Is It Better To Rent vs Own?

People do a lot of research when they are considering their options and trying to make a decision on whether it is better to rent versus own real estate. Off-the-cuff, it is easy for many people to say that owning real estate is much better option than renting, however, there are some benefits to renting real estate which we will discuss.

Why Rent?

It is easy to forget about the benefits of renting real estate because it is so ingrained in us that we want to buy a house, pay it off, and have the opportunity to live without having a monthly mortgage payment! However renting real estate does have some unique benefits that are worth considering.

Never Pay Repair Costs!

The number one benefit to renting real estate is that repair costs are the responsibility of the landlord. While tenants can expect to pay their monthly rent as long as they stay in the property, the benefit is having no surprises when major repairs are needed on the property.

Renting is Easy!

In addition to repair considerations, it is much easier to sign a lease and rent a house versus the lengthy mortgage process involved in buying a home. But for people who are on the move, and for people who don’t plan on staying in a home more than a year or two, and for people whose finances are not in order, renting is a great option and gives people the opportunity to live in a home before they are prepared to buy their own.

Pay Rent Forever

The drawback to renting a home is that you will pay rent FOREVER!  Compared to a home loan which no longer requires monthly payments once it is paid off. It is not uncommon for people to rent homes for 30+ years! We never recommend renting a home for more than a year or two as we do believe this is throwing money away. However renters benefit by not having to pay the real estate taxes on the property. While the landlord probably raises rent so they can pay taxes, a fluctuating tax cost does not change the rent until a lease is up for renewal.

Never Lose Home Value

Renting a home is an excellent option in a declining market. Similar to the real estate decline we saw in 2007, a person can avoid owning a home that is depreciating in value by simply renting a home from someone else. This is a great way to insulate yourself from potential loss in equity by owning real estate.  However, if the value of real estate is increasing, a tenant does not have any opportunity to capitalize on those gains.  Additionally, why it can be very expensive to place a down payment and buy a home, renting a home and entering a lease agreement is typically fairly affordable. Landlords typically only require the amount equal to one month’s rent as a security deposit which is significantly less out-of-pocket money than placing a down payment and buying a home.

However, time is not on the tenants side because the tenant is only guaranteed a property at a specified price for the duration of the lease. Once a lease expires, the landlord is free to change the entire agreement, rent amount can change, security deposit amount can change and even the length of the lease can be changed at the landlords will.

Buying a Home

Well there is no guarantees in life, we have seen many exciting rises in values of Florida real estate. Typically, buying a house in Florida is a good investment because of the traditional increases in value we have seen over the decades. For a person to buy a home, they typically do very well with this decision because the longer the home is owned, the more appreciation the owner will take advantage of.  If you plan to live in a home more than two years it is a great idea to consider buying instead of renting.   Stable income is a big asset when you are considering buying a home versus renting. If you are in between jobs or not established in a particular line of work, lenders can require more documentation so they can identify your financial security before giving you a loan to buy a home.

Tax Benefits

Many first time homebuyers are not aware the benefits of the tax credits when you buy a home! A significant portion of your monthly loan payment is an interest payment to the bank. Be sure and tell your tax expert about your annual mortgage payments because they will be able to use the interest payment of your mortgage to reduce your taxable income!

School Zones

School zones are a huge consideration when buying a home. Many families wish to have their children in a particular school and by buying a home in a certain area, the family is guaranteed the student will be eligible for the school. Learn more about school zones at: School Zone Locator


Building equity through homeownership has been profitable for almost all Floridians due to the constant demand buyer demand for housing. Additionally if you buy home you are free from a landlord and can make 100% of the decisions.


The drawback is unexpected repairs and ongoing maintenance expenses. Be sure to consider several hundred dollars a month and additional expense to help take care of your home.

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