Hidden Costs Of Renting

Dated: 11/07/2013

Views: 6479

Lost Deposits.  Anyone who has rented more than a couple of apartments is well aware of the chances of losing some or all of your security deposit, no matter how well you care for the home.
Storage.  Many renters simply have too many personal belongings to stuff into their apartment, so it's not uncommon for tenants to also pay for a storage space, without calculating that expense into their housing budget.
Coasts of Improving the Property.  Long term renters may paint, replace flooring, and do other improvements to make the place more livable. But since the home is technically not "their" home, when they move out, all the cash they invested is lost. In fact, some landlords may require the tenant to pay or forfeit the deposit money to bring the home back to its original decor.
Income Taxes.  If you earn above a certain level of income, the income taxes you're paying as a renter will be substantially higher than they would be if you owned a home and could deduct your property taxes and mortgage interest.
Opportunity Coats.  When you rent, you lose out on the chance for equity - which can mean an increase in your home's value but, even in a down market, it can also mean the chance of ever owning the home you live free and clear.

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Jim Mazzerina

ABR, CRS, E-Pro, RSPS, SFR, SRES Jim is a “Jersey boy” originally from north Jersey in the Totowa, Little Falls area. He made the move to Stafford about 30 years ago, after finding the perfect....

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