renter

If you enter into a rental agreement, you should make sure that you know what your responsibilities are. In addition to whatever specifics are laid out in your lease, it is important that you show respect for the property. This will be your home for the duration of the lease, so you need to treat it as such. That means keeping things at least somewhat orderly, performing basic maintenance such as mowing the lawn and shoveling snow, and avoiding situations that might lead to severe property damage. If a major accident does happen, you should contact the property’s owner as soon as possible. Being direct and up front will solve many problems for both the owner and you.

Moving from Renter to Owner

Before you enter into a lease, it will be helpful to know exactly why the property’s owner is renting out the property. Are they just looking to generate extra income while they are away or are they considering selling the property in a few years? This is an important item to know because it gives you insight into the owner’s long-term goals – and it might help shape your own goals as well. The things you learn while renting can often make you a more prepared and more responsible owner. If you plan to potentially buy your own luxury home one day, you should make sure you know what is going through the mind of the person you are renting from. Who knows? This property might one day become yours.

Renting a luxury home offers many benefits. If you are considering buying, this can give you a taste of the benefits and challenges without a long-term commitment. If you just want a place to spend some time in some luxury, you can get that as well. As long as you treat the property with respect, you will find this to be a very rewarding experience.

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