10 Jun Advantages and Disadvantages of Renting
Renting a house or apartment poses its own advantages and disadvantages. Although we strongly favor purchasing a home, we also admit that renting sometimes makes more sense depending on your circumstances. Today, we’re going to discuss why you would favor renting vs. buying and some disadvantages that come along with it.
Advantages of Renting
No Maintenance Responsibility
As a renter, you are not responsible for home maintenance or repair costs. That’s huge. You don’t have to worry about footing the bill for backed up toilets, broken pipes or any other appliance mishap, you just call your landlord or community manager and they send someone over. If you live in a townhouse, condo or apartment, you also don’t have to worry about taking care of the lawn or grounds.
Relocation is easier
Sometimes your career takes you to different cities or states, sometimes even overseas! For this, renting is a much more convenient alternative. You might have to break a lease, but once that’s taken care of, you can easily pack your belongings and yet off. Selling a house takes more time and is a lot more complicated. You might also lose money on the sale if you are pressed for time.
You’re not exposed to real estate market fluctuations
History has taught us that home values are always changing, they can even decline over time. If you rent, you don’t have to worry about this. If you are trying to sell your house, real estate market fluctuations can affect your pocket.
Disadvantages of Renting
You don’t gain ownership of the property, ever. The rent you pay is a fee that the landlord collects for your use of the property. You will never make money off of renting a property.
No Tax Benefits
Similarly, homeowners have the benefit of deducting property taxes and mortgage interests on their tax returns, while renters are not eligible for housing-related federal tax credits or deductions.
Any Home Improvement Stays Behind
You might be tempted to make home improvements to make the property feel like your own, but you should consider that any money invested in a rented property is money lost. Any structural or decorative changes that you make as a renter belong to the building owner. You will also have to ask for approval before undertaking any home improvement project you might want to make.