Apartments for Rent in Joplin, MO - Home Rentals | realtor.com® (2025)

FAQs

Why is renting an apartment usually cheaper than buying a house responses? ›

Besides having virtually no maintenance costs in an apartment, renters insurance is way cheaper than insuring a home. Your move-in costs will also be lower since you pay a small security deposit instead of a giant down payment. Plus, once you're in, you won't pay high HOA fees or private mortgage insurance (PMI).

When it comes to answering that question, there's no universal answer other than, “1 or more”. If you haven't purchased your first rental property yet, start at 1. Regardless of your investment experience, the best answer for you is going to come down to your goals.

The 5% rule, when comparing renting and buying a home, suggests that it may be more financially advantageous to buy a home if the annual cost of owning the property, including mortgage payments, property taxes, and maintenance, is less than 5% of the property's purchase price.

Whether renting is cheaper depends on whether renters invest what they would have spent on a down payment and any savings they accrue from renting each month. Homebuying costs more upfront, but you can get some of that back (and potentially more) when you sell the home.

The 50 Percent Rule is a shortcut that real estate investors can use to quickly predict the total operating expenses that a rental property investment is likely to generate. To work out a property's monthly operating expenses using the 50 rule, you simply multiply the property 's gross rent income by 50%.

The 1% rule states that a rental property's income should be at least 1% of the purchase price. For example, if a rental property is purchased for $200,000, the monthly rental income should be at least $2,000.

What Is the 2% Rule in Real Estate? The 2% rule is a rule of thumb that determines how much rental income a property should theoretically be able to generate. Following the 2% rule, an investor can expect to realize a positive cash flow from a rental property if the monthly rent is at least 2% of the purchase price.

Homeowners must pay for all repairs themselves. Why is renting an apartment usually cheaper than buying a house? Buying a house is an investment while renting is paying for a service.

Expert-Verified Answer

apartments are usually smaller than houses. Renting an apartment is usually cheaper than buying a house because apartments are generally smaller and come with fewer financial responsibilities, such as property taxes and maintenance costs.

Over a short period of time, renting is less expensive than owning. If you plan to move within a couple of years, renting can provide a smaller commitment. Repairs are taken care of. One of the biggest perks of renting is that you never have to worry about surprise repairs or the costs of home maintenance.

Why buying a house is more expensive than renting? ›

The overall cost of homeownership tends to be higher than renting even if your mortgage payment is lower than the rent. Here are some expenses you'll be spending money on as a homeowner that you generally do not have to pay as a renter: Property taxes. Trash pickup (some landlords require renters to pay this)