Advantages

No Maintenance Is Required

  • If the garbage disposal breaks or you need a plumber, getting maintenance is as easy as calling the superintendent.
  • When you rent a place and something breaks, you call and complain to your landlord. When you own your place and something breaks, you complain about the size of the handyman’s bill.

It’s Easier to Move.

  • If you are not settled into your career or could have an opportunity to relocate in the near future, it is much easier to switch to a month-to-month lease or sublet than it is to sell your home.
  • When you own a home, moving can be difficult if not impossible. Worst case scenario, you lose your deposit. When you rent, you can pack up and go at any time

You Can Avoid Owning a Depreciating Asset.

  • While home prices have stabilized and are rising in most housing markets, there’s no guarantee that your home will increase in value over time.

Insurance

  • Renters insurance is basically free. Homeowners insurance, not so much

Upfront expense

  • It will typically cost a lot less to get into a rental than to buy a place.
  • Renters only have to come up with a security deposit and first month’s rent, whereas home-buyers need to have enough cash for a down payment and closing costs. The cash that you save on a down payment can be invested

Records

  • Renters have less record keeping and shorter forms to fill out when it comes time to prepare there income taxes. That’s because they can’t claim a mortgage interest deduction and other tax goodies. Which leads us to the disadvantages of renting


Disadvantages

Your Monthly Payment Can Increase.

  • Rents have been rising in many cities, so you may be facing an increase in your monthly housing payment as soon as your current lease ends.

Landlords

  • While some landlords are kind enough to let you paint your apartment, you’ll have to get their permission and consult on the color.
  • If you want to make other changes or upgrade an appliance you’ll have to put in a request with your landlord or apartment manager
  • Be especially concerned if you have pets, because this will limit where you can rent

You Don’t Build Equity

  • When you rent, your housing payment provides you with a place to live, but will not provide you with an asset to sell when you are ready to move
  • Over time, most real estate will appreciate and create a source of wealth for the owner.
  • Renters build nothing more than an empty register of check stubs. Of course, if you can rent for a lot less than it would own that money can be invested and still work for you.

No Tax Benefits

  • Homeowners can deduct their mortgage interest payments and their property taxes from their federal income tax, which reduces the final cost of home-ownership.
  • Homeowners can write off certain repairs, receive credits for energy-efficient upgrades etc
  • Renters cannot deduct any of their housing expenses.

Less Stability

  • As a renter, you cannot control where you live beyond the terms of your lease. You can be forced to leave at anytime, sometimes even before your lease runs out
  • As an Owner, as long as you can pay your mortgage and taxes, you stay put

-Money Crashers, HotPads