The Real Estate Blog

Pros & Cons of Renting a Home

As a Cambridge realtor, one of the questions I’m often asked is whether it’s better to rent or buy. Truthfully, it depends on your situation, what you can afford and whether or how long you plan to stay in your home. Right now I’m covering the pros and cons of renting vs. buying in a two-part blog series but in a later post I’ll share why I believe buying is always preferable. This blog post is dedicated to the pros and cons of renting a home and what to keep in mind if this is a decision you’re leaning towards. Stay tuned for next week’s blog post on the pros and cons of buying a home.

Pros of Renting a Home

• No maintenance is required. If something breaks or you have a plumbing issue, it will be your landlord’s responsibility to fix it. There will never been any unexpected fees that you’ll need to cover, like replacing your furnace or replacing the roof shingles.
• Allows more flexibility for moving. If you get a new job and need to relocate cities, or be closer to the office, renting is best for this. Since there is no long-term commitment for renting (other than the initial year’s lease), there are less obstacles to move on short notice.
• It’s easier to live in an area in which you couldn’t afford to buy in.
• By avoiding an initial down payment for a home, a renter can invest this money elsewhere.
• As a renter, you only need to worry about renter’s insurance for your possessions, rather than insurance for the entire home which saves you about 50% on home insurance expenses. 

Cons of Renting a Home 

• As a tenant, you’re bound by the rules outlined in your lease agreement, which limits your use of the property and any changes or improvements you want to make to it.
• You can’t make any changes to the home without the consent of the homeowner, and this includes everything, even the minor things like painting the walls.
• If you do make any changes and decide to pay for them, they might even increase the home’s value – something which you won’t get to reap the rewards of.
• Your monthly rent payment can increase at the end of your lease.
• You won’t build any home equity as a renter.
• There is no guarantee that your lease will be renewed when it expires. If the landlord decides to sell the home, you might be faced with looking for a new place to live just as you’ve settled in. 

 What factors are most important to you when you decided to rent or buy a home? Share your experiences with us!