Renting a Home:
Deciding to Rent

Advantages and Disadvantages of Renting

Renting instead of buying has a number of advantages including:

Low initial and predictable monthly costs
When renting, you usually pay one to three months rent as a security deposit for damage or cleaning. This is much less than the initial expense of buying a house. Once you have signed a lease, the rent will stay the same during the period of the lease. Also, some rental units have recreational facilities such as a playground, pool, gym or clubroom.
Limited maintenance
Other than changing light bulbs, you usually will not have to fix things or take care of a yard. An exception to this could be if you rent a single family house that requires you to maintain the landscaping, arrange for service calls or make repairs.
Mobility and flexibility
Renting also provides flexibility if you need to move for a new job or are undecided about what type of long-term housing you want. Canceling a lease is easier and faster than selling a house. Note: Rental lease obligations are different in each state so you need to know the state law where you rent.

Some disadvantages to renting include:

Limited control of policy
A renter may have little or no voice in how the building is managed and maintained. There is little freedom to change the color of paint and some landlords restrict the size or type of pets or do not allow pets at all. Renters also do not control who their neighbors will be. There may be problems with noisy and/or nosey neighbors.
Financial disadvantages
Renting on a short–term basis, such as month–to–month, can be more expensive than a monthly mortgage loan payment. Longer-term rentals are more likely to be less expensive but landlords will often raise the rent at the end of the rental agreement period. This will increase your housing costs if you want to stay in the same rental unit. If you cannot afford the cost, you will have the expense and inconvenience of moving. Also, money spent on rent is not applied toward ownership and does not build equity. Unlike a mortgage payment, money paid for rent is not tax deductible.