5 Differences Between Owning and Renting

Tips & Advice

As a tenant, you’re relieved of the many regular property-related responsibilities that your landlord and property manager address. In today’s blog, C&G explain five key differences between owning and renting, preparing you for that big step into homeownership.

Maintenance Responsibilities

As a tenant, you report maintenance issues to your property manager or landlord - but when you’re a householder, maintaining the property is your responsibility. It’s important to have access to an ‘emergency fund’ of savings for occasions when your home needs new appliances, or if there are structural matters or maintenance jobs to address (think leaks, painting or mold remediation).

Owners Corporation

If you live in a shared subdivision such as an apartment or unit, you’ll likely have to contend with an owners corporation. This is basically a collective of owners that come together to make decisions regarding common areas. Often these proceedings are managed by an external owners corporation agency. Each member of the owners corporation pays quarterly fees into a shared fund. These monies cover costs like cleaning, maintenance, gardening and insurance against issues that concern all owners.

Council Rates

As a tenant, your landlord pays for council rates, but as an owner it becomes your responsibility to keep up with your quarterly dues. You’ll pay these direct to your local council, and these rates will vary depending on the size of your home and the municipality you live within.

Renovations and Improvements

As a homeowner, you’re free to paint, update and knock down walls as you please – no need for landlord permission! Be wary that you may need to get permission from the owners corporation if your updates affect other tenants or involves the use of common areas.

Being a homeowner gives you the freedom to really put your aesthetic stamp on a home, making it your very own.

Insurance

As a tenant, you only need to worry about insuring your personal items – your landlord takes care of building insurance. When you buy your own home, you’ll need to be aware of building insurance, contents insurance of a potentially higher value and perhaps insurance to cover the income that pays your mortgage. You must be able to keep up with mortgage repayments, so insuring your income can protect you against the financial impact of redundancy or illness.