The question “Should I rent or buy a house” is a common one people ask themselves. When considering buying or renting a house it’s important to understand the pros and cons of why renting a house may or may not be your best option.
When considering living options, cost is generally the largest factor. When renting a house, the cost of rent will typically be less than buying a home would cost. With renting, it is common that you only have to provide a security deposit and first month’s rent, and some or all of your utility bills may be included in your rent. When you buy a home, you may need to provide a hefty down payment and closing costs on top of your monthly mortgage and utilities. If renting, you also won’t have to worry about property taxes and costs of home repairs, which can quickly add up. For instance, if your ceiling starts to leak and you require a new roof, your landlord will have to cover that cost. However, some cons to renting can include no tax benefits, having the risk that your landlord can increase the rent at any time, and the fact that you cannot build equity on a property that is not yours.
While there are financial benefits to renting such as a lower cost and no maintenance fees, there are additional benefits to consider. First and foremost, renting gives you flexibility and freedom. Unlike buying a house, you will not be committed to a 10+-year mortgage, meaning if one day a new opportunity comes ab out and requires you to move to another state or town, it won’t be as hard to make this move. Maintenance is also something you will not have to worry about. Not only will large maintenance tasks and fees be handled by your landlord but general maintenance such as mowing the lawn will also not be a concern of yours.
Renting a home you do not own means that you most likely won’t be able to make changes to the property as you would if it were yours. While some landlords may be more lenient and allow you to make changes, most do not. An additional con of renting is commonly seen pet policies. While there are some landlords who do allow pets, it is not unusual to see “No Pets” policies. Lastly, you are bound to a lease agreement when renting which requires you to follow the rules and obligations set by your landlord. There is also the possibility of being evicted by your landlord at any time, as they may decide selling the property is a more financially sound choice than renting.
There are many advantages and disadvantages to renting a house and also to owning a home. Making a list of what you consider your pros and cons to renting a house will allow you to make the best decision for your current needs and circumstances.