Correct economic decisions are very essential in the long run and can prove to be beneficial. One such economic decision relates to the choice with regard to renting an apartment or purchasing a house. This choice is an extremely important decision that needs to be taken with care as both renting an apartment and buying a house have their own positive points as well as drawbacks. There are supporters of both these decisions with a few people considering renting as a better option whereas the other group believes that buying is a much wiser decision. Thus, it can be said that renting and buying have their own benefits and drawbacks and a decision needs to be based according to personal needs and the option which serves as a more profitable settlement for the person. Renting is basically a process in which a person rents a house or an apartment for a living but does not have any ownership rights over the house. He has an obligation towards the landlord of a paying a fixed amount to him every month according to the joint decision taken by them. Renting can be considered to be a good option for people who choose to shift every now and then. This is because a person can easily leave a rented house and move to another city rather than having the burden of actually going through the process of selling his house after a few months. Thus it is argued that renting is the best option for people who do not wish to stay in one place for more than a period of two years (Rockwell Publishing Co. 2006, Law 2003). According to Thomas Z. Lys who is a professor of accounting at Kellogg School of Management at Northwestern University, If you believe you’ll be moving in the next four or five years, I’d rent. The New York Times carried out a survey in this regard and provided for the fact that owing to the rise in the prices of buying a house, renting is a very suitable option considering the economic factors. The analysis identified very important facts that renting an apartment was a better and reasonable option if considered from the financial point of view.