There are several benefits and risks to renting a home instead of buying. For those who are constantly on the move or do not plan to stay in one area for more than three years, renting may be the best option. Some other positive aspects of renting include not being responsible for maintaining the home. Although you may have to mow the yard in the home you are renting, you are not required to fix leaky pipes, upgrade appliances, repair parts of the home or pay for professionals to do any necessary fixes and maintenance. Those responsibilities lie with the home owner or property manager.
Renters are not responsible for property taxes or other assessments due on the house. Homeowners also risk losing money when housing costs decline. Although renters can be fined or even evicted if payments are not made, homeowners can lose their entire investment to foreclosure. Renting is also ideal for those who are not ready or able to make a large down payment or other costs associated with purchasing a home.
There are some disadvantages and risks to renting instead of buying your home. Every time you move, there is an additional security deposit, usually equivalent to one month’s rent. If there are any damages to the home after you have moved out, the cost of repairs is taken out of the security deposit. You also have no equity in a house you are renting, as well as no tax benefits. The home does not belong to you, you have to live in accordance with what is written in your lease. You do not have the freedom to paint, build, expand or remodel without the permission of the landlord. You may have to pay more than what you had intended if the rent should happen to go up. If you do not make payments on time, you risk being evicted. It is wise to determine what you want and need in a home, and whether those needs can be met better through renting a home from someone else or by purchasing your own home