3 Disadvantages to Renting a Home.

Disadvantages of Renting:

I know that it has been a brief moment, but it is only fitting that I update this blog series with the disadvantages of renting a home. I decided to reduce this blog post to only three disadvantages. Looking back at my first blog post, five seems a little too much so here is a more condense version. Again, these are based on my humble opinion….

Have you ever had a problem in your home that took your landlord would take forever to fix if so, this leads to the first disadvantage to renting a home…

1. Repairs to the property maybe slow coming or not at all by your landlord.
As a tenant, you are at the mercy of your landlord. Your rent has to be paid on time but his/her repairs are performed at their convenience. Notice the word earliest has been omitted, because it is only convenient for some landlords when you threaten to withhold the rent. (Sorry for bashing landlords. There are some good ones out there).


2. Renting builds equity for the owner and none for the tenant.
Every month, a tenant pays their rent to their landlord. In return they receive a roof over their head. The landlord on the other hand receives the ability to borrow against the equity that the tenant has paid and the tenant receives nothing. It is like putting money into a bottomless hole. No matter how much you put into it, you will never be able to get anything out.


3. No tax advantages for renting.
Owning a home allows for many tax advantages, such as the mortgage interest that is paid is fully tax deducible. The points that were paid to acquire home loan also have tax advantages to the homeowner that the tenant is unable to capitalize upon. Lastly, the annual property taxes that are paid are also a deduction that renting does not offer. (Consult an accountant for any other tax advantages.)

This is a fitting place to end this post. If you have any other disadvantages or any stories that you would like to share, free your mind here…

Look out my next blog in this series where I discuss the homeownership….