Here’s everything you’ll need to know about how to rent a house, including how it’s different from apartment renting.
Maybe you have a growing family or elderly parents moving in. Perhaps you need a dedicated office or you’re craving outdoor space and more privacy than most apartment complexes offer.
If you can’t afford to buy your own home, you can upgrade your living arrangements by renting one. Still wondering how to accomplish this milestone, though? We’ll walk you through it step by step.
How renting a home is different than renting an apartment
While the renting process may be similar, there are large differences that any prospective tenants should be aware of, so their renting process runs smoothly. Navigating the local market is tricky enough, turn to this guide to delve into the must-knows for your home renting experience.
1. Your rent price will look drastically different
Before beginning your hunt for the perfect rental home, you’ll need to figure out what you can afford. Factoring in your income and recurring expenses including any loan payments, check out our helpful tool that will calculate average rents and the cost of living in major cities. You’ll notice upfront, that renting a house may be pricier, due to numerous reasons.
In addition to the monthly rent you’ll be forking over, there are other costs to consider that you may not have had to deal with as an apartment dweller. For example, things like heat, hot water, electricity, internet and satellite TV that are sometimes covered with an apartment rental will likely come straight out of your pocket when you rent a house.
Also, you might be responsible for lawn care, snow removal and other general maintenance, so if you don’t want to take care of those yourself, plan to budget for hiring out those tasks.
You’ll also need to know your credit score to see if you have to get a co-signer or guarantor — someone with good credit who would be liable for your rent if you can’t pay it. This will be added to your lease agreement should this be the case.
2. Your wants and needs will be more extensive
Once you’re clear on your budget, the fun part of researching houses for rent begins. It’s best to start by narrowing down your search to a few choice neighborhoods that offer the amenities you’re looking for, including proximity to work or your children’s schools. Due to the nature of a home (which lacks the built-in amenities an apartment has) your wants and needs for your ideal rental property will be longer.
It’s helpful to make a list of wants vs. needs to help you sort through your thoughts on your dream rental properties:
If you or your family are active or love nature, is the area close to parks and recreation centers?
Do you want a bustling neighborhood packed with restaurants, cafés and boutiques, or would you prefer a quiet, suburban environment?
Is a backyard important to you?
Do you need a garage or dedicated parking space?
Are you looking for a detached home to rent or are you okay with a townhouse?
Does the neighborhood have easy access to public transportation?
3. You’re sure to attend more tours and have more questions
Reading rental listings and taking a good look at the photos is typically not enough to determine whether a rental house might work for you.
While apartment complexes might post floor plans and room sizes online, you might not have advanced information like that with homes for rent. This means you’ll need to ask the landlord, property manager or rental property owner about many things that may not be explicitly listed:
Is the home pet-friendly?
Are appliances included, or would you need to purchase your own?
Is the house furnished? If it is, can you decide what stays or goes?
Are laundry hook-ups in place?
If utilities are not included in the monthly rent, how much can you expect to pay for heat, electricity and hot water?
Can you make decorative changes, such as painting the walls or changing light fixtures?
If there’s a backyard, can you plant a garden?
Is there a home owners association to which you will owe monthly fees?
4. Your neighborhood will be more important than ever
If you like the looks of a house for rent, and the landlord has answered questions to your satisfaction, make sure you also tour the area to get a sense of whether it would be a good fit for you and your family.
Try to speak to some potential neighbors, too: Ask them if it’s safe to walk the streets at night, whether it’s noisy and whether there are other children on the block.
It’s a good idea to visit the street both during the day and in the evening if possible. If the rental home does not have a garage or dedicated parking spot, check out whether street parking is readily available. It’s important to confirm that the right rent price takes into account the neighborhood and what it has to offer potential tenants.
5. There’s additional paperwork, like a home rental application
Paperwork for renting an apartment is a given, however, there tends to be a bit more when it comes to renting a home. Keep in mind, if the property is in a popular neighborhood in a hot real estate market, you won’t want to waste any before time letting the landlord know you’re ready to begin the application process.
Some property managers will charge you a fee between $25 to $100 before opening a file. Supply the following information to help the landlord determine if you are a good candidate to rent the house:
Your personal contact information
Proof of income. If you work full-time, pay stubs are sufficient. If you are self-employed, you can present bank statements or tax returns from the past three years. Retirees can provide proof of pension, 401(k) or bank statements.
Your guarantor’s name and contact information, if applicable
References who can vouch for your reliability and trustworthiness, such as a supervisor or former landlord
6. More rules you’ll have to adhere to
If your rental home has an HOA, you’ll need to check in with them to see if there are any regulations to follow on moving day, such as not leaving empty boxes at the curb when moving. There will likely also be regulations ranging from decorating to construction restrictions that the homeowner, in this case the landlord, will have to adhere to.
The similarities between renting an apartment and a house
There are some steps and parts of the renting process that don’t change even though the type of rental property does. There are similarities beyond the obvious of needing to pay rent and adhering to rental laws.
1. The background check
Landlords want tenants who have a steady income, a good loan repayment track record and a history of paying rent on time. Often, they will conduct a background check to assess whether they want to rent you their house.
During this part of the process, a property manager will likely want to confirm your employment, speak to the references you provided and check your credit report to see how you managed past payments.
2. The required fees such as a security deposit and first month’s rent
Some landlords will require a security deposit equivalent to a month’s rent, which would cover any damage to the property you might cause during the term of the lease. In some cases, you can either be refunded this fee when the lease is up or it goes to the last month’s rent.
You might also have to pay the first month’s rent once you sign a lease, even if you’re not moving in for a while. Sometimes, you’ll be charged a deposit for keys if you require more than one.
3. The moving process
While you won’t have to reserve an elevator to move into your rental home the way you did when you lived in an apartment, there are some things you need to organize before the big move.
For example, before you book a professional moving company, find out from the landlord if you can reserve a parking spot in front of the house where the truck can park, or whether it can back onto part of the property for easier unloading.
Once that’s done, you can concentrate on packing up and getting ready to move into your new home. Don’t forget to advise utility companies, internet and television providers and anyone else who needs to know you’re moving elsewhere.
Make sure to stay on top of details
Taking the time to research rental homes and neighborhoods and asking the right questions will make the transition from apartment living to a home rental go more smoothly.
Being organized with your paperwork and task list for moving day will provide peace of mind and fewer last-minute glitches so that you can celebrate once you’re settled into your new rental home.
And if you’re thinking about renting out your home for some passive income-generating opportunities, take a look at our rent estimator to see how much you could be earning.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
Inside: Are you looking for ways to make money while you’re still in college? This guide has a variety of ideas for side hustles for college students that can help you get started. From online businesses to odd jobs, there’s something for everyone.
Are you a college student searching for ways to increase your income and improve your financial situation while balancing your academic commitments? We’ve got your back!
In this student-friendly guide, we’ll share side hustles for college students, giving you many opportunities to earn extra cash.
You can even learn to get paid to go to school!
Whether you’re tech-savvy, creative, or inclined towards offline work, you’ll find something that suits your preferences.
Let’s jump in and explore how you can transform your free time into a valuable money-making asset!
What is a Side Hustle?
Simply put, a side hustle is like having a little extra adventure on the side while you’re busy with your main gig, which in this case might be college classes.
It’s your chance to boost your finances and gather valuable experience that could pave the way for future career opportunities. It’s like adding a dash of extra flavor to your college life along with extra cash!
What side hustles can I do as a college student?
As a college student, you possess a unique set of skills and resources that can be leveraged to generate income.
Whether you aspire to know how to make quick money in one day or debate what should I do for a living, opportunities await you.
Stay tuned for the second part of this article, where we’ll explore a treasure trove of side hustles perfectly tailored for college students.
What can I do to make extra money as a college student?
As a college student, there are various ways to earn extra money.
Most importantly, you need to find something that works well into your college schedule.
That is why many college students prefer to learn how to make money online for beginners. That gives them the chance to make money on their time from their campus or anywhere else they choose to move.
Now, let’s move on to the best online and offline side hustles for college students that may be of interest to you.
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.
Best Online Side Hustles for College Students
As the digital era continues to expand, opportunities for online side hustles are becoming more prevalent.
These side gigs leverage the power of the internet allowing flexibility, diversity, and potential profitability without sacrificing full-time commitments.
From millennials to retirees, are venturing into online side hustles to supplement their income, make use of their skills, or explore new career paths.
1. Write Articles for Websites
If you have a flair for writing, you can explore freelance opportunities as a content writer for websites and blogs. Numerous online platforms offer paid writing gigs.
Create a portfolio of your writing samples, sign up on freelancing websites like Upwork or Fiverr, and start bidding on writing projects.
Learn how to Earn Money Writing.
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2. Build Websites
If you’re tech-savvy and have web design skills, offer website design services to individuals or small businesses looking to establish an online presence.
Showcase your web design work through a portfolio website, network with potential clients, and consider joining platforms like WordPress or Wix for easy website creation. Just make sure to use Kadence WP for themes!
This is a great gig for college students because you can take on more clients during your school breaks and none during finals week.
3. Starting an Etsy Business Selling Printables
Creating printables on Etsy is a popular and potentially profitable endeavor. It involves designing digital products that users can download and print at home.
Find the most popular digital products to sell on Etsy.
Beyond imagination and design skills, it is essential to learn how to optimize product descriptions and pricing, for which you can turn to comprehensive online courses. By following this how to sell printables course, you can equip yourself with the right tools to excel in this Etsy niche.
4. Create Videos
As a college student, there are two possible avenues for this side gig.
You can start a YouTube channel or offer video creation/editing services.
If you choose to venture into your own YouTube challenge, then you are able to monetize your videos through ads and sponsorships. Most importantly, you need to choose a niche for your YouTube channel, then create engaging content, and build a loyal audience.
Don’t want to be in the limelight? You can also offer video editing services on freelancing platforms.
5. Start a Blog
Share your knowledge or passion through a blog and monetize it through affiliate marketing, sponsored posts, and ads.
Pick a niche you’re passionate about, set up a blog using platforms like WordPress and Kadence theme, and consistently publish high-quality content.
This is not for the faint of heart, but college students traditionally have better success because of promotion through social media and engaging with readers.
6. Start an E-commerce Business
Launch your online store selling products you’re passionate about. Platforms like Shopify make it easy.
Source or create your products, set up an e-commerce website, and market your products through social media, email marketing, and search engine optimization.
One of the main benefits is an e-commerce business with low start-up costs, low ongoing maintenance, and the ability to remain open and generate sales 24/7.
7. Become a Freelancer
Explore freelance platforms for various opportunities like graphic design, programming, or digital marketing.
As a freelancer, you can work remotely and at your own pace. Create a compelling freelancer profile, showcase your skills, and bid on projects that match your expertise on platforms like Upwork, Freelancer, or Guru.
This is a great way to start building your portfolio of experience.
8. Write Your Classmates’ Cover Letters and Resumés
Engaging in the preparation of your classmates’ cover letters and resumes can be a rewarding side hustle.
Many employers today express concern about the lack of well-written cover letters and resume submissions they receive. By capitalizing on your writing skills, you can provide a much-needed service for your peers while earning some income.
Hence, build your proficiency with practice resumes, then decide on your charge per each document created.
9. Sell Stock Photos
If you have photography skills, sell your photos on stock photography websites like Shutterstock.
This is a perfect side hustle for young adults because you are constantly capturing the moments.
To get started, create an account on stock photography platforms, upload high-quality images, add relevant keywords, and start earning royalties when your photos are downloaded.
10. Write eBooks
Capitalize on your expertise in a specific subject and create eBooks to sell on platforms like Amazon Kindle Direct Publishing. Design an eye-catching cover and promote your eBook through social media and book-related forums.
This is the first step to passive income before you even graduate!
11. Proofreading
Proofreading can be a fruitful side hustle for students looking to earn extra money.
By leveraging your writing skills, you can charge a fee to proofread and edit classmates’ assignments, theses, or essays. Also, many small businesses are always looking for help!
With platforms like Fiverror college bulletin boards, you can advertise your services and set your own rates, potentially making $25–$45/hour according to proofreading expert Caitlyn Pyle.
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12. Start a Podcast
Starting a podcast can be an excellent revenue stream, given the significant increase in podcast listenership, with 82 million Americans being weekly podcast listeners according to a 2021 study.1
Your revenue can come from sponsorships, donations, and offering premium content or services. It’s essential to plan your podcast content aligning with your targeted audience and consistently producing high-quality episodes to grow and maintain your listener base.
13. Work as a Virtual Assistant
If you’re looking to start as a virtual assistant without prior experience, don’t worry!
Many businesses look for virtual assistants for tasks like email management, data entry, or social media management. Find out exactly what is needed with this virtual assistant checklist.
Plus working as a virtual assistant offers the flexibility to work remotely, which is a benefit for a college student.
Learn how to jumpstart your side hustle with this free Virtual Savvy training.
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Best Offline Side Hustles for College Students
In this section, we delve into the world of in-person side hustles.
Ideal for those preferring tangible interactions and a more predictable income, these opportunities demand physical presence and often offer good remuneration for physical labor.
However, they come with their own set of challenges like fixed service hours and potential clashes with a busy schedule.
1. House Sitting
House sitting is an excellent side hustle for college students.
You can offer your house-sitting services to neighbors or anyone going on vacation. It’s all about providing peace of mind to homeowners by ensuring their property is secure and well-maintained.
Build trust in your community by offering reliable house-sitting services, and word-of-mouth recommendations will follow. Consider promoting your services through Trusted Housesitter.
2. Food Delivery Driver
This is an extremely easy way to make money.
Sign up as a food delivery driver for platforms like UberEats or DoorDash. After registering as a driver and meeting the platform’s requirements, you can start delivering food orders in your area.
This side hustle allows you to set your hours and earn extra cash while enjoying the freedom of the open road.
3. Offer Lawn and Gardening Services
For those with a green thumb or a passion for outdoor work, offering lawn and gardening services can be a lucrative side hustle.
All by helping homeowners in your area with lawn care and gardening tasks. Investing in basic gardening tools is essential, and you can advertise your services through flyers, local online groups, or by simply offering your services to friends and family.
In fact, this may turn into your full-time business like this high school student.2
4. Shovel Snow During the Winter
If you live in an area with snowy winters, don’t miss the opportunity to capitalize on it. Offer snow shoveling services to residents in your community.
Promote your snow shoveling services well in advance of the winter season to secure clients.
On a snowy day, you can easily make 200 dollars fast. Just by being prepared to respond promptly to snowfall, and ensuring that driveways and walkways are safe and clear.
5. Become a Tutor
Sharing your knowledge by becoming a tutor is not only a valuable service but also a great way to earn extra income.
You can tutor fellow students in subjects you excel in or offer your expertise to local school kids. You can also tutor your classmates who are struggling in class.
Advertise your tutoring services through college bulletin boards, social media, or tutoring websites.
6. Clean Houses and/or Offices
Cleaning services are in demand, and you can provide them to individuals or businesses in your area.
Invest in basic cleaning supplies and equipment, set competitive rates, and market your services through local ads, referrals, and social media.
A reputation for thorough and reliable cleaning can quickly build your clientele.
7. Edit Your Classmates’ Papers — For a Fee, Of Course
If you have strong writing and editing skills, consider offering your editing services to your fellow students.
Many students appreciate having their papers reviewed and improved by a peer.
Promote your editing services within your college network, showcase your skills, and offer reasonable pricing to attract clients. This can quickly spiral to making 300 dollars fast.
8. Become a Handyman or Handywoman
If you’re skilled in fixing household issues or performing basic maintenance tasks, this side hustle can be highly profitable.
Acquire a basic toolkit, and offer your handyman services locally. From minor repairs to assembling furniture, providing reliable and affordable solutions can earn you a good reputation and repeat business.
You can quickly get started on TaskRabbit today.
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9. Translator
This is a highly needed service! If you’re proficient in multiple languages, offering translation services can be a rewarding side hustle.
Create a portfolio that showcases your language proficiency and advertise your skills to businesses or individuals who require translation services.
Your ability to bridge language barriers can be a valuable asset to various clients.
10. Deliver Anything Else Someone Might Need
If you’re the proud owner of a vehicle or even a trusty bicycle, you can tap into the world of delivery services. While food delivery is a popular option, you can expand your offerings to deliver a wide range of items.
Consider offering delivery services for groceries, prescription medications, packages, and even care packages for college students.
People are always willing to pay for help.
11. Drive for Uber or Lyft
Becoming a rideshare driver with companies like Uber or Lyft is a popular side hustle that offers flexibility. Sign up as a driver, meet the platform’s requirements, and start offering rides to passengers.
The benefit is you can choose your working hours, making it convenient to fit around your class schedule.
12. Hauling Junk
Help people declutter their homes by offering junk hauling services. You’ll need access to a pickup truck or a vehicle with ample cargo space.
Advertise your services, establish rates based on the volume of items to be hauled, and provide efficient and responsible junk removal.
Seriously, I see three or more posts in my neighborhood with people asking for help to move their junk!
13. Turning Your Car into a Moving Advertisement
Ever wondered if you could make money while driving around town? Well, here’s an interesting side hustle idea – turning your car into a moving advertisement.
Some companies are willing to pay you to wrap your car with their branding, turning it into a rolling billboard.
As you cruise through town, you’ll not only earn money but also become a conversation starter. It’s a unique way to earn extra income while sparking interesting discussions about the products or services you’re promoting.
14. Offer Moving Services
Assisting with local moves can be physically demanding but financially rewarding. Advertise your moving services locally, and consider forming a team if necessary.
Ensure you have the necessary equipment, such as dollies and moving blankets, to facilitate the moving process. By providing a smooth and efficient moving experience can lead to positive reviews and referrals.
15. Entertaining Kids at Birthday Parties
Entertaining children at birthday parties is a profitable side hustle for college students, especially those who have a knack for acting or enjoy engaging with children.
This venture could earn you between $50 and $100 per hour.
Develop a repertoire of entertaining acts, start promoting your services through local event planners and social media, and offer packages for different party sizes.
16. Teach Music or Sports Lessons
Share your musical or athletic skills by offering lessons to aspiring learners.
Whether you’re skilled in playing an instrument, coaching a sport, or giving dance lessons, there’s likely a demand in your community. Advertise your lessons through flyers, social media, or local community centers.
Make sure you have the necessary equipment and expertise to provide quality instruction. This is what I did in high school and college.
17. Proctor Tests
If your college conducts exams, there may be opportunities for students to work as test proctors for a fee. Inquire about proctoring opportunities at your college’s testing center or academic department.
This can be a convenient way to earn extra income without straying far from your campus.
18. Become a Legal Street Performer
If you have a talent for street performing (e.g., playing music or juggling), consider performing in public spaces for tips.
Choose a suitable location, prepare your act, and follow local regulations for street performances.
Could you make $1000 in a day?
19. Be a Lifeguard
Lifeguarding is a responsible job that requires attentiveness and quick response in case of emergencies. If you’re a strong swimmer with the necessary certifications, consider working as a lifeguard at local pools or aquatic centers.
Unfortunately, this is a high-stress and low-paying job. So, you are better off considering one of these low stress jobs that pay well.
20. Offer a Painting Service
Offering painting services can be a rewarding side hustle, especially for those who find the task peaceful and enjoy bringing a fresh new look to rooms or entire homes.
Most homeowners dread the prospect of painting their own homes and are often willing to hire a handyman to do the job. You can easily make 500 dollars fast.
With minimal initial investment in quality brushes and rollers, you can unleash your creativity and transform spaces with color and design, choosing your own hours and clients in the process.
21. Sign Up as a Substitute Teacher
Working as a substitute teacher is an excellent opportunity for individuals who do not necessarily have a teaching certificate but possess a high school diploma and a clean background check.
My husband, having served as a substitute teacher, found the experience to be rewarding when he was in college.
Not only did it pay well, averaging about $131 per day, but it also allowed him the chance to engage in student activities and provide value to the local school district.
22. Babysitting
Babysitting is a viable side gig, particularly suitable for early childhood education degree seekers, offering flexibility and a rewarding experience while caring for others’ children.
It involves variable commitments mostly during evenings, weekends, and some weekdays, with an average earning potential of $17 per hour.
Securing babysitting roles can be accomplished through personal connections, local community outlets, and digital platforms likeCare.com and Sittercity.
Why is college the best time to start a side hustle?
Before we bid adieu for now, let’s ponder why college is the perfect breeding ground for side hustles:
Flexibility: College schedules often come with pockets of free time, making it easier to juggle academic responsibilities and a side gig.
Learning and Growth: Side hustles offer valuable lessons in time management, financial literacy, and entrepreneurship that complement your academic knowledge.
Networking: Your college is a hub of potential clients, collaborators, and mentors, providing a fertile ground for your side hustle to thrive.
Financial Independence: Earning your own money allows you to alleviate the burden of student loans and gain financial independence.
Employing multiple streams of income is the savviest thing you could do for your finances and your long-term wealth.
Tips to be Successful with Your Side Jobs for Students
One of the best things about side hustles, is you are able to get real-life experiences and knowledge. This side hustle may or may not become your full-time job, but the skills are transferable.
The goal is to find success, so let’s explore some essential tips to succeed in your side hustles as a college student:
Time Management: Prioritize your college commitments and allocate dedicated time for your side hustle.
Skill Utilization: Leverage your skills, whether it’s writing, design, or a particular subject you excel in.
Online Presence: Create a portfolio or profile to showcase your skills and attract potential clients or customers.
Networking: Connect with fellow students, professors, and professionals who might offer opportunities or guidance.
Also, don’t give up if your first side justle doesn’t work out the way you hoped. Keep going until you find something you love to do!
Are You Ready To Start Hustling?
As you set off on your side hustle journey, keep in mind that consistency, dedication, and adaptability will be your trusted companions.
Whether you choose to dive into online opportunities, embrace offline endeavors, or strike a balance between the two, every experience will play a part in your personal and entrepreneurial growth.
If you are going to be in various locations during your college years, it is best to look for remote jobs for college students.
Your path towards financial empowerment is only just beginning, and we’re thrilled to be with you every step of the journey.
Between each college exam and class, you can make money to pay for your schooling. I think that is a win-win to pay for college without loans.
Start your side hustle today and get on the path to financial freedom with Money Bliss.
Source
Statistica. “U.S. Podcasting Industry – statistics & facts.” https://www.statista.com/topics/3170/podcasting/#topicOverview. Accessed on October 4, 2023.SSt
10 News. “A CEO at 17: How this Colorado teen transformed his side hustle into a legitimate business.” https://www.10news.com/news/green-worx-landscaping-golden-colorado. Accessed on October 4, 2023.
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It’s never too early to start learning smart strategies for managing one’s money. Most teens don’t get a formal education in topics like budgeting, investing, and choosing the right financial institution for their money, which is a missed opportunity.
That’s why it can be especially important for young people to take steps to build their own financial insights and skills. That can mean understanding the right amount to save and spend when earning a salary; what the challenges of managing credit can be; and how to invest money wisely.
This guide covers these aspects of financial literacy and more. Consider it a smart starting point as you build your money knowledge and know-how. Whether you’re thinking about buying your first car, affording college, or starting your own business someday, you’ll learn some of the key steps to bring your financial life into focus.
Why Is Financial Literacy Important for Teens?
Sad but true: Most people are launched into adulthood without being educated on personal finance. What’s more, in many households, money isn’t a topic that’s freely discussed, so kids don’t grow up hearing about how much their parents earn, spend, or save.
These are factors that can make it a challenge to gain financial knowledge and money management skills. However, learning about how to budget, save, invest, and spend wisely when young can set you up on the path to achieve your short- and long-term goals. That’s why you’ll learn some financial tips for teenagers right here.
The sooner you understand your way around money, the earlier you can get on the path to, say, travel around Europe for a summer, manage student loan debt, or even start saving for your dream house.
💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.
5 Key Financial Tips for Teens
Making the most of your money as you start on the path to your independent life doesn’t need to be complicated. Here are five important financial literacy concepts for teens.
1. Opening a Bank Account
Financial planning for teens often starts with having a bank account. Not only will a bank account make it easier to cash those birthday checks from Grandma, it also provides a place to monitor money and start saving.
Most bank accounts billed as “teen accounts” are really just joint bank accounts, because teenagers under 18 typically need a parent or guardian to also be an account holder. This makes it possible to open a bank account for a minor.
Although it’s sometimes easier for teens to open an account at the same place their parents bank, it may be worth researching which banks in the area have the best benefits for teenagers specifically. Some points to know:
• The age for opening up an account varies from bank to bank, so make sure to check specifications on the bank’s website beforehand.
• Valid identification like a student ID, driver’s license, passport, birth certificate, and/or social security card is also required for account owners when opening a teen checking account.
• In some cases, a parent or guardian must be present to open the account, but some banks do offer the opportunity to open an account online. This will often require uploading the same documents to prove your identity.
• Some banks also offer parental controls, setting withdrawal and debit card limits, or even text alerts about account activity. Before opening an account, it may be worth considering what is most important and beneficial — definitely talk it over with a parent or legal guardian.
• Learning about any fees or minimum balances from the bank is also important step in personal finance for teens. Make sure to ask the right questions in person or check out the bank’s fee structure on their website. Ideally, you might want an account with no fees and the ability to earn a bit of interest (many checking accounts pay no interest). You are typically more likely to find such offers at online vs. traditional banks.
• Having a bank account means access to making deposits and withdrawals, plus online banking tools that can help with money management.
A word about debit cards: A teen checking account typically offers access to a debit card, which allows account holders to take out cash from ATMs and use the card for purchases in stores or online.
And since a debit card takes money directly out of the checking account for payments, it may help to download the bank’s mobile app, if available. This can help with checking account balances and, at some banks, setting up alerts if the account falls below a certain balance.
A bank account is a great first step in learning money management, whether it’s using a debit card, checking balances, transferring money, or setting up a direct deposit for paychecks. Especially with a new job, a weekly or bi-weekly paycheck comes with learning more financial responsibility. With a personal bank account, teens can pick up crucial financial skills before turning 18.
And, at many banks, once someone does turn 18, the account can turn into a standard checking account, which they can either choose to keep or leave for a new banking institution. (Important note: There may be new fees, so it’s important to keep an eye on what those might be.)
Recommended: What Is a Student Checking Account?
2. Budgeting For Teens
Another financial tip for teenagers involves learning how to balance income and expenses. Making a simple budget can help keep things on track. Whether it’s keeping tabs on a monthly allowance or income from a part-time job, knowing how much money is spent versus how much money gets made is a key part of money management. Plus, a budget can show how much money is available to save every month.
Many banks with mobile or online banking offer simple budgeting tools, such as categorizing money into simple buckets like “spendable” or “set aside.” One pretty practical budget suggestion is the 50/30/20 method. This helps to simplify spending categories: rather than trying to decipher every transaction and having hundreds of small budgets for individual items, the 50/30/20 method just divides monthly income into thirds.
• 50% of income would be put toward necessities, such as bills and other regular spending that’s hard to do without. For teens, this might mean car-related expenses, like insurance and gas, or a monthly cellphone bill. If 50% seems like a lot — especially if parents are still paying for big expenses like groceries and housing — consider putting an extra 10% into savings or other financial goals for now.
• 30% would be allocated for day-to-day spending, like going out to eat with friends, entertainment, shopping, and other fun activities.
• The remaining 20% would be allocated for financial goals, usually savings or debt payoff. Maybe this can be the start of a college fund, or saving up for a big purchase in the future?
3. Smart Savings
In tandem with having a budget, learning how to save money is an important part of financial planning. Opening both a checking and savings account may make it simpler to put money away.
Since a debit card is only tied to a checking account, that’s like an added buffer from the money in a savings account. Plus, learning to regularly transfer money into a savings account can help create healthy money habits.
When you have a regular paycheck, one of the simplest ways to save more is to set up direct deposit to divide the funds between a checking and savings account. If 20% automatically goes directly into savings, it requires little extra thought each pay period.
Automating your savings in this way takes away the need to manually transfer money. This can help eliminate any mental gymnastics surrounding the desire to spend money in your checking account immediately — it’s like it was never there in the first place.
Plus, in an emergency, a connected savings account can help prevent overdraft fees. If college is in the plans, saving now could mean taking out fewer loans in the future.
In fact, this thinking can be applied to any money goal, whether it’s a new phone, car, or a big post-graduation trip. Saving now can make it easier to achieve later.
💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.
4. Being Cautious With Credit
Financial tips for teens are full of dire warnings about the perils of credit cards. But learning early on how credit cards work and how to manage credit is also part of mastering money management. Building credit now may open more doors in the long run.
For example, establishing a positive credit history can help make it more likely to successfully secure a loan for a car or rent an apartment down the road.
One way for teens to start is to get added as an authorized user on a parent’s credit card. The authorized user gets the benefits of the credit card and building credit history without the responsibility of being the primary cardholder and making payments.
However, since late payments may impact both credit scores, teens can also set up an arrangement to pay off any debt incurred using the card each month.
In fact, it’s getting harder for people under the age of 21 to get a credit card, because federal law under the Credit CARD Act of 2009 requires credit card issuers to verify that the applicant has the following before a credit card is issued:
• A cosigner’s signature. The cosigner can be a parent, guardian, etc. as long as they are able to pay the applicant’s debt from the card.
• Official financial information proving that the applicant can repay the debt on their own.
The submitted application must be written. And if a person under 21 is approved for a card, they can’t get a credit limit increase without written approval from the cosigner.
Eventually opening an individual credit card without a cosigner, of course, means a lot more financial responsibility. Paying a credit card in full each month, as opposed to carrying a balance, is an important financial habit to get the hang of, as paying in full each billing cycle means the cardholder won’t pay interest on a balance and it can help build credit score.
Until then, an authorized user receives a separate credit card in his or her name, but there may be no need to even use the card. Just having it issued can help build credit if the main cardholder is keeping up with their payments. As credit builds, it’s smart to monitor credit reports and scores for errors or fraud. It might be a good idea to start monitoring credit through a free site like FreeCreditReport.com .
5. Setting Up a Side Hustle
If a part-time job or summer gig isn’t an option just yet, whether due to age, school work, or other restrictions, there are other options for earning extra cash. One of the benefits of a side hustle is being able to bring in income. And any income, however small, could help build good personal finance habits like budgeting and saving.
For ideas, look to needs in the community, such as assisting older adults with technology, babysitting, tutoring, or lawn care. Helping on a moving day, walking dogs, or washing cars are also great ways to step up from a beginner’s lemonade stand.
You might also consider your hobbies: Do you paint landscapes in your free time? Make jewelry? You could possibly sell your work to bring in some cash.
For those nearing college and looking for a part-time or entry-level job, it may be worth considering a company that offers tuition support or reimbursement for their employees.
Building smart financial planning skills now may make it even easier down the road when starting a full-time job — with budgeting and saving.
Can You Invest as a Teenager?
Many teenagers are curious about investing and how they might build wealth that way. Here are a few things to know if you’re wondering how to invest as a teenager:
• If you are under age 18, you cannot be the sole owner of a standard brokerage account.
• With adult supervision, you may open what is known as a custodial account. This means that the adult oversees the account while you are under 18. When you turn 18, you can likely take over control of the account with the adult’s approval.
By collaborating with an adult in this way on investments, you can learn the basics and begin to experiment. The conventional wisdom is that, the younger you are, the more risk you can afford to take with investing, since you have time to recoup any losses and ride out the ups and downs of the market.
Just do keep in mind that investment does have inherent risk, as your portfolio isn’t insured the same way money in the bank is.
Once You Are Old Enough to Invest, Where Do You Start?
If you are old enough, here’s how to invest as a teenager. Keep these tips in mind:
• Do your research. There is plenty of information about investing available online, via apps and classes, in books, on podcasts, and beyond. Find reputable resources and educate yourself on how to invest money as a teen. This can include both principles of investing as well as different kinds of investments to consider.
• Set goals. When you begin investing, it’s wise to figure out your goals, and you may indeed have more than one. Perhaps you want to invest in the short-term to help generate money to pay back student loans. And maybe you also want to begin saving to start a business when you are 35. Those different goals and timeframes can influence how you invest.
• Opening a brokerage account. Once you are old enough, you will have a choice about the sort of account you open and how it is managed. Whether you want to work with a financial professional or try robo advising, spend time understanding the pros and cons of your options.
When you make a decision, you’ll be ready to invest money as a teenager, but it doesn’t have to be set in stone. You can shift gears and try other methods as well.
Making Smart Money Moves With SoFi as a Teen
While SoFi doesn’t offer bank accounts for minors, take a look at what we offer for when you are of legal age to open an account. Or, if you are age 15 or older, see if you might be added as an authorized user to an adult’s account.
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
What should high school students know about financial literacy?
It is important for high school students to learn about opening bank accounts, budgeting, saving, managing credit wisely, and bringing in income.
How can a 16-year-old invest money?
A 16-year-old typically cannot open their own brokerage account. However, they can open a custodial account with a trusted adult.
How would you invest $1,000 as a teenager?
A teenager typically cannot invest money on their own; they would have to open a custodial account with a trusted adult. Then, they would have to identify a goal for the funds (to generate income ASAP? To grow slowly for use later in life?) and select the right kind of investments.
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The kneejerk reaction of many renters is to search for apartments owned by a big company, complete with all the bells and whistles that implies. That said, it’s always a viable option to rent from a private landlord. In fact, depending on your way of life and communication style, it might actually be preferable to work directly with one property manager, rather than a whole office full of associates.
There are perks and drawbacks to both options. Let’s dive right in and learn all about the pros and cons of renting from a private property manager. First, the up-side.
Pro: private property owner, personal touch
Some private landlords lease out rental properties like condos, townhouses or single-family homes where they used to live. Because of this, they’re often more emotionally involved in the property than a faceless corporation. For other landlords, the rental property is a serious investment, so it’s important to keep the place well-maintained.
There’s also the fact that the typical individual landlord only has a small number of rental properties. This means that a new resident is likely to get a lot more individual attention than tenants in a community handled by a large management company.
Pro: easier communication
A tenant with a question, problem or maintenance requests need only contact one person when renting directly from a private landlord. This is a welcome change from large property management companies, which often require renters to fill out online forms or call special numbers for different types of requests.
That said, do try to honor some sort of business hours, unless your need is a true emergency. Private landlords need some downtime, too! Also, make sure to maintain honest and clear communication to develop a professional, trusting relationship with the property owner. That’s in everyone’s best interests!
Pro: more flexibility
Landlords in big communities are often hogtied by corporate policies and contracts and such. A private landlord, however, can make adjustments without having to go through a bunch of channels. So, for example, a renter who decides they want to get a cat can simply ask special permission from the private landlord to adjust the pet policy and have an addendum added to the contract.
Pro: more privacy
People who rent houses from a private landlord enjoy quite a lot more privacy than those who rent apartments. They don’t have to share a wall, walkway or parking lot with anyone else, after all.
Pro: fewer rules
Large apartment communities have to have a lot of rules in place to keep the peace. And, while a renter of a house should still be responsible and respectful of neighbors and follow city ordinances, individual landlords tend to impose fewer restrictions than a large property management company. So, if autonomy is your thing, consider looking at houses for rent.
A private landlord may also choose to forego the expense of doing a background check for a new tenant, in favor of getting a general rental history. Never withhold information if asked directly, however. This is grounds for eviction.
Of course, this is all subjective to the private landlord in question. Some people are really paranoid and may have all kinds of extras worked into the contract to avoid liability. As always, read the lease in detail and discuss any sticking points with the landlord before signing anything.
Now, for the flip side. Here are some potential downsides that may occur when you rent from a private landlord.
Con: tentative response to maintenance requests
Repairs to private rental properties have to come out of the pocket of the owner, so often, they’ll try to take the most conservative approach to avoid paying big bills. As a result, sometimes, maintenance issues take longer to get resolved than in a big community, where there’s usually a specific staff, resources and budget in place to manage such issues.
Con: might deal with a property management company
Some private landlords rent out the property themselves but rely on private property management companies to actually deal with the tenants. This is all well and good as long as the company is capable. Otherwise, it’s extra red tape to wade through, and nobody wants that.
Con: more responsibility
Renting houses, in particular, comes with more upkeep and responsibility than the average apartment. First, there’s the fact that homes are generally larger, so there’s more space to keep clean. The landlord will expect any tenant to keep the property reasonably clean, otherwise, they can cancel the lease.
A typical home also comes with land, including a lawn and flower beds, all of which require regular maintenance. If you’re not willing to do this extra legwork make sure that your lease agreement stipulates the private landlord is responsible for lawn care. Some property managers will agree to this, but others will outright refuse.
Con: fewer amenities
Large apartment communities often come with a full slate of amenities, including multiple pools, workout facilities, 24-hour maintenance request lines and so on. For people renting from a private landlord, however, amenities look a little different. Of course, those who rent a condo or townhome generally get to enjoy the same property perks as owners in the community. However, someone who rents a single-family home is unlikely to have access to such bells and whistles.
Con: more expenses
Renting a home from an individual landlord means that there is often more space to furnish, heat and cool than the average apartment. This is especially true if it’s an older home with outdated HVAC systems. Before you sign a lease, inquire about the average monthly utility cost, so that you’re not left footing the bill for some old dinosaur.
Also, renting from a private landlord sometimes comes with higher overall rent and additional monthly fees. This is why it’s important to figure out how much rent you can afford before you sign the lease. Check out this helpful rent calculator to figure out what you can afford on your take-home pay. Pro tip: experts suggest spending no more than 30 percent of gross income on rent.
Con: less streamlined
Compared with a rent-by-owner situation, apartments managed by large property management companies have a lot of tools in place to make it easy to pay rent, request maintenance, lodge complaints and so on. So, tenants who like things automated probably prefer this to writing an old-school check every month.
Con: they hold the ownership cards
Sure, the owner can’t violate the terms of the contract while you’re leasing and kick you out without cause, but they can decide to sell the property once the term is up. This could mean yet another move, even if you’re happy where you are. Obviously, this is a pretty big downside, as it can cost a lot of money to move, plus it’s inconvenient.
Beware of rental scams
Anytime there’s money involved, scams can happen. Make sure the rent by owner home you’re interested in is totally legitimate before handing over any cash because, believe it or not, people do try to rent out properties that they have no claim to!
Here are some helpful tips to avoid rental scams:
An in-person meeting with the landlord or property management company at the property
Don’t fall for high-pressure tactics. Only sign a lease when you’re completely ready to do so.
Comply with all standard requirements, like a background check, credit check, interview, etc. A good landlord wants to have a firm grasp on who will be occupying the property.
Hold onto your money until you sign a legal contract
Insist on a lease. This contract is in place to protect both the renter and the landlord. Without it, you have no claim to the property and they can kick you out anytime. Above all else, if your gut instinct is to walk away because of a hunch or shady behavior, then do so. There are plenty of other rentals out there.
Ready to rent from a private landlord, instead of big property management companies?
The decision of whether to rent directly from a property owner or a large apartment management company really depends on a lot of personal preferences. Whatever you do, ask all the questions and read the lease fully before you decide between rentals. It’s better to prepare too much than not enough.
A freelance writer based out of the Atlanta area, Alia has penned articles during her decade+ career for such sites as HowStuffWorks, TLC, Animal Planet, Zillow and many more. Her favorite things to write about include fitness, nutrition, travel, healthcare and general lifestyle topics. A graduate of the University of Georgia, Alia’s an avid Dawg, but she also loves reading, sewing, eating all things chocolate and playing sports with her husband, three boys and beloved border collie, Flash.
Home to fabulous live music, acres of outdoor recreation, and an unmistakably eclectic vibe, Austin is an amazing place to live. If you’re considering moving to Austin, then you may be wondering whether to rent versus buy a home in the area. With Austin’s real estate market conditions, there are pros and cons to both sides of the debate, making it that much harder to decide between renting or buying a home.
If you’re looking to buy a home in Austin, the current median sale price for a home is $468,000 as of July. According to a new Redfin study, the average rent price in Austin is $2,951, while the estimated median monthly mortgage cost is $3,801. For many, this means that renting a home costs less than buying a home in today’s market. However, there are still plenty of reasons why buying a home may be the right choice for you this year.
At the end of the day, making the decision between buying a house or renting an apartment in Austin depends on a variety of factors. From financial benefits and long-term plans to flexibility and what Austin neighborhood you want to live in, there are plenty of factors to consider. We’ll help guide you through the debate of renting vs buying in Austin so you can make the best decision for your goals.
Advantages of buying a home in Austin
Decreased competition
One of the main advantages of buying a home in Austin today versus possibly next year, is that competition is down. As interest rates have increased, investors and those without a real need to buy a home have left the housing market, easing the competition for other homebuyers. Less competition gives potential homebuyers more of an opportunity to find a home they love rather than just finding somewhere to live and having to compromise on location or size.
Rising home values
Homes in Austin have gone up in value every year since 2010 and currently show no signs of stopping. If you rent for a year, and wait to buy, you’ll most likely be dealing with more competition and higher home costs. Buying gives you the opportunity to create equity you can use later, to move up, to make updates, or just to create wealth.
Stable monthly payments
Buying a home with a fixed-rate mortgage means that your monthly mortgage payments stay the same over the duration of your mortgage. While other monthly expenses may fluctuate, you’ll have peace of mind that your mortgage payments will stay stable.
Tax benefits
As a homeowner, you can receive tax benefits under the US tax code. This means that if you file an itemized tax return (rather than taking the standard deduction) you may be eligible for certain tax deductions. You may also be eligible for exclusions as a homeowner. Here are a few of the tax benefits of homeownership.
Mortgage interest deduction: If you’re a homeowner with a mortgage, you can typically deduct the interest you’ve paid on a mortgage on your tax return – subject to limitations.
Capital gains exclusion: When you buy a home, chances are the time will come when you decide to sell your house. If you sell your home, you may be eligible for a capital gains exclusion. A capital gains tax exemption means that a portion of the profit you make from selling your home may be exempt from federal income tax. This is often up to $250,000 if you’re single or $500,000 if you’re married filing jointly.
Keep in mind that tax laws can change over time and tax benefits accessible to homeowners depend on your individual circumstances. It’s important to consult with your tax professional to understand what tax benefits may apply to you.
Disadvantages of buying a home in Austin
Home maintenance
While it isn’t specific to Austin, one of the most common disadvantages of owning a home is maintenance. For example, you’ll have to spend your free time managing lawn care and other small items in your home, or pay to have someone maintain them for you.
Competition for move-in ready homes
Another disadvantage is competition, specifically for move-in-ready homes. If you want a home that’s 100% move-in-ready and updated with the latest features and trends, you’ll most likely have a multiple offer situation where you may have to give away some of your contingencies or pay more than the market price.
Large upfront costs
If you’re looking at your finances, it’s important to remember that buying a home costs more than just the down payment. You’ll need to factor other costs into the equation such as closing costs, home inspection fees, and appraisals, when determining how much house you can afford.
Reach out to a few mortgage lenders to get a pre-approval so you can gain insight into your financing options and other costs you may need to consider. With the right planning, exploring downpayment and closing cost assistance programs, and the support of your real estate agent, you may find out now is the right time to buy your first home.
Additional monthly payments
While your mortgage payment remains the same from month-to-month, there are other recurring payments you may need to factor into your budget as a new homeowner. Let’s look at some of these expenses:
Utility costs: While many renters are used to paying utility bills such as water, heating and air conditioning, sewer, garbage, and internet, among others, sometimes these costs were included in your monthly rental payments. As a homeowner, you’re responsible for these costs each month, so it’s important to budget these additional expenses into your monthly budget. In Austin, the average monthly energy bill costs around $156. A cost of living calculator can also help you get an idea of how much to set aside each month.
Insurance and property taxes: At closing, you’ll pay a portion of your property taxes as well as homeowners insurance. However, these are recurring costs that you’ll pay as long as you own the home. Keep in mind that property taxes can change due to your home’s location, value, and additional changes in the tax code.
Homeowners association fees: While this cost may not apply to everyone, if you purchase a property that belongs to a homeowners association (HOA), you’ll likely pay monthly dues. These costs can vary widely, from $100 to over $1,000, and typically cover the cost of neighborhood maintenance.
Determining if you are ready to buy a house in Austin
Deciding if buying a house in Austin is right for your goals can be a complex decision. It often requires careful consideration of many factors. Here are some of the key factors to consider when determining if now is the right time to buy a home:
Financial stability: Before starting your homebuying journey, it’s important to have a stable income and a good credit score. You’ll also need to have some additional funds saved for a down payment, closing costs, home insurance, and other expenses that go into buying a home. It’s also a good idea to build an emergency fund in case you have any unexpected expenses.
Long term commitment: Compared to renting, buying a home is a significant investment – both financially and over time. If you’re not planning to stay in Austin for a longer period of time, it may be a better idea to continue renting until you’re ready to stay in the area long term.
Housing market conditions: Austin’s housing market is somewhat competitive, so it’s important to know today’s market conditions – and what you can afford.
Personal goals: Lastly, you’ll want to consider your own personal goals and evaluate your priorities before making a decision to buy a home. Are you looking for more space or a big backyard? Do you want a new construction home or an older property with character? Decide what’s important to you in the home search and if buying a home in Austin aligns with your goals.
If you’re unsure whether you’re ready to buy, consider consulting with your real estate or financial advisor to fully understand your options.
Is it competitive to buy a home in Austin?
In Austin, the market is somewhat competitive, but this competition is mainly for updated homes. New construction properties in areas with higher rated schools are almost non-existent these days. As a result, you’ll find more competition on remodeled and updated homes, as well as homes in areas with high school ratings. In more competitive areas, that means you’ll likely need to pay market price or go up to 10% over market price or value.
On the other hand, you’ll find less competition on new construction homes that are farther outside of town. There is also less competition on homes that need cosmetic updates, without any true repairs needed.
Advantages of renting a home in Austin
No maintenance costs
An advantage of renting in Austin is no maintenance costs. Your landlord will most likely take care of routine maintenance and yard work, so you don’t have to take the time to do it. If you’re relocating to Austin, it’s also important to know that home maintenance can be vastly different, especially if you’re moving from an area with a more mild climate, like Seattle or Los Angeles.
Lower monthly payments
When renting, you can typically find a place closer to the city or a larger home, with a lower monthly payment than a new mortgage, especially with current mortgage rates. Rentals typically lag behind home values when it comes to monthly rent, meaning you may be able to find a rental home that fits your budget better.
Flexibility
Renting an apartment or home offers you more flexibility – especially if you’re not sure about living in Austin for an extended period of time. Whether you sign a year-long lease or a month-to-month lease, renting gives you additional flexibility that owning a home doesn’t. Renting gives you the opportunity to test out different Austin neighborhoods or move to another city at the end of your lease. In contrast, homeownership means you’re more committed to living in your home for at least a few years.
Disadvantages of renting a home in Austin
Risk of rent increasing
Depending on the type of lease or rental agreement you have, your rent could go up, increasing significantly. If you’ve signed a year-long lease, your rent won’t increase until it comes time to renew. At that point, you may face minimal to substantial rent increases. Or if you have a month-to-month lease, your landlord may increase your rent each month, leaving you with a higher rent price.
Inability to build equity
As a renter, you’re paying into someone else’s equity and, unfortunately, not receiving anything in return. Since someone else owns the property, you aren’t eligible to receive any tax benefits or build any equity over the duration of your lease.
Limited control over design
Regardless of whether you’re renting a home or apartment, you can’t personalize the space much. If you don’t like the paint color, you’ll have to look for alternatives. Or, if your landlord allows, you may be able to paint, but when your lease ends you’ll have to repaint the space to the original color. Similarly, if you want to make any permanent changes to the layout, you’re out of luck. As a homeowner, you’ll have the freedom to make any minor or major changes to the space.
Renting vs buying in Austin: A real estate agent’s final thoughts
In my opinion, now is a great time to buy. This is the least amount of “no multiple offer situations” I’ve seen in years. You can truly get an amazing deal right now, since rates seem to have scared a lot of people off. Austin, like a lot of cities, is in a major housing crisis, and until the builders can catch up to the number of people moving here, we’ll stay in a more competitive seller’s market.
At the end of the day, whether you rent or buy in Austin, the area is a wonderful place to call home. If you’re just beginning to think about buying a home, make sure to lay out all your finances and understand what you can afford now and in the years to come.
Memorial Day is known as a great time to score deals on big-ticket items or to make any smaller purchases that you may have been putting off.
Many retailers will start discounting items the Friday before Memorial Day, so you’ll have a whole weekend to shop. Here are the best deals this year!
What’s Ahead:
Best all-around Memorial Day deals
Walmart – Save up to $1,000 on Samsung TVs; get discounts on patio and garden, toys, clothing, home improvement, pets, beauty, and more.
Amazon – The Memorial Day sale features summer savings deals from outdoor living, cooking, and barware to electronics and beauty.
Macy’s – Get 20%-60% off furniture, rugs, and mattresses, plus a free box spring or adjustable base with a qualifying purchase. Save 20% to 50% off select clothing styles, plus get an extra 20% off kids’ and baby clothes with the offer code CUTE.
JCPenney – The sale features up to 50% off mattresses, 40% off furniture, and up to 50% off home items, plus additional coupons on clothing, jewelry, and portraits.
Target – Save up to 25% on furniture, lighting, and home decor; save up to 20% on bedding and up to 15% on patio furniture, plus get free same-day shipping on orders over $75 through May 31.
Appliances
Find fantastic deals on large and small appliances, from refrigerators and washing machines to Roombas and coffee makers.
Lowe’s – Save up to $500 on qualifying appliances, plusfind Memorial Day deals on everything from small appliances and patio furniture to grills, tools, and home improvement. Get free local delivery on appliances when you spend a minimum of $299.
Best Buy – Save big on major appliances during the Memorial Day sale. Don’t forget to take advantage of the Price Match Guarantee.
Home Depot – Snag appliances up to 30% off, and find discounts on lawn equipment, power tools, home improvement items, and more during theMemorial Day savings event.
Mattresses
May is the best time to buy a new mattress. New models come out in the Spring which makes Memorial Day weekend sales the prime time for a mattress upgrade.
Avocado Green Mattress – Save $100 on green and vegan hybrid mattresses with the code HONOR through June 7.
Birch – Get $200 off, two free Eco-rest pillows, and free delivery with code MEMORIALDAY200.
Casper – Get 15% off mattresses, 10% off everything else, and 50% off final sale items.
Cocoon by Sealy – Save 35% off mattresses, plus free pillows and sheets during its biggest sale ever; the sale ends May 31.
DreamCloud – Get $200 off mattresses, plus $399 worth of accessories included; the sale ends May 30.
Haven – All mattresses are 50% off storewide, plus 30% off accessories.
Helix – Take up to $200 off mattresses, plus receive two free Dream pillows.
Mattress Firm – Take up to $500 off mattresses and receive a free adjustable base on a queen mattress purchase of $699 or more by using the code ELEVATE.
Nectar – Receive free pillows, sheets, and a mattress protector —a $399 value— with a mattress purchase.
Purple – Receiveup to $400 off a mattress, pillow, sheet, and mattress protector bundle.
Puffy – Get $300 off plus two free pillows with every purchase.
Serta – Save up to $1,000 off a mattress and base through June 7.
Tempur Pedic – Save up to $500 off select adjustable mattress sets.
Tuft & Needle – Save up to 20% sitewide through May 31.
Electronics and gaming
Aside from Black Friday, Memorial Day is one of the best times of the year to snag discounts on televisions, computers, smartwatches, games, and other electronic devices.
Dell – Get deals on PCs, laptops, monitors, and more during its summer sale event.
HP – Save up to 47% on select products, plus get limited-time deals daily.
Xbox – Get three months of an Xbox Game Pass subscription for $1.
Best Buy – Snag big-screen 4K TVs starting at $279; save up to $200 on Windows laptops.
Microsoft – Score a variety of discounts on a Surface, save up to $500 on select PCs, or cash in discounts on Xbox accessories.
Furniture, home decor, and improvement
If you’re looking to freshen up your home, now is the time to stock up on home goods, tools, and any remodeling supplies.
Overstock – Overstock’s Memorial Day Blowout Sale features up to 70% off thousands of items, plus free shipping on everything.
Pier 1 – Pier 1’s Memorial Day sale includes up to 50% off rugs, lighting, indoor and outdoor furniture, and home decor. Plus you can bundle a variety of candle fragrances for 15% off.
Wayfair – Snag deals up to 70% off during the Memorial Day clearance.
American Signature Furniture – Up to 20% off and 48 months of promotional financing.
Society6 – Their Memorial Day sale features 40% off wall art, 30% off home decor, and more.
Bed Bath & Beyond –Save up to 25% on outdoor furniture, decor, and kitchen appliances.
Ace Hardware –Discounts on lawn care and equipment, grills, patio furniture, and power tools through May 31.
Costco – Member-only savings include deals on patio furniture, mattresses, appliances, and electronics through June 13. Save an additional $150 when you buy two qualifying items for your home.
Clothing
Spring and summer clothing sales are upon us, and it’s the perfect time to give your closet a refresh. Find winter apparel on clearance and save on spring and summer fashions.
ModCloth –30% off sitewide, plus an extra 50% off sale items.
Nike – Get up to 40% off on markdown items.
Victoria’s Secret – Save 30% to 70% off more than 1,800 styles.
Old Navy –Save up to 50% off storewide with styles as low as $5.
Men’s Wearhouse – Get up to 85% off original prices.
Zappos – Save up to 30% off footwear, clothes, bags, and accessories.
Banana Republic – Receive an additional 50% off sale styles and 30% off regularly priced items.
Bloomingdale’s –Save 60%-70% off some clearance items plus save 30-50% off select clothing styles.
Outdoor
Prepare for a summer of fun by loading up on any outdoor equipment you might need.
Bass Pro Shops – Its outdoor sale runs from May 20 to June 2 and features discounts on tents, fishing gear, yard games, clothing, and camp furniture.
REI – Memorial Day coincides with its big anniversary sale. The deals include 30% off clothing, 50% off Nalgene water bottles, and 25% off select outdoor gear.
How to save more on Memorial Day
According to Consumer Reports, May is the best month to buy air conditioners, freezers, grills, mattresses, strollers, smartwatches, lawn equipment, and other home improvement and decor items.
The deals don’t stop at the Memorial Day sale. Many retailers will offer additional discounts on top of sale prices if you sign up for a rewards program, email updates, or a store credit card. You may also snag a promo if you’re a student or if it’s your first order.
Poke around to see if you can find any promotional offers and pay attention to any pop-up ads so you don’t miss an opportunity to save money on your purchase. Usually, a sales representative will ask you to sign up if you’re physically in a store, but you can ask during checkout if not. Some businesses may not let you combine coupons while others do. Either way, it’s worth a try to rack up savings.
Furthermore, big-name retailers like Best Buy offer a price match guarantee, so shop around to see if you can find a product cheaper elsewhere before you buy it. That way you know you’re getting the best deal around.
Summary
Memorial Day weekend is one of the best times of the year to go shopping. Just about every retailer will offer promotions, and you’ll score the deepest discounts on appliances, mattresses, and seasonal goods. Add more savings to your purchases by signing up for a rewards program or by taking advantage of price match guarantee promotions.
Hiring a landscaper can remove a major headache from both ongoing lawn maintenance and one-time makeover projects in your yard. Depending on your budget and schedule (not to mention your definition of a fun weekend), it may be worth outsourcing some, or all, of your yard projects.
At my house, my husband and I typically outsource mowing and weed whacking because it’s a fairly low-cost service compared to the amount of free time we gain back each week. On the other hand, I love gardening, and we regularly tackle projects that involve growing flowers and vegetables without the help of a professional.
If you’re considering getting professional help with your landscaping, think about the types of projects you plan to undertake, plus the time, tools, and skill level involved. Here’s a breakdown of both ongoing and one-time landscape projects, plus how to determine if professional help is worth the cost.
What’s Ahead:
Average landscaping costs: an overview
Service
Average cost
Lawn mowing
$49 to $218
Bedding plants (selection and installation)
$1,366 to $5,641
Disease and insect control
Less than $100
Tree trimming
$460
Landscape design
$1,954 to $6,971
Deck construction
$7,300
Exterior light installation (10 lights)
$2,000 and $2,500
Drip irrigation system (per acre)
$2,150
Sprinkler system
$2,500
Ongoing services
Having consistent professional help can keep your yard clean and healthy. A well-maintained yard is good for wildlife and also motivates you to get outside more often and enjoy it, so it is a big deal!
Lawn maintenance
Ongoing lawn maintenance involves mowing your grass and weed whacking the edges of any hardscaping, like the sidewalk, driveway, and flower beds. The lawn maintenance company provides their own equipment, as well as any products that may be needed. In the fall, you can also add leaf removal services and have the collected leaves taken off-site by your maintenance crew.
Costs vary depending on the size of your lawn and how intricate any weed whacking may be. According to HomeAdvisor, average prices range between $49 and $218. Depending on your weather, you may opt for weekly or bi-weekly service. The rainier it is in your area, the more frequent mowing may be needed.
Pros of hiring a landscaper:
Seasonal expense in many areas. During cooler-weather months you may not need to pay for lawn maintenance.
Get on a schedule. Avoid tall grass by scheduling recurring services from your maintenance crew.
Avoid paying for and maintaining lawn equipment. Upfront and ongoing maintenance costs for lawn mowers and weed whackers can quickly add up, especially compared to the relatively low cost of professional lawn maintenance.
Cons of hiring a landscaper:
Extra cost added to your monthly budget. Go the DIY path if your budget is already tight or you’re focused on important financial goals like debt payoff.
A fixed schedule may not meet your lawn’s needs. Low rain could mean you’re paying for service even without tall grass. On the flip side, your lawn may be ready for a trim after heavy rain, days before your next mowing is scheduled.
Bedding plants and installation
Spending time in a yard filled with beautiful plants can give you countless hours of joy throughout the year. Plus, you’ll create a haven for all types of important insects, including pollinators.
A professional landscaper can pick out plants that thrive in your area and in specific spots in your yard. You can also get advice on plants that work best for your preferred level of care, whether you want to invest the time to water and weed, pay to outsource those tasks, or focus entirely on low-maintenance plants in your landscape.
The cost of getting a landscaper to choose and install plants ranges from $1,366 and $5,641. If your landscaped beds have become extremely overgrown, this expense may be worth the cost, but if you simply need to pop in some annuals to fill up space, this might be a better DIY project.
Pros of hiring a landscaper:
Create year-round interest. A landscaper’s expertise ensures your flower beds aren’t dull three out of the four seasons of the year.
Choose the right plants based on water and sunlight needs. Avoid killing plants and wasting money by picking the right options for your yard’s conditions.
Pick colors and textures that complement each other. A landscaper creates an overall theme, whereas a DIY approach may create competing colors, heights, and textures.
Cons of hiring a landscaper:
Can be costly. The expertise of a landscaper definitely comes at a price.
You have less control over designs and colors. A DIY approach may be better if you have a very specific aesthetic you want to achieve in your yard.
Disease and insect control
Insects are a natural part of the garden’s ecosystem, but some bugs and diseases can actually harm your plants. There are many ways to mitigate these issues on your own, like promoting healthy soil and encouraging beneficial bugs that prey on the damaging types. For instance, ladybugs eat aphids, an insect that can cause major damage to vegetables, fruit, roses, and other flowers.
But if you need help, a professional landscaper can manage these issues as well. Just be sure to ask about the products they use and the ingredients, especially if you grow edibles in your garden. Non-organic ingredients can be harmful to you, your plants, and beneficial insects. A standard pest treatment typically costs under $100, according to Thumbtack.
Pros of hiring a landscaper:
Fast and easy service. Outsource the work rather than trying to figure out what products and treatment you need.
The expertise of specific disease and pest issues. Make sure you’re treating the right problem, so you don’t waste money on DIY “solutions” that just don’t work.
Cons of hiring a landscaper:
May use harmful ingredients. Ask what products the landscaper uses and check to see if the ingredients align with your needs, especially if you grow an organic garden or have outdoor pets.
Less control over products and processes used. You need to trust the professional you hire.
Tree services
It’s important to regularly care for any trees near your house since they can cause damage to your home as they grow larger. The biggest issues are trees extending over your roofline and dead trees eventually falling. Regular tree maintenance includes pruning your trees to keep them disease-free and trimming away dead branches. Your trees will stay healthy, and you don’t have to worry about branches falling and hurting someone or something on your property.
You can certainly buy the tools needed to care for your trees and take a DIY route, but you also need to learn about how pruning affects each tree and what time of year is best for curbing tree growth. Hiring a landscaper to do the job could very well keep your trees in better shape, not to mention help you avoid the risk of injuring yourself. Just be sure your tree service landscaper is licensed and insured in case they sustain an injury while on the job.
The cost of having tree work done is dependent on how many trees are on your property, their size, and whether or not they need to be felled.
Pros of hiring a landscaper:
Trees safely pruned. Landscapers have the knowledge and experience to keep people safe.
Avoid damage to surrounding property. Falling trees can cause damage to nearby houses, cars, or fences. A professional knows how to cut strategically so the tree lands where it should.
Pick the best season for pruning. Pruning in some seasons spurs new growth, while other seasons are best for managing size.
Utilize the right equipment for hard-to-reach places. Tall trees could require heavy equipment, like a cherry picker or scissor lift.
Cons of hiring a landscaper:
Can be costly for tall trees. Tree trimming is important but will take a pretty big bite out of your budget.
Unlicensed landscapers could be an insurance liability. An uninsured contractor who gets injured on your property could require you to file a claim with your homeowners insurance policy.
One-time landscaping services
In addition to ongoing lawn care, weigh the pros and cons of hiring a landscaper for one-time landscaping projects.
Hardscape design and installation
No matter what size your yard may be, a professional landscaper can help you design hardscaping to maximize its usability. This could be with decking, a stone patio, pergola, or other hardscape features. The design and installation are typically two different services. A professional landscape design for your outdoor space could range from $1,954 to $6,971. For the actual labor and materials, your costs vary greatly depending on the size, scope, and materials.
These projects are typically better left to the professionals instead of a weekend warrior project, unless you have above-average DIY skills. For a homeowner with limited experience, you run the risk of unlevel patio stones or structurally unsound hardscaping if you attempt large-scale projects on your own. Plus, projects like decking typically require city or county permits and approvals.
Pros of hiring a landscaper:
Quality craftsmanship. Avoid the DIY “look” by using a detail-oriented landscaper.
Faster results. Get your project completed all at once, rather than fitting it into your own busy schedule here and there.
Cons of hiring a landscaper:
Expensive costs. Expect to spend several thousand dollars for hardscaping projects.
Potential need to manage multiple professionals. You may have to manage the landscape designer and installer separately.
Landscape lighting
Incorporating lighting into your landscape can add a magical nighttime ambiance to your yard. There are different levels of service depending on the property features you want to highlight in the evening. You could add uplighting towards the home to draw attention to unique architectural features or illuminate walking paths to see where you’re going in the dark. String lights for garden parties are also a popular upgrade when it comes to landscape lighting.
Some of these projects are fairly simple to DIY and if you opt for solar-powered lights, you can especially save money since you won’t have to plan on an electrician having to wire anything. For bigger projects that do require re-wiring, you may want to hire a professional so you don’t hurt yourself. Electricity is not something that you should play around with.
Costs vary on the type of lighting and how far your cables need to go from existing electric lines.
Pros of hiring a landscaper:
Safer than DIY. This is especially true if new electric cables are involved. You don’t want to set yourself up for a fire hazard.
Cons of hiring a landscaper:
Solar projects may be easier. In some cases, DIY projects may be simple if no new electrical cables are needed.
Lawn and garden bed irrigation
If your summers are marked by dry conditions or inconsistent rain, you might consider installing a sprinkler system for your grass and irrigation lines for your garden beds. Irrigation can keep your plants healthy all year long.
If you’ve already invested in lawn seed and garden plants, this could be an important project. Plus, while the average drip irrigation system costs upwards of $2,000 for an entire acre, there are plenty of online DIY tutorials that can help you spend even less. In fact, if you’re willing to do some digging and connect some PVC pipes and soaker hoses, you could knock out this project for around $100 (depending on your garden size).
A new sprinkler system might be pricy, but you can purchase a DIY kit if you feel confident in marking zones and digging trenches throughout your entire yard. Based on the mechanics involved, this would definitely be a project for more seasoned DIYers.
Pros of hiring a landscaper:
A quick process with limited mistakes. A landscaper can quickly get irrigation or sprinklers in place without digging into buried power lines or pipes.
Minimal disruption to grass and other plants. Landscapers have tools to limit the disruption to your lawn, especially compared to you digging trenches by hand with a spade.
Cons of hiring a landscaper:
Small irrigation projects may be simple and inexpensive. You could certainly DIY raised bed irrigation or other areas that aren’t intrusive.
Saving with a DIY approach
When deciding which projects to complete on your own, start by evaluating your safety and skills. Selecting and planting plants takes a little research, that way you can make sure that you are planting them in the right place. That said, it can be a fun experience and much less expensive to tackle by yourself. Consult the staff at your local garden center to get ideas of what plants perform well in your area. If you make mistakes, you can always plant something new.
For projects that have an element of danger involved, like trimming trees or building a deck, consider shelling out the money for the professional. You don’t want to risk building a faulty structure or mistakenly estimating where a tree could fall.
Project
DIY cost
Professional cost
Planting
Cost of plants
$1,366 to $5,641
Lawn maintenance
Average cost of lawn mower: $363 for push mower; $2,450 for rider mower Plus gas and maintenance costs
$49 to $218 per visit
Deck construction
$8 to $10 per square foot
~$25 per square foot
Summary
Some landscaping projects are easy to do by yourself over the course of a few hours, but others take a lot of time, effort, and skill. For some homeowners, it isn’t worth it to take the DIY route.
At a minimum, hire out landscaping projects that may seem dangerous without the right tools or talent. From there, you can gauge how each project cost compares to your budget and timeline to find out if hiring a landscaper is, in fact, worth it for you.
From a family robot assistant to a self-driving car, there are so many technological advancements to look forward to. In this article, we explore some of the most futuristic tech that could change your life in the next five years.
1. Enabot EBO X
The Enabot EBO X Family Robot is a versatile home assistant robot equipped with advanced features such as a built-in camera for home security, a speaker system and projector for entertainment, and functions such as vacuuming and mopping floors. It can also interact with voice commands and engage in conversations, making it a fun and interactive companion for your family. Overall, the Enabot EBO X is a cutting-edge technology designed to make your daily life easier and more enjoyable. The Enabot EBO X is expected to start shipping in 2023.
2. Hypershell Exoskeleton
You’ve always seen them in movies but it’s about to become a reality. With the Hypershell Exoskeleton, you’d be able to improve your mobility drastically. The Hypershell exoskeleton is a wearable technology designed to enhance human performance and mobility. It provides support to the legs, hips, and lower back, using advanced motors and sensors to provide assistance and reduce the risk of injury. The exoskeleton is controlled by a computer mounted on the waist and can be adjusted manually. It has the potential to improve the quality of life and independence for individuals with mobility impairments and those who perform physically demanding tasks.
3. SeeAir
The SeeAir tankless dive system is a portable and lightweight device that provides a nearly unlimited air supply for scuba divers. It uses a compact compressor to draw in air from the environment, eliminating the need for bulky tanks or hoses. The system is easy to use and maintain and features a rechargeable 5-hour battery, depth gauge, and timer. It is ideal for adventurous and novice divers and has a smaller environmental impact than traditional scuba diving equipment.
4. Geo Wallet
This is the world’s first MagSafe wallet with full Find My functionality. As they said on their product page, nothing ruins a vacation like losing your wallet with all your credit cards and IDs. The GeoWallet can hold up to 10 cards, features RFID-blocking technology, and is both scratch and water-resistant. With its GPS technology, it can be located using the Find My app, and users can activate Lost Mode to receive alerts if it is found. The Geo Wallet is a stylish and practical accessory for those who want to keep track of their belongings.
5. Heisenberg LawnMeister
The Heisenberg LawnMeister is an all-in-one robot lawn mower that uses Vision AI technology to create a detailed image of the lawn and guide the mower in a precise and efficient manner. It has a large-capacity battery, a built-in rain sensor, and comes with a user-friendly app that allows homeowners to set up a mowing schedule and monitor the mower’s progress. It also has plant-trimming and fertilizing capabilities and can mow up to one acre. The LawnMeister is a convenient and reliable solution for homeowners who want to simplify their lawn care.
6. TIMEMORE Electric Coffee Grinder
For all you coffee enthusiasts, watch out cause TIMEMORE is changing the Coffee grinding game. The TIMEMORE Electric Coffee Grinder is a high-quality coffee grinder that features a powerful motor and stainless steel burrs that produce a consistent grind size. It has adjustable settings for grind size, is easy to use with a user-friendly interface, and has a large capacity for multiple cups. It is durable, easy to maintain, and comes with a brush for cleaning hard-to-reach areas. Overall, it is a reliable and practical choice for coffee lovers.
7. AliSleep
AliSleep is a high-tech pillow that is designed to reduce snoring and provide a soothing massage while you sleep. It has built-in sensors that detect snoring and adjust the pillow’s height and position to reduce snoring, as well as built-in vibration motors that provide a gentle massage to the neck and head. The pillow has a memory foam core for optimal support and pressure relief and is made with breathable materials for temperature regulation. Overall, it is a potential choice for anyone who wants to improve their quality of sleep.
8. ARKH
ARKH is an augmented reality development platform that simplifies the process of creating AR applications by providing a visual editor, APIs, and SDKs. It is compatible with a range of devices and allows developers to add AR features to their existing applications. ARKH offers a powerful and flexible solution for creating cutting-edge AR experiences. With the ARKH AR controller, you could move around AR items in real-time.
9. Tesla Autopilot
If you’ve ever wanted to relax and let your car do the driving, Tesla has got you covered. Tesla’s self-driving technology, Autopilot, is a suite of advanced driver assistance systems that enables Tesla vehicles to operate semi-autonomously on the road. The system uses cameras, radar, and sensors to detect surroundings, navigate roads, change lanes, and park itself. Tesla’s Autopilot also includes safety features to prevent accidents and improve driver safety. The Full Self-Driving (FSD) system, currently in development, is designed to enable fully autonomous driving. It is expected to be ready and fully functioning in a few years.
10. Emake 3D Galaxy 1
The Emake3D Galaxy 1 is a large-scale SLA 3D printer designed for professional and industrial use. It offers a large build volume of 400 x 200 x 400 mm, a high-precision optical system that delivers a resolution of up to 25 microns, a user-friendly interface with a touchscreen display, and a built-in camera for remote monitoring. The printer supports a range of materials and features a resin management system with auto resin feeding for optimal resin usage and waste reduction.
The future is looking bright with these technologies on the horizon. From household robots to self-driving cars, cutting-edge technologies are poised to revolutionize the way we live, work, and play.
These are 10 Things That Completely Destroyed The Love in a Relationship
There’s no question that relationships can be confusing, but here are some of the top things to avoid if you want to keep your relationship healthy!
10 Actors and Actresses People Refuse to Watch Ever Again
We all have a favorite actor or actress, but most of us have a least-favorite as well. Check out this list of actors and actresses people never want to see performing again!
Top 10 Worst Human Inventions of All Time
Some inventions are world-changing, and some of them, well, they change the world in the wrong ways. Here are some of the worst inventions Redditors could think of.
10 Famous Celebrities Who Look Like They Smell Terrible
We’ve all had moments of hygiene faux pas—but these celebrities just look like they don’t take care of themselves at all.
10 Terrible Fads People Are Glad Died Out
Every fad has its time in the limelight, but some of them come and go faster than others; and some just need to die out right away. Check out this list of fads of which people were happy to see the last.
This post is by April Dykman. Yes, you read that right. April was recently wooed back to Get Rich Slowly and will be writing here a couple of times a month. She plans to focus on interviewing experts on money-related topics, which also helps her justify that journalism degree…
Bill had to sell his house quickly.
He was being transferred out of state, and the company wasn’t footing the bill. Instead, they offered him a higher salary. Now he had to sell quickly or risk paying two mortgages.
But Bill wasn’t sweating it. After all, his house was in a great neighborhood in a desirable part of town. He hired a real estate agent, confident that once the “for sale” sign went up, the buyers would come knocking. He’d get a quick sale at asking price, no problem.
Only a month went by, and there were zero offers. Bill had to move soon and was getting nervous about those double mortgage payments, but no one was interested. Then, to really rub salt in the wound, buyers were leavings tons of negative comments!
So what was the problem?
You aren’t making your house ready for buyers
Bill refused to make his house buyer-friendly.
His real estate agent, Lynda Conway, had warned that unless he got the house show-ready, it would sit on the market and sell for far less than asking price. Lynda, who heads The Turner Team in Austin, Texas, and teaches for the Austin Board of Realtors, says Bill’s mistake is a common one.
“Many sellers think they can just put a sign up and that’s enough,” she says. “But buyers don’t fall for that. They want to back up their moving truck, unload their stuff, and put their toothbrush in a cup by the sink.”
And when sellers refuse to believe they need to get their house ready to go on the market, they can suffer financial consequences. In Bill’s case, his refusal to invest in sprucing up his home was about to cost him a double mortgage payment, not to mention the stress of trying to sell his house from out-of-state.
It can also result in a lower final selling price. Lynda recalls one seller who refused to make basic repairs and cosmetic improvements. “After a long time on the market, we finally got an offer,” she says. “But the owners felt insulted because it was $20,000 below list price. They wound up taking the offer because it was the only one.”
So if this mistake can cost you time and money, not to mention cause some serious stress, why do sellers refuse to make their houses more attractive to buyers?
The three reasons you aren’t getting your house ready for buyers
Lynda says there are three main reasons that sellers don’t get their houses in tip-top shape.
First, they don’t believe it makes a difference. Like Bill, they think their house will sell itself, so the extra investment seems like a waste of money. “Bill was really cautious about spending any money because he was being transferred on his own nickel,” says Lynda. “He refused to believe that a coat of paint would make a difference.”
Second, they don’t think there’s a problem. Lynda says it’s often difficult to convince smokers and pet owners that their homes don’t smell like roses. Bill, for example, was both a smoker and a pet owner. “Some sellers don’t realize it smells because they’re so used to it, or else they don’t think it’s a big deal,” says Lynda. “But it’s a huge deal to buyers.”
Third, they think they don’t have the money. Remember the clients that got $20,000 less than list price? Lynda says that it wasn’t until they were all at the closing table that they finally admitted to her that they didn’t have the money to make her suggested improvements. “Some sellers don’t want to admit that they don’t have money on hand, but I can’t help them if they aren’t willing to talk about it.”
So how can you avoid these problems and sell your house quickly (and for list price)?
Make your house show-ready
You’ve got to invest in wowing potential buyers.
When Lynda showed Bill the negative comments people were leaving about his home, he finally relented, telling Lynda, “Okay, tell me what to do.” They took the house off the market while he worked his way through the to-do list. After $2,500 in updates and repairs, they put the house back on the market at the original price. In three days they received three offers.
“Buyers are picky,” says Lynda. “If you want to get top dollar for your home, you have to prepare for that.”
And the good news is that if you have more time than money, Lynda says there’s a lot you can do yourself to improve your home’s appeal.
So how can you make your house best in show?
Five ways to make your house show-ready (and net more money)
Lynda says here are five things you can do to make buyers fall in love with your home.
Start packing now. You’re about to move, right? So get some boxes, packing tape, and a Sharpie and put your stuff in storage. “Decluttering your home makes it look bigger and cleaner,” says Lynda. “You can make your house more attractive to buyers and get a head start on moving.”
Give it some elbow grease. “Clean your house like you’ve never cleaned it before,” says Lynda. “Windows should sparkle. Make sure the house smells nice and fresh, not like last night’s fish dinner or grandpa’s cigars.” Lynda says sellers can deep clean themselves, or if they have more money than time, they can hire a professional.
Do a daily sweep. Steaming the carpets and dusting the ceiling fans is important, but all is lost if your bathroom counter is cluttered with hair products or there are dishes in the sink. “Do a daily wipe-down on all surfaces, especially in the bathroom and kitchen,” says Lynda. “Keep counters completely clear to make them look as big as possible, especially important in a small space.” Lynda had one client who put her toiletries in her travel bag while her home was on the market. “She’d get ready in the morning like she was on a trip, then put the travel bag away and out of sight.”
Make a good first impression. “When a buyer pulls up to your house, you have five seconds for that house to sell itself from the curb,” says Lynda. “And when the front yard looks inviting, that creates positive expectations about what you’ll see inside.” Take care of the obvious, like lawn care and putting your yard gnome in storage. Then give the front door some TLC. “Your front door should be warm and fresh, she says. “You can give it a coat of paint or replace it entirely.” Lynda also recommends adding some color. “Buy cheap, colorful pots, potting soil, and some flowers,” she says. “I like the combination of rosemary and flowers because it smells nice and looks attractive.” The bonus of potted plants? You can take them to your new home!
Deal with the bigger issues. Here’s where it can get expensive, depending on the condition of your home. But if your house is in serious need of a coat of paint and a new roof, you have to either deal with those issues or adjust the price accordingly and wait for a buyer willing to take care of it themselves.
Finally, consider getting a pre-inspection. Lynda says almost no one does this because people think, “why open a can of worms?” But the can will be opened eventually when the buyers have your house inspected. And then those problems might cost you a willing and able buyer.
“When a buyer falls in love with your home, then finds out there’s a major problem you didn’t disclose, they fall out of love very quickly,” she says.
They’re angry and distrustful, even if you honestly weren’t aware of the problem. “Buyers feel like you should have known because it’s your house,” she says. “And sometimes they’ll terminate and refuse to even negotiate the repairs.” Lynda says when buyers are willing to negotiate, they may want the price lowered by double, or even triple, the cost of repairs. Ouch!
But she says if you get your home pre-inspected, you won’t be caught off guard. You can attach repair receipts to your seller’s disclosure or have the house re-inspected and attach the report. And most importantly, says Lynda, “you won’t lose a deal or have to come down on your list price.”
What are some ideas you’ve used to make your home more appealing to buyers? Or from a buyer’s perspective, what are the major turn-ons and turn-offs when you walk into a house?
Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.
Mark Ferguson has been a Realtor since 2001 after graduating from the University of Colorado with a business finance degree. He runs a real estate team of 10 that sells over 200 homes a year, fix and flips 10 to 15 homes a year and owns 11 rental properties. Mark also runs www.investfourmore.com, a blog that discusses Mark’s fix and flips, rental properties, becoming a real estate agent and everything real estate related.
Many television shows portray fix and flipping as a very profitable business that can easily be done in your spare time. Sure there are usually a few contractor problems, but in the end the house sells for a lot of money and the owners make a killing. In reality, you can make money fix and flipping homes, but it takes a lot of hard work and a lot of flipping to make a lot of money. It is also very easy to lose a lot of money if you do not account for all the costs or overestimate the value of your flip.
I have been a Realtor since 2001, and I have fix and flipped close to 100 homes over the last 10 years. I have 10 fix and flips going right now, and I can tell you it is not easy managing one fix and flip let alone 10! It takes a lot of money to fund fix and flips, more time than you think to sell a flip, a lot of experience to deal with repairs and contractors, and expenses are almost always more than you figure.
If you buy houses cheap enough with enough of a margin for error, you can make good money fix and flipping homes — but don’t expect to be a millionaire after a year or two in the business.
Are the Television Shows Accurate in Their Portrayal of the Flipping Business?
Most fix and flip television shows love to show the before and after pictures of a flip with the initial purchase price and the selling price at the end. There are a couple of shows that portray the expenses accurately, but most leave out many of the costs that flippers encounter. In the fix and flip business, many investors use the 70 percent rule to determine if they can make a good profit when they flip a home.
The 70 percent rule states the purchase price should be 70 percent of the after-repaired-value (ARV) minus the cost of any repairs. For example, if a house will be worth $150,000 after it is repaired and it needs $30,000 in repairs, the 70 percent rule states an investor should pay $75,000 for that house. Buying a house that will be worth $150,000 for $75,000 seems like a home run, but it is really just an average deal because there are so many costs associated with flipping.
What Costs are Involved in Fix and Flipping Homes?
The obvious costs involved in flipping are the purchase price of a home and the repair costs. In our example, there appears to be $45,000 in profit once you include the selling price and the repairs but there are many more expenses that many beginners do not consider.
Financing costs: Most people do not have $75,000 plus the costs of repairs and carrying costs to buy a flip. It is more expensive to finance a flip because banks make their money off interest paid on loans. The shorter time you hold a loan, the less money a bank will make. Most large banks will not finance flips, but some local lenders will. Hard-money lenders will fund flips, but they are very expensive, charging 12 to 16 percent interest rates plus 2 to 4 percent of the loan amount for origination fees. A hard-money lender is a not a bank but a company that takes money from investors at a given interest rate. The hard-money lender then lends that money to fix and flippers at a much higher interest rate.
Carrying costs: When you own a house, you have to pay for the lawn care, heating, insurance, taxes, HOA and more while you own the home.
Purchasing costs: Besides the loan origination costs, there are some other costs to consider when buying a flip. A home inspection will run $300 to $800. Some lenders will require an appraisal, which is $400 to $600. There will be a closing fee, recording fees, tax certificates and much more.
Selling costs: When you sell your house, you will most likely have to pay a real estate agent to sell the flip and possibly cover closing costs for a buyer. The real estate commission and closing costs can add up to be 10 percent of the sale price.
Miscellaneous costs: Depending on where and how you buy your property, it may have a tenant or the previous owner may still be living in it. You could have eviction costs or costs to pay the occupants to leave.
Here is an example of what the total costs would look like on a typical fix and flip I buy and sell. I have a great lender who charges me 5.25 percent interest rate and 1.5 percent origination, but they only lend on 75 percent of the purchase price. My loan costs are much lower than most flippers’.
Purchase price: $75,000
Loan amount: $56,250
Costs:
Loan costs: $2,500
Carrying costs: $1,600
a. Insurance: $400
b. Lawn maintenance: $300
c. Taxes : $400
d. Utilities: $500
Buying costs: $1,000 (I usually do not do an inspection or have an appraisal)
Repairs: $30,000
Selling costs: $7,000 (Since I am a Realtor, I only pay the buyer’s agent commission. I list the house myself and do not have to pay a listing agent.)
Miscellaneous: $5,000
Total costs: $47,100
If I sold the house for $150,000, my profit would be $27,900. That is a decent profit, but I want to make at least $25,000 on each flip because of the risk involved and the money I put into them. On this flip, I would need at least $50,000 of my own cash for the down payment, carrying costs and repairs. Beginning flippers could easily spend three times as much for financing costs and another $4,500 to pay a listing agent. That cuts the profit to under $20,000 for a house that sells for twice as much as it was purchased for. The next time you watch a fix and flip show, see how many of these costs they actually tell you about!
Will You Make More Money Fix and Flipping More Expensive Homes?
It is true that the profit potential goes up when you flip more expensive homes. However, there are many more risks involved when flipping expensive houses.
The repairs will be much more expensive because buyers will demand higher quality.
It takes longer to sell more expensive houses and your carrying costs will be higher.
The carrying costs will be higher due to HOAs, more maintenance needed, higher taxes, etc.
You will need more cash because down payments, carrying costs and repairs will be higher.
All your money is in one house instead of multiple homes, increasing the risk if something goes wrong.
The biggest problem with flipping more expensive homes is that the difference between the buy price and sell price is massive. Using the 70 percent rule, a house with a $500,000 ARV would have to be bought for $300,000, if it needed $50,000 in work ($500,000*.7-$50,000=$300,000). It is very hard to find a deal that has such a large difference between the ARV and the purchase price because an owner-occupant buyer would be willing to pay much more for the house. The owner-occupant can pay $400,000, put $50,000 into the house and still have a great deal. In the more expensive market, it is much more likely owner-occupants will have the cash to put into homes.
How Long Does it Take to Fix and Flip a House?
From start to finish, my goal is to have a flip for four months from the time I buy it to the time I sell it. I almost never hit that number because there are so many unknowns. The biggest delay I have is finding good contractors, especially when I have 10 properties at once. It takes me a couple of weeks to get a contractor started on the work, about a month for the work to be done, about three weeks for the home to be on the market before a contract is accepted and yet another month for the escrow/closing process — if everything goes perfectly.
Unfortunately, it often takes longer for the contractor to make repairs. We inevitably see a few things the contractor missed and they have to go back to the home to take care of those items. Then we have to line up cleaners and get the home listed. Sometimes it takes three weeks to get a good offer; sometimes it’s just one week, but it could just as easily be two months. In addition, the escrow process can vary from one month to sometimes two months. Now that I have so many houses and not enough contractors, I am looking at almost nine-month turn times on some of my properties.
Is All the Hassle Worth it When Fix and Flipping Homes?
After looking at all the costs and everything that has to be accounted for, it may seem a bit intimidating to flip a home. Especially when you consider we have not even talked about how to find a fix and flip that can be bought cheap enough to make money. Just like anything in life, it takes time to learn what you are doing and feel comfortable. I still am learning new techniques to find properties and finding better ways to fix and flip homes.
After you learn the business, it can be a lot of fun. I still get excited whenever I get a new deal under contract, almost as excited as when I sell one for a nice profit. Over the last two years, I have averaged about a $35,000 profit on each of my fix and flips. I completed 10 flips last year and should complete (buy, fix, sell) over 10 this year. On most flips, I make around $30,000 in profit; but once in a while, I will make more, like this property that I made over $50,000. In the last 13 years of fix and flipping homes, I have made over $100,000 twice on a single flip. My success has not come from making a huge profit on one or two flips a year, but on consistently making modest profits on multiple homes. There is much less risk flipping many lower priced homes than flipping one expensive home.
The best part about this business is that I do not flip full time. I run a real estate team of 10 and my primary job is running that team and selling houses. Once you set yourself up correctly with the right contractors, the right financing, enough of your own money and experience, the business does most of the work itself. It is not easy to get to that point and it takes a lot of time and reinvesting money back into the business.
How Do You Find a Great Deal to Fix and Flip?
Finding a great deal is the key to making money in the fix and flip business. I used to buy 90 percent of my fix and flips at the public trustee foreclosure sale. These houses were sold in as-is condition for cash, and many times the inside of the house could not be viewed or homes were occupied. When I bought a home at the trustee sale, I had no inspection period and no way to back out once the property was purchased. In the last two years, the competition at the trustee sale has increased and I have not purchased any homes from that sale in over a year. In fact, I do not even go to the sale anymore because people are paying close to the amount you could buy a house for on the MLS. When I buy on the MLS, I get to have an inspection done, I can use a loan to buy the property, and I don’t have to deal with any occupants.
Almost all of my deals are bought on the MLS now. There are a few tricks to getting a great deal, but it is not easy with rising prices and competition.
Act fast: I make offers within hours of homes being listed.
Become an agent: One of the reasons I can act so fast is that I write the offer, set up a showing and I do not have to wait on an agent.
Look for properties that need work: The more problems a property has, the more potential profit there is. Make sure you know how to fix the problems and how much it will cost!
Look for properties that have been on the market over 90 days. The sellers are more likely to accept low offers on these homes. If they are grossly overpriced, I do not even bother.
Make offers on homes that come back on the market quickly. I can set up MLS alerts to tell me when a house in a certain price point comes on the market or comes back on the market after a contract falls apart. Many times the great deals that need work have contracts that fall apart because buyers don’t realize how much work is needed until their inspection.
There are other ways to get great deals such as direct marketing to sellers who do not have their properties for sale or finding wholesalers who sell cheap properties to investors.
What Should You Avoid if You Decide to Start Flipping Homes?
If you have decided you want to give flipping a try, here are some tips to keep you from losing too much money on your first try.
Only do the repairs yourself if you know what you are doing and have time to complete them. Many flippers try to save money by doing the work themselves. They don’t realize how long it takes to make repairs, especially in their spare time. It ends up taking months to fix the property and the extra time will eats up the money you thought you saved by doing the work yourself. To make the situation even worse, the work won’t be as good as if a professional did it.
Do not overestimate the value of a home or rely on values to increase to make money. Many markets have increasing prices, but that doesn’t mean they will keep increasing. A lot of flippers went bankrupt during the housing crisis because they assumed the market would keep going up. When prices stopped increasing and then decreased, they lost everything. I kept flipping right on through the housing crisis because I based values on the current market and left myself room for adjustment.
Do not overprice a home when you list it. To make money flipping, you have to sell quickly and keep your money moving from property to property. If you have a house sitting on the market that won’t sell, it is most likely overpriced. I have found that the sweet spot for a house to be on the market is three weeks and then I usually get an offer. If I don’t get an acceptable offer after 30 days, I lower the price 5 to 10 percent, depending on the activity.
Don’t try to sell a house yourself unless you are an agent. If you sell a house for sale by owner, you lose market exposure by not being in MLS. Ninety percent of buyers use a real estate agent to represent them and those agents look on MLS to find properties for their buyers. If you use a limited service company that puts the home on MLS, you still have to pay for the buyer’s agent. You are saving very little money and the buyer has representation while you do not. Who will get the better deal?
Always assume your repairs will be more expensive than you think and the flip will take longer than you think. Even if you get a bid for all the work before hand, things always pop up that you didn’t see or you couldn’t have known about.
My Worst Flipping Experience
There is a lot of information in this article and I didn’t even come close to covering every topic involving flipping houses. I hope it gives you an overview of what it is like and what it takes to flip houses. It is not about hitting a homerun on every flip, but hitting a lot of singles over and over again. I have lost money on flips before, sometimes because of things I have no control over. Since I had many flips going at once, losing money on one flip did not destroy my business — but this was the worst experience.
A couple of years ago, I bought a flip at the trustee sale. I saw the interior of the home through the windows but never got inside the house before I bought it. It was a good deal on a newer house, with little work needed and I thought I would make some easy money. After I bought the house and got the locks changed, we found a brand new BMW in the garage. I knew something very odd was going on, so we tracked down the previous owners in California (I am in Northern Colorado). They claimed the bank had foreclosed wrongly and they were going to get the house for free. They ended up filing a lawsuit against the bank a week later and we had a house we could not sell because it was involved in litigation.
The previous owners had been convinced they would get the house for free by a legal aid. We offered them $5,000 to drop the case and they would not even think of it, because they knew they would get the house for free. Long story short, the lawsuit was frivolous and thrown out by a judge as soon as he saw the case. The problem was that it took the court almost a year to look at the case even after we had hired lawyers and paid them almost $10,000 to speed up the process. After carrying costs and lawyers fees, I lost about $15,000 on that house. There was no way to know that would happen, but sometimes that’s how it works when buying houses at the foreclosure sale. That is why I prefer to have multiple low-value houses at the same time, instead of one expensive house. I was still making money and turning other properties while that house was tied up. If all my money was tied up in one house that I could not sell for a year, I could have been in serious trouble.
Conclusion
I have been in the fix and flipping business for a long time and it has been very good to me. It is not easy to get started, to find great deals, find great contractors or to get all the money needed to flip. It is not impossible either, but it does take a lot of planning and education to get started. If you want to ask any questions in the comments, I’ll try to respond as quickly as possible.