[Editor’s note: This is part of the category product review series for the small landlord property management software sector. Originally published in the Geek Estate Mastermind.]
Syndication is a necessary component of succeeding for any property management software vendor, short of a massive built-in audience of renters. After all, a landlord’s goal is to find a tenant for their property as soon as possible—which generally requires advertising a rental listing far and wide.
The five companies covered in the mini-series: Zumper Pro, Airbnb, Avail, Cozy, Zillow Rental Manager. All except Airbnb do some level of syndication of long-term rentals. RentecDirect and TurboTenant are also included below as a result of membership in the Mastermind.
Below is a snapshot of property management software vendors’ syndication partners…
Note: I am keeping an updated spreadsheet available to members of the Geek Estate Mastermind. If you work for a property management software provider and wish to have your company included, please have your company’s founder apply/join.
It’s true that those who own the marketplace (demand) and own the tools have an unfair advantage when it comes to serving landlords. Thus, Zumper and Zillow do hold a strategic customer acquisition advantage compared to Cozy and Avail due to traffic and brand goodwill generated from their rental search products.
Zillow Group, Realtor.com, and CoStar all have significant resources to deploy. However, one significant challenge is getting those leadership teams on board with focusing on low-value (free, in most cases) landlords. They all have larger revenue streams elsewhere, so it’s unclear when, or if, rentals will move up the priority list. Redfin is the dark horse in this race. It seems inevitable that it will eventually broaden its rentals work beyond WalkScore.
Tomorrow (April 8th) at 11 am PST, Geek Estate is conducting a virtual discussion on affordable housing — facilitated by Matt Hoffman at HousingTech Ventures. It is a discussion, not a webinar…. so limited to 15-20 participants. If you are a founder/operator working on a solution in the space, we have a couple open slots. There is an agenda outline included below to give you a better sense of what will be covered.
If interested in joining, please shoot me a note (drew at geekestatelabs dot com).
Market level considerations
Will rents be paid? If not, what are the implications? (forbearance; lease modifications; evictions)
Will mortgages be paid? If not, what are the implications? (forbearance/foreclosure)
Government/Policy
What policy fixes will be short-term and what if any will be long-term?
How do we not waste this crisis to fix:
Zoning issues
NIMBY issues
Permitting issues
Other regulatory barriers
How do we not waste this crisis to get:
Cheaper capital for affordable housing
Funding for resident services
Solutions
What operational solutions are now likely to be more palatable for landlords/portfolio owners?
Will banks, insurance companies, and appraisers change underwriting criteria?
What tenant services are landlords likely to eliminate or want to adopt?
How can landlords/portfolio owners operate more virtually?
How do you get people’s attention in a time of crisis to try your service/solution?
Being a landlord isn’t all lounging around in designer sweatpants while the rent checks roll in.
If you’re managing your property yourself, you’ll find there’s more than a little legwork involved. Whatever your reasons, (and there are plenty, ranging from investing in property to getting stuck with a house you don’t want to live in), buckle up. We’ll be walking you through how to be a landlord.
How to price your rental
A lot of factors go into pricing a rental, but in the end, it’s all pretty simple. If you don’t hit the sweet spot, it’s either going to sit empty or cost you money.
Either way, you lose.
Here are the most important things to keep in mind:
1. What are your costs? Before anything else, do the math and find out how much you need to charge to not actively lose money. Take into account your mortgage payment, housing taxes, HOA fees, upkeep and repair costs, and anything else that will eat into your profit.
It’s okay to not pull in much extra cash right away, so long as you’re in the rental business for the long term. With time—and smart money management—you’ll pay off the mortgage and get your rental income (mostly) free and clear.
2. Timing is important. Just like the housing market, the rental market has slow and busy times of the year. Generally, they match up pretty closely. Demand is highest in the summer, when schools are out and the weather is good. You’ll be able to charge slightly higher prices in the warm months than the dead of winter.
3. High rent is not worth a bad tenant. Sure, the goal of a rental property is to make you money. But there’s more to it than setting your rent as high as you can and accepting anyone who’ll pay it. A good tenant—one who sticks around for multiple years, pays rent on time, and doesn’t damage your property or suck up your free time—is worth more than an extra few hundred dollars.
4. How much are other apartments going for? When in doubt, take a gander at comparable units on the sites you’ll be using to advertise your property. Just remember to take more than zipcode into account. Other factors include:
Nearness to amenities
Appliances (washer, dryer, dishwasher)
Renovations
Square footage
Layout
Carpet vs hardwood
5. Tenants will pay for something that looks like a good value—even if it really isn’t. Ever seen rental listings advertising things like “heat and water included?” This is a tactic used to attract renters without costing you money.
How?
It’s pretty simple.
If you’ve rented out this particular property in the past (or can get in touch with someone who knows what’s what), then you have a good estimate of what the monthly utilities cost—and that you can use in your favor. Say electricity usually costs about $70 a month. By rolling that into the monthly rent at $80 or $90 a month, you get a little extra cash and an attractive offer for renters.
How to advertise your rental
Once you’ve figured out your pricing strategy, it’s time to start attracting potential tenants. Back in the dark times, that meant putting an ad in the classified section of your local newspaper and hoping for the best.
These days, though, renters tend to start their search online, and that means you need to know where and how to put your best foot forward.
First, pictures. To really sell your property, you’re going to want to use recent pictures of your (clean!) rental. When writing the description, make sure to include all your good features. If there are one or two negative things about your rental, don’t try to hide them. Being honest can actually help you build trust with potential renters.
Which sites you use depends on your needs. Landlords generally agree, for instance, that Craigslist gets them a lot of attention, but that Zillow delivers the better quality tenants.
Here’s a quick list of some of the sites you should consider using:
Of course, some old school techniques like yard signs and referrals are definitely worth trying out. Test out your options. Soon you’ll find a combination that works best for your area and clientele.
How to screen potential tenants
Attracting the tenants is the easy part—it’s the picking that takes some time and energy.
1. Ask for a rental application. You can find templates online. Look for one that asks for current and previous employers, income level, contact info of previous landlords, number of occupants, number of pets, and personal references.
2. READ that application. Okay, so this is probably a no-brainer, but you should be able to weed out a lot of applicants at this stage. So they aren’t employed? Don’t have a (net!) monthly salary that’s at least 3 times the rent and can’t get a cosigner? Have previous evictions or references that don’t check out?
Those are all very good reasons to not rent to an applicant.
3. Run a credit and/or background check. Once you have your handful of maybes, it’s time to dig a little deeper. All three off the credit bureaus (Experian, TransUnion, Equifax) offer credit screening for landlords, and some even do background checks, too. They each had different offerings, so take a look at each before deciding.
Remember, though: a credit check doesn’t tell the whole story. While they’re usually a pretty good barometer when it comes to judging a person’s fiscal responsibility, there are situations where they don’t show you the whole picture. After all, filing for bankruptcy 5 years ago and staying current with your payments ever since is a little different than, say, skipping out on your last 4 credit card bills—both of which can tank your score.
4. Meet for the in-person walk through. Don’t be afraid to go all Sherlock on prospective tenants in-person. There are plenty of questions to ask yourself in order to get a sense for what sort of tenant a person will be.
Did they show up on time?
Is their car well-cared for?
Are their children well-behaved?
Do they know what kind of questions to ask about your property?
Have they tried to lie about their credit score or job?
Just make sure not to base your decision on age, gender, race, religion, or disability—that’s against the law and can get you sued (plus, it’s generally agreed upon to be pretty gross).
How to write a rental contract
First things first—are you a lawyer?
If the answer is no, don’t write your own lease.
As we’ll get into later, there are a lot of laws surrounding housing agreements, and when you’re not familiar with all of them, it’s alarmingly simple to get yourself into trouble.
To get started, you can find templates online for your state or city.
From there, though, it’s worth the money to have a lawyer look over it, especially if you’d like to customize it. If you do it right, it should be a one-time cost for a lease agreement you can use over and over.
How to figure out your rights as a landlord
Did you know that you can’t enter your rental without giving the tenant advance notice?
Or that you can’t evict a tenant by changing the locks—even if they haven’t paid rent in months?
A long list of laws govern the relationship between landlord and tenant, and it’s part of your new job to know them.
The tricky part is that many of these laws vary from state to state. While there’s no replacement for consulting a lawyer if you run into trouble, this resource on state landlord/tenant laws is a great place to educate yourself before you get started.
Useful tips for first time landlords
If you found your way here, I’m going to take a guess: you haven’t been at this landlord thing long. Heck, maybe you’re in the middle of buying your first rental property right now.
Here are a few things the pros already know:
1. Set your available hours. Unless you’re okay with tenants calling you to fix their toilet at 10pm, find a window of time that works for both of you and agree to it ahead of time.
2. You can collect rent payments online. Technology, amiright? These days, you collect rent from anywhere in the world—awesome if you don’t live near your property or choose to interact with your tenant as little possible. There are plenty of services available (Rentpayment.com, Cozy, and ClearNow are just a few). Do your research to find one that fits your needs.
3. Be wary of renting to family and friends. You’ve probably heard that sage advice to never do business with family or friends. Well, you probably don’t want to rent to them, either. If you value the relationship, it’s best to keep money out of the equation.
4. Your tenants don’t need to know you’re the owner. Think about it: instead of telling your tenant they can’t paint the kitchen chartreuse and facing their resentment, you play property manager and blame the owner for being a spoilsport. This is an especially helpful (and legal) tip if you’re not great at confrontation or have any reason to be extra conscious of your safety. Just remember: if your business contains your name, you’ll need to change the name of the LLC so paperwork won’t tip off your tenants.
5. Document the state of your property before and after each tenant. It’s possible to wind up with a wild animal of a tenant no matter how well you screen. By knowing exactly what sort of damage has been wrought upon your property—and having the pictures to back it up in court—you’re in a much better position to hold onto your money.
6. Document any agreement you make. You’re probably noticing a pattern here: when in doubt, document. That holds especially true for any changes you agree to make to your standard lease after it has been signed. In this case, what you need is called an “addendum to a lease.” You can find templates online, but it can pay to use a lawyer.
7. Consider insurance. Landlord insurance may not be required by law, but it can definitely be worth it in the event of property damage or accidents.
Shop it while you can: A new store opening three days each month debuts today in a long-vacant retail space.
Christi Petersen is opening Seasoned Style at 824 W. 10th St., filling a first-floor space that years ago was The Willow Tree boutique and more recently was a tattoo shop.
“It’s a unique shopping experience each month,” said Petersen, who has a background in education and child care and is a partner in a similar shop in Dell Rapids.
“There’s lots of stores that do this around the country. It’s usually hand-collected, handcrafted.”
That’s the case with Seasoned Style, which this month offers a variety of fall-themed merchandise arranged throughout multiple rooms of the first floor. The upstairs is rented by a tenant.
Other than a few display pieces, “pretty much everything is for sale,” she said.
“I’m concentrating a lot on my brand color, the green (this month), and the golds and neutrals and really all the colors of fall.”
About 90 percent of the merchandise is vintage or upcycled, while Petersen hand-pours soy candles herself.
“It’s all things I find at a thrift store,” she said “I do very little wholesale, and I try to find as much handmade as I can.”
All sales are final.
Hours will be the third week of each month: 4 to 8 p.m. Thursday and 10 a.m. to 5 p.m. Friday and Saturday.
If you don’t currently offer a tenant portal to your renters, the COVID-19 situation currently disrupting the world brings to light several reasons why you might reconsider. For the most part, landlords and property managers who already communicate and interact with tenants online are facing less business disruption than those who do not. In addition, landlords utilizing tenant portals are actively promoting the health and safety of their tenants, their employees and themselves.
Even when we aren’t facing a global pandemic, a tenant portal is becoming critical to success for any property management business. I’ve encountered countless situations where my tenant portal has helped me be a better landlord.
Once while on vacation, I was notified that one of my tenants had submitted a maintenance request thanks to my own tenant portal. This one happened to be for a leaking sink, which always catches my attention because water damage can become expensive or dangerous very quickly. Using our tenant portal, my renter was able to upload a few photos of the issue, and I was able to determine that the leak needed immediate attention. I contacted my plumber and was able to get him out to the house quickly. All said and done, this entire process took less than an hour and I was able to get back to enjoying my vacation.
Landlords who don’t currently use tenant portals often underestimate the convenience and affordability of providing this option for tenants. Many are concerned that tenants may be resistant to paying rent online, but one statistic shows that more than 80% of Americans prefer banking online. Funds can be available as soon as the next day, which is often much faster and more convenient than the time it takes for a check to arrive and clear.
Tenant portals allow your renters to do things like:
Pay rent online – Gone are the days of collecting rent via check in the mail. Believe it or not, I actually know a fellow landlord who had to send out a notice to all of his tenants asking them to stop sending cash rental payments because his dog had eaten hundreds of dollars worth of rent one day. Renters can set up one-time or automatic recurring rent payments via bank transfer, or pay with a credit or debit card. The convenience of paying rent online and setting up automatic payments will help you reduce late payments (and reduce late fees for your renters.)
Track payment history –You and your renters can both easily access payment history including payment dates, payment amounts and any late fees or charges. This can help you avoid any disagreements or misunderstandings about payments and payment dates.
Place maintenance requests – If you provide a streamlined process for your tenants to submit maintenance requests or work orders, your tenants are more likely to be proactive in bringing potential issues to your attention. This can mean big savings for your business by preventing problems from going unreported and causing preventable damage to your property.
Communicate – If you manage multiple properties or a multi-family unit, you might not want to hand out your personal phone number to every tenant you rent to. Tenant portals provide a viable solution for tenants to reach out to you, and for you to communicate updates and notices to all of your tenants at one time.
Access important files – File sharing is one of my favorite features of using a tenant portal. Tenant portals provide the opportunity to quickly upload and share files with your renters – things like the lease agreement, move-out instructions, important contact information, or seasonal maintenance information.
It’s no secret that technology is changing the rental industry, and choosing not to provide a tenant portal in this day and age may even hurt you in a competitive marketplace. Renters value technology and demand the ability to complete tasks online, and landlords need to comply to keep up with the competition. You need to be able to run your business from anywhere – and because rental payments are where you turn a profit on your investment, your renters need to be able to pay rent from anywhere.
This article originally appeared on Spark Rental and has been republished here with permission.
The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.
What Is the Purpose of Bonds in Your Portfolio?
Bonds have historically served as a counterweight to stocks, as investors approach retirement.
For all their advantages, stocks come with one enormous disadvantage: volatility. When you first retire, you face something called sequence risk: the risk of a stock market crash early in your retirement, before your stock portfolio has compounded enough to withstand a deep drop.
Here’s how bonds protect you from sequence risk, and the role they play in your retirement portfolio.
1. Low Risk
Bonds are interest-only debts. When you buy a bond, the issuer (the borrower) agrees to pay you interest at a set rate for a certain period of time. At the end of that period, the bond matures and you get your principal investment back.
Bonds come with two risks. First, and most relevantly to retirees, the bond issuer could default. That rarely happens, at least outside of the junk bond market. The other risk is that interest rates rise, so the value of your existing bonds goes down on the secondary market. But this risk doesn’t really apply to retirees simply looking for ongoing interest income rather than looking to trade bonds.
The low risk of bond default counterbalances the real risk of stock market corrections and crashes. Retirees can lean on their bond income if the stock market crashes, and (hopefully) avoid selling while stock prices are low.
2. Low Correlation with Stocks
Bonds provide diversification for investors. Bond returns have a low correlation with stock returns: they rarely crash at the same time as stock markets. In fact, bond prices normally rise when stocks crash, as investors flee stocks for the safety of bonds.
Once again, this protects retirees from the risk of a stock market crash.
3. Stable Income
Retirees need passive income to live on, in the absence of a paycheck. Interest payments from bonds can provide that steady income.
The same can’t be said for stocks. Not all stocks pay dividends, and even those that do can change their dividend payment at any time. They could lower or eliminate their dividend entirely, leaving retirees without income. The retiree could sell their stocks to generate income of course, but that reduces their net worth.
Can Real Estate Fill the Role of Bonds in Your Portfolio?
The short answer: yes, if you know what you’re doing. Which, of course, not everyone does.
Real estate investments can earn you ongoing income, with low risk and low correlation to the stock market. So they can serve the same purpose as bonds in your retirement portfolio, at a higher return. In fact, one study reviewing all asset classes for the last 145 years found that rental properties offered higher returns than stocks, with far lower risk.
Still, some types of real estate investments require work on your part. You could invest in publicly-traded REITs, bought and sold on stock exchanges and just as passive as stocks, but they tend to share a high correlation with stock markets. That gives them little diversification value.
But there are many types of real estate investments, each with their own pros and cons. Real estate will never be completely risk-free like Treasury bonds, but it can offer strong returns at low risk, especially if you diversify.
Ways to Invest in Real Estate as a Bond Alternative
The permanent environment of low interest rates in the 21st century have made bonds unappealing and real estate far more appealing. Investors can use leverage to buy real estate with other people’s money, at low interest.
Or not–many of the real estate investing options below don’t involve leverage at all.
Consider the following ways to invest in real estate as options to replace bonds in your investment portfolio.
1. Crowdfunded Private REITs
Publicly-traded REITs come with several downsides, beyond high correlation with stock markets. They’re volatile, with prices bouncing up and down similarly to stocks. But they’re also required by the SEC to distribute at least 90% of their profits each to shareholders, in the form of dividends. That gives them high dividend yields, but it also makes it hard for REITs to invest money in new properties to grow their share price.
Private, crowdfunded REITs such as Fundrise, Streitwise, and Diversyfund don’t have the same restriction. They can grow the value of their fund share prices by reinvesting profits into new properties.
Even so, many do still offer high dividend yields that rival or even beat public REITs. Fundrise pays dividend yields in the 4-7% range, while Streitwise pays dividends in the 8-9% range.
Crowdfunded REITs represent one of the easiest and most passive ways to invest in real estate. No mailings or labor to find good deals on properties, no tenant screening or rent collection hassles, just buy shares and sit back.
2. Crowdfunded Investment Property Loans
Hard money lenders issue short-term loans to investors who fix and flip properties, or refinance them after renovating them (the BRRRR method). But where do hard money lenders get their funds to lend?
From you, in some cases. For example, GroundFloor lends short-term investment property loans for buying and renovating, and they raise the money from retail investors.
You get to pick and choose which loans you want to fund, and you can lend as little as $10 per loan. Which means anyone with $10 in their pocket can invest in real estate, at least indirectly through property-secured loans.
If the borrower defaults, the lender forecloses, and you get your money back that way. Since hard money lenders fund at a relatively low LTV, that provides strong protection against default. Read: relatively low risk.
Related Read: Thinking of Getting into Retail Investing? Here Are 7 Things to Consider
3. Rental Properties
You can also buy rental properties, of course.
Direct real estate investing comes with plenty of advantages. You can leverage other people’s money by using an investment property loan to fund 75-80% of the cost. Investors get spectacular tax benefits, from rental property tax deductions to property depreciation. And rental income in retirement doesn’t expire or diminish — quite the opposite. Rental cash flow rises over time, as rents rise and provide a hedge against inflation.
Is rental income good for retirement? Absolutely, but it does come with a few caveats. As noted above, buying and managing rental properties takes work. Even if you hire a property manager, you still have to manage the manager.
Rental income is predictable as a long-term average, so you can forecast returns with a rental income calculator. But net rental cash flow each month varies wildly, as you experience vacancies, turnover, or repairs. That means retirees need to budget accordingly with an emergency fund, and not depend on a steady paycheck from every property, every month.
4. House Hacking
Want free housing? Explore options for house hacking, or finding ways for other people to cover your housing expenses.
The traditional model involved multifamily house hacking: typically buying a duplex or triplex, moving into one unit, and renting out the neighboring unit(s). The rents from your neighbors cover your mortgage payment and ideally your maintenance costs as well.
But that’s not the only way to house hack. You can also bring in housemates, or rent rooms or units on Airbnb, or rent out storage space on Neighbor.com.
By eliminating–or at least greatly reducing–your housing payment, you don’t require nearly as much passive income from your investments to live on in retirement.
5. Private Notes
A “note” is the legal document that you sign when you borrow money. For example, when you took out your last mortgage, the most important document you signed was the promissory note.
You can lend money privately to other real estate investors, having them sign a private note. You set the terms of the loan, including the interest rate, any fees, loan term, and any other factors.
Beware, however, that lending money to other investors largely comes down to trust. Unless you file a lien against their property, you have little recourse if they default on you. Only lend money to experienced investors you know well and trust implicitly to pay you back.
Get it right, and you can earn high returns completely passively.
6. Land Notes
There’s a lot to love about land investing.
To begin with, land offers low risk and high returns. It also doesn’t necessarily require much cash to invest. Best of all, you don’t have to hassle with contractors or tenants, which means low stress and far fewer complications. No repairs or renovations, no chasing tenants for rent collection, no property damage by uncaring renters.
For all that, land investing requires you to approach it like a business. You can eventually automate that business to run in the background with only an hour or so required each week from you, but it takes time and labor to get to that point. Many retirees (and employees for that matter) don’t want to launch a side hustle.
7. Real Estate Syndications
Syndications offer another way to invest in real estate for high potential returns. But unlike land investing or rental properties, syndications are largely passive investments.
They work like this: an experienced real estate investor goes out and finds a (hopefully) great deal that costs more than they can afford to buy on their own. So they bring in outside investors to partner with them on the deal, on exchange for a deal-finder fee or bonus.
The outside investors become partial owners of the property and share in its cash flow and profits upon sale. But we surrender most management decisions to the syndicator, the person who found and continues to oversee the deal.
We get to invest fractionally in a large real estate project, such as an apartment building, that we would never be able to buy individually. And an experienced real estate investor does all the work for us.
Of course, no investment is perfect. To begin with, most syndication deals only allow accredited investors to participate. The SEC makes the regulation too onerous to allow retail investors to partner on these deals. Along similar lines, syndications typically require a high minimum investment, often in the $50,000-$100,000 range.
And like any managed investment, you place your trust in the manager–in this case, the syndicator. You need to do your due diligence on both the property and the syndicator if you want peace of mind in your investments.
If you own rental properties, you have come to learn that time is one of your most precious assets. We all have a lot on our plates, but especially those in property management who oversee multiple properties. Daily tasks can quickly become overwhelming, taking you away from larger business priorities.
As a real estate investor myself, I have experienced this first-hand. My biggest limitation is the time that I have available, so I have found that getting every reasonable task off my plate is one of the most important things to do in order to succeed. Once you are behind on your tasks, all you can think about is how you’re going to catch up, so automating those tasks or finding other ways to outsource them, is the first step toward real expansion and growth.
As most property managers and real estate investors know, the work never ends, so getting through it in the most efficient way possible is critical for success. If you aren’t ahead of the game, you can get buried to the point that you are actually hurting yourself, and your business.
To alleviate the pressure, I recommend automating as many aspects of your business as possible. It can save you time and money, and put you on the road to achieving your long-term goals. Here are some surefire ways to successfully automate your real estate property management business.
Embrace Digital Marketing
Traditional marketing methods to find tenants have gone the way of the wooly mammoth; if you aren’t embracing digital marketing, you’re leaving time and money on the table. Social media, email marketing, and online listings can all effectively reach potential tenants. There are a huge number of quality listing services out there, such as Zillow, Rent.com and many others. Listing your property on these sites can definitely garner some attention, but painstakingly copying and pasting the listing site-by-site is not a good use of time. Find a software that will syndicate the listing for you, sending it out instantly to all the top sites from one central location.
Leverage ChatGPT
Speaking of listings, consider utilizing ChatGPT. It can streamline a number of tasks that typically eat up time in your day. For example, you can use it to write property descriptions, newsletter content, tenant emails, blog posts and more, which gives you more time to focus on strategic initiatives. Open AI, the company behind GPT and ChatGPT, has solutions for you to integrate AI Technology directly into your software, which is what we did at Rentec Direct. Our AI Listing Generator allows clients to generate an enticing property description in a matter of seconds, which typically takes between 10 to 30 minutes.
Offer Virtual Tours
Your AI-created listing generated interest among prospective tenants, now consider how to save time in terms of property showings. Virtual tours are the answer. They have become a valuable tool for property managers. Eliminating the need to be on site to show a vacant property will save you loads of time and give the potential renters all the time they need to peruse the space for as long as they want. Make sure to add as many frequently asked questions to your virtual tour to eliminate the need for a lengthy follow-up meeting.
Invest in Property Management Software
Investing in property management software is one of the best decisions you can make for your business. The right software can help automate many tasks, such as rent collection, maintenance requests, and lease renewals. You can even automate the marketing of vacant properties and syndicate across multiple rental sites with one simple click. A property management software platform can be your ticket back to a healthy work-life balance and take more time-consuming daily tasks off your plate.
Offer Online Rent Payments
Using a check to pay rent – or anything else for that matter – is antiquated. It’s a massive waste of time, and with the expectations and busyness of today’s modern world, it just doesn’t make sense. No one wants to go through the steps of writing, mailing and sending a check through the mail, especially when there are ways to quickly and securely pay online.
Implementing online rent payment can save you and your tenants time and headaches. Not only does it make the rent collection process more efficient, but it also eliminates the need for manual record-keeping. If you are considering implementing a software platform to help automate your business, find one that has online rent payment functionality built-in. Data shows that renters are more likely to pay on time when the rent is automatically withdrawn through an online payment system too. It’s a win-win for everyone.
Use Maintenance Request Software
Handling maintenance requests can be one of the most time-consuming aspects of property management. If it’s not a broken sink, it’s an issue with the air conditioning. These can pile up and easily be forgotten, leading to annoyed tenants and adding to your stress.
Maintenance request software can automate this process, allowing tenants to submit requests online and track their progress. When all requests come to one place, knocking them out promptly is much easier. Plus, the right system will keep records for you – something that’s important come tax time.
Automate Lease Renewals
Managing lease renewals can be a pain, but automating this process can save you time and ensure you don’t miss any critical deadlines. Property management software can automate the lease renewal process, automatically sending out reminders to tenants and generating new lease agreements. The minutiae of the business no longer need to be your primary concern when you understand how to use all of the technology at your disposal.
Not taking advantage of all the ways to automate your business is only making things more complex and putting maximum strain on you. There are many ways to streamline your daily workflow, but in my own experience, automating with the right systems and technology has delivered the largest return-on-investment for me. Your business is unique, so dig deep and find the pain points you can eliminate through thoughtful automation. Nothing can replace the peace of mind that comes with having more time for yourself and your loved ones.
Most first time homebuyers don’t set out to be landlords. But maybe they should.
That’s where multifamily homes come in.”Multifamily” can mean everything from shiny new duplexes to huge, old subdivided Victorians. And they have the potential to open up some interesting possibilities for the right buyers.
Why buy a multifamily home?
As a society, we have a lot of hang-ups about multifamily properties.
When your mental image of the traditional American dream has always been a large detached house and a yard for the dog, it can be easy to rush past the less attractive but objectively smarter options.
That being said, the average American moves about 11 times in their life—so don’t worry. Your first house probably won’t be your last. It can, however, act as a stepping stone to the one you really want.
Let’s take a look at a quick (and fairly simplified) case study.
Meet Jimbob and Lupita.
They’re just starting out. They’ve got decent jobs, and have really buckled down to save up enough for a down payment of about a 10%. In a perfect world, they’d like to quit renting and cut down on what they pay for housing each month—but they realized that might be asking a lot in their current market.
After getting preapproved by a lender, they’ve determined what they can spend on a house, and after much searching, they find two options.
Option one: a single family home
Jimbob and Lupita’s first option is cute little craftsman that could use a few cosmetic updates, but nothing serious. They’ll need to take out a $170,000 loan to pay for it, which—assuming a 30 year fixed loan and an interest rate around 5%—puts their monthly payment at about $900.
It’s close to what they’re paying for their current two bedroom apartment, but at least they’re building equity.
Option two: a duplex
While the duplex is at the very top of Jimbob and Lupita’s budget and would require a loan of about $210,000, it’s in good condition and needs minimal work. With the larger loan, their monthly payment will be right around $1100. Since they’re good with budgets, it’s still comfortable for them, but only barely.
Of course, that’s not the end of the story.
Though the home has a one bedroom unit and a two bedroom unit, Jimbob and Lupita decide to downsize a bit. They move into the one bedroom and rent out the two bedroom for around $900 a month.
Effectively, their mortgage payment shrinks to $200, leaving them room to pay off their home even faster or put money toward a new property.
Where to find multifamily properties
If Jimbob and Lupita’s hypothetical scenario sounds pretty sweet, fear not. You can get there too. It will require some extra math and legwork to do right, however. First up: finding the right property.
You can find multifamily homes anywhere you can find single family homes, whether it’s online through services like Zillow or through a local realtor.
But because of the nature of multifamily properties—that is, that they have higher occupant turnover and tend to be treated like the investments they are—there are other options to consider when looking.
Cold calling
Owners are a lot less attached emotionally to investment properties, and you’d be surprised how often they’re willing to sell if the price is decent.
A good tactic is to drive around the neighborhood you’d like to buy in and look for properties that could use a little work. That gives you both leverage when making an offer and some room to increase your investment (and your rent prices) with a little sweat equity after closing.
An even better tactic? Get in touch with landlords currently going through an eviction. Thanks to laws that help protect the rights of renters, evicting truly awful tenants is an expensive and time consuming process that can leave many landlords looking for the exit sign.
Luckily for a smart shopper like you, evictions are public records in most parts of the country. Just do some research as to how to get your hands on this info (it varies by area) and you’re golden.
Foreclosures and short sales
When owners can’t afford their house, it either goes back to the bank (a foreclosure) or gets sold for less than the outstanding loan amount (a short sale). Either way can mean a deal for the next buyer.
The one downside? The process of buying foreclosures and short sales can be fraught with legal issues and hidden costs. So while you might save some cash, the end result might not be as worth it as you expect.
Buying from a wholesaler
Wholesalers snap up property at a discount and then immediately sell it to investors. If you’ve tossed out traditional methods of property searching and are still reluctant to do the legwork yourself, consider searching a wholesaler out. Just be careful and really do your homework—not all wholesalers are good at their job.
What to look for in a multifamily home
Not all multifamily properties are built the same. While most of the factors you look for in a single family home (solid foundation, good school system, you know the drill), still apply there are some quirks that you need to pay attention to.
1. Location, location, location. Sometimes clichés get it right. Location is going to have a lot to do with what kind of properties and tenants you can find, not to mention how much you’ll pay and how much you’ll be able to charge for rent. This is one area where it really pays to buckle down and do some research.
2. How many units? The more units, the more rent money. Of course, the math is not quite as simple as that. More units means more work for you, more cost when things go wrong, more complicated taxes (take a gander at all the tax rules here), and more difficulty qualifying for loans. Above 4 units, and you’re automatically ineligible for some programs. For first-time buyers, a duplex is always a solid choice.
3. A polite, timely tenant. Yup. You heard right. In some situations, your property might come with a tenant or two already installed, and since a sale doesn’t generally alter a tenant’s lease, you’ll want to make sure they’re up to snuff.
4. Resale value. While not quite as important as other factors on this list, any homebuyer would be remiss to not consider what happens if they decide to sell. Demand for multifamily homes is typically lower for a multitude of reasons, so be certain you won’t need to dump the property in a hurry, or risk doing so at a loss.
Financing your new investment property
Most people will tell you that financing an investment property is tricky. And they’re not exactly wrong.
If you’ve done your math right, though, the extra hassle is more than worth it. That’s because you can count your a portion of your projected rent as income, making it easier to qualify for a larger loan.
Though exact requirements will depend on the lender you work with, here are a few of the key differences you could encounter:
Higher down paymentr required
Higher credit score required
Properties with more than 4 units will not qualify for Government loans
Higher conforming loan limits, depending on number of units
Why occupy the property at all?
Wondering why you shouldn’t just rent out the whole thing and rake in that sweet, sweet rent money?
If this is your first time buying a investment property, occupying one of the units—at least for a little while—is in your best interest. The reasoning for this is twofold.
First, it allows you to see how you like being a landlord. Maybe it’s a sideline that really fits with your lifestyle, or maybe it’s actually kind of a pain and additional rental properties won’t be in the cards. Either way, the risk is minimal.
Second, there’s a good chance your lender will offer you a lower interest rate if you live in the property yourself.
When you give it some thought, it makes sense. If a person falls on hard times, which of their mortgages are they most likely to pay—the mortgage for their rental property, or the one for the home where their family lives?
Of course, you can make the most of it by planning on occupying one of the units yourself. The more a bank trusts you, the less you’ll pay. Plus, as an owner-occupant, you’ll also be allowed to make use of an FHA loan, which is specifically created for first-time homeowners, with benefits like a lower credit threshold and options for down payments as low as 3.5%.
Acting as neighbor/landlord
Okay, so you’ve done your homework and determined that a multifamily property could work for you financially. Awesome.
But what about that whole landlording thing? How does that work?
If you’re trying to wrap your head around the landlord part of the equation, we’ve got a great post on the basics of being a landlord that covers everything from setting rent to attracting tenants.
However, if you’re planning on occupying the property yourself, there’s also the neighbor part of the equation to consider. While it’s great to be friendly with your neighbors, you should always keep in mind that this is primarily a business arrangement and act accordingly.
Here are a few tidbits to keep in mind:
Make your requirements regarding things like noise level and communal outdoor spaces clear in the lease agreement.
Document any changes you decide to make to the lease–verbal agreements won’t help you in court.
Avoid throwing your power as landlord around unnecessarily. It doesn’t exactly make for comfortable living situations.
Study up on your rights as landlord as well as the rights of your tenants. Knowing your stuff can make conversations much smoother and keep you from getting sued.
Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!
Moving into your first apartment is an exciting time!
You’re finally out on your own, and you get to decorate and furnish your space however you want.
But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.
This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.
So what are you waiting for? Let’s get started!
My First Apartment Mistakes
Moving into your first apartment indeed marks an exciting milestone in life.
However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.
It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.
Here are some aspects to consider:
It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.
Your home is meant to give comfort, not financial stress.
The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.
Learn is $5000 enough to move out?
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Big Items for Your First Apartment Checklist
You’re finally out of your parents’ house and ready to start your own life. Congrats!
This is an important step when you want to move out at 18.
Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.
This is where to focus your money or look to find free items.
1. Mattress
Living in your first apartment?
Do not underestimate the importance of a good mattress.
It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.
Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.
2. Bed Frame & Headboard
You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.
In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.
Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.
3. Couch
Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.
When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:
For those living by themselves:
A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.
If you are planning to live with a roommate:
You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.
Whether you choose new or used, ensure that the couch fulfills your needs.
4. End Tables and Lamps
End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.
There are many reasons why they should be on every first apartment checklist.
Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.
More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.
5. Dining Room Table
Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.
Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.
Here’s a step-by-step guide to help you find your ideal fit:
Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.
Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.
A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!
6. Kitchenware
Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.
To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.
Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.
These are the basic items for a minimalistic kitchen.
7. Patio Furniture
Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:
Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.
Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.
8. Grill
One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.
Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.
Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.
Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.
9. Storage Items
Stepping into your first apartment, huh? The organization will be your closest ally.
Crisp and neat storage items can help you stay clutter-free and make your space feel like home.
This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.
10. Decor
Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.
You want the decor to reflect your style, but the cost may be more than you can afford.
Enter thrift shopping for some of your favorite items.
You can always splurge on that one item you want!
How do I prepare for my first apartment?
Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.
Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.
Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.
Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.
First Apartment Checklist for Bedroom
Ready to move into your first apartment and need help setting up your bedroom?
This checklist will ensure you won’t miss any essentials.
Bed: Choose a full or queen-size bed to maximize space.
Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
Nightstand: You need this to place essentials like a reading lamp and a glass of water.
Dresser: An essential piece of furniture for your clothing storage.
Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.
Remember every space is unique, tailor this list to your needs and budget.
First Apartment Checklist for Kitchen
As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.
Here’s a lifesaver list of must-haves:
Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!
First Apartment Checklist for Living Room
When setting up your first apartment living room, remember to shop for these essential items:
A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
Extra Seating: More seats for more guests.
Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
Decorative Pillows and Throw Blankets: For aesthetics and comfort.
Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.
Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.
Technology for Your First Apartment
In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.
These add convenience, entertainment, and a sense of security to your cozy abode.
Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.
Thankfully prices have dropped significantly on TVs since I bought my first one!
First Apartment Checklist for Bathroom
One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:
Cleaning Your First Apartment
Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!
Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.
Now, let’s dig into your basic apartment clean-up kit:
Honestly, these frugal green items are perfect to keep things clean and on budget.
Things you need for an apartment that you wouldn’t think of
Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.
Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.
Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
Hangers: You’ll need more of these than you think for your wardrobe.
Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
Fire Extinguisher: Better to be safe than sorry!
Carbon Monoxide Detector: Extremely important to have in your apartment
Duct Tape: It solves every DIY project – while almost any.
Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.
Renter’s insurance is instrumental for various reasons
It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.
Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.
How do I budget for my first apartment?
Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.
Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.
Step 1: Make a Budget
Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.
Begin by detailing your annual net income.
Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
Make sure your expenses are less than your income.
While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.
If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.
Step 2: Save Money
Saving money and living frugally requires strategic thinking and discipline.
Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.
Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.
The 100 envelope challenge is extremely popular!
Step 3: Start a Side Hustle
Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.
Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.
Here are ways to make money online for beginners.
First Apartment Tips
Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.
1. Make a list of apartment essentials
A list of apartment essentials plays a crucial role, particularly for first-time movers.
The benefits and significance cannot be overstated. Here’s why:
Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.
Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.
2. Consider your budget
Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc
Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.
Learn the ideal household percentages.
3. Research apartments
Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.
Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.
Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.
4. Check apartment listings for features and amenities
When searching for the perfect apartment, consider features and amenities that align with your lifestyle.
If there is a sym space, you could eliminate your monthly gym membership.
Just make sure the cost of the upgraded amenities is worth the price tag.
While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.
5. Think about the size and layout of the apartment
Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.
Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.
Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.
6. Look for apartments with good security
When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.
Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
Verify the cell phone reception inside the apartment for any emergency calls.
Lastly, always ensure that the parking area is secure and well-lit.
Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.
7. Make sure you get a good deal
Before signing a lease, it’s crucial to ensure the rent price is a good deal.
According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.
8. Talk to the management and make sure you understand the rules
Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.
It is important you understand your lease as it is a binding contract.
First Apartment Checklist PDF
Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.
Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!
FAQ
Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.
Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.
The comfort and safety of your new apartment rely hugely on these checks.
When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.
For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.
Keep in mind, this amount should cover:
Your rent
Utilities (unless they’re included in your rent)
Rental insurance
It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.
Now Get Moving with your Apartment Shopping List!
In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.
It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.
It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.
Remember, be mindful of your budget and prioritize based on your specific needs and preferences.
And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.
With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.
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If you’re wondering whether you can lower your rent, the answer may be, surprisingly, yes in some situations.
The prospect of bargaining down your rent may sound futile or intimidating. But, thanks to a little research and a well-planned approach, it may be possible to land a better deal.
The odds of successfully lowering your rent will probably depend on a few factors, including how much comparable rentals in your area cost, the value you represent to your landlord, and the general state of the economy and the rental market.
To decrease the awkwardness of haggling and increase your ability to sweeten your deal, you may want to try one or more of these clever and effective negotiating techniques.
The Benefits of Negotiating Rent
The obvious payoff of reducing your rent is more cash left over at the end of the month.
But you may also want to consider the longer term benefits. Let’s say you’ve successfully negotiated your monthly rent down by $100.
It’s nice to have that extra $100, of course. But over the course of a year, that monthly savings adds up to $1,200.
Let’s say you applied that $1,200 yearly savings to paying down credit cards or a student loan debt (rather than paying the minimum).
You might be able to save significantly on interest payments and also boost your credit score (which could help you save money in the future by helping you to get loans and credit cards with better terms).
Recommended: What Credit Score is Needed to Rent an Apartment in 2023?
Or, you could funnel that monthly $100 saved into a high yield savings account and start building a downpayment on a home (if you’d prefer to own vs. rent) or an emergency fund, or working towards another savings goal.
If you were to invest an extra $100 into your 401(k) retirement fund or other retirement savings each month, it could yield a significant income stream decades from now. (If you’re already contributing to these accounts, be aware of the annual limits.)
In addition, by learning how to negotiate, you’re also developing a lifelong skill of standing up for yourself and cutting better deals as an experienced negotiator, which could pay off in other areas of your life.
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Timing it Right
As eager as you may want to cut a good deal and do so as quickly as possible, it can be wise to time your approach to maximize your chances of success.
That means negotiating at the right moments, when your landlord may be more amenable to cutting a deal.
Those times might include:
• The end of the month, when other tenants may have vacated the property and your landlord may enjoy the stability of a long-term tenant.
• 90 days or so before your current lease expires. That’s enough time to offer to sign another lease, but only at terms favorable to you. If you’ve been a good tenant, and the market is soft for new tenants, your odds of renegotiating a lower rent may be stronger.
• At the beginning of the calendar year. Typically, winter is a slow time for property rentals, especially in the colder climates when moving is more difficult, and it may be harder for landlords to find new tenants. Stepping into the vacuum with an offer to stay another year–at a lower monthly rental price– might give you some new-found leverage.
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Knowing What the Competition is Charging
To help build your case when approaching your property owner about a rental reduction, it can help to know the lay of the land.
If you can prove that you could live more inexpensively in a nearby rental based on local housing trends, your landlord may be more inclined to grant a discount, rather than lose your business to the competition.
For that reason, it’s a good idea to do a little digging, consider the cost of living, and comb through online listings to find out the rents of comparable units or properties in the area.
Perhaps a similar one-bedroom apartment for rent has an amenity that’s not offered at the apartment you’re currently in or considering. You might point out how these factors make the landlord’s current rental terms somewhat higher than the going market rate.
When you speak to the landlord, it may help to have a printout of comparable apartments that are slightly lower in rent and, if the unit has been unoccupied, have this information on hand as well.
You may also want to check what other apartments in the same complex or rented out elsewhere by the same landlord currently cost. This can help keep you from overpaying for an apartment and may also help you negotiate a lower rent.
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Offering a Lump Sum
If you can afford it, adding a lump-sum payment (say, three months of rent upfront) may strengthen your bargaining power and boost your odds of reducing your overall rent payment.
That’s because many landlords prefer having rent in hand and not having to worry about late or no rental payment from tenants.
What’s more, offering an upfront, lump-sum payment is one way to show a landlord that you’re serious about being a solid tenant.
A landlord may be more amenable to doing business with a tenant who is willing to go the extra mile.
Considering a Longer Lease
If you particularly like the house or apartment you’re renting, you might consider offering the landlord a longer lease in exchange for lower rent payments.
If, for example, a landlord is offering a 12-month lease to a new tenant, at a fixed monthly rental price, and you agree to extend that lease to 18 or 24 months, you might be in a stronger position to ask for a rental discount.
All things being equal, landlords tend to favor tenants who’ll be around for the long haul, and may be more likely to green-light a lower rent for a longer lease arrangement.
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Cashing in on a Referral
Landlords typically loathe empty apartments, so if you can help fill a rental unit with a referral or two, it might put you in a better negotiating position to ask for a rental price deduction for helping out.
Rental unit owners usually have to pay for classified ads to lease their open units. In addition, landlords often have to put some sweat equity into showing units, chasing down tenant leads, and vetting potential lease applicants.
By bringing your landlord good, qualified, and stable tenants, you may be able to become a valuable asset for your landlord, and help build a more robust case for a rental deduction in the process.
Not Just Focusing on Price
Yes, the primary goal in a rental negotiation is to bring the price down.
But in case that conversation proves fruitless, you may also want to consider some other perks or benefits you could ask for in lieu or a rent reduction.
Some ideas:
• A prime parking space (especially in urban areas)
• New appliances and/or fixtures in your home or apartment
• New or larger storage space
• “First dibs” on better apartments or homes in your complex, once they free up
• A waiver of fees and charges on things like gym memberships, parking privileges, community rooms, water or trash removal, or other services and amenities
• Extra parking passes for guests
• Allowing you sublet for the summer (if you plan to be away)
• One or two months free
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Giving your Landlord a Heads-Up and Being Polite
Nobody likes to be ambushed on financial matters. That’s why you might have more success if you call your landlord well ahead of when you need to sign the lease and politely let them know that you’d like to discuss the terms of the lease, and are wondering if they would be open to a price reduction.
You might then suggest having a meeting (in person tends to be best, since it can be harder to say “no” to someone when you’re sitting face-to-face) some time in the next week or two.
This gives your landlord some time to consider the situation while also giving you some time to build your case.
In addition, giving your landlord some lead time shows you’ve put some thought into the matter. It also shows you respect your landlord’s time and schedule.
Keep in mind that you have a right as a renter to negotiate rent, but being diplomatic and respectful to your landlord will likely yield a better result than being aggressive.
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Highlighting Your Value as a Tenant
When you do meet with your landlord to negotiate the terms of your lease, it can be helpful to make a good case for keeping you on (or bringing you in) as a tenant.
For example, you might want to have a record of all your on-time payments or any history of providing referrals for this landlord.
You may also want to mention your willingness to extend your lease, that you’re courteous to other tenants, keep the property in good shape, and any other points in your favor.
Any and all of these factors could help persuade your landlord to give you a better deal.
Getting Your New Rental Agreement in Writing
Once you’ve successfully negotiated your rent downward or otherwise improved the terms of your lease and have a verbal agreement, it’s a good idea to get the deal in writing.
Having both parties sign off on the new rental agreement provides you with document proof that you have a new deal in place, in the event there is any misunderstanding down the road.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt; rates have recently been climbing into the double-digit range, so try to eliminate that ASAP.
The Takeaway
While rental leases may appear set in stone, they’re more flexible than many tenants think, especially if the rental market is soft in your area (meaning more rentals than renters).
Whether you’re applying to rent a new apartment or signing a new lease on your current rental, you may be able to negotiate a better price if you’re able to show two things: that the rent is higher than similar units in the area, and that you are a model tenant who pays rent on time.
It’s also a good idea to come to the table with some alternatives to a rent reduction (in case your landlord is firm on price), such as a better or free parking space or new appliances.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.