Whether you’re waiting to save up and buy your dream property, or you aren't sure if buying is in your future - that’s ok! Renting a property has some perks worth considering.
What are the benefits and downsides of leasing?
Cheaper monthly payments: typically rent payments tend to be lower than mortgage payments, and may include other bills, like water and hydro.
Maintenance covered: the tenant doesn’t have to worry about property tax or condo fees. Also while it’s the tenants responsibility to maintain the property as if it’s their own, in most rental agreements, in the event of a major disaster (e.g. flooding) or a broken appliance, the landlord is usually responsible for rectifying the problem.
Financial freedom: as a renter, you’ll likely have more funds to save for that rainy day or put towards other investments.
Flexibility: this gives you the opportunity to live in desirable areas you may not realistically afford to buy in. Also, most leases are one year, but it’s possible to find an agreement that’s month-to-month, too.
Instability: there’s always a lack of security when renting. For starters, in accordance with the Residential Tenancies Act, 2006, the landlord can raise your rent once per year, every year, in agreement with the current legislations in place. Evictions can also happen, even if you’re feeling settled. It's important to know exactly what you’re signing up for and committing to.
You’re not building equity: while renters avoid taking out a mortgage and footing the bills for running a house , they also lose out on building equity. Instead, your monthly rent goes towards paying someone else’s mortgage.
The landlord is boss: however you look at it, leasing means you’re living in someone else’s property – and ultimately they get to call the shots (within reason of course…there are laws, after all).
For more information on the rights and responsibilities for tenants and landlords, please click here.