Can You Rent an Apartment if You Own a Home

Homeownership is often considered the quintessential American dream, a milestone that many aim for. But what if you find yourself in a situation where renting an apartment is also on the table?

Is it possible to juggle both home ownership and an apartment lease? The answer is a resounding “yes,” but several factors must be considered.

Financial Considerations

home payment

Juggling Payments

Let’s face it: owning a home is already a significant financial commitment that comes with its obligations—mortgage, utilities, and maintenance, to name a few.

Adding monthly rent to this mix is like adding another ball to an already complex juggling act. It requires an astute sense of balance and a clear budget strategy to ensure you’re not dropping any financial balls.

Property Costs and Hidden Fees

While assessing rent and mortgage, don’t forget to factor in additional homeowner costs such as property taxes, insurance, and any potential homeowner’s association (HOA) fees.

These “hidden” costs can sneak up on you and tip your carefully balanced budget scales.

Why Do Homeowners Embrace the Renter’s Life

apartment renting

Shifting Horizons

Life is never short on surprises, sometimes compelling us to adapt swiftly. Perhaps a job opportunity sprouts up in a different city, necessitating a temporary change of scenery.

In such cases, apartment rentals offer a balanced combination of freedom and stability, allowing you to seize new opportunities while keeping your home base intact.

Financial Two-Step

Time for a candid money talk! If you aim to fatten up your financial portfolio, consider renting an apartment while putting your home on the market.

This strategy transforms your primary residence into a money-making venture, giving you the best financial world.

Expanding Frontiers

Whether an emerging artist craving an exclusive studio or a start-up enthusiast needing dedicated office space, apartment rentals can serve as functional add-ons to your lifestyle.

They offer the space and setting for pursuits that your current home may be unable to accommodate.

Asset Maximization

Is your home an untapped treasure chest poised for future appreciation? Savvy homeowners might see an apartment rental as a strategic chess move, keeping their primary property as an appreciating asset.

While this may be a long-term gambit, it has the potential to pay off handsomely in the future.

Legal Aspects of Renting an Apartment When Owning a Home

apartments for renting

Mortgage Clauses and HOA Rules

Ever feel like you’re deciphering an ancient script when reading legal documents? You’re not alone.

Before committing to a rental, dig deep into the fine print of your mortgage agreement and any HOA guidelines. Overlooking a minor clause could lead to major headaches down the line.

Consulting Legal Guidance

If you find yourself lost in legalese, consider it a sign to seek expert advice. A legal advisor can help you interpret any contractual jargon, ensuring you’re not unintentionally breaching any terms by taking on a rental property.

The Pros and Cons of Juggling Homeownership and a Rental

apartments and houses


  • Versatility in Lifestyle: Enjoy the bustling city life during weekdays and the tranquil countryside during weekends.
  • Income Generation: Leasing out your home can serve as a steady income stream.
  • Diverse Amenities: Access to gyms, pools, and 24-hour security in apartment complexes.


  • Financial Complexity: Managing a mortgage and rent simultaneously can strain your finances.
  • Added Responsibilities: Juggling maintenance and other obligations for two properties can become overwhelming.
  • Tax Maze: Navigating the complexities of tax implications demands careful attention and potentially professional advice.

Key Factors to Consider: Navigating the Intricacies Before Leaping into Dual Housing

dual housing

Financial Feasibility

Is your budget resilient enough to accommodate the added expenditure? Evaluate your financial standing meticulously to avoid biting off more than you can chew.

Legal Nuances

Brush up on your mortgage contract and any homeowner association rules. Ignorance is not bliss when it comes to legal obligations or limitations.

Lifestyle and Future Plans

Take a moment to introspect. Does this decision align with your life goals, immediate needs, or future aspirations?

Credit Score Dynamics

Before taking the plunge, gauge the potential impact on your credit rating. An informed decision today could save you from credit woes tomorrow.

Frequently Asked Questions

Can I Rent Out My Owned Home While Living in an Apartment?

Absolutely. Many homeowners lease their property for supplemental income while living in a rented apartment.

How Will This Affect My Taxes?

Renting an apartment while owning a home may change your tax situation. Rental income needs to be reported, and your eligibility for certain deductions may be affected.

What Happens if I Default on My Mortgage While Renting an Apartment?

Defaulting your mortgage is a serious matter that could lead to foreclosure, irrespective of whether you’re also renting an apartment. If you find yourself in this situation, seek legal advice immediately.

Is It Possible to Use the Owned Home as Collateral for the Apartment Lease?

While it’s generally uncommon, some landlords or leasing agencies may allow you to use your property as collateral. This usually involves legal complexities and potential risks, so consult professionals if you consider this option.

Key Tips for Navigating Dual Housing Successfully

Navigating the waters of homeownership and apartment renting can be intricate, but a well-thought-out approach can make all the difference.

Below are some tips to survive and thrive in this unique housing arrangement.

  1. Start with a Solid Financial Plan: Consult a financial advisor to grasp your complete financial picture, including the costs and benefits of dual housing.
  2. Keep Legal Documents in Check: Store all contracts and legal papers in an organized manner, ensuring you fully understand all terms and obligations.
  3. Constantly Monitor the Real Estate Market: Stay updated on property values and rental rates to make informed decisions about your owned home and rented apartment.
  4. Communication is Key: Maintain open lines of communication with tenants, landlords, and any involved property managers to prevent misunderstandings.
  5. Periodic Property Maintenance: Schedule regular upkeep for your owned home to avoid larger, more expensive issues down the line.

This simplified list should provide an easier-to-digest guide for successfully managing a rented apartment and an owned home.