The Pros and Cons of Renting a Home

PRO: Landlord

“Oh crap the toilet is leaking again!”

Even the smallest things in need of home repair can quickly add up to major bucks should they continue. Forget having to keep a stocked toolbox nearby, what about the cost of hiring a professional? Thankfully when you rent, this is one less worry you can take off your plate as you will have access to a landlord or maintenance unit that will come to your rescue. Let’s just hope you have one that’s attentive to your needs.

CON: No gained equity

Okay let’s put the obvious con of renting a home on the table — no gained equity. Though homeowners are responsible for their homes (kinda goes with the whole ownership thing), one thing they can look forward to is accruing equity or value in their home. As you rent from a company or a person, this is not a potential financial gain you can look forward to.

PRO: No lost value

Just as one has to consider no gained equity, it’s important to look at the flip side which can actually be a reason to rent. When the economy hits a bump, like the one that hit a few years ago and continues today, one of the biggest things to falter are home prices. Forget looking forward to an increase in your home value. Let’s just start with the hope of not losing equity which would make you owe more than your home is worth. Unfortunately, this is a harsh reality many homeowners have had to face which can make the option of renting a bit sweeter.

CON: No control over price

With the cost of living only increasing as the years progress, one can expect other elements of living to follow suit. This includes rent. Each year that your lease is up is another opportunity for your rent to increase. The truth of the matter is those who control your home can make changes to the price (within reason of course) which can mean more dollars coming out of your account. Unlike a mortgage where you can pay a fixed amount over time, the chances of your rent increasing is just about guaranteed.

PRO: More affordable

One reason why many people will opt to rent instead of own a home is the price. Considering many of the down payments now required and closing costs, the thought of a security deposit can look pretty tempting. In addition, the monthly cost of renting tends to be lower than most mortgages as you don’t have to worry about things like property tax and association fees if living in a condo.

CON: Living restrictions

Don’t like being told what you can and can’t do? Then renting might not be for you. Now this doesn’t mean you will have someone controlling your any and every move (renters do have rights), but it could mean the owner of the place you are renting does have some say when it comes to things like having a pet and making home improvements, like painting and beyond. If you truly want to be in full control over your home, you might want to rethink renting.

PRO: Awesome amenities

Can we say winning?

Forget a membership to a fancy club or gym for that matter – when you rent, your home often comes with access to some amazing amenities. This is something that homeowners would have to pay for (literally) to enjoy. Common rental property amenities can include a swimming pool, gym/fitness center, laundry facility and more.

CON: Shared spaces

What are some of the renting horror stories you have heard or experienced? Loud and unruly neighbors maybe? One of the downfalls to renting is the possibility that you have to share a space with others whom you may or may not like — and that doesn’t have to mean personality, but also lifestyle. Another setback to a shared space is the potential for limited parking spaces which can make social gatherings a little tricky.

PRO: Aren’t tied down

Being a homeowner carries high responsibilities that can affect life decisions. Let’s say you find a job in another state. The chances of getting out of your rental agreement can be high. Should you own your home, however, you will still be responsible for your mortgage and have to make choices regarding finding a renter or property management company to oversee your place. In addition, you also have to look for a new place which means more money out of your pocket.