The pros and cons of renting home
Regardless of the big-picture in your current life. Whether you are moving out for the first time, moving in with a roommate, or are faced with a major life decision. The decision to rent or buy a home greatly varies from person to person. The option that is best for you in terms of quality of life, comfort, and money is certainly a personal choice, one that requires careful deliberation. You will have to weigh your options, as they both have disadvantages and advantages. We have compiled a list of the pros and cons of renting home to get you started. Read below our list of the pros and cons of renting home.
- Renting home is not a costly purchase process.
- When you rent home you will know exactly how much you going to spend on housing each month.
- Aside from first month’s rent and a likely security deposit, renting home has fewer upfront expenses.
- Renting is typically less than the going cost of a mortgage.
- You may rent in an area that you otherwise wouldn’t be able to afford to buy.
- Renting allows more flexibility than owning a home.
- Renting requires no long-term commitment.
- No mortgage! You don’t have to worry about paying mortgage for the next 30 years.
- When you rent a home, the owner (Landlord) of the property is the one that will pay property taxes, maintenance, and repairs.
- When your toilet breaks down you won’t have to worry about finding and paying a trustworthy plumber to come out and fix it. You will simply call your helpful resident plumber and get it fixed for free.
- Rental properties may provide many recreational facilities you would like. Such as a swimming pool, gym, and tennis court.
- Rental properties may also provide laundry facilities, which would save you the initial expense of purchasing a washer and a dryer.
- When you feel the need to pick up and move, you can do so with way less effort. You are not responsible for finding a buyer to purchase the property, as this is the responsibility of the Landlord. Selling is usually a much longer process, taking months or sometimes years.
- You can freely move on for any reason, such as a job relocation, downsizing, upsizing, etc.
- You will most likely have to pay a security deposit and first month’s rent as soon as you move into your rental unit. A security deposit is a form of protection that your Landlord takes in the case that the property sustains damage, past due rent, or you decide to break the lease.
- You cannot make changes to a rented property without the consent of your Landlord.
- In most cases, you will sign a lease for a duration of one year.
- You are bound by the rules of the lease agreement, which can impact the way you able to use the property.
- After the one-year is up, you may make the decision to stay for another year or move out.
- There is no guarantee that a lease will be renewed when it expires.
- If you decide to stay, you will have to sign the lease for another full year. Unless you live in a rent-controlled building, your Landlord holds the right to raise your rent at this time.
- Utilities vary by landlord and region. In some cases, all utilities may be included in the monthly rent. However, in most cases, renters are responsible for most or all utilities.
- If you have a pet, you may have to pay rent on the monthly basis for them to reside with you. Pet rent is the expected cost of pet-related wear and tear over the tenant’s entire stay, usually amounting to $10 to $40 per month.
- Many rental properties don’t have laundry machines on the premises. You will have to either find a nearby Laundromat or use coin or card-operated machines onsite.
- Inability to build equity or return on investment since the property will never legally belong to you.
- You cannot claim any deduction for property taxes on your tax return.
- Ultimately, you won’t have anything to show for it, despite all those payments. Nothing to pass down to next generation or to sell for cash proceeds.