renting a house

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Renting a house or apartment comes with several perks, like minimal commitment to live in one place. After a certain point, however, most people want to put down roots and purchase their own home.

Owning your own home is the American Dream. Plus, you won’t have a landlord breathing down your neck about what you can and can’t do. But what kind of credit score is needed to buy a house?

We’ve got the answers, plus some extra tips on how to seal the deal, no matter what kind of credit score you have.

How does your credit score affect buying a home?

Your credit score influences your ability to buy a home as a major factor in whether you’re approved for a mortgage. That’s because your credit score is a reflection of how likely you may be to default on your loan.

Weighing all the items on your credit reports, such as payment history and amounts owed, a complex calculation then creates your FICO score. FICO scores are the credit scores that 90% of lenders use. They give mortgage lenders a better idea of how you handle your finances.

Even after you’re approved for a loan, your FICO score also affects the interest rate on your mortgage. Why is that a big deal? Well, depending on how expensive your loan is, you’ll likely end up paying tens of thousands of dollars (if not more) in interest. That’s on top of your principal loan amount.

An interest rate of even just ¼ percent less can save you a lot of money over the course of a 30-year loan. So, it’s clear that your credit history is an important factor not just for getting approved, but also for getting the best interest rates to lower your monthly payments.

Ready to Raise Your Credit Score?

Learn how credit repair professionals can assist you in disputing inaccuracies on your credit report.

What credit score do you need to buy a house?

The minimum credit score needed to buy a house can vary based on the economy and the housing market. However, there are some basic guidelines you can go by to determine how likely you are to be approved for a home loan. First, the minimum credit score depends on the type of mortgage you’re getting.

Conventional Loans

For conventional loans, which come with the strictest lending standards, the credit score needed to buy a house is 620. With a conventional loan, the minimum down payment is 5%, but could also increase based on your credit scores.

FHA Loans

FHA loans are insured by the Federal Housing Administration. For an FHA loan, the minimum credit score requirement is just 580 with a down payment of 3.5%. It’s possible to qualify for an FHA loan with a FICO score as low as 500, but you’ll need a 10% down payment.

Different mortgage lenders have different credit score requirements depending on how much risk they’re willing to take on a loan. Furthermore, you may be required to pay private mortgage insurance for the life of the loan, depending on the size of your down payment.

VA Loans

For VA loans, the U.S. Department of Veterans Affairs has no minimum credit score requirements. However, most VA loan lenders require a minimum credit score of 620. However, some will allow a credit score as low as 580.

USDA Loans

For qualified buyers purchasing a home in designated rural areas, there is no set minimum credit score from the USDA. However, a credit score of at least 640 is recommended.

What factors determine your credit score?

It’s crucial to know what factors affect credit scores so you can plan the most effective way to build or protect your credit.

  1. Payment history: This is perhaps the most important factor, as it accounts for 35% of your overall credit score. Payment history includes whether you have paid your bills on time in the past and any negative marks, such as late payments, collections, or bankruptcies.
  2. Credit utilization: This accounts for 30% of your credit score and refers to how much of your available credit you are using. A high credit utilization ratio could hurt your credit score, while a low one can help.
  3. Length of credit history: This factor accounts for 15% of your credit score and is a measure of how long you have been using credit. Generally, the longer your credit history, the better your credit score will be.
  4. Credit mix: This factor accounts for 10% of your credit score and refers to the types of credit you are using. A good credit mix includes a variety of different types of credit, such as credit cards, student loans, mortgages, etc.
  5. New credit: This factor accounts for the remaining 10% of your credit score and refers to how often you are applying for new credit. Applying for too much new credit in a short period of time can hurt your credit score.

See also: Does Buying a House Hurt Your Credit?

Average Credit Score

The average credit score for buying a home is 680-739. However, those who have a “good” credit score of 740 and higher will be offered the best mortgage rates.

It’s important to check your credit score to know where you stand. However, your credit score alone doesn’t determine whether you’ll be approved. Mortgage lenders also look at your employment history, how much debt you have, and your down payment amount.

For example, buyers with higher credit scores could be eligible to put down as little as 3.5% of the mortgage loan amount with an FHA loan.

However, those with a lower credit score, may be required to pay as much as 10% since mortgage lenders consider them to be more at-risk for defaulting on the loan.

See also: Which Credit Scores Do Mortgage Lenders Use?

More Options for First-Time Homebuyers & Low-Income Borrowers

You can also explore newer mortgage programs available for homebuyers with low to moderate-income. The Freddie Mac Home Possible mortgage, for example, allows you to purchase a home with a down payment of just 3%. Fannie Mae also offers a 3% down payment option with the HomeReady loan, as long as you have a credit score of at least 620.

What else do you need to get approved?

In addition to your credit scores, your mortgage lender looks at a few other factors to approve your home loan. They’ll review your employment situation to make sure you have a steady income to make your monthly mortgage payments.

You’ll most likely need to submit pay stubs, bank statements, W-2s, and sometimes even a verification of employment form. If you’re serious about purchasing a home, start setting these documents aside in a safe place so you have them ready to give to your lender when the time comes.

Not only does the lender look at your debt-to-income ratio and other financials, but they’ll also check out the actual home you’re purchasing. Some types of home loans require the house to be in a certain condition, which can take rehabilitation projects off the table.

Before making an offer, check with your lender on what types of properties you can consider. That allows you to avoid making an offer you can’t follow through on. The property’s appraisal also needs to come in at or above the amount of the loan because a lender cannot loan more than the appraisal value.

Can you get a mortgage with bad credit?

You can still get a mortgage even if you have bad credit, although you’re likely to pay a much higher interest rate to compensate for the increased risk to the lender.

Government-backed loans, like FHA loans, specifically cater to borrowers with lower credit scores. But even if you’re not certain that you’ll qualify, it’s worth offering some extra security to your lender.

For example, you might give a larger down payment or set aside extra cash reserves to show the lender you have the money to repay the mortgage loan. Or you might give proof that you’ve consistently paid your rent on time for an extended period.

Check Out Our Top Picks for 2023:

Best Mortgage Loans for Bad Credit

You could also try writing a letter to explain your credit situation. This can be done, especially if it’s due to an extenuating circumstance like emergency medical bills. Be upfront in asking your lender what you can do to qualify for a loan, even if you might not meet the usual underwriting standards right away.

If you’ve had a bankruptcy or foreclosure in your past, there are a few rules that you simply can’t get around. The exact specifics depend on your loan type.

However, in general, you have to wait for a predetermined “seasoning period” after the bankruptcy or foreclosure has been discharged before you can get approved for a home loan.

For bankruptcies, the seasoning period is typically between two and four years. For foreclosures, you’ll need to wait between three and seven years.

Can a cosigner help you qualify for a mortgage?

Home buyers with a low credit score may want to consider getting a cosigner to help with their mortgage application.

If you can get someone who has a good credit score (such as a family member) to sign the loan with you, it will strengthen your loan application. Just remember that your cosigner is equally accountable as you are for repaying the loan.

If you fail to make loan payments and your account goes into delinquency or even foreclosure, it will affect the cosigner’s credit.

If you decide to take on a cosigner to get approved, make sure that person understands the responsibility and risk that goes into the decision. It obviously takes a close relationship for this kind of situation to work out, so make sure you choose your cosigner wisely.

What if you don’t have any credit at all?

Building credit from scratch is challenging, but it can be done. Adding a cosigner to the mortgage loan application works for people with no credit as well as for those with poor credit. Another option is to start using a credit card responsibly.

Start with a secured card and make your monthly payment in full each month to build credit. Or ask a close relative if you can be added as an authorized user on one of their credit cards.

You can agree not to spend anything (or make quick payments if you do). This simple step will add that credit card’s entire length of use to your credit report.

You can also show your lender that you’ve regularly paid other bills on time, like your cell phone, utilities, or rent. Another method is to make a bigger down payment to compensate for your lack of credit. Talk to your lender to see what else you can provide to make the loan work.

How can you improve your credit to qualify for a mortgage?

There are several ways you can improve your credit score; just realize that it won’t happen overnight.

Order Copies of Your Credit Report

Get started by ordering copies of your credit report. This way, you can get an idea of everything a lender would see when reviewing your loan application.

First, check to make sure that all the information is 100% accurate. From there, look at where there are weaknesses on your report. Is the amount of debt you owe really high?

Lower Your Credit Utilization

Attempt to re-work your budget to pay off your credit card balances and other debt. This will lower your credit utilization ratio and ultimately increase your credit score.

Is your available line of credit minimal? Ask an existing creditor to extend your maximum amount on one of your current credit cards. This will also lower your credit utilization.

Get Negative Items Removed From Your Credit Report

If you have numerous negative marks on your report and feel overwhelmed, you might consider hiring a credit repair company.

Take a look at our list of top ranked credit repair companies in your area to find a reputable one to work with. They’ll take the lead in disputing negative accounts with the credit bureaus and getting them removed from your credit history. Once that happens, you’ll automatically see your credit score increase.

Even if you don’t have the bare minimum credit score to qualify for a mortgage, there are many ways to buy a house. From getting the right loan to improving your credit score, you’ll be able to quickly put yourself on the path to homeownership.

Source: crediful.com

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Seems like a simple thing — to measure the square footage of a house. Just multiply the length by the width of each room and add up all your numbers. Not so fast. First of all, what’s a “room”? Do closets count? Basements? And why does accurate measuring even matter? There’s a lot to unpack.

What’s so important about getting square footage right?

If you’re moving into a new home and you want to know if your California king is going to fit into the primary bedroom, it’s nice to know the room’s square footage.

But there’s more riding on how to calculate the square footage of a house than just being able to fit your stuff. The square footage of a house determines its value. Lenders rely on square footage for mortgage calculations, tax assessors rely on square footage for assessments.

So, if you’re renting a house now but thinking of buying, it’s important to understand your current square footage so you can make a good comparison when house hunting.

What’s included in a house’s square footage?

There are several different answers to this question. First, here are a few terms to understand:

  • GLA (gross living area) is a home’s finished livable space above ground. And, if any part of the finished space is below grade, the entire area is typically known as below grade. GLA calculates when appraisers measure the home’s exterior. It goes in public records and is often important for tax purposes.
  • TLA (total living area) is like GLA but it includes finished basement space or possibly an accessory dwelling unit (ADU).
  • Living space is determined by American National Standards Institute (ANSI) Z765, which is a voluntary guideline for describing, measuring, calculating and reporting area for single-family homes.

Living space generally refers to “anything that is under the roof, within the house that is finished and heated — space heaters don’t count,” said Bryan Reynolds, a Certified General appraiser in Kentucky and Tennessee and president of the National Association of Appraisers.

Rooms to measure when calculating the square footage of a house

You might be surprised by which rooms are included — and which are not — when determining how to figure out square footage:

  • Bedrooms
  • Bathrooms
  • Kitchens
  • Hallways
  • Finished closets

Areas that don’t count towards the square footage of a house

There are plenty of rooms or spaces in your home that would qualify as “living space,” but don’t get counted in the total square foot calculation:

  • Finished basement: Say you have a ranch home with 1,000 square feet above ground and a 1,000-square-foot finished basement. An appraiser would say it’s 1,000 square feet of above-grade space and 1,000 square feet below grade. A real estate agent might say that there are 2,000 total square feet.
  • Enclosed porch: “If it’s unheated or used seasonally and there’s a separate door to the livable area, then it’s not included,” Reynolds said. But “if it’s finished in similar quality to the rest of the home, functional in design and has a heat source that is permanent in nature, then it can be included.”
  • Garage: The normal garage storage space doesn’t count. However, a bonus room above the garage might count. Only if it’s heated and 100 percent finished to a similar quality as the house. And, if it’s directly accessible from the inside of the house though.
  • Accessory Dwelling Unit: Unless it’s actually part of the house, it’s considered a separate entity.

Then, if you want to really get into the weeds, what about the sort of dead space under the stairs? According to Reynolds, ANSI says to include it, but AMS (American Measurement Standard) allows you to remove it from the square footage equation.

And, if you’ve got a bay window with a bench under it, one could argue that if you were to take the bench away, there would be useable floor space and that should come with the square footage.

How to figure out the square footage

Now that you know what to measure, here’s how to measure. But first, remember the aforementioned ANSI Z765?

For a room to make it in a home’s total square footage, the ceiling must hit a certain height — seven feet or higher or six feet four inches if there are beams or soffits. Plus, no portion of the finished area can have a ceiling height of less than 5 feet.

Let’s say you’ve got a Cape Cod with a sloped ceiling and knee walls. That portion under the sloped ceiling (if it’s five feet or less) is not counted in the square footage (see image). In addition, the rest of the ceiling must hit at least seven feet for at least half of the room’s floor area.

Photo source: AccurateHomeMeasuring.com

Keep in mind that an appraiser will, hopefully, look around inside the house but will measure the house from the exterior — unless there’s that pesky sloped ceiling situation, in which case they will have to go inside or the square footage will be off.

According to Hamp Thomas, certified residential appraiser and author of “How to Measure a House Using the ANSI Standard,” the pros use a 100-foot tape measure to do their job. Certainly, a shorter tape measure would work. However, there is a lot of stopping, starting and adding that can lead to inaccuracies.

Measure around the outside of the house above the foundation. Multiply the length by the width of each rectangular space. If you’ve got a second story and can’t reach a corner on the exterior, for example, measure from the inside and then add the width of the exterior walls.

Know why you’re measuring

It’s likely that, if you’re reading this, you’re not a professional appraiser. If you’re interested in getting a general sense of how much footage you have in your house, grab a measuring tape and measure each room’s length and width and multiply those numbers. Then add all the square footages together. “Don’t forget to include any outside walls thickness, or just measure from the exterior,” Reynolds said.

If a room isn’t a nice rectangular shape and has jogs and bumps, create rectangles, measure and multiply the length by width. Then, add up all the bits and pieces.

And if old-school tape measures aren’t your thing, there are lots of free measurement apps that you can download to your phone. You can also put the information into Calculator Soup’s square footage calculator, which can help you figure out the square footage of differently shaped rooms.

Measure on.

Stacey Freed is an award-winning writer and former senior editor for Remodeling, a trade publication focused on the business of the remodeling and construction industry. As an independent writer, she continues to write about the building, design, architecture and housing industries. Her work has appeared in Better Homes and Gardens and USA Today special interest publications, Realtor magazine, This Old House, Professional Builder and online at AARP, Forbes.com, House Logic and Sweeten.com among other places.

Source: rent.com

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North Carolina: Where affordability meets natural beauty

Containing the Great Smoky Mountains and plenty of other parks, the draw of North Carolina is both its natural beauty and the relaxed character of the cities that have sprung up within it. From mountains to coastlines, the cheapest places to live in North Carolina offer affordability in a variety of idyllic cities.

The cheapest places in North Carolina to live for renters

It’s nice to see that some of North Carolina’s most popular cities, for everyone from tourists to college students, offer affordable housing that’s even lower than the state’s average. If you long to live in the mountains, then you’re covered. And if you prefer Piedmont or Coastal Plains, you’re also good.

If it’s time to call the Tar Heel State home and you’ve got a tight budget, start your search here. These are the 10 cheapest places to live in North Carolina to check out.

  • Average 1-BR rent price: $1,359
  • Average rent change in the past year: -4%

Just north of Charlotte, the city of Mooresville is an up-and-coming suburban town with major ties to the racing community. It’s the home of the North Carolina Auto Racing Hall of Fame and earned itself the nickname of “Race City U.S.A.”

The dedication to all kinds of racing runs deep in Mooresville, but the town is about so much more. Residents enjoy easy access to picturesque Lake Norman, the largest man-made lake in North Carolina. You can explore over 520 miles of shoreline that stretches into four different counties.

Heading back into the main part of Mooresville, you’ll also find a small-town feel infused throughout each activity, restaurant and shop. The historic downtown district has that quaint feel many look for when moving out of a larger city.

One particularly unique draw is that Mooresville offers up more than one opportunity to get close to some exotic animals at both the Lazy 5 Ranch and Zootastic Park.

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Buy a house in Mooresville

9. Chapel Hill

  • Average 1-BR rent price: $1,794
  • Average rent change in the past year: -1%

The most well-known attraction in Chapel Hill is the University of North Carolina. Pride in the ‘Heels, the ever-dominant basketball team, is so heavy it’s easy to see why die-hards claim to “bleed blue.”

While you’ll find plenty of college students in the area and activities to occupy them, the city has much more to it. A social place, you’ll find regular road races and festivals celebrating everything from antiques to bluegrass music.

To hit the most happening spot in the city, check out Historic Franklin Street. Here you’ll find dozens of boutiques, nightspots and restaurants.

With miles of trails and a paved Riverwalk right through the center of town, there is a lot to explore by foot in Chapel Hill. Very family-friendly — Chapel Hill offers activities that include visiting the Kidzu Children’s Museum, the Coker Arboretum and the Carolina Basketball Museum.

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8. Apex

Photo source: Town of Apex / Facebook
  • Average 1-BR rent price: $1,349
  • Average rent change in the past year: -7%

With a relaxing, small-town atmosphere and the convenience of big-city amenities, Apex works to hold onto its character even as more and more residents join the community.

Get to know the city by taking a walking tour of the historic downtown area. Here you’ll see buildings that date back to the late 1800s — including The Union Depot, listed on the National Register of Historic Places.

Considered one of the most intact, turn-of-the-century railroad towns in the area, Apex takes its history seriously without ignoring the present day. Among the restored buildings you’ll find excellent antique shops and specialty stores — not to mention some highly-revered restaurants.

It’s not all railroads around here though. There’s a nice cultural center in Apex which includes multiple galleries, studio classrooms and a theater.

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7. Asheville

  • Average 1-BR rent price: $1,544
  • Average rent change in the past year: +6%

Heading into the mountainous, western part of the state, you’ll find Asheville. This perfect town has eateries and craft brew spots that will wow even the most discerning foodie. The downtown area is walkable enough that you can explore this cool city center on foot.

For a step into elegance and history, visit the Biltmore Estate. Walk the grounds, stay on-site for a night or take a more formal tour. It’s the perfect place to snag a one-of-a-kind piece of art to take home!

Catering to more active folks, the Blue Ridge Mountains offer up ideal locations for apple picking, hiking, biking and even ziplining. For those looking for a home with a vibrant arts scene, the Downtown Arts District of Asheville is full of galleries and museums.

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6. Greenville

  • Average 1-BR rent price: $915
  • Average rent change in the past year: -3%

Not too far from the Atlantic coast lies Greenville, a charming, historic city that manages to keep a foothold squarely in modern life.

An outdoor person’s Mecca with proximity to the ocean, local swamps, the Tar River waterway and the Greenville trail system — Greenville offers everything from boating to fishing to hiking and much more.

When it’s time to refuel, the area is also renowned for its barbecue and beer. The county puts on a “Brew & ‘Cue” tour that allows patrons to get their “PassPork” stamped at various locations.

Lovingly called the “Emerald City,” Greenville residents appreciate that their beautiful home is also a thriving cultural, economic and educational hub. It’s home to East Carolina University and the Uptown district, where live music, food and art reign supreme

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5. Winston-Salem

  • Average 1-BR rent price: $1,010
  • Average rent change in the past year: +5%

With a city so nice it earned itself a hyphen, Winston-Salem is one of the more well-known spots in North Carolina. Here you’ll find plenty of history, delicious food and of course, craft beer. There are multiple places to stop around town to sample the latest pour from local breweries.

Mild weather and friendly neighbors combine with a low cost of living to welcome residents to Winston-Salem. Drawing in mostly a younger crowd, thanks to nearby universities, you’ll find many young professionals and growing families. For those families interested in renting a house, the median home price rests at $260,000.

To get a solid dose of local history, visit Old Salem. This area pays homage to settlers from 1766 and is full of historic buildings, costumed interpreters and hands-on experiences.

For those looking for some natural beauty and great shopping, Reynolda Village provides both. Stroll through the gardens before popping into cute boutiques and delicious restaurants.

For exposure to the arts, walk Trade and Liberty streets downtown to see street art, murals and plenty of galleries.

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4. Burlington

Photo source: City of Burlington, NC / Facebook
  • Average 1-BR rent price: $1,087
  • Average rent change in the past year: -3%

Another North Carolina town that owes its existence to the railroad is Burlington. It only sprang up because the North Carolina Railroad needed a place to build, repair and maintain the tracks in the area. Still going strong today, Burlington mixes the old and the new to keep things interesting for residents.

A wealth of history combined with a passion for nature conservancy creates a community in Burlington unlike no other. With plenty of shopping and unique dining options — residents have plenty to enjoy in this city.

Visit the Conservators Center to wander through 45 acres of forested area and see over 70 large and small wild cats who call the area home. There’s also Cedarock Park, a 500-acre nature preserve that’s perfect for hiking, horseback riding and disc golf. This affordable area is rich in golf courses as well, making this town perfect for anyone looking to brush up on golf skills.

For the family, City Park offers a large playground and amusement park rides like a miniature train, carousel and airplane ride.

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3. Fayetteville

  • Average 1-BR rent price: $1,035
  • Average rent change in the past year: 0%

Just 65 miles south of Raleigh, the state’s capital, Fayetteville is an ideal commuter hub. Adjacent to Highway 95, you can easily go north to cities like Washington, D.C. and New York or take the southern route to Charleston, Orlando or Miami.

For those who want to keep it local, Fayetteville has a thriving downtown area with retail shops, restaurants and an impressive minor league baseball stadium.

You’ll also find an homage to the city’s rich history at the Airborne & Special Operations Museum and at the North Carolina Veterans Park. For some more natural beauty, make sure to stop into the Cape Fear Botanical Garden. The 80-acre site is only two miles from downtown.

Next door, you’ll also find Fort Bragg, one of the largest military installations in the world. Many military families stationed at Fort Bragg call Fayetteville home, giving it a reputation for being a community of ‘history, heroes and a hometown feeling.’

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2. Greensboro

  • Average 1-BR rent price: $1,117
  • Average rent change in the past year: +14%

Containing the trifecta of attractive qualities, Greensboro is a city with a lot of economic opportunities, affordable housing and an abundance of activity. This eastern North Carolina city has served as an important location in both the Revolutionary War and Civil War, so there’s no shortage of history around here.

For everyday living, Greensboro is a friendly and diverse community that’s perfect for foodies of every kind. Sample the many locally owned coffee shops or breweries alongside the variety of restaurants. Local farmers and native vineyards are big contributors to the menus around town.

A bit of a college town, you’ll find students attending a wide range of schools including the University of North Carolina at Greensboro, NC A&T State University, Bennett College, Guilford College, the North Carolina Zoo and Greensboro College.

Greensboro also plays host each year to the NCAA basketball tournament, bringing in even more college kids than those attending local schools.

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1. Carrboro

  • Average 1-BR rent price: $1,227
  • Average rent change in the past year: -5%

Known to have a progressive vibe, Carrboro is a small town packed full of flare. As far as affordable cities go, Carrboro is rich in offerings. You’ll find craft galleries, indie music venues, progressive theater and exhibitions and more. There’s no shortage of organic grocery stores, farm-to-table restaurants and artsy coffee shops.

Head to Main Street for most of the action around town, including the Carrboro Farmers’ Market featuring local artisans and crafts.

When all the art and culture of Carrboro pique your appetite, this little town has delicious offerings to fill your belly. From burgers to bistros, fine dining to pizzerias, you can eat a different cuisine each day of the week.

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The most expensive places to live in North Carolina

You’ve seen the cheapest places to live in North Carolina, but what about the other side? Fortunately, it’s not all bad. Even the most expensive cities in North Carolina offer up somewhat affordable housing.

Cities like Wake Forest and Garner, which top the list, still maintain an average rent for a one-bedroom of under $2,000 a month. Check out the chart to see where other North Carolina cities fit in.

Ranked City by 1-BR Average + Average Rent

1) Wake Forest: $1,846

2) Garner: $1,501

3) Indian Trail: $1,473

4) Cary: $1,380

5) Charlotte: $1,362

6) Huntersville: $1,341

7) Wilmington: $1,318

8) Concord: $1,294

9) Raleigh: $1,275

10) Morrisville: $1,270

Methodology

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory as of November 2023. Our team uses a weighted average formula that more accurately represents price availability for each unit type and reduces the influence of seasonality on rent prices in specific markets.

We excluded cities with insufficient inventory from our cheapest places to live in North Carolina report.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

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The world of real estate is vast and varied, with numerous options catering to renters’ diverse needs. Among the many choices available, private-owner house rentals have carved out a distinct niche, appealing to those seeking a more individualized experience.

These rentals, run by individual homeowners rather than large corporations, possess their own unique set of merits and challenges. We’ll provide an in-depth exploration of the benefits, drawbacks and nuances surrounding houses for rent by a private owner, contrasting them with more traditional rental avenues.

Defining private-owner house rentals

Private-owner house rentals refer to properties that are rented out by individual homeowners rather than by property management companies or real estate corporations. These private-landlord rentals can range from vacation homes to apartments to single-family residences and more.

Pros of privately owned house rentals

If you’re looking for a place to rent, private-owner house rentals emerge as a unique option, often favored for their personalized approach and distinct charm. Unlike properties managed by larger firms, these rentals offer potential benefits that arise from direct interaction with individual homeowners and the idiosyncratic character of their properties. Let’s delve into some of the prominent advantages of choosing private owner house rentals over those run by large companies.

  1. Personal touch: Private homeowners might offer a more personal touch compared to larger property management firms. This could mean more flexibility in terms of lease agreements, move-in/move-out dates or any other limitations and stipulations.
  2. Direct communication: Renters often communicate directly with the property owner, often leading to quicker response times for maintenance requests or other concerns.
  3. Unique properties: These rentals might have distinctive and unique properties that aren’t typically found in larger apartment complexes or managed communities. Think crown molding, brick walls, hardwood floors and more.
  4. Potential for lower costs: Without the overhead of a property management company, private owners might offer better rental prices.
  5. Flexible terms: Some private owners might be open to short-term leases, month-to-month arrangements or other non-traditional rental agreements.

Cons of privately owned rental properties

Now that we’ve covered some of the most appealing aspects of private-owner rentals, let’s dive into some of the downsides and pitfalls that can potentially affect your experience with a private-owner house rental.

  1. Inconsistency: The experience can vary widely from one private owner to another. While some might be highly professional and organized, others may be less so.
  2. Limited amenities: Private rentals might not offer the same amenities that larger complexes or communities do, such as swimming pools, fitness centers or security services.
  3. Maintenance delays: Some private owners might not have the resources or connections to address maintenance issues as promptly as larger management firms.
  4. Lack of formal process: There may be a lack of formal processes in areas like application screening, security deposits and lease agreements, which could lead to potential legal disputes.
  5. Potential for bias: Without the procedures and policies of a larger company, there might be more room for unconscious bias or discrimination in the rental process.

Private-owner house rentals present a compelling blend of advantages and challenges. While their personal touch can provide renters with a tailored experience, the potential inconsistencies and lack of standardized processes can pose challenges.

As with any rental decision, potential tenants should carefully consider the pros and cons before making any decisions, ensuring that their choice aligns with their preferences, needs and expectations for a harmonious living arrangement.

Other considerations when looking at houses for rent

Like most of life’s major decisions, there’s more to consider about private-owner house rentals than just the pros and cons.

  • Research is key: Due diligence is essential when considering a private owner house rental. Potential renters should research the property, check references and understand the lease terms thoroughly.
  • Legal protections: Both renters and landlords should be aware of local rental laws and regulations to ensure that they’re both protected. This might include understanding rights related to security deposits, eviction processes and property maintenance.
  • Contracts: even if renting from a private owner, having a written lease or rental agreement is crucial. This document should clearly outline the terms of the rental, including rent amount, duration of the lease, maintenance responsibilities and any other relevant details.

While there are many advantages to this type of arrangement, potential challenges can arise. As always, thorough research and understanding of the rental agreement are essential for a successful rental experience.

Nuances in legalities between a house and an apartment

Understanding the differences between renting a house and an apartment from a private owner goes beyond just the physical structure; there are also legal nuances to consider. Both situations will involve lease agreements and rights for tenants and landlords, but there are some distinctions to be aware of:

Zoning and land use

Houses might be situated in areas with zoning restrictions that dictate how the property can be used. For instance, certain residential zones might prohibit running a business from home or may have specific parking regulations. On the other hand, apartments are generally in zones designated for multifamily dwellings, which can come with their own set of rules and regulations.

Maintenance and repairs

For houses, the responsibility for external areas like lawns, gardens and driveways often falls on the tenant unless otherwise stipulated in the lease. With apartments, the responsibility for maintaining common areas typically rests with the property management or homeowners association.

Security deposits

Both houses and apartments usually require security deposits to cover wear and tear. However, with houses, there might be additional deposits or fees for landscaping or potential damage to larger outdoor areas.

Utility responsibilities

In apartments, certain utilities like water, trash collection or electricity might be covered by the landlord or the property management, especially if they are shared resources. In contrast, tenants renting a house usually bear the responsibility for all utilities, including water, electricity and garbage.

Liability

Homeowners might have broader liability concerns. For example, suppose a person gets injured on the property, like slipping on an icy driveway. In that case, the responsibility might fall onto the homeowner or the tenant, depending on the terms of the lease. In apartment complexes, the liability for common areas is usually on the property management or owner.

Subleasing and assignments

Lease agreements for houses might be more flexible compared to apartments, which may have stricter guidelines enforced by property management. This isn’t a strict rule, but a general trend given that a private landlord might negotiate these terms.

Pets and modifications

Apartments often have strict rules regarding pets, alterations or additions to the unit. Houses might have more flexibility, but that’s not a given. Still, a house renter might have more latitude to request permissions for larger modifications or to keep larger pets, possibly dodging some breed restrictions in the process.

Is a private-owner house rental right for you?

While the basic principles of landlord-tenant law apply to both houses and apartments, the specific responsibilities, rights and restrictions can differ based on the nature of the property. Renters and landlords need to be clear on these nuances to ensure a smooth rental experience and avoid potential disputes. Navigating the intricacies of real estate rentals requires a nuanced understanding of each available option. Private-owner house rentals offer an alternative to the conventional rental route, underlined by a personalized touch and distinctive property features.

However, as with all choices, potential renters must balance these benefits against possible drawbacks. By staying informed and conducting thorough research, renters can make educated decisions and find a home that aligns seamlessly with their needs.

A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.

Source: rent.com

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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.

Source: rent.com

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Your backyard is an extension of your living space, offering endless opportunities for relaxation, entertainment, and family bonding. With the right home improvement tips, you can transform your backyard into an oasis that suits your lifestyle and enhances the value of your property. Whether you own a home in Houston, TX, or are renting a house in Sacramento, CA, Redfin has some backyard improvement ideas to inspire your next project.

1. Landscaping magic

Begin your backyard transformation with landscaping that complements your home’s architecture and blends with the natural surroundings. Incorporate lush plants, colorful flowers, and well-maintained lawns to create a serene and inviting ambiance. Consider adding pathways, decorative rocks, and seating areas for an enhanced outdoor experience. If your lawn is struggling, San Jose Tree Service recommends that you overseed, fertilize and repair any damaged irrigation components.

2. Create defined spaces

Optimizing your backyard involves a strategic approach, one that involves dividing the outdoor expanse into distinct functional zones, ensuring you maximize every inch of available space. Consider crafting dedicated domains for various activities, such as al fresco dining, serene lounging, vibrant gardening, and playful recreation. Enhance your backyard by incorporating elements like low walls, charming fences, or lush shrubbery.

3. Outdoor kitchen

Enhance your outdoor living space by incorporating a sophisticated outdoor kitchen, creating an environment that takes your culinary adventures to new heights. The addition of a fully equipped grill, spacious countertops, a functional sink, and ample storage space ensures a seamless outdoor cooking and dining experience. Notably, the thoughtful integration of an outdoor kitchen not only offers unparalleled convenience but also brings about a substantial enhancement in the overall value of your home, promising lasting enjoyment and a smart investment for the future.

4. Add a splash of color to your backyard

“Think outside the box when it comes to sprucing up your yard by placing spots of bright color in your living space, and then continuing the color out into your yard,” says Beckie from Hall Landscape Design.

“You can do that by adding things like bright-colored pots with beautiful plantings, bright yard art such as float balls, a glass birdbath, a colorful statue, etc.a bench with a bright pillow, or add a little stone pathway to those areas as well – have fun with your spaces. This will make your yard inviting, and it will naturally draw your eye out so you can enjoy the entire yard.”

5. Fire Pit

A fire pit stands as a captivating addition that not only introduces warmth but also infuses a charming ambiance into the cool evenings, thereby solidifying its position as a highly sought-after backyard element. Whether you opt for the rustic simplicity of a basic fire pit or the more sophisticated allure of a carefully designed built-in masterpiece, this cozy extension creates a welcoming environment for social gatherings with friends and family.

6. Utilize water features

Enhance the tranquility of your backyard with a water feature, such as a fountain, pond, or waterfall. The soothing sound of flowing water creates a serene atmosphere, inviting you to unwind and escape the stresses of everyday life.

7. Install a pergola

Enhance the ambiance of your backyard by incorporating a charming pergola or arbor, which not only offers shade but also introduces some elegance to the outdoor space. The addition of climbing plants like ivy can artfully adorn the structure, turning it into a lush and picturesque focal point. 

8. Outdoor lighting

Enhance the functionality and charm of your backyard well into the evening hours by strategically incorporating a thoughtfully designed outdoor lighting scheme. Use a selection of gentle, inviting lights to cast a warm and enchanting glow that effortlessly transforms your outdoor space. In addition to improving the aesthetics of your backyard, outdoor lighting can also be a safety feature.

9. Playful elements for kids

If you have children, consider incorporating playful elements like a swing set, sandbox, or treehouse into your backyard design. These additions provide endless fun and foster creativity for younger family members.

10. Add eco-friendly touches

Enhance the environmental integrity of your backyard design by integrating a range of sustainable features. Embrace the concept of responsible living with components like advanced rainwater harvesting systems, thoughtfully curated native plantings that thrive in your region’s climate, and the utilization of eco-friendly materials in your landscaping projects. By making these eco-conscious choices, you not only contribute positively to the health of the planet but also reap the rewards of diminished long-term maintenance expenses.

11. Comfortable seating and outdoor furniture

Invest in quality outdoor furniture to make your backyard a comfortable and inviting retreat. Choose weather-resistant materials like rattan, teak, or metal to withstand the elements and ensure durability for years to come.

A final note on backyard home improvement projects

With these backyard home improvement tips, you can transform your outdoor space into a captivating oasis of relaxation and entertainment. Whether you opt for lush landscaping, an outdoor kitchen, a cozy fire pit, or a water feature, each enhancement adds value and beauty to your property. Create your dream backyard and enjoy the perfect sanctuary for memorable moments with family and friends.

Source: redfin.com

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With sparkling blue waters, lush lakefront parks, towering skyscrapers, famous theme parks, and endless sunny days, Orlando is a fabulous place to live in Florida. Whether you’re moving to or have lived in the area for some time, you may be wondering if now is the time to buy versus rent a home in Orlando. In addition to Orlando’s real estate market conditions, there are always pros and cons to renting and buying, making your decision a little more difficult.

If you’re considering buying a home in Orlando, you’ll see the current median sale price for a home is $370,000, as of June. According to Redfin’s recent study, the estimated median monthly mortgage cost is $2,966 while the average rent price in Orlando is $2,566. For many potential homebuyers, this means renting a home costs less than buying a home in today’s market. However, it’s important to keep in mind there are still plenty of reasons why buying a home right now may be the right choice for you. 

Ultimately, the decision between buying a house or renting an apartment in Orlando is personal and depends on several factors. Whether that’s your desire for flexibility or stability, your financial goals, or which one of the Orlando neighborhoods you want to live in, there is plenty to consider. We’ll help guide you along the way as you make the decision between renting vs buying in Orlando. That way, you can make the best decision for your goals.

Advantages of buying a home in Orlando

Buying a property in Orlando can offer several compelling advantages over renting. Let’s dive into some of the main advantages of buying in the current market.

Building equity

Firstly, homeownership provides long-term stability and the opportunity to build equity. Instead of paying rent that provides no return on investment, homeowners can invest in their own property and potentially benefit from appreciation in the real estate market. 

Tax benefits

As a homeowner, there are a few potential tax benefits you may be eligible to receive. For example, mortgage interest and property tax payments may be tax-deductible, providing potential financial benefits. Speaking with a financial advisor or tax consultant can help you identify any possible tax benefits you may qualify for.

Freedom to design space

Owning a home also offers the freedom to personalize and modify the property to suit individual preferences without seeking permission from a landlord. 

Market conditions

Finally, as Orlando continues to experience growth and development, homeowners can potentially capitalize on the area’s thriving real estate market. By purchasing a property in Orlando, individuals can secure a long-term asset while enjoying the benefits and pride that come with homeownership.

Disadvantages of buying a home in Orlando

High demand and competitive market

Orlando’s real estate market has experienced significant growth and demand in recent years, which can lead to increased competition among buyers. This high demand may result in bidding wars and inflated prices, making it more challenging to find affordable housing options. Additionally, limited inventory and a seller’s market can make it more difficult to find a property that meets your specific needs and budget. 

Property insurance costs

Florida, including Orlando, is at risk of natural disasters like hurricanes. As a result, the state often experiences higher property insurance costs compared to other regions. Homeowners in Orlando may need to pay higher insurance premiums to adequately protect their property against potential storm damage or other weather-related risks. These increased insurance expenses can add to the overall cost of homeownership in the area.

Determining if you are ready to buy a house in Orlando

Deciding if buying a home in Orlando aligns with your goals can be a complicated question to answer. You’ll have to consider many factors such as your desired location, finances and budget, as well as the housing market conditions. Here are some of the main factors to consider:

1. Financial stability and affordability: Before beginning your homebuying journey, evaluate your financial situation and affordability. Consider factors such as mortgage interest rates, your credit score, and your ability to make a down payment. Lower interest rates can make homeownership more affordable, while higher rates could impact your purchasing power.

2. Long-term plans: Consider your long-term plans and how they align with buying a home in the greater Orlando area. If you plan to live in the area for a significant period, buying a home can be a good investment. However, if you’re uncertain about your future plans or have short-term goals, renting might be more suitable.

3. Housing market conditions: Consider the current state of the housing market in terms of supply and demand. If there is low inventory and high demand, it may indicate a seller’s market, which could lead to increased competition and potentially higher prices. On the other hand, if there is a higher inventory and less demand, it may be more favorable for buyers.

4. Housing preferences: Evaluate the type of property you’re looking for, such as single-family homes, condos, or townhouses, and assess their availability and affordability in the area. Consider factors like neighborhood amenities, school districts, and proximity to your workplace or desired locations.

5. Location: Orlando is a diverse metropolitan area with various neighborhoods and suburbs. Consider your preferred proximity to amenities, schools, workplaces, and entertainment options. Research the different neighborhoods to find the one that aligns with your lifestyle and preferences.

6. Employment opportunities: If you’re moving from out of the area, another factor to consider is employment. Orlando is known for its tourism industry, but it also has a diverse economy with opportunities in healthcare, technology, education, and more. Research the local job market to ensure there are opportunities in your field or industries of interest. 

7. Climate: Orlando experiences a subtropical climate with hot and humid summers and mild winters. Take into account your preferences for weather and seasonal changes when deciding to move to the area.

Is it competitive to buy a home in Orlando?

If you’re considering buying a home now, you can expect to encounter some competition in the real estate market. Here are a few factors that can contribute to the competition among buyers: 

Low housing inventory: One common factor driving competition is a shortage of available homes for sale in many areas. If there are fewer homes on the market, it means more buyers are vying for the same properties, which can increase competition. 

High demand: Strong demand from buyers, coupled with low interest rates, can create a competitive environment. Factors such as population growth, job opportunities, and popular neighborhoods can drive up demand for housing, leading to increased competition among buyers. 

Multiple offers: In a competitive market, it’s not uncommon for sellers to receive multiple offers on a property. This can lead to bidding wars, where buyers try to outbid each other to secure the home. In such situations, you may need to act quickly and offer competitive terms to increase your chances of success. 

Cash offers and pre-approved financing: Buyers who can make cash offers or have pre-approved financing may have an advantage over others. Cash offers are attractive to sellers as they eliminate the risk of financing falling through, while pre-approved buyers have already taken steps to secure financing, making their offers more reliable. 

Location and desirable features: Homes in highly sought-after locations or with desirable features like good school districts, proximity to amenities, or unique characteristics may attract significant competition. Buyers looking for properties with these qualities may face additional competition from others seeking similar homes. 

Real estate market conditions: Market conditions can vary regionally, and some areas may be more competitive than others. It’s important to research and understand the local market dynamics, as they can greatly impact the level of competition you may encounter. 

To navigate a competitive market, it’s essential to work with a knowledgeable real estate agent who can guide you through the process, help you make competitive offers, and identify suitable opportunities. Being prepared, flexible, and financially ready can also increase your chances of success in a competitive buying environment.

Advantages of renting a home in Orlando

If you’re contemplating renting a home or apartment in the Orlando area, there are a few advantages to consider: 

Flexibility

Renting provides greater flexibility and mobility compared to buying a house. If you’re unsure about your long-term plans or expect to move frequently, renting allows you to easily relocate without the burden of selling a property or dealing with the real estate market. This flexibility is particularly advantageous for individuals who prioritize mobility due to job changes, lifestyle preferences, or other personal circumstances. 

Lower upfront and ongoing costs

Renting typically involves lower upfront costs compared to buying a house. When you rent, you generally only need to provide a security deposit and possibly pay for any application or administrative fees. On the other hand, buying a house involves significant upfront expenses such as a downpayment, closing costs, home inspections, and potential repairs. Additionally, as a renter, you’re generally not responsible for major maintenance and repair costs, which can save you money and the hassle of dealing with unexpected expenses.

Disadvantages of renting a home in Orlando

Lack of long-term financial benefits

When you rent a house, you don’t build equity or gain potential long-term financial benefits like homeownership. Rent payments don’t contribute towards ownership or potential property appreciation. Instead, your money goes towards the landlord’s investment, providing no return on investment for yourself.

Limited control and restrictions

Renting a house often means you have less control over the property. You may face restrictions on making modifications or personalizing the space to suit your preferences. Additionally, your lease terms may subject you to rules and regulations set by the landlord or property management company. This lack of control can limit your ability to truly make the rental property feel like your own home.

Renting vs buying in Orlando: A real estate agent’s final thoughts

Historically, the greater Orlando area has been a popular destination for homebuyers due to its warm climate, attractions, employment opportunities, and overall quality of life. As you make the decision between renting vs buying in Orlando, make sure to consider the market conditions, your financial situation, long-term plans, and housing preferences.

Remember, real estate markets can be dynamic and subject to change. It’s crucial to conduct thorough research, consult with local experts, and assess your personal circumstances before making any decisions. At the end of the day, whether you decide to rent an apartment or buy a home, the Orlando area is a fantastic place to call home.

Source: redfin.com

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My travel mantra holds that travel should be free — or as close to free as you can get! Budget travel tips usually focus on ways to find cheaper airfare or hotels, and these are a great start. But thinking outside the box can yield some extraordinary vacations that are surprisingly affordable. Here are the different ways I travel to save (and sometimes earn!) money:

Rent a House or Apartment
If you want to stay somewhere nicer than a hostel, but aren’t eager to pay hotel prices, consider renting a house or apartment. You’ll be able to cook for yourself and avoid the $5 bottles of water. You’re also more likely to get an authentic local experience, as vacation rentals are often located in neighborhoods, rather than in tourist areas.

Vacation rentals are a great proposition if you’ve got kids, since they can run around and eat Mac ‘n Cheese — the epicenter of childhood, by my memory — without disturbing hotel or restaurant staff.

VRBO is the most popular source for vacation rental listings, but the large number and inconsistent quality of listings can be disorienting. As much as possible, I recommend using local vacation rental sites operated by people in the region you’re visiting (Google is your friend). These sites are run by people passionate about their properties, whether it’s one house or 50 properties, and can offer local tips and personal attention.

Travel in Groups
One way to really maximize the value of vacation rentals is to rent them as a group. While it might sound crazy to pay $800/night for a fancy 6-bedroom home, the number to pay attention to is the cost per room (in this case, $133 per room). If you have six couples staying together, that’s only $67 per person. And often, the larger homes have amenities like hot tubs, pool tables, docks, fireplaces, or large acreage.

Last year, my aunt, boyfriend and I rented a gorgeous two-bedroom flat in Paris’ Left Bank, across from the Louvre. We shopped at the famous Parisian markets and cooked many of our own meals. Our flat cost $80/night each, so we splurged and stayed 10 nights. We leisurely toured the museums, took day trips out of town, and wandered the streets of Paris, pretending to be locals.

Visit People
If you know anyone who lives in a place you’d like to visit — heck, if you know anyone who knows anyone who lives in such a place — contact them. I’ve never regretted reaching out to someone in a foreign land I’m visiting, no matter how tenuous the connection. This generally works best for international travel, though even with domestic travel, you’re sure to get some restaurant and activity recommendations.

Most people are thrilled to show you around their town, and they can point you towards the cool, local spots off the tourist track (read: you won’t have to pay tourist prices). Making connections with others is what travel is all about, so don’t be shy!

Trade
There are people all over the world who want you stay in their place for free. All you have to do is reciprocate. Browse sites like INTERVac and HomeExchange.com, and search for people who want to visit your region. When I was a kid, every summer my family exchanged our home with a European family’s. We were able to explore new countries like France and Italy at a leisurely pace, rent-free.

Monetize Your Space
This tip is a bit more complicated and requires a bigger leap of faith. Whenever I know I’ll be out of town, I make my boyfriend’s and my San Francisco apartment available for rent. So while my boyfriend and I are off traveling, someone is nearly always paying to stay in our apartment. For example, we recently took a two-week trip to Boston and managed to find someone to rent our place the entire time we were gone.

Last summer, I generated enough money this way to fund all our major travel expenses. We traveled to New York City, Boulder, Sonoma, and Boston. After totaling the air, lodging and car rental costs, I was delighted to find we broke even. By hanging with locals and cooking our own meals, our entertainment and food costs were about the same as they would’ve been had we stayed home. We rented apartments, used hotel points or stayed with local friends to save money on lodging. We purchased in advance to save on airfare and car rentals.

Note: For that last tip, be sure to get your guests’ contact information (including where they’re from and what brings them to town), create a contract, collect a deposit, and trust your gut — if you have a bad feeling about someone, don’t rent to them. Also, in some parts of the country, short-term rentals are starting to be regulated. Ensure you’re aware of local laws and tax requirements.

Budget travel is often about hostels and last-minute airfare. But with some advance planning and a creative approach, it’s also possible to travel inexpensively, connect with friends, and experience local culture all at once.

J.D.’s note: One weekend every year, Kris and I rent a home in an Oregon resort community. We split the cost with five other couples. It’s a fun tradition that doesn’t break the bank. And when we were in Europe last fall, we spoke with many couples who were renting (or planning to rent) a flat in Rome or Paris for a week or more. Costs were lower than a hotel, and the situation was more convenient.

Source: getrichslowly.org

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It’s no secret here on Making Sense of Cents that I am a homeowner.

However, what some people might not know is that I bought my home at the age of 20.

Yes, I was TWENTY YEARS OLD.

I know this isn’t the norm for most people, and I know that just because some are able to do it and make it work doesn’t mean that it’s for everyone. Most of my friends bought homes when they were around my age as well, so maybe it’s a St. Louis thing? 🙂

Anyway, we both had okay full-time jobs at the time. Buying a house at a young age was possible for us.

We moved into our home in October of 2009, and I graduated in May of 2010, so we did buy our home thinking that we would have a higher income coming May 2010. Luckily, that worked out in our favor, but I don’t think I would ever recommend buying on an expected higher income unless you knew for sure (150%!) that it would happen.

We bought in 2009, when there was the $8,000 first-time homebuyer tax credit and when the housing market was cheap for buyers. Also, buying a home where I live is cheaper than renting, so that was something that definitely influenced us.

Before we bought, we were renting a house (for super cheap – like $350 a month, if I remember correctly) but had to move because we had a crazy neighbor who had the SWAT team at his house on a monthly basis and he started to threaten our lives as well (some of you know exactly how that ended – not good at all).

Also, I found a snake in my bed one night (yes, an actual SNAKE!) and I was pretty much scared to sleep in that house ever again because of the neighbor and the snake.

Even though we were both very young, houses were a steal at the time, and we needed a new place to live.

Here are my tips to help you buy your next home. If you want to buy a house at a young age, or any age, there are things you might want to think about.

Do you actually want to buy? Or should you rent?

Before you decide that you absolutely want to buy your next home, you should stop and think about the positives and negatives of both home ownership and renting. Not everyone is meant to be a homeowner. And not everyone wants to rent.

Some different things that you should think about include:

  • Do you want to travel a lot? If you want to travel, then having a permanent home where you have to pay the bills even if no one is there may be a waste of money for you.
  • Do you plan on moving for your career? If you are young, then you may still be early in your career and you may decide that you want to leave your home city one day. I actually was offered a position right after I graduated from college (around 6 months after we bought our house) and they wanted me to move. Luckily, the position kind of sucked and the town they wanted me to move to sounded absolutely horrible (I think there were around 100 people that lived in the whole COUNTY of where the position was located) so I didn’t give the position any thought.
  • How’s your credit? If you are young, then you may not have even established any credit. It would be very hard, if not impossible, to buy a home without a good credit score.
  • Do you have time and/or money for home maintenance? If you own your home, then there will be home maintenance that goes along with it – it doesn’t matter if your house is new or old, stuff happens. Something may break, grass needs to be mowed, and so on.

What kind of home do you want?

Each person is different. Just because the “American Dream” is said to be a suburban house with a white picket fence, doesn’t mean that it’s everyone’s dream.

You should really think about where you want to live and what kind of home you want.

  • Do you want to live in the suburbs? Maybe you want to live right on the beach? Or is city living more for you? Or do you want to live far away from everyone and live 20 minutes away from the closest grocery store?
  • Do you want a house, a condominium, a townhouse, a duplex, a farm, or something else? Maybe you want to live on a boat? I don’t know! There are so many different options out there

Find a realtor.

If you are buying a home, please find a realtor! I have met a few people who think that they have to pay the realtor if they are a potential homebuyer. That is not true.

The realtor receives a commission from the seller, at no cost to you. Or at least this is how it is in the United States. Can others in other countries chime in about this?

There are many positives of having a real estate agent. They can help you negotiate (they are professionals at this), they can help you find the perfect home for you, they have experience in buying homes, and they can help you with all of the paperwork that will need to be done (and trust me, there is so much paperwork!).

Think about the total cost of the home that you want to buy.

This is something that some/many people do not think about when they buy a home. When you buy a home, there are so many factors that go into how much a home truly costs.

These include:

  • The home price. This is the number one thing that potential homebuyers look at, but don’t forget about the below!
  • Utility bills. You would be surprised to see how much utility bills can vary. One home may have utility bills of $200, and another may have utility bills of $700. You should be able to get a detailed past expense list or at least a realistic estimation of how much utility bills will cost you for that specific house from the current homeowners.
  • Private Mortgage Insurance. If you didn’t put a 20% down payment on your home, then you may have to pay PMI.
  • Property insurance. Insurance can vary greatly depending on where you live and what type of home you have. I pay around $700 a year for property insurance, but I know others who pay over $2,000 a year.
  • Property taxes. This can be a rather large amount of your monthly mortgage each month. I pay around $150 each month towards property taxes, but I know others who pay over $500 each month (and that is just crazy to me!).
  • Maintenance. Things will break in homes, like I said earlier. Also, you may need to paint eventually, mow the lawn, buy more efficient appliances, and more.

Rent out a room in your home for some extra money.

I wouldn’t recommend buying a home unless you can truly afford it. However, if you are young and there is plenty of extra space in your home, then it probably wouldn’t hurt you to rent out some of that extra space.

Renting out a room in your home can add an extra few hundred dollars to your income each month, which can be really helpful if you are a homeowner.

We have four bedrooms in our house and we only use one (our bedroom). So when my sister needed a place to live a few years ago, we invited her to live with us. It’s been working out very well. She’s been living with us since May of 2012 and pays around $325 per month.

We also haven’t really noticed an increase in any of our bills, but with some renters you may notice that. It’s always a good idea to try to estimate how much things will increase, wear and tear, and more in order to see whether renting a room in your home is worth it for you.

Is it a good idea to buy a house at a young age?

There are many things to think about when buying a house when you’re young, such as:

  • How long do you think you will live in the area?
  • Can you afford the house?
  • Do you want to travel?
  • Do you plan on having a family?

And so on.

Buying a house in your early 20s, or whatever you consider to be a young age is possible, but you’ll just want to be smart with your decision.

What advice would you give to someone looking for a home? Is there anything that you wish you would have done differently when home shopping?

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Source: makingsenseofcents.com

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Finding the best renters insurance policy is what most renters want but aren’t interested in spending a lot of time weighing all the different options.

Worse, a lot of renters don’t know much about it, or think it’s important.

But if you rent the home you live in, whether it’s a house, a condo, or an apartment, renters insurance is no less important than homeowner’s insurance is to a homeowner.

Renters often assume if they experience any losses due to disasters, such as fire and theft, they’ll be covered under the landlord’s insurance. That’s almost never true!

The landlord’s property insurance will cover destruction of the building, but not the contents that are within it. And since virtually all of the contents in a rental property belong to you, the renter, you will be completely out of luck if disaster strikes.

Best Renters Insurance Companies

It would be impossible to say which company offers the lowest premiums on renters insurance. That’s because the quotes you’ll get will be different, based on your personal needs and profile, other insurance policies you might bundle with the renter’s policy, your geographic location, and the type of property you live in.

There’s a wide variation in the premiums for renters insurance between companies competing in the same market. That means it pays to shop!

And while some companies seem to provide additional coverages, it’s hard to know if what they were giving were actual extras, or if they were simply giving more detailed quotes. It’s possible that similar types of coverage are available with all five companies.

What is Renters Insurance?

Renters insurance is a specific type of coverage that insures the possessions that are stored in your rental property. Exactly which possessions are covered depends upon the type of renters insurance you have. Whether you want to protect your prized jewels, new laptop, big screen TV, or a number of other items that are near and dear to your heart, a good renters insurance policy is probably well within your reach.

Renters insurance helps you with replacing stolen or damaged property, but also with protecting yourself from liability on your property and providing you with a backup plan in the event that your home itself is damaged. Let’s take a closer look at those below.

What Renters Insurance Covers

There are three standard provisions that will be found in nearly all renter’s insurance policies:

Personal Property

Similar to a homeowners policy, renters insurance covers the contents of the home you are renting. That includes furniture, electronic equipment, clothing, appliances, and personal effects. You will typically take a policy that will cover anywhere from $10,000 to $100,000 in personal property, though it can be higher.

To determine how much personal property coverage you need, you should take an inventory of everything you have. List the inventory, and then get retail prices on the cost to replace each. It’s tedious, but that’s the only way to really know how much coverage you’ll need.

It’s usually best to take photos, particularly of high-value items. That will make it easier if you need to make a claim with the insurance company.

Personal Liability

Personal liability coverage will protect you if an accident or injury happens to someone else who’s in your home. This can be someone slipping and falling in the home, being bitten by a family pet, or other types of injuries.

It could include visitors, repair people, or even the landlord if the cause of the injuries is determined to be your fault.

Personal liability coverage will protect you and your assets from lawsuits brought against you by injured parties who are holding you responsible.

Additional living expenses

This is coverage that pays in the event you lose the use of the rental premises. For example, if the property is destroyed or damaged by a fire, the insurance policy will pay for reasonable relocation expenses, such as reimbursement for a hotel stay, meals, and other expenses related to the temporary lodging situation.

Non-standard Renters Insurance Provisions

The following may be offered as part of a standard package with some insurance companies, but are additional provisions with others.

Off-premises coverage

This is coverage for possessions beyond the rental property itself. For example, it could include possessions stored in the common area of the basement of your apartment, that are subject to either damage, destruction, or theft. It can also extend to personal items stolen from your vehicle, if those items would normally be covered under your rental policy. This might be a laptop computer, as long as it’s specifically covered under your renter’s policy.

Some renter’s insurance may also include a provision to cover lost luggage, which might be lost by an airline.

Specific coverage items

You should never assume a renters insurance policy covers every possession you own. Some have specific exclusions, and others will exclude an item if it is not specifically listed.

Common specific coverages include home computers, jewelry and furs, business personal property, and firearms. If you have these items, be sure to check to make sure they’re included in your coverage. If not, you may have to get special coverage for each category individually.

Some policies do specifically include all four of these categories. State Farm is an example (see policy quote below). But never assume they’re automatically covered in your policy.

What Renters Insurance Doesn’t Cover

In the broadest sense, renters insurance doesn’t cover any hazard that is not specifically listed in the policy.

Got that? That’s the general rule, but there are certain specifics you should be aware of.

For example, just as is the case with homeowners insurance policies, renters insurance doesn’t usually cover losses due to floods and earthquakes. Those are considered a special category of hazard, specifically requiring either flood insurance or earthquake insurance.

While a renters policy may cover damages sustained as a result of a burst water pipe, you won’t be covered if your home is destroyed as a result of a river that floods your neighborhood.

If you live in an area that’s subject to natural disasters, you should look into getting a policy specifically for that hazard.

When is Renters Insurance Needed?

When required by a landlord – Large apartment complexes typically require you have renters insurance, but so do a lot of individual landlords. It’s likely they have this requirement to protect themselves from tenants filing suits to get compensation for possessions lost due to fire or some other hazard. The requirement is written into the lease.

When you want your possessions protected – Even if your landlord doesn’t require you to have renters insurance, you should have at least a small policy to protect your possessions. Though your stuff may not seem to be worth much, it could easily cost several thousand dollars to replace it, should most or all of it be destroyed or stolen.

College students – Whether you live in a dorm or off-campus, renters insurance is worth having. You probably have at least a laptop, clothing, and some entertainment equipment that would need to be replaced upon loss. You can usually get an inexpensive rider added to your parent’s policy to cover your dorm room.

Retirees who rent – Like college students, retirees may assume that what they have isn’t of much value, particularly if much of it is more than a few years old. But once again, the cost to replace your possessions could be many thousands of dollars. Renters insurance would provide you with the cash for the replacements.

Anyone who rents their home – You might assume if your rental is short-term you don’t need renters insurance. Or, if you’re renting a house, you may assume you’re covered under your landlord’s homeowner’s policy. Both assumptions are wrong.

Renters insurance is necessary anytime you’re in a rental situation.

How Much Renters Insurance Do You Need?

As I wrote earlier, you need to do an inventory of your possessions to determine how much coverage you’ll need to replace everything you have that could be lost. You might also have to get additional coverage for gray-area possessions, like business property, computer equipment, or jewelry and furs.

Liability coverage requirements are harder to estimate. $100,000 should probably be a minimum. But you should also adjust for factors such as how frequently you have visitors or people coming and going to and from your home, as well as any maintenance considerations. For example, if you live in an area where snow and ice are common, and you’re responsible for keeping walkways and stairwells clear, you may need more coverage.

As to the additional living expense portion, try to come up with a reasonable estimate of how much it will cost to live in a hotel for maybe 30 days, while repairs are being done to your rental property. If it’s a severe situation, you might need several months. But the cost of that coverage could be high.

Replacement cost versus actual cash value

This might be the most important single factor in choosing a renters insurance policy. It will determine how much you’ll receive on a claim, so you need to know which provision your insurance company is using.

Under a replacement cost provision, the insurance company will pay a sufficient amount to replace the lost items based on retail cost.

Under actual cash value, the insurance company will reimburse you for the depreciated value of the item. Let’s say you paid $1,000 for a flatscreen TV five years ago, and it’s destroyed in a fire. The insurance company may decide the value of the TV is just $200, based on its age. That’s the amount you will be reimbursed for.

Now actual cash value policies are less expensive than replacement cost policies. But as you can imagine, they’ll also pay you a lot less if you file a claim.

Unless you’re in the habit of buying your possessions at flea markets and garage sales at deep discounts, you’ll be much better off with a replacement cost policy. It may cost more for the premium, but it will do its job better when disaster hits.

How Much Does Renters Insurance Cost?

According to the Minnesota Department of Commerce renters insurance averages between $15 and $30 per month.

How much renters insurance costs depend on the usual factors that affect all insurance policies. These can include the amount of coverage you want, the deductible you’re willing to accept, your history of claims, and even how you plan to use the property.

But where renters insurance is concerned there are more specific considerations. For example, the number and type of pets you have can be a factor. Certain breeds known to be more aggressive will result in a higher premium. So will a wood-burning fireplace. The number of occupants might also figure in. Presumably, the higher the number, the more likely a claim will be paid out.

A higher premium might also be charged if you’re running a business out of the residence. In fact, certain types of businesses might require you get a commercial policy, rather than a standard rental policy.

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One of the biggest single factors is property location.

Urban locations typically cost more than rural ones, due to the closer proximity of buildings and the likelihood of fire. If the property is located in a high-crime area, it can also increase the premium. So can a location in an area that’s more prone to natural disasters, such as tornadoes and hurricanes.

The type of construction of the building is also important. For example, a building made of brick, rather than wood, would have a lower premium. The age of the building might also be a factor, since newer buildings generally have better fire protection features, like smoke alarms and sprinkler systems.

Here’s a table put out by the Insurance Information Institute that shows the average cost of both homeowner’s and renter’s insurance from 2006 to 2015. Notice how inexpensive renters insurance is compared with homeowners? It is a common misconception that insurance is too expensive for renters.

In fact, it is affordable and well worth the cost for the peace of mind and protection you receive. In 2019 and beyond, you can expect the same kind of minimal changes and affordability to remain intact, as the table below suggests.

How to Lower the Cost of Renter’s Insurance

Whatever the situation with your renter’s insurance premium, there are ways that you can keep the cost down.

Don’t buy more coverage than you need – Take an inventory of the contents of your home, and make a reasonable estimate of the replacement value of what you have. If it’s only realistically worth $25,000, then you don’t need a $50,000 policy.

Security and protective systems – Residences that have smoke alarms, fire extinguishers, indoor sprinkler systems, deadbolt locks, and security systems will usually have lower premiums.

Bundle renters insurance with other coverages – If you have auto, life, or health insurance, consider bundling your renter’s insurance with one of these policies. It can result in small savings on the premium.

Claim-free history – Like all other types of insurance, your claim history will be a major factor in determining the premium. When it comes to renters insurance, companies normally look back at least five years. If you had no claims filed in that time, you’ll get the best premium rate.

Policy exclusions and limitations – You can specifically exclude any types of property that you don’t actually own. For example, if you don’t have much in the way of high-cost jewelry, you won’t need coverage for jewelry and furs. Also, you can save a good bit of money by increasing your deductible from $500 to $1,000, or even higher you have the liquid savings to cover the difference.

The insurance company you choose may be the single biggest factor in determining your premium. Some companies just want the business more in your particular location, and will discount premiums to get it. You’ll see how this works in the next section.

What to Watch Out for With Renters Insurance

There are a few situations that might cause your premium to be higher, or even cause the insurance company to deny your application.

High-risk renters

This could be the result of the location of the rental property or even certain risks associated with you as a tenant.

Location can be a factor if you’re living in a high crime area, or in an area that has seen an above-average number of fires and other hazards. A location may be considered high risk if it’s located too far away from fire hydrants or fire stations. Your premiums will be higher if you’re located in such a neighborhood, or you may find that an insurance company is unwilling to extend coverage at all.

You could be considered a high-risk renter if you made one or more claims against your policy within the past five years (this is a standard question on renters insurance applications, so be ready). Some insurance companies may not offer a policy at all if you have one.

Still another possibility that would make you a high-risk renter is if you run a business out of your home. While a work-from-home situation won’t usually be a problem, having the type of business where you have people coming and going from the residence could be an obstacle.

One prominent example is if you’re running a childcare business out of your home. A situation like that would probably require a business insurance policy, in addition to renters insurance.

Sub-letting the residence

This is where you are the primary tenant in the property, but you might then rent the property out to another party on a temporary basis. While renter’s policies do provide for roommates and other regular occupants, they generally frown on transient arrangements. This will pretty much preclude using a rental premise for AirBnB customers!

Dangerous or exotic pets

Since certain types of pets are statistically more likely to cause injury to people, the insurance company may either charge you a higher premium for these pets, or even refuse to issue the policy entirely.

This is a common occurrence with certain dog breeds. For example, most insurance companies will have a problem if you have a pitbull, a German Shepherd, or other dogs deemed to be aggressive.

You might also run into a problem with certain exotic pets. A good example might be an iguana or a 10-foot python. Both are considered to be potentially dangerous, and don’t fall within the definition of ordinary pets. You probably won’t be able to get a renters insurance policy at all if you have this type of pet.

Unusual possessions

The same can be true of jewelry, furs, artwork, or antiques. If you have items that have significant value, either individually or collectively, you may need a separate policy that specializes in that particular type of possession.

Never assumed that a high dollar value item is covered under your policy. Just because you have $50,000 in coverage doesn’t mean that a $10,000 diamond ring is covered!

Should You Get Renters Insurance?

Unless you’re the kind of person who travels light in life – like really light – you absolutely need renters insurance. That means anything more than the clothes on your back, and an overnight bag with toiletries. It can be furniture, computer equipment, photography equipment, family heirlooms, appliances – you name it. If it’s worth anything at all to you, to the point that you would need to replace it if were lost, then you need renters insurance. .narrow-sky-1-multi-648border:none !important;display:block !important;float:none !important;line-height:0px;margin-bottom:15px !important;margin-left:auto !important;margin-right:auto !important;margin-top:15px !important;max-width:100% !important;min-height:250px;min-width:250px;padding:0;text-align:center !important;

Never assume your personal possessions will be covered under your landlord’s homeowners insurance, or under any other policies you may have. Renters insurance is a very specific type of coverage, and there’s no substitute for having your own policy.

Source: goodfinancialcents.com