While the reasons for renting an apartment over buying are many, the benefits aren’t always clear. For one thing, your rent money is not tax-deductible. Another perk: Unlike owning a home, the maintenance of a rented apartment won’t be your responsibility. While many young people may prefer to buy their own homes, renting an apartment in Canada is a great option for those looking for flexibility.

Rent money isn’t tax-deductible:

There are some things you can’t deduct when renting an apartment. For starters, unpaid rent is not a valid deduction. You can deduct this amount only if you report the rent revenue as income. If you get paid late, you can claim the unpaid portion of the rent as a loss on your passive activity. But this rule is not always applicable. You may not have to worry about your taxes because you don’t have to report the unpaid portion of the rent.

Maintenance isn’t your problem in a rented apartment:

If your landlord neglects to do routine maintenance on your rented apartment, you should consider contacting a property management company. While the landlord’s responsibility is to maintain the property, tenants can also report issues that may not be reflected in the lease agreement. This may lead to increased rent or eviction. If you are a landlord, the best way to get routine maintenance done is to pay your rent on time. If you notice any damage to your apartment, take pictures to show the landlord.

You can deduct certain expenses from your rental property:

One exception is deducting certain expenses related to your rental property. The cost of landscaping and personal property depreciates faster than the building. Although this means more paperwork, it can now mean a lower tax bill. You can also deduct utility costs, as long as the tenant incurs them. However, it is important to note that these expenses are considered income to the landlord.

Notifying your landlord in writing about a repair problem is one of the most effective ways to request repairs. If you notice something is broken, you can withhold up to $125 from your next rental payment to help cover costs. Make sure to send the letter by certified mail and keep a copy of the letter. When you notify your landlord of a problem, give them a deadline for fixing it. Make sure to keep copies of all correspondence and receipts.

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