OWNERSHIP VS RENTAL OCCUPANCY

Rental occupancy is designed to reap a profit for the property’s owner whereas home ownership can eventually yield a profit for the homeowner. As inflation increases, rental landlords are required to raise rents to maintain their profit; for homeowners monthly loan payments usually remain the same for the duration of the loan. The monthly rent payments to the landlord are lost to the renter forever; monthly payments made by the homeowner serve to build equity that the homeowner can eventually use for other purposes. Simply states, the difference between renting and ownership is the same as throwing away payments in the case of a renter, while the homeowner creates an owners equity savings account. The Habitat homeowner will be building for the future.

Maintenance on a rental property is usually the responsibility of the landlord. The landlord (hopefully) puts part of each monthly rent payment into a “slush fund” to cover repairs to the house. If a renter experiences a maintenance problem, they call their landlord and the problem is (hopefully again) taken care of. In the case of your Habitat house the “landlord” is YOU. Items that require repair are your responsibility not a separate landlord’s. You are expected to assume responsibility for maintaining the property.

Improvements and routine maintenance made on your home serve to increase the value of that house and have the potential of making a profit for YOU. Unfortunately, the converse is also trye if a renter damages a landlord’s property the loss is the landlord’s. If YOU damage or fail to take care of your property, it will be your loss in the long run.