Since the inception of America, citizens have always wanted to live better than their forefathers. That belief fuels the American Dream of homeownership, however, until that goal is reached, renting the roof overhead is a common lifestyle choice. Renting became especially prevalent during 2010 as a mortgage meltdown made high foreclosure activity an inescapable facet in the U.S. economy. While there are benefits associated with renting versus buying, the process of becoming a tenant is filled with financial traps and fees that may negate the effect. Individuals who opt to pay fair market rent for the privilege of keeping a roof overhead should know that some fees associated with renting can easily be avoided and are not a legal necessity of the process.

Hidden Rental Fees

Renting a home, townhouse or condominium requires a tenant to sign a contract called a lease, which clearly spells out the legal obligations of a tenant in relationship to the living accommodations in question and their responsibility to a landlord. A lease will feature terms in relation to the length of time of the agreement, what the rent will cover (living space, utilities, cable, etc.), the amount of money being paid for the living accommodations and information regarding penalties and fees for not meeting the terms of the agreement. The clauses associated with the latter should be of special concern to potential tenants as ultimately they can add unnecessary (and illegal) expenses to the renting process.

Being a landlord is a difficult task, and legally a lease can have penalties for scenarios such as late rent payment and fines to cover damages to the home in question, however, there are some terms that are not legal to implement. MSN.com encourages renters to negotiate certain conditions with the landlord in order to ensure that the agreement is fair for all involved parties:

• Guest Fees: Many people follow the adage "mi case es tu casa" and Federal Law prohibits landlords from trying to capitalize on the good graces of a host. Simply put, it is illegal for landlords to charge potential tenants an overnight guest fee of any amount.
• Application Fees: It is legal for a landlord to charge a potential tenant fees in order to cover the expenses of running a credit check, however, if the money is not used for the stated purpose, an individual has a legal right to get that money back. Consumers should feel free to ask for a copy of the document covered by said fee and if the landlord refuses to provide the paperwork, something may be array.
• Charges for Repairs: Landlords, not tenants, are in the legal position of ensuring a living space is up to code and therefore, it is ladordlord's financial obligation to pay for repairs. The exception is if a tenant has willfully caused damage (i.e. broke microwave but nuking metal, drilling holes into walls, etc.). In that case, a tenant can be expected to replace or repair the damaged item and if not, their security deposit may be used to offset the costs.

The legalities of tenant and landlord relations vary from state to state and consumers should contact their local consumer-affairs branch for the full list.

Renting Pros

While homeownership is a popular choice, some people may prefer renting because of the benefits associated with the task. Renting can provide consumers with short-term living arrangements to allow them to try a new city. The process can be used to secure a home on a monthly basis to years at a time. Landlords will be responsible for maintaining appropriate living accommodations freeing renters from the financial burdens of homeownership. Those who are pressed for time can enjoy shorter lag times as the process of renting generally is faster than buying a home.

Renting Cons

Renting is a simple way for consumers to get a roof overhead, however, it is important to note that it is not the only option. In some areas it is actually smarter to buy a home now instead of renting as courtesy of discounted properties and historically low mortgage rates is making homeownership a more affordable option. Additionally, unlike renting, buying a home allows consumers to accumulate wealth in the form of home equity. According to the Federal Reserve Board statistics, once equity is built, a homeowner’s net worth is 46 times that of a renter’s.

Those who have sizable down-payment amounts, excellent credit history and are ready to buy a home now should act quickly to take advantage of the current buyer's market. Mortgage seekers can count on Mortgage Marvel to deliver accurate mortgage rates in real time and without requiring any personal information.