Renting a house: Advantages/Disadvantages

What are the advantages to renting a house?

Many people aspire to own their own house but for many, it makes more economic sense to rent a house, as the rent is more affordable than mortgage repayments. This is because:

• Renting is usually cheaper than paying monthly repayments on a mortgage and so it can be more affordable.

• The amount of money needed for a deposit is smaller, usually around the price of one month’s rent compared to the deposit required for buying a property which is much larger.

• There is the possibility of short term renting with an agreement of a period of notice between the person renting and the landlord/estate agent. Therefore, when the renting lease is up, the person could easily relocate to a different area or to a property that is cheaper to rent.

• The cost of the rent may not fluctuate the same as mortgage repayments because a mortgage is linked to interest rates. The amount of rent to be paid tends to be agreed between the person and the landlord/estate agent as the start of the contract.

• There are no major upkeep costs when a person is renting a house as this is the responsibility of the landlord/estate agent. If something breaks and needs to be repaired like plumbing, heating, electrical wiring, fridge, washing machine then usually the landlord pays for this.

What are the disadvantages to renting a house?

Although renting a house may seem like a much more affordable thing to do, there are some disadvantages to renting a house. These include:

• A feeling that you cannot settle and make plans as you know you will have to move to rent another house when the lease expires on the house that you are renting.

• Sometimes, you may have to share the accommodation with strangers and this can be burdensome as you know you have to live with these people until the lease expires.

• When you rent a house, you usually cannot do what you like to the property, e.g. decorating or renovations. You have to ask the landlord for permission before making any changes to the house. This can be difficult if there are certain things in the house that you do not like and you cannot do anything about it.

• When the lease on the rent expires, you will not own the house. Some people would argue renting is a waste of time as all the money you spend on the rent still leaves you without owning anything.

QUESTIONS YOU COULD BE ASKED:

Write down one disadvantage of renting a house. (1mark)

You have to ask permission before making any changes, e.g. decorating

You should also read:

Buying a house: Advantages/Disadvantages