In our latest real estate tech entrepreneur interview, we’re speaking with Lucas Haldeman from SmartRent.
Who are you and what do you do?
I’m Lucas Haldeman, and I Co-Founded and serve as the CEO of SmartRent, an enterprise home automation company powering the intelligence behind 80,000+ smart homes in multifamily residences across the country. I’ve spent over two decades developing web-based technologies in the real estate space, initially as employee no. 18 at AllApartments.com (the first site to publish a national database of apartment communities online), and post-exit was with Homestore.com (now Move, Inc.) through a successful IPO. Prior to founding SmartRent, I served as Chief Technology and Marketing Officer of Colony Starwood Homes (NYSE: SFR), developing a custom platform that helped the business acquire, renovate, lease and manage more than 40,000 single-family homes in 12 states.
What problem does your product/service solve?
Despite the growing demand for and proliferation of smart home devices, multifamily communities haven’t had a way to appeal to renters that want that smart device connectivity in their homes, but are unable to invest in or own their own products due to the provisional nature of renting a home. Multifamily owners needed a solution that combined an enterprise and consumer approach, but most IoT platforms and products are too complex to properly implement.
That’s why we are revolutionizing the way rental properties manage their assets and market to their residents. Our goal is to make it easy for multifamily communities to offer their residents luxuries like smart home tech that previously only applied to single-family homeowners. Residents enjoy the advantage of having smart devices in their rental home with full control over them, while property managers and owners have peace of mind in knowing their assets are protected and are notified of issues (like a leak) before they become a catastrophic, costly event.
Our platform has also solved a lot of problems property managers face today. Properties no longer have to worry about using or losing physical keys and instead have the ability to assign digital access codes for things like maintenance work orders, vendor access, prospective resident self-guided tours and more. Simply put, our platform saves time and money for property owners as well as creating a new revenue stream for them, and a heightened living experience for their residents.
We do all of this with a focus on security and privacy, so residents can enjoy an upleveled experience without worrying about compromising their privacy. We never sell customer data to third parties and property managers only have access to information that would impact their assets, like leaks or thermostat issues. Consumer behavior will always remain private so renters can enjoy the benefits of a full smart home ecosystem without worrying about their security or privacy.
What are you most excited about right now?
I’m most excited that we’re bringing the benefits of smart home technology to people who have been traditionally excluded from utilization – our clients run the gamut from luxury apartments to affordable housing, but all are rentals. And renters simply have not been able to fully experience a full smart home ecosystem until now. I’m eager for what this holds for the future, and how these multifamily properties can evolve to support how we live our lives today. Helping to bring the population of 43 million renters in the US into the next era of living — which includes full-fledged smart communities and amenities for seamless transactions in the on-demand economy (rideshare pickups, food and package delivery) — is exciting for us.
What’s next for you?
SmartRent had a big year of growth in 2019 — we announced our Series B followed shortly by an extension from the Amazon Alexa Fund, rolled out a self-guided tour solution and launched our Alloy Fusion Hub, which serves as the center of the smart home ecosystem. We also recently became the first smart home vendor to integrate with the four top property management systems. We’re excited to continue this momentum into the future, offering new and existing customers new technologies and conveniences to simplify residents’ lives, streamline property managers’ jobs and increase revenue for property owners. Top of mind for us are appliances with predictive maintenance, like leak sensors that can shut off a valve before a flood even begins and HVAC units that connect to utility monitoring services that help monitor meter levels, or sensors in connected common areas so residents can determine things like open parking spots or available gym equipment before arriving.
What’s a cause you’re passionate about and why?
In conjunction with my career in real estate I have always felt strongly about supporting organizations helping all people find suitable housing; more recently as I have watched (and hopefully been an advocate) as my partner has moved from breast cancer victim to breast cancer survivor I have become passionate about finding a cause and a cure.
Thanks to Lucas for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
College is a great place to make lifelong friends. In college, students bond over shared interests, have fun times together, and help each other through some challenging times, cementing bonds that can last for years after graduation.
When you first arrive on campus, however, making friends in college can seem intimidating. Exactly where and how do you meet people? It can feel especially challenging if you go to a large school or you’re in unfamiliar territory, like a college that’s far away from home.
Don’t stress. Making friends in college can be easy. The key is to get involved early on, put yourself out there, and always try to be your true self.
Here are some ways you can go about making friends in college.
Hang Out With Your Roommates
Whether you chose your roommate or went with a random pairing, you may or may not have a lot in common with this individual, at least from the outside. Nevertheless, it can be a good idea to try to forge a connection with your roommate. This will not only make your living situation more enjoyable, but you’ll be able to turn to your roommate when you need support.
You can bond with your roommate by cooking meals, watching favorite shows, and studying together. It can also help to be considerate and respectful of your roommate by not making too much noise late at night or early in the morning, cleaning up after yourself, and chipping in for shared supplies. By respecting your roommate’s boundaries and establishing ground rules for the room, you’ll be more likely to have a good relationship, and perhaps even become good friends, with your roommate. 💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
Join a Fraternity or Sorority
If you join a fraternity or a sorority, you’ll have the opportunity to make a lot of new friends. While some fraternities and sororities may have bad reputations because of their hazing practices and emphasis on parties, many focus on philanthropy and building friendships instead.
Just keep in mind that joining Greek life can cost $100 to $1,000 per semester, since you are generally required to pay fees or dues. The cost will vary depending on the school and chapter you join, and there may also be additional fees for first-year membership.
You’ll also need to apply to get into a sorority or fraternity and go through a recruitment process to ensure it’s going to be a good fit. Then, if you’re accepted, you will typically live with your fraternity or sorority in a house on campus and socialize and volunteer with them on a regular basis.
Recommended: 11 Strategies for Paying for College and Other Expenses
Get Involved in Clubs
Another easy way to make friends in college is to join a club. At the beginning of the school year, colleges will typically have club fairs, where club leaders set up booths and give information about their clubs to incoming freshmen and transfer students. This is where you can learn more and sign up for an initial meeting.
Some of the various types of clubs you can join include religious, political, academic, cultural, media, and community service clubs. For instance, students can join the school paper, radio or TV station, participate in math and science groups, join an on-campus religious group, find the school’s Republican and Democrat clubs, and volunteer at local animal rescue organizations or homeless shelters.
If you can’t find clubs you’re interested in, you may be able to start one of your own. You’ll likely have to go to the proper office on campus and follow the guidelines for establishing a new club.
Recommended: How to Get Involved on Campus in College
Find Study Buddies in Your Classes
Another avenue for making friends in college is through your classes. You might start or sign up for a study group, which allows students in the same class to do homework and study for tests together. If you make a connection with another student in a study group, you might suggest hanging out after the group is over or meeting up for a coffee or meal on campus another time.
Sign Up for Sports
One of the ways that many students go about making friends in college is by joining a sports team or an intramural sports club on campus. The sports teams are for athletes who are interested in playing on schools’ official teams, while intramural sports clubs are just for fun. Schools offer a variety of different sports like basketball, football, soccer, golf, tennis, and swimming. You can check out the campus life and sports section of your school’s website and look into the options.
Audition for the School Play
Theater clubs or the theater department on campus may hold auditions for school plays. You might consider auditioning for a part and making friends with the cast and crew members during rehearsal. Putting on a play can be a strong bonding experience, allowing you to cultivate lasting friendships.
Recommended: 10 Ways to Prepare for College
Go to Campus Events
Schools are always putting on events. This might include concerts, talent shows, guest speaker series, music festivals, stand-up comedy, and more. You might ask acquaintances to go to an event and/or meet new friends there. If the event is crowded, you might need to be a little more outgoing and start up conversations with the people nearby in order to (hopefully) make friends.
Connect With Other Student Workers
If you have a job or internship on campus, you might try to strike up conversations with your colleagues, as long as it doesn’t interfere with your work. Some places students may work on campus include the college’s admissions office, the endowment office, the dining hall, the coffee shop, the art museum, and the library.
Recommended: Am I Eligible for Work-Study?
Go to Social Gatherings
If your roommates or friends are holding a social gathering or going off campus to check out a local movie theater or restaurant, consider tagging along. This can be a great way to strengthen the bonds you already have, as well as meet new people. Just keep in mind that while parties can be fun, they can also distract from schoolwork and you could end up with lower grades if you are partying too often.
Recommended: The Ultimate Guide to Studying in College
Ask People to Hang Out One-on-One
Whenever you meet potential new friends in classes or through clubs, consider inviting them to hang out one-on-one to get to know them better. For example, you might ask them out for coffee or a meal, to an on-campus concert or show, to work out at the gym, or to a sports game. While this involves putting yourself out there, the rewards of making a new friend can be well worth the risk that they’ll say “no.”
The Importance of Being Yourself When Making Friends in College
Although you may be worried about making new friends in college, you generally don’t want to change your personality or hide who you really are in order to fit in. It may be a little tough at first, but by joining clubs you’re interested in and finding people who accept you for who you are, you could make lifelong friends. It can take some time and might not always happen within the first semester. However, you’ll want to keep trying to meet and connect with new people throughout your four years at college. 💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.
Affording College
College is where you can set yourself up for professional success as well as make wonderful new friends. However, if you don’t know how you’ll pay for it, you might feel even more anxiety before embarking on this exciting next step in your life.
Fortunately, there are a number of ways to cover the cost of attending college, including grants, scholarships, work-study programs (which are also great for making friends), and subsidized and unsubsidized federal loans. If you get your financial aid letter and still have gaps in funding, you might also consider a private student loan.
Private loans are available through banks, credit unions, and online lenders. Unlike federal student loans, they require a credit check. However, if you have solid credit (or can recruit a cosigner who does), you may be able to qualify for a competitive interest rate. Just keep in mind that private loans may not offer the same protections that come with federal loans, such as income-driven repayment plans and forgiveness programs.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Inside: Are you struggling to manage your money? Feeling overwhelmed with debt? If so, it’s time to take action and build better habits. This guide will teach you how to create a budget and start your savings. You need these financial tips for young adults.
The importance of sound financial advice for young adults cannot be overstated.
Often, a lacuna exists in our educational system where personal finance is concerned, leaving many young adults ill-equipped for the financial decisions that await them in their adult life.
Yet, you will encounter situations that require a sound understanding of budgeting, credit usage, investment, and an array of other financial tools without any formal education in these areas.
Financial advice can act as a compass, guiding you on a path to financial health and stability.
This early orientation can help you avoid the pitfalls of needless debt accumulation, poor money management, and inefficient financial choices like I made.
That is why it is of utmost importance to start imparting knowledge and financial habits to young adults as early as possible.
Why Financial Advice is Crucial for Young Adults
Money matters! Especially when you’re young and there’s a world of financial responsibilities unveiled before you.
Understanding financial basics early on is key to smart monetary decisions in the future. Here’s why you should consider this vital:
Knowledge Burst: Understanding finance terms, the implications, and their impacts arm you with knowledge for future decisions.
Saving for Later: Early investment in savings accounts or retirement funds can maximize your funds later in life.
Debts Control: Ensuring debts are paid off faster helps avoid excessive interest in the long run.
Investment: Stock or mutual fund investment can multiply your savings in the right condition.
Remember, your financial health requires deliberate action, start early!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is the best saving advice for young adults?
The best saving advice for young adults is to start early and save regularly.
This will help you build up a nest egg that you can use in the future.
Personally, this is my own regret as such it took me way too long to become financially sound.
Also, you want to be mindful of your spending and live within your means.
Best Financial Advice for Young Adults
When you’re in your 20s, the world feels like your oyster, ripe with opportunities and potential.
But among this plethora of choices, the most important decisions you make may very well relate to your finances.
While the excitement of earning and spending your hard-earned money can be exhilarating, it is crucial to remember that wise financial decisions made early on can set the stage for long-term financial success.
We have curated some of the best financial advice to help you make informed decisions and set the foundation for a secure financial future.
1. Create a Budget
Creating a budget can seem like a daunting task. However, once correctly accomplished, it can undeniably make your life a lot easier.
Below are some reasons to start budgeting from the start:
Money management: Knowing the ins and outs of your financial transactions helps manage your money efficiently. A budget gives you a clear snapshot of your income and expenses, allowing you to make strategic decisions about spending and saving. This level of control can be incredibly liberating and reassuring.
Financial discipline: Creating a budget encourages discipline when it comes to financial decisions. It can show you areas where you’re spending more than necessary, such as an underutilized gym membership, frequent dining out, or an unused streaming subscription. By addressing these expenses, you could easily save an additional $100 per month.
Alignment with goals: A budget can provide clarity and align your financial actions with your long-term goals. If you are side-tracked and lose sight of these ambitions, the budget serves as a potent reminder to guide you back to the right path.
Effective savings: A budget constitutes a robust tool that allows you to maximize your income and inculcate a savings habit. Essentially, it’s a roadmap that shows you, in real time, where you can minimize and direct those funds into savings. Those savings can then be invested toward achieving significant life goals more efficiently.
Stress reduction: Tracking income and expenditure can culminate in a stress-free financial life. For example, it helps manage unexpected emergencies or allows you to enjoy after-office drinks without any worries about overspending.
To simplify the job, various user-friendly budgeting apps are available.
These digital budgeting tools or apps offer handy features that can streamline tracking expenses and income. These tools can automatically categorize transactions, display visual charts of spending, and send alerts when you’re nearing the limit of a budget category.
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Start Your Free Trial.
So, no more wondering where your money went.
With a budget in place, you get to tell your money exactly where to go, and this is an empowering shift from feeling out of control to feeling in control of your finances.
By making budgeting a consistent part of your financial routine, you adopt a proactive approach to your money, making your life easier, and your future brighter.
2. Manage Your Debt
As a young adult, managing your debt is incredibly crucial. Not only does it set the foundation for your financial future, but it also helps to keep your credit score healthy.
Here are some top-notch expert tips on how to effectively manage your debts:
Avoid credit cards whenever possible. Although credit card rewards may seem appealing, they can often lead to unwanted debts. Instead, try using cash, debit cards, or cash app cards.
Don’t finance purchases that depreciate in value over time. Rather than taking a loan for things like cars or other depreciable assets, save up and pay in full.
Minimize education-related costs. This can be achieved by going to in-state schools, considering trade school or community college, living off-campus, and exploring scholarships or work/study programs. Learn how to pay for college without loans.
Pay off your debts methodically. Consider strategies like the debt snowball or avalanche methods to strategically pay off your debts. Use a debt payoff app to find your debt free date.
Remember, being in debt can delay your financial goals.
So, learning to manage your debts early on in your life can have a significant impact on your future finances.
3. Invest Wisely
Investing wisely is a cornerstone of solid financial advice for young adults. It sets the foundation for a financially secure future.
Most people are terrified of the concept of investing and stay away from it, which is the worst decision possible.
Investing is about putting your money to work for you, expecting growth or income over time.
Consistently adding money to your investment portfolio can be more beneficial than staying away or trying to time the market.
Investing is ideally a long-term endeavor. Patience is key – you can’t expect to make big gains or reach your financial goals overnight. It’s a process of steady growth.
Simplicity is key for beginner investors. Buying and holding index funds is a good example of a simple and passive investment strategy. Or you can learn how to invest in stocks for beginners.
4. Educate Yourself about Savings and Investment Accounts
Understanding savings is a fundamental aspect of personal finance, yet many young adults ignore this.
Beginning an emergency fund, no matter how small is one of the oft-repeated mantras of personal finance experts.
Consistently making savings a non-negotiable monthly “expense” not only provides a safety net for emergencies but also contributes to various future goals such as retirement, vacation, or a down payment on a home.
A foundational aspect of mastering your finances involves learning self-control, reducing the tendency to make every purchase on credit, and understanding the importance of saving money before making a purchase.
Taking the initiative to read personal finance books and gain knowledge about managing money can greatly aid in controlling your financial future and making informed decisions about savings.
Starting saving for retirement early is essential to secure financial stability in the future.
Learn how much money should I have saved by 25.
5. Limit Your Expenses
Understanding how to limit expenses can be a game changer for your finances.
Track your daily expenses carefully, even the small ones like your morning coffee, as they can add up and provide crucial insights into your spending habits.
Keep your monthly costs, such as rent, as low as feasibly possible, as this will save you substantial amounts over time and accelerate your ability to invest in assets like a home. Learn the ideal household budget percentages.
This one makes the biggest different to spend less money…Categorize your expenses and set specific spending limits for each group, reviewing and adjusting these as needed to curb any overspending.
Regularly review your finances, specifically your bank and credit card statements, every two to three months to identify and eliminate any unnecessary expenditures.
6. Build Passive Income Streams
Okay, this one is my top financial tip!
Navigating the financial world requires strategy, and for young adults, generating passion income streams is a game-changer. With the decline of traditional 9-5 jobs, it’s crucial to adopt flexible financial strategies.
Start identifying your passions that can be monetized. Think about your hobbies, skills, or areas in which you’re an expert. It could be anything from blogging to tutoring or even food delivery services.
Find ways to make passive income. Remember, every bit of extra income counts, and data suggests diversifying income streams can secure your financial future.
Continuous learning is your power tool here. Aim to broaden your financial literacy, understand investing, explore various earning methods, and strengthen your entrepreneurial spirit.
While cutting expenses helps, growing your income using your passions gives you control over your financial destiny.
So, don’t hesitate in doubling up your day job with your passion-driven side hustles.
Expert tip: One of the best ways to make money online for beginners is a key place to start.
7. Create a Cash Reserve
Understand that surprise expenses can unsettle your financial plan, like a sudden car repair costing $700. Having a cash reserve will keep you financially stable through these unexpected turns.
Start an emergency fund: Alongside your regular savings, begin an emergency fund. Aim to save around three to six months’ worth of income.
Prioritize savings: Consider your savings as a non-negotiable expense. You’ll soon realize you’ve saved enough for significant objectives like a down payment on a home.
Build a rainy day fund: This larger $10k-50k rainy day account will help in those long-term expenses or job loss.
Combat inflation: Choose a money market account to preserve the value of your savings, while ensuring quick accessibility in emergencies.
Automation is key: If you’re forgetful, set up an automatic transfer that channels funds to your savings account immediately upon salary credit.
Building up cash reverses will help you to improve your liquid net worth and have less stress around money.
8. Learn About Taxes
Taxes seem complicated, huh? Well, not grasping tax basics can give you a run for your cash. So, get started young and you might save up a fortune in the long run
Start by understanding your salary. The chunk that you take home (net pay) isn’t the whole amount (gross pay) that your employer agreed on. Learn more about gross pay vs net pay.
If you’re self-employed, remember, you’ve got to handle income taxes, and also the full FICA bundle.
Do your bit of math now and avoid an unexpected cringer next April.
9. Consider a Term Life Insurance Policy
Getting a term life insurance policy while still relatively young is a smart financial move that any savvy young adult should consider early in their career.
This safety net serves multiple purposes, especially in ensuring the protection of your future family if for any reason you’re unable to provide for them.
Term life insurance policies are typically far more affordable for young adults. The research notably reveals that the younger an individual is, the more affordable the life insurance policy tends to be. Therefore, beginning this investment in your early years enables you to lock in a lower premium rate, thereby saving significant amounts in the long run.
A life insurance policy is an important piece of your financial planning puzzle. Remember, cost increases with age so act fast!
10. Take Action and Stay With It
Taking action and sticking with it is crucial in managing finances well.
First, you’ve got to get clear about your financial goals. Want to set up a passive income stream or travel? Make them specific, feasible, and measurable.
Once you’ve set your goals, break them down into bite-size pieces. For instance, calculate the costs and set quarterly goals. Make sure to these vision board supplies to keep your goals front and center.
Ultimately, this proactive approach coupled with persistence can help you efficiently manage your funds and stay financially healthy.
FAQ
Honestly, this is completely up to you.
The better bet would be to learn about financial management topics yourself.
Finding a fee-based financial advisor will be difficult when you have no significant assets. And then, when you do, a financial advisor can put a drag on your investing portfolio.
If you decide to work with a financial advisor, find a fee-only financial planner who provides unbiased advice – since they aren’t driven by commission.
Financial planning while young—especially in your 20s—is key to future success and financial security. Here are some steps to establish strong fiscal habits:
Firstly, map out your financial goals. Do you anticipate student loans, a mortgage, or potential investments?
Secondly, budget diligently to save more money early in your career.
Next, consider eliminating outstanding debt quicker by applying saved money from part-time or full-time employment.
Lastly, explore investments such as mutual funds and stocks for optimal use of leftover money after bills are paid.
Remember, according to a study of 30,000 college graduates, 70% never took a personal finance course—making self-education critical.
Use These Personal Financial Tips for Young Adults
In conclusion, managing personal finances is a vital skill that unfortunately is not emphasized enough in our educational institutions.
It’s critical for young adults – you – to learn this skill to establish a strong financial foundation for their future. Especially if you are determined to become financially independent.
This begins by developing a sense of self-control and understanding the importance of delayed gratification.
Regularly monitoring your income and expenses, and adjusting your lifestyle to live within your means, is a crucial habit.
Additionally, the importance of starting an emergency fund and saving for retirement cannot be overstated.
By incorporating these financial tips into their lives, young adults can steer clear of unnecessary financial stress and ensure a secure and financially healthy future.
Take this Advice about Money
It is crucial to understand not just the mechanics of money, but also, the long-term implications of your financial decisions.
Take control of your financial future today, and you are sure to reap the rewards in the years to come.
Discerning financial advice from trusted sources, instead of relying on potentially misleading external influences, is also key. Remember, the sooner you start, the better off you’ll be in the long run.
Remember the data-driven fact: small changes in your everyday expenses can have as big of an impact on your finances as getting a raise.
Know someone else that needs this, too? Then, please share!!
In a city renowned for its glamor and extravagance, luxury living reaches new heights, enticing potential homebuyers with an array of exquisite features that redefine modern sophistication. If you’re thinking about moving to the city and you’re in the market to buy a luxury home in Los Angeles, you’ll find this city offers a wealth of luxurious properties that seamlessly blend elegance, comfort, and functionality.
But what are the most sought-after luxury home features in the Los Angeles housing market? From views of the iconic skyline to the seamless integration of smart technologies, the City of Angels boasts an array of luxury home features that elevate homes to unparalleled heights. In this Redfin article, we unveil the most coveted home features in Los Angeles, providing an exclusive glimpse into the world of high-end living that awaits.
Top neighborhoods with luxury home features in Los Angeles
While Los Angeles already has a high median sale price, coming in at nearly one million in June, almost $500K higher than the national median, there are several neighborhoods renowned for their luxury homes and exceptional features where homebuyers are willing to pay premium prices.
North of Montana tops the list with a median sale price of nearly five million in June 2023. With tree-lined streets and a serene atmosphere, these residences often feature traditional or Mediterranean-inspired designs, spacious interiors, upscale finishes, and well-manicured yards. The neighborhood offers a refined, upscale living experience in a prestigious enclave.
Venice saw a median sale price of over two million. Homes in Venice exude eclectic charm, ranging from beachside villas to contemporary designs, often featuring modern amenities, open layouts, and outdoor spaces. Artistic flair, diverse architecture, and a vibrant community atmosphere define Venice’s unique residential landscape.
Luxury homes in Ocean Park, epitomize coastal living, and with a median sale price of almost $1.9 million, these residences showcase a fusion of contemporary design and beachside charm. Expansive windows, high-end finishes, and proximity to the ocean create a harmonious blend of upscale comfort and the laid-back vibe of the neighborhood.
Mar Vista, known for its blend of modernity and neighborhood charm, showcases a blend of modern style and casual elegance. These residences often feature open layouts, high-end finishes, and inviting outdoor areas. Mar Vista’s neighborhood charm combined with upscale living creates a unique and appealing residential experience in the heart of Los Angeles. Homes in Mar Vista are also set at premium prices, with a median sale price of almost $1.8 million.
Lastly, with a median sale price of almost $1.6 million, Sunset Park offers upscale living in a laid-back coastal setting. Characterized by a mix of architectural styles, these residences boast modern amenities, stylish interiors, and inviting outdoor spaces.
1. Smart home technology
Luxury homes are typically equipped with smart home technology to enhance convenience, comfort, and security, and luxury homes in Los Angeles are no exception.
Luxury homes will usually have smart home features like Nest control, a dual-zone climate management adjustable via phone or central systems, showcasing a seamless blend of comfort and innovation. The incorporation of Cat 5 Ethernet connectivity ensures high-speed communication, meeting the demands of present-day digital requirements and enabling efficient data exchange, streaming, and connectivity. You’ll also find enhanced security solutions, such as SimpliSafe and Ring capabilities, to offer peace of mind for homeowners. These technologies create a futuristic, efficient, and comfortable living experience that redefines the way you interact with your home.
2. Modern and contemporary style
Modern and contemporary design is popular among luxury homes in Los Angeles as it offers a harmonious blend of form, function, and visual appeal.
Picture a home that seamlessly blends modern and contemporary styles. Its exterior showcases clean lines, with a mix of materials such as glass, metal, and wood creating a dynamic facade. As you step inside, you’re welcomed by an open floor plan, emphasizing spaciousness and fluidity. Neutral color palettes dominate, punctuated by vibrant accents. Large windows invite abundant natural light, and smart technology seamlessly integrates into the design. Throughout the space, you’ll find a mix of textures, from smooth surfaces to tactile fabrics. Sleek lines, recessed lighting, trendy materials like Quartz and LVP, and minimalist design create an ambiance of refined elegance.
3. Floor-to-ceiling windows
Floor-to-ceiling windows are a growing luxury trend, meeting the rising demand for ample natural light. Luxury residences commonly feature expansive glass windows and doors, welcoming ample sunlight, and offering captivating views, harmonizing with the surroundings by embracing nature’s beauty indoors.
Beyond its aesthetic appeal, this design element transforms living spaces into inviting spaces, fostering a connection with the outdoors. The interplay of sunlight and architectural design blurs indoor-outdoor boundaries, creating an environment that enhances the visual allure of interior spaces.
4. En-suite bathrooms
The desirability of en-suite bathrooms in most or all rooms reflects a premium standard of luxury living. This feature offers unparalleled privacy and convenience, catering to the personal needs and preferences of each occupant. Luxury homeowners value this feature for its capacity to enhance comfort and accommodate guests with an upscale experience akin to a private retreat.
Luxury homes in Los Angeles typically have elaborate glass showers or open areas near soaking tubs that provide a spa-like experience. You’ll also find high-end materials such as marble or granite countertops, exquisite tile work, and premium fixtures. Features such as spacious walk-in showers with multiple shower heads, soaking tubs, heated floors, and smart technology for lighting and temperature control are often included to enhance the experience.
5. Backyard oasis
In the bustling landscape of Los Angeles, homeowners prize the “backyard oasis” as an escape from the city’s energy. With features like artificial grass, a cabana, and a pristine pool and spa, homeowners and their guests can forget their daily stresses and relax. A pergola adds an inviting touch, while a dry sauna and ice bath elevates the wellness experience. With LA’s pleasant year-round climate, a backyard oasis is the perfect place for homeowners to create their own personal sanctuary within the privacy of their backyard.
6. Open floor concept
Open floor concept typically merges the kitchen, living room, and dining area into one expansive area. This layout enhances the sense of openness, encourages natural light to flow freely, and fosters a more social and interactive environment. Open floor plans are known for their versatility, enabling easy movement and facilitating communication between family members and guests. They have become popular due to their modern and spacious feel, allowing for creative interior design and adaptable use of space.
The allure of the open floor concept, complemented by expansive sliding glass cantina doors leading to the backyard, is a top luxury home feature in Los Angeles. This design blurs the boundaries between indoor and outdoor spaces, capitalizing on the city’s mild climate and creating an effortless connection with nature. The doors create an expansive, light-filled ambiance, while the fluid transition enhances the sense of space.
7. Garage conversion
Customizing a garage gives homeowners the opportunity to tailor the space to their desire, whether that’s creating a private gym, a home theater, an art studio, or an ADU. Repurposing the garage allows homeowners to optimize their property’s functionality and aesthetics, often adding unique features like custom cabinetry, high-end finishes, and integrated technology.
If you’re planning to buy a home in LA, a local Redfin Premier agent will provide invaluable insights into the market, including an in-depth understanding of the neighborhoods, pricing trends, and available luxury properties. Their expertise ensures you find a home with the perfect blend of desired amenities. Or, if you plan to list your luxury property, a Redfin agent can guide you in making informed decisions to maximize its appeal and value, tailoring it to attract the most discerning buyers.
A Mediterranean-style mansion in the hills of Irvine just sold for $25 million, making it the priciest property ever sold in the city.
The record-breaking sale redefines the top of the market in Irvine, which until now hasn’t quite reached the dizzying heights of luxury homes closer to the water in Laguna Beach or Newport Coast.
In fact, the home doesn’t even have an ocean view. It’s found in Shady Canyon, a hilly golf course community about five miles from the coast.
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If an Irvine home fetches more than $10 million, it’s likely located in Shady Canyon. The master-planned community has attracted celebrities such as baseball stars Albert Pujols and Mark McGwire, and the previous record holder, which sold for $17 million in January, sits a few houses down from the one that just sold.
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The living room. (Brandon Beechler)
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The dining room. (Brandon Beechler)
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The kitchen. (Brandon Beechler)
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The bedroom. (Brandon Beechler)
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The theater. (Brandon Beechler)
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The arched doorways. (Brandon Beechler)
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The patio. (Brandon Beechler)
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The outdoor lounge. (Brandon Beechler)
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The swimming pool. (Brandon Beechler)
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The view. (Brandon Beechler)
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The back patio. (Brandon Beechler)
The seller is Joni Rogers-Kante, founder of the multilevel marketing skin care company SeneGence. She doubled her money on the sale after buying it from sports radio host Jim Rome for $12.5 million in 2017.
Rogers-Kante gave the place a face lift during her stay and shot for the stars with the original listing, asking $50 million for the property in 2021. With no takers, she trimmed the price to $40 million, then $30 million before finding a buyer, whose identity remains unclear.
Spanning nearly an acre, the estate centers on a 13,000-square-foot mansion built in 2007. In addition to seven bedrooms and 10.5 bathrooms, the house is loaded with coffered ceilings, hand-painted murals and amenities such as a theater, gym, spa, wine room, elevator and six-car garage.
Arched doorways open out back, where an infinity pool overlooks the golf course below.
Ariana Gaffoglio of Official handled both ends of the deal.
A few months back, I noted that Millennials, those born between 1980 and 1995, purchased the most real estate between July 2012 and June 2013.
It sounded like good news, a positive trend that should bode well for the housing market on into the future. After all, these first-time buyers are critical to the ongoing health of the real estate market.
But there’s a problem. Nearly half of would-be Millennial home buyers today don’t have enough money saved up to purchase a home at today’s prices.
For that reason, nearly half plan to ask mom and dad for the required down payment money (and some will even ask their grandparents), according to a new survey from Trulia.
At the same time, 37% said they plan to work a second job in order to save the necessary cash, while 22% said they would turn to the state or federal government for help to achieve the American dream of homeownership.
Down Payments Are an Issue for All Ages
Either way, the message is clear – down payments continue to be an issue for prospective home buyers.
Last week, I pointed out that nearly half of recent home purchases required mortgage insurance, so it’s not just the young that are struggling with down payments.
Interestingly, Millennials aren’t even trying to buy McMansions, but rather modestly priced homes. In fact, 68% indicated that they were looking to buy a home under $200,000, which you think wouldn’t break the bank.
But that would still require a down payment of $40,000 to get down to the magic 80% LTV threshold, which would allow these home buyers to avoid private mortgage insurance and a higher mortgage rate.
But how can we expect young generations to set aside such a large chunk of money when there are so many other pressing costs, like monthly iPhone service plans and Starbucks.
Sure, I probably sound like a grumpy, no-fun Gen X’er, but upon seeing this top 10 list I lost hope in humanity.
Top 10 Expenses Millennials Would NEVER Give Up to Save for a Down Payment
1. Car 2. Smartphone 3. Cable TV 4. Netflix subscription 5. Vacation money 6. Eating out 7. Shopping for clothes 8. Organic food purchases 9. Gym membership 10. Morning latte/cappuccino
Don’t Worry, Trulia Is Giving Away Money
Luckily, Millennials, or should I say one Millennial (or someone of any age for that matter) won’t need to give up their favorite things because Trulia is giving away $50,000 via a new contest. Wells Fargo also has a contest going on now.
Don’t fret. If you aren’t the lucky winner, you can still get a mortgage with next to nothing down, which while extremely flexible, kind of sends the wrong message to the youth and the rest of America.
You don’t really need to save because there’s always going to be a home loan program out there that eliminates the need for a down payment. Heck, the FHA still only requires 3.5% down and the money can come in the form of a gift.
I’m not trying to get rid of no- and low-down payment options, because they obviously provide tremendous value to many responsible buyers nationwide, but I do wonder if it sets us up for yet another housing rollercoaster while disincentivizing the need to save.
A lack of home equity (and zero down financing) was clearly the problem during the last crisis, and we don’t seem to be addressing it much differently this time around.
Worse yet, today’s homeowner will know they can walk away from bad investments in the future with little recourse or consequence.
Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!
Moving into your first apartment is an exciting time!
You’re finally out on your own, and you get to decorate and furnish your space however you want.
But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.
This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.
So what are you waiting for? Let’s get started!
My First Apartment Mistakes
Moving into your first apartment indeed marks an exciting milestone in life.
However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.
It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.
Here are some aspects to consider:
It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.
Your home is meant to give comfort, not financial stress.
The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.
Learn is $5000 enough to move out?
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Big Items for Your First Apartment Checklist
You’re finally out of your parents’ house and ready to start your own life. Congrats!
This is an important step when you want to move out at 18.
Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.
This is where to focus your money or look to find free items.
1. Mattress
Living in your first apartment?
Do not underestimate the importance of a good mattress.
It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.
Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.
2. Bed Frame & Headboard
You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.
In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.
Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.
3. Couch
Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.
When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:
For those living by themselves:
A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.
If you are planning to live with a roommate:
You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.
Whether you choose new or used, ensure that the couch fulfills your needs.
4. End Tables and Lamps
End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.
There are many reasons why they should be on every first apartment checklist.
Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.
More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.
5. Dining Room Table
Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.
Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.
Here’s a step-by-step guide to help you find your ideal fit:
Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.
Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.
A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!
6. Kitchenware
Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.
To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.
Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.
These are the basic items for a minimalistic kitchen.
7. Patio Furniture
Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:
Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.
Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.
8. Grill
One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.
Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.
Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.
Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.
9. Storage Items
Stepping into your first apartment, huh? The organization will be your closest ally.
Crisp and neat storage items can help you stay clutter-free and make your space feel like home.
This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.
10. Decor
Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.
You want the decor to reflect your style, but the cost may be more than you can afford.
Enter thrift shopping for some of your favorite items.
You can always splurge on that one item you want!
How do I prepare for my first apartment?
Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.
Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.
Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.
Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.
First Apartment Checklist for Bedroom
Ready to move into your first apartment and need help setting up your bedroom?
This checklist will ensure you won’t miss any essentials.
Bed: Choose a full or queen-size bed to maximize space.
Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
Nightstand: You need this to place essentials like a reading lamp and a glass of water.
Dresser: An essential piece of furniture for your clothing storage.
Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.
Remember every space is unique, tailor this list to your needs and budget.
First Apartment Checklist for Kitchen
As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.
Here’s a lifesaver list of must-haves:
Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!
First Apartment Checklist for Living Room
When setting up your first apartment living room, remember to shop for these essential items:
A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
Extra Seating: More seats for more guests.
Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
Decorative Pillows and Throw Blankets: For aesthetics and comfort.
Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.
Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.
Technology for Your First Apartment
In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.
These add convenience, entertainment, and a sense of security to your cozy abode.
Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.
Thankfully prices have dropped significantly on TVs since I bought my first one!
First Apartment Checklist for Bathroom
One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:
Cleaning Your First Apartment
Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!
Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.
Now, let’s dig into your basic apartment clean-up kit:
Honestly, these frugal green items are perfect to keep things clean and on budget.
Things you need for an apartment that you wouldn’t think of
Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.
Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.
Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
Hangers: You’ll need more of these than you think for your wardrobe.
Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
Fire Extinguisher: Better to be safe than sorry!
Carbon Monoxide Detector: Extremely important to have in your apartment
Duct Tape: It solves every DIY project – while almost any.
Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.
Renter’s insurance is instrumental for various reasons
It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.
Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.
How do I budget for my first apartment?
Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.
Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.
Step 1: Make a Budget
Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.
Begin by detailing your annual net income.
Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
Make sure your expenses are less than your income.
While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.
If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.
Step 2: Save Money
Saving money and living frugally requires strategic thinking and discipline.
Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.
Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.
The 100 envelope challenge is extremely popular!
Step 3: Start a Side Hustle
Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.
Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.
Here are ways to make money online for beginners.
First Apartment Tips
Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.
1. Make a list of apartment essentials
A list of apartment essentials plays a crucial role, particularly for first-time movers.
The benefits and significance cannot be overstated. Here’s why:
Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.
Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.
2. Consider your budget
Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc
Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.
Learn the ideal household percentages.
3. Research apartments
Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.
Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.
Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.
4. Check apartment listings for features and amenities
When searching for the perfect apartment, consider features and amenities that align with your lifestyle.
If there is a sym space, you could eliminate your monthly gym membership.
Just make sure the cost of the upgraded amenities is worth the price tag.
While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.
5. Think about the size and layout of the apartment
Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.
Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.
Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.
6. Look for apartments with good security
When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.
Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
Verify the cell phone reception inside the apartment for any emergency calls.
Lastly, always ensure that the parking area is secure and well-lit.
Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.
7. Make sure you get a good deal
Before signing a lease, it’s crucial to ensure the rent price is a good deal.
According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.
8. Talk to the management and make sure you understand the rules
Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.
It is important you understand your lease as it is a binding contract.
First Apartment Checklist PDF
Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.
Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!
FAQ
Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.
Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.
The comfort and safety of your new apartment rely hugely on these checks.
When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.
For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.
Keep in mind, this amount should cover:
Your rent
Utilities (unless they’re included in your rent)
Rental insurance
It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.
Now Get Moving with your Apartment Shopping List!
In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.
It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.
It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.
Remember, be mindful of your budget and prioritize based on your specific needs and preferences.
And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.
With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.
Know someone else that needs this, too? Then, please share!!
If you’re wondering whether you can lower your rent, the answer may be, surprisingly, yes in some situations.
The prospect of bargaining down your rent may sound futile or intimidating. But, thanks to a little research and a well-planned approach, it may be possible to land a better deal.
The odds of successfully lowering your rent will probably depend on a few factors, including how much comparable rentals in your area cost, the value you represent to your landlord, and the general state of the economy and the rental market.
To decrease the awkwardness of haggling and increase your ability to sweeten your deal, you may want to try one or more of these clever and effective negotiating techniques.
The Benefits of Negotiating Rent
The obvious payoff of reducing your rent is more cash left over at the end of the month.
But you may also want to consider the longer term benefits. Let’s say you’ve successfully negotiated your monthly rent down by $100.
It’s nice to have that extra $100, of course. But over the course of a year, that monthly savings adds up to $1,200.
Let’s say you applied that $1,200 yearly savings to paying down credit cards or a student loan debt (rather than paying the minimum).
You might be able to save significantly on interest payments and also boost your credit score (which could help you save money in the future by helping you to get loans and credit cards with better terms).
Recommended: What Credit Score is Needed to Rent an Apartment in 2023?
Or, you could funnel that monthly $100 saved into a high yield savings account and start building a downpayment on a home (if you’d prefer to own vs. rent) or an emergency fund, or working towards another savings goal.
If you were to invest an extra $100 into your 401(k) retirement fund or other retirement savings each month, it could yield a significant income stream decades from now. (If you’re already contributing to these accounts, be aware of the annual limits.)
In addition, by learning how to negotiate, you’re also developing a lifelong skill of standing up for yourself and cutting better deals as an experienced negotiator, which could pay off in other areas of your life.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Timing it Right
As eager as you may want to cut a good deal and do so as quickly as possible, it can be wise to time your approach to maximize your chances of success.
That means negotiating at the right moments, when your landlord may be more amenable to cutting a deal.
Those times might include:
• The end of the month, when other tenants may have vacated the property and your landlord may enjoy the stability of a long-term tenant.
• 90 days or so before your current lease expires. That’s enough time to offer to sign another lease, but only at terms favorable to you. If you’ve been a good tenant, and the market is soft for new tenants, your odds of renegotiating a lower rent may be stronger.
• At the beginning of the calendar year. Typically, winter is a slow time for property rentals, especially in the colder climates when moving is more difficult, and it may be harder for landlords to find new tenants. Stepping into the vacuum with an offer to stay another year–at a lower monthly rental price– might give you some new-found leverage.
💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.
Knowing What the Competition is Charging
To help build your case when approaching your property owner about a rental reduction, it can help to know the lay of the land.
If you can prove that you could live more inexpensively in a nearby rental based on local housing trends, your landlord may be more inclined to grant a discount, rather than lose your business to the competition.
For that reason, it’s a good idea to do a little digging, consider the cost of living, and comb through online listings to find out the rents of comparable units or properties in the area.
Perhaps a similar one-bedroom apartment for rent has an amenity that’s not offered at the apartment you’re currently in or considering. You might point out how these factors make the landlord’s current rental terms somewhat higher than the going market rate.
When you speak to the landlord, it may help to have a printout of comparable apartments that are slightly lower in rent and, if the unit has been unoccupied, have this information on hand as well.
You may also want to check what other apartments in the same complex or rented out elsewhere by the same landlord currently cost. This can help keep you from overpaying for an apartment and may also help you negotiate a lower rent.
Recommended: Reasons to Switch Banks
Offering a Lump Sum
If you can afford it, adding a lump-sum payment (say, three months of rent upfront) may strengthen your bargaining power and boost your odds of reducing your overall rent payment.
That’s because many landlords prefer having rent in hand and not having to worry about late or no rental payment from tenants.
What’s more, offering an upfront, lump-sum payment is one way to show a landlord that you’re serious about being a solid tenant.
A landlord may be more amenable to doing business with a tenant who is willing to go the extra mile.
Considering a Longer Lease
If you particularly like the house or apartment you’re renting, you might consider offering the landlord a longer lease in exchange for lower rent payments.
If, for example, a landlord is offering a 12-month lease to a new tenant, at a fixed monthly rental price, and you agree to extend that lease to 18 or 24 months, you might be in a stronger position to ask for a rental discount.
All things being equal, landlords tend to favor tenants who’ll be around for the long haul, and may be more likely to green-light a lower rent for a longer lease arrangement.
Recommended: Can You Pay Rent with a Credit Card?
Cashing in on a Referral
Landlords typically loathe empty apartments, so if you can help fill a rental unit with a referral or two, it might put you in a better negotiating position to ask for a rental price deduction for helping out.
Rental unit owners usually have to pay for classified ads to lease their open units. In addition, landlords often have to put some sweat equity into showing units, chasing down tenant leads, and vetting potential lease applicants.
By bringing your landlord good, qualified, and stable tenants, you may be able to become a valuable asset for your landlord, and help build a more robust case for a rental deduction in the process.
Not Just Focusing on Price
Yes, the primary goal in a rental negotiation is to bring the price down.
But in case that conversation proves fruitless, you may also want to consider some other perks or benefits you could ask for in lieu or a rent reduction.
Some ideas:
• A prime parking space (especially in urban areas)
• New appliances and/or fixtures in your home or apartment
• New or larger storage space
• “First dibs” on better apartments or homes in your complex, once they free up
• A waiver of fees and charges on things like gym memberships, parking privileges, community rooms, water or trash removal, or other services and amenities
• Extra parking passes for guests
• Allowing you sublet for the summer (if you plan to be away)
• One or two months free
Recommended: Passive Income Ideas to Build Wealth
Giving your Landlord a Heads-Up and Being Polite
Nobody likes to be ambushed on financial matters. That’s why you might have more success if you call your landlord well ahead of when you need to sign the lease and politely let them know that you’d like to discuss the terms of the lease, and are wondering if they would be open to a price reduction.
You might then suggest having a meeting (in person tends to be best, since it can be harder to say “no” to someone when you’re sitting face-to-face) some time in the next week or two.
This gives your landlord some time to consider the situation while also giving you some time to build your case.
In addition, giving your landlord some lead time shows you’ve put some thought into the matter. It also shows you respect your landlord’s time and schedule.
Keep in mind that you have a right as a renter to negotiate rent, but being diplomatic and respectful to your landlord will likely yield a better result than being aggressive.
💡 Quick Tip: When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a bank that doesn’t charge you for overdrafting.
Highlighting Your Value as a Tenant
When you do meet with your landlord to negotiate the terms of your lease, it can be helpful to make a good case for keeping you on (or bringing you in) as a tenant.
For example, you might want to have a record of all your on-time payments or any history of providing referrals for this landlord.
You may also want to mention your willingness to extend your lease, that you’re courteous to other tenants, keep the property in good shape, and any other points in your favor.
Any and all of these factors could help persuade your landlord to give you a better deal.
Getting Your New Rental Agreement in Writing
Once you’ve successfully negotiated your rent downward or otherwise improved the terms of your lease and have a verbal agreement, it’s a good idea to get the deal in writing.
Having both parties sign off on the new rental agreement provides you with document proof that you have a new deal in place, in the event there is any misunderstanding down the road.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt; rates have recently been climbing into the double-digit range, so try to eliminate that ASAP.
The Takeaway
While rental leases may appear set in stone, they’re more flexible than many tenants think, especially if the rental market is soft in your area (meaning more rentals than renters).
Whether you’re applying to rent a new apartment or signing a new lease on your current rental, you may be able to negotiate a better price if you’re able to show two things: that the rent is higher than similar units in the area, and that you are a model tenant who pays rent on time.
It’s also a good idea to come to the table with some alternatives to a rent reduction (in case your landlord is firm on price), such as a better or free parking space or new appliances.
Better banking is here with up to 4.50% APY on SoFi Checking and Savings.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
If you’re wondering whether you can lower your rent, the answer may be, surprisingly, yes in some situations.
The prospect of bargaining down your rent may sound futile or intimidating. But, thanks to a little research and a well-planned approach, it may be possible to land a better deal.
The odds of successfully lowering your rent will probably depend on a few factors, including how much comparable rentals in your area cost, the value you represent to your landlord, and the general state of the economy and the rental market.
To decrease the awkwardness of haggling and increase your ability to sweeten your deal, you may want to try one or more of these clever and effective negotiating techniques.
The Benefits of Negotiating Rent
The obvious payoff of reducing your rent is more cash left over at the end of the month.
But you may also want to consider the longer term benefits. Let’s say you’ve successfully negotiated your monthly rent down by $100.
It’s nice to have that extra $100, of course. But over the course of a year, that monthly savings adds up to $1,200.
Let’s say you applied that $1,200 yearly savings to paying down credit cards or a student loan debt (rather than paying the minimum).
You might be able to save significantly on interest payments and also boost your credit score (which could help you save money in the future by helping you to get loans and credit cards with better terms).
Recommended: What Credit Score is Needed to Rent an Apartment in 2023?
Or, you could funnel that monthly $100 saved into a high yield savings account and start building a downpayment on a home (if you’d prefer to own vs. rent) or an emergency fund, or working towards another savings goal.
If you were to invest an extra $100 into your 401(k) retirement fund or other retirement savings each month, it could yield a significant income stream decades from now. (If you’re already contributing to these accounts, be aware of the annual limits.)
In addition, by learning how to negotiate, you’re also developing a lifelong skill of standing up for yourself and cutting better deals as an experienced negotiator, which could pay off in other areas of your life.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Timing it Right
As eager as you may want to cut a good deal and do so as quickly as possible, it can be wise to time your approach to maximize your chances of success.
That means negotiating at the right moments, when your landlord may be more amenable to cutting a deal.
Those times might include:
• The end of the month, when other tenants may have vacated the property and your landlord may enjoy the stability of a long-term tenant.
• 90 days or so before your current lease expires. That’s enough time to offer to sign another lease, but only at terms favorable to you. If you’ve been a good tenant, and the market is soft for new tenants, your odds of renegotiating a lower rent may be stronger.
• At the beginning of the calendar year. Typically, winter is a slow time for property rentals, especially in the colder climates when moving is more difficult, and it may be harder for landlords to find new tenants. Stepping into the vacuum with an offer to stay another year–at a lower monthly rental price– might give you some new-found leverage.
💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.
Knowing What the Competition is Charging
To help build your case when approaching your property owner about a rental reduction, it can help to know the lay of the land.
If you can prove that you could live more inexpensively in a nearby rental based on local housing trends, your landlord may be more inclined to grant a discount, rather than lose your business to the competition.
For that reason, it’s a good idea to do a little digging, consider the cost of living, and comb through online listings to find out the rents of comparable units or properties in the area.
Perhaps a similar one-bedroom apartment for rent has an amenity that’s not offered at the apartment you’re currently in or considering. You might point out how these factors make the landlord’s current rental terms somewhat higher than the going market rate.
When you speak to the landlord, it may help to have a printout of comparable apartments that are slightly lower in rent and, if the unit has been unoccupied, have this information on hand as well.
You may also want to check what other apartments in the same complex or rented out elsewhere by the same landlord currently cost. This can help keep you from overpaying for an apartment and may also help you negotiate a lower rent.
Recommended: Reasons to Switch Banks
Offering a Lump Sum
If you can afford it, adding a lump-sum payment (say, three months of rent upfront) may strengthen your bargaining power and boost your odds of reducing your overall rent payment.
That’s because many landlords prefer having rent in hand and not having to worry about late or no rental payment from tenants.
What’s more, offering an upfront, lump-sum payment is one way to show a landlord that you’re serious about being a solid tenant.
A landlord may be more amenable to doing business with a tenant who is willing to go the extra mile.
Considering a Longer Lease
If you particularly like the house or apartment you’re renting, you might consider offering the landlord a longer lease in exchange for lower rent payments.
If, for example, a landlord is offering a 12-month lease to a new tenant, at a fixed monthly rental price, and you agree to extend that lease to 18 or 24 months, you might be in a stronger position to ask for a rental discount.
All things being equal, landlords tend to favor tenants who’ll be around for the long haul, and may be more likely to green-light a lower rent for a longer lease arrangement.
Recommended: Can You Pay Rent with a Credit Card?
Cashing in on a Referral
Landlords typically loathe empty apartments, so if you can help fill a rental unit with a referral or two, it might put you in a better negotiating position to ask for a rental price deduction for helping out.
Rental unit owners usually have to pay for classified ads to lease their open units. In addition, landlords often have to put some sweat equity into showing units, chasing down tenant leads, and vetting potential lease applicants.
By bringing your landlord good, qualified, and stable tenants, you may be able to become a valuable asset for your landlord, and help build a more robust case for a rental deduction in the process.
Not Just Focusing on Price
Yes, the primary goal in a rental negotiation is to bring the price down.
But in case that conversation proves fruitless, you may also want to consider some other perks or benefits you could ask for in lieu or a rent reduction.
Some ideas:
• A prime parking space (especially in urban areas)
• New appliances and/or fixtures in your home or apartment
• New or larger storage space
• “First dibs” on better apartments or homes in your complex, once they free up
• A waiver of fees and charges on things like gym memberships, parking privileges, community rooms, water or trash removal, or other services and amenities
• Extra parking passes for guests
• Allowing you sublet for the summer (if you plan to be away)
• One or two months free
Recommended: Passive Income Ideas to Build Wealth
Giving your Landlord a Heads-Up and Being Polite
Nobody likes to be ambushed on financial matters. That’s why you might have more success if you call your landlord well ahead of when you need to sign the lease and politely let them know that you’d like to discuss the terms of the lease, and are wondering if they would be open to a price reduction.
You might then suggest having a meeting (in person tends to be best, since it can be harder to say “no” to someone when you’re sitting face-to-face) some time in the next week or two.
This gives your landlord some time to consider the situation while also giving you some time to build your case.
In addition, giving your landlord some lead time shows you’ve put some thought into the matter. It also shows you respect your landlord’s time and schedule.
Keep in mind that you have a right as a renter to negotiate rent, but being diplomatic and respectful to your landlord will likely yield a better result than being aggressive.
💡 Quick Tip: When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a bank that doesn’t charge you for overdrafting.
Highlighting Your Value as a Tenant
When you do meet with your landlord to negotiate the terms of your lease, it can be helpful to make a good case for keeping you on (or bringing you in) as a tenant.
For example, you might want to have a record of all your on-time payments or any history of providing referrals for this landlord.
You may also want to mention your willingness to extend your lease, that you’re courteous to other tenants, keep the property in good shape, and any other points in your favor.
Any and all of these factors could help persuade your landlord to give you a better deal.
Getting Your New Rental Agreement in Writing
Once you’ve successfully negotiated your rent downward or otherwise improved the terms of your lease and have a verbal agreement, it’s a good idea to get the deal in writing.
Having both parties sign off on the new rental agreement provides you with document proof that you have a new deal in place, in the event there is any misunderstanding down the road.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt; rates have recently been climbing into the double-digit range, so try to eliminate that ASAP.
The Takeaway
While rental leases may appear set in stone, they’re more flexible than many tenants think, especially if the rental market is soft in your area (meaning more rentals than renters).
Whether you’re applying to rent a new apartment or signing a new lease on your current rental, you may be able to negotiate a better price if you’re able to show two things: that the rent is higher than similar units in the area, and that you are a model tenant who pays rent on time.
It’s also a good idea to come to the table with some alternatives to a rent reduction (in case your landlord is firm on price), such as a better or free parking space or new appliances.
Better banking is here with up to 4.50% APY on SoFi Checking and Savings.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Online bill pay can be a major convenience: It can allow you to schedule payments to transfer money from your bank account to your creditors. Using this technology can also be a money-saving move. It can lower the odds of your forgetting to pay a bill or winding up with late payment charges.
To be honest, paying bills likely isn’t anyone’s favorite way to spend free time. Automating the process may let you focus your energies elsewhere without needing to worry about how much money is due when and where.
If you’re curious to know the answer to, “How does bill pay work?” and understand how it could simplify your life, read on.
What Is Online Bill Pay?
Bill pay is a way of paying your bills online and automating your finances. It allows you to use your mobile device, laptop, or tablet to send money from your account to that of another person or business. No check writing required.
You specify the funds and provide details on the recipient, and the amount is automatically taken from your account and sent to the payee.
Yes, you can do this in real time, but you can also determine the “when.” That means you can schedule bills for payment in advance whenever you have time free, which can be a huge life hack.
Using Bill Pay to Organize Your Bills
When you set up bill pay, it can be a good opportunity to review your finances and the money you have coming in and going out.
You might also decide to stagger the payment dates on your bills to enhance your cash flow. To help with this, you may be able to change due dates on your bills by contacting your creditor.
Here are some of the ways you might use bill pay:
• Mortgage or rent
• Utilities
• Car loan payments
• Credit card bill
• Gym memberships
• Streaming channel and other subscriptions
• Student loans
• Charity donations
💡 Quick Tip: Make money easy. Open a bank account online so you can manage bills, deposits, transfers — all from one convenient app.
Setting Up Online Bill Pay
While bill pay can help make managing finances simpler, it does require some initial manual set-up. But, once you’ve learned how bill pay works, this automatic feature can make keeping track of and paying bills less cumbersome. Here are some ways to get started:
1. Finding a Financial Partner that Offers Bill Pay
While many financial institutions offer digital payment tools, like bill pay, it’s worth investigating the features that are included at each, before opening up an account. Online billing is free with some accounts, while some providers may charge for each transaction — either per bill or on a repeating monthly basis.
Recommended: When All Your Money Goes to Bills
2. Determining which Bills to Autopay
Utility bills, loan payments, credit card bills — you can pay just about any bill using bill pay. One benefit of centralizing bill payments is that, whether it’s a one-off charge payment or recurring bill, the user can rest assured that the bill will get paid on time — assuming bill pay has been set up correctly and there are sufficient funds in the linked account.
To streamline bill payments even further, it may be helpful to think about which ongoing bills you want to automate on a revolving basis through bill pay. Every month, bill payment could go out automatically, on a schedule determined by you, to the businesses or service providers where the money is due.
Predictable expenses that don’t fluctuate from month to month, such as loan and mortgage payments or the internet bill, are solid candidates for recurring automated payments. After all, it can be easier to budget for an expense that won’t go up and down from month to month. For bills that always cost the same, you may want to schedule payment for a time each month when you know there’ll be sufficient funds in your account to cover what’s come due. Some service providers may even allow you to change the due date on certain bills.
3. Gathering Together All Bills
Once a person has figured out which bills to pay automatically, they still might want to gather together all their regular bills in one place. (Organizing your bills can really help you see exactly where your money goes.) While individual bills are generally due at the same time each month, bills from different businesses or providers will have different due dates.
With all the bills in one place, you can then enter the various billing accounts into your money management provider’s bill pay system. It could be useful to research each bill ahead of time, determining whether they’re delivered by snail mail, paperless emails, or both.
4. Logging on to Personal Finances
As with other personal finances, bill pay is generally managed through a financial institution’s website or mobile app. A person interested in accessing bill pay could simply sign on to their secure account and search for the “Pay a Bill” or “Online Bill Pay” function.
5. Inputting Billing Information
Once logged on, you might follow the prompts to add individual billing accounts, indicating for each the funds you wish to pay with. You’ll likely be asked to input the name of the business or service whose payments you’re seeking to automate. You may also be asked for more specific details, such as your individual account number.
If you can’t find the business or service provider listed, you want to try spelling out the full name, removing abbreviations. If you still can’t find the payee, it’s possible that you can still utilize bill pay, but you may need to manually add in the payment details.
Having printed or saved digital copies of previous bills handy can be helpful here. (One other potential option is to set up automated payments, linked to your money accounts, directly through the provider — for instance, the water department of the city where you live).
When paying electronically, you’ll need to add your account number so that your payment is properly credited to you. You can also add the amount and frequency of payments, selecting a specific payment date (for one-time payments) or a regular schedule (for repeat bills that get paid on the same date every month).
Some financial institutions place a cap on the amount of money that can be transferred electronically through bill pay. If an automatic payment exceeds that designated transaction limit, users may then need to pay via a physical method, such as a personal or cashier’s check.
6. Taking Note of the Billing Schedule
high-yield checking account online and earn 0.50% APY.
Keeping Track of Outstanding Bills and Extra Fees
One research report (spanning 2,000 individuals) indicates that 28% of Americans report difficulty in paying their bills on time. In this group, 52% of those earning less than $25,000 or less noted difficulty with paying bills, while only 11% of those earning $125,000 or higher reported the same bill-paying challenges.
benefits to automatic bill pay, including avoiding overdue accounts.
Here are some consequences of not paying bills on time.
Imposing Late Fees
One of the ways companies or service providers enforce on-time payments is by penalizing people for, well, paying late. Whether it’s a credit card, utility bill or simply missing a payment date by a single day, submitting a late payment can result in late fees, higher interest rates, or other charges.
Put another way, not paying right now can cost individuals more in the long run. It’s worth noting that these fees or penalties can be higher if a person has a previous history of late or unpaid bills.
Accruing Interest Charges
On top of late penalties, some providers may also charge interest on the balance owed, essentially creating a double-wallop of fees if you’re late paying a bill. In some cases, the interest may be charged starting the day an account becomes overdue. In others, it may accrue going back to the purchase date or transaction day.
Depending on the interest rate charged and how frequently that interest compounds, this fee could quickly balloon to more than the initial fee assessed.
Experiencing Service Disruptions
In some cases, a provider may have the right to shut off your service if you pay a bill late. Not only are such disruptions a major interruption to daily life (ahem, no water, ahem) individuals may also have to pay a reinstatement fee once account has been paid—just to reactivate the service, such as electricity, natural gas, or the internet.
Declining Credit Rating
Think no one other than the service provider will notice a missed bill payment? Not so, in many cases. Payment history on outstanding debts makes up 35% of a FICO credit score. So, things like, overdue credit card bills, unpaid mortgage or car payments, and other late payments can erode an individual’s credit score.
It’s worth recalling that lenders and landlords can rely in part on credit scores when evaluating the risk of doing business with someone. So, dings to a credit score—things like late payments—can impact the likelihood of being approved for a loan or a lease. (Generally speaking, lenders consider a score below 580 a sign that the borrower is at a higher risk of not paying back the money loaned).
Even if approved, having a lower credit score could increase the rate of interest charged on a loan or credit card, potentially costing the borrower thousands of dollars over time.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 4.50% APY on your cash!
Weighing the Benefits of Bill Pay
Not having enough money is just one reason people pay bills late. In many cases, the complexity of managing competing bills is a factor. It can be difficult to stay on top of each individual due date, especially for one-off bill payments or those bills that get paid less frequently, such as quarterly and annual bills. If you pay different bills from separate accounts, paying bills can become even more tangled.
Adopting regular strategies for paying bills can help solve remembering when to pay each bill (and with which account).
One payment strategy is to use online bill pay tools to automate your finances. Instead of remembering to pay each individual bill, while keeping track of competing due dates and amounts, bill pay allows users to set a payment schedule in advance and then, essentially, to forget about it.
Automatic bill payments can be a key way to prevent late payments and to simplify this important aspect of managing one’s finances. Now that you know what bill pay is and how it works, you can decide if it’s a wise move for you.
The Takeaway
Bill paying is a necessity that can be simplified. Signing up for automated bill-pay can put you in control. It can ensure that outstanding bills get paid on time or when you have more money in your accounts, reducing the likelihood of late-payment or overdraft fees.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with up to 4.50% APY on SoFi Checking and Savings.
FAQ
Does bill pay take the money out right away?
In many cases you can determine when you want the transfer of funds to occur. You can pay in real time or schedule the payment for a later date.
Does bill pay send a physical check?
Bill pay is an electronic process that moves funds from one account to another. You do not have to write a check, nor does the payee receive one.
What is the difference between bill pay and ACH
Bill pay is a way of automating your finances. ACH (Automated Clearing House) is a network that moves funds electronically between banks. Bill pay may use the ACH network.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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