Renting has many advantages. Mobility is an important advantage. When you rent, it is relatively easy and relatively inexpensive to move from one place to another if your job or life situation changes. There are no costs for repairs or maintenance: for example, you don’t have to worry about the cost of replacing the water heater or other household appliances if they break down. Another advantage is that financial commitments are lower with renting than with buying: rent costs are relatively low, there are fewer initial costs associated with moving in, and there are none of the legal headaches that often accompany buying a home. Finally, rent is easy to budget. You generally have only one bill—rent—to worry about.

Nevertheless, renting also has its disadvantages, such as a lack of stability and lack of the pride that comes from ownership. You can’t modify your rental house as you would be able to modify a home. Although you can put up pictures, you can’t paint walls, put up wallpaper, or renovate the kitchen. Another disadvantage is that rent may increase unexpectedly. Someone else makes major financial decisions that affect you; these decisions can have a huge impact on your budget and pocketbook. There may also be restrictions on where you can rent: zoning laws make some locations unavailable. Tax benefits are also missing when you rent. Since you pay no interest as part of your rent, you cannot deduct interest costs from your taxable income. Finally, there is no potential for property appreciation with renting.