Rent is Negative 100% Equity

Renting is 100% Equity


I decided to write this blog entry as I sit in the court room preparing to proceed with a summary ejectment for two families.  Both single income homes, and both with hard working women heading them. Their current situation has been caused by the lack of proper budgeting and prioritizing. Thusly, they find themselves in an unfamiliar scene however all too familiar for me.


As I sit and observe, I am overcome with a recurring thought, ‘’rent is negative, 100% equity.”  I listen to tenants express their concerns with the judge—ranging from valid reasons for late rent to management/service concerns.  With each new case it becomes clear that no matter if rent is paid on time or a home is well-maintained, there is nothing being built from sweat equity or by adhering to the financial obligation of the lease.


Doing a basic example of $1000 lease for a one year term, renewed twice: $24000 has been spent and not a dime invested!  The average tenant resides in a home 3-5 years. There’s a saying that “you have to pay to stay.”  I would venture to guess that very few people have calculated the costs of the “stay.”  They’re too busy figuring a way to “pay.”  In the real world, one might say that the circumstances of life often prohibit some from owning their own home, but truthfully everyone renting is buying a home…just not their own.  


Allow Divas Doing Real Estate Consulting the opportunity to navigate you along the Divas Designer Pathway to Homeownership, placing you in a position to build your own equity. Stop pouring money into someone else's wealth building. You owe yourself more! 

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