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Essential Insights for First-Time Landlords

Stepping into the role of a landlord for the first time can be both exciting and daunting. It marks the beginning of a journey filled with opportunities, responsibilities, and learning experiences. As a first-time landlord, you’re not just investing in property, but you’re also embarking on a venture that requires careful planning, understanding of legal obligations, and an ability to manage relationships with tenants. This article aims to guide you through the key considerations to keep in mind as you navigate this new venture.

Understanding Legal Responsibilities

One of the first and most crucial steps for any first-time landlord is to gain a thorough understanding of the legal responsibilities involved. Being a landlord isn’t just about collecting rent; it involves adhering to various laws and regulations that govern rental properties. In the UK, this includes ensuring that your property meets certain safety standards, such as having up-to-date gas safety certificates and ensuring that all electrical installations are safe.

It’s also important to familiarise yourself with the rules surrounding tenancy agreements, deposits, and eviction procedures. Missteps in these areas can lead to significant legal problems. For instance, if you fail to protect a tenant’s deposit in a government-approved scheme, you could be liable for a fine. Similarly, not following the correct eviction process can result in legal action against you. Therefore, a comprehensive understanding of your legal obligations is paramount.

Selecting the Right Tenants

Selecting the right tenant is vital for the smooth running of your rental property. It’s about finding individuals who will pay their rent on time, maintain the property well, and adhere to the terms of their lease. Conducting thorough background checks, including credit checks, references from previous landlords, and employment verification, can help in making informed decisions.

Developing a set of criteria for your ideal tenant is a good practice. However, ensure that these criteria comply with fair housing laws to avoid any form of discrimination. While it’s important to be thorough, remember to respect the privacy and rights of prospective tenants during this process.

Handling Property Disputes

Disagreements or disputes between landlords and tenants are not uncommon and can arise over issues such as rent, repairs, or deposit returns. Being prepared to handle such situations professionally is essential. Firstly, ensure clear communication from the outset, setting the right expectations and providing tenants with all the necessary information about the property.

If a dispute does arise, try to resolve it amicably through open and honest dialogue. Sometimes, a simple conversation can clear up misunderstandings. However, if the dispute escalates, it may be necessary to seek legal advice. Experts like Property Disputes offer valuable guidance and support to landlords facing legal challenges with their properties. They can help navigate the complexities of property law, ensuring that you handle disputes in a fair and lawful manner.

Property Maintenance and Repairs

Maintaining your property in a good state of repair is not just a legal requirement but also a key to keeping tenants happy and retaining them longer. Regular maintenance can prevent small issues from becoming major problems and can save money in the long run. This includes routine tasks like servicing the boiler, checking smoke alarms, and dealing with wear and tear.

When it comes to repairs, responsiveness is crucial. A good landlord addresses repair requests promptly, which not only complies with your legal obligations but also builds a positive relationship with your tenants. It’s wise to have a network of reliable tradespeople who can handle various maintenance tasks efficiently.

Author: Ryan Byrne

Co-living vs. Renting in NYC: Which is Right for You?

The main difference between coliving and renting is that in coliving, multiple people live in the same space and share common areas, while in renting, an individual rents a private living space. Coliving typically offers a more communal and shared living experience, while renting offers more privacy and individual living space. Additionally, coliving often includes amenities such as housekeeping and community events, while renting may not.

Co-living and renting are two great options for everybody looking for space to live in New York City, but the confusing aspect is, knowing which one is the best and will suit your needs and style of living.

This article will explore every option alongside its pros and cons so you can choose the best that will fit you.

What is Co-living

Co-living is a concept of living that allows strangers to live together under the same roof to live a more affordable and social life. However, co-living is even more than sharing an apartment or house. Co-living has long made life easy for people, especially newcomers, to find where to live.

Co-living offers a simple and cheap life because it saves people from living hassles like bill payments, cleaning, furniture, and much more since it will be part of the rent payment.

Aside from this, most co-living apartment locations will allow you to meet new people, socialize, and even find managers that often check whether you have a quality sleep. In cities like New York, where things are costly, space is limited, and people want to live in a specific area, the co-living concept has brought a great solution to people.

However, it’s also important to note that not all co-living options are created equal. It’s important to do your research and find a reputable co-living provider. One such provider is SharedEasy, which offers a variety of co-living options in NYC.

Advantages of co-living

Co-living offers a lot of benefits, especially to people that can’t afford other living methods. These include

Affordability

Co-living is far cheaper than traditional houses due to their way of living, with residents sharing places like kitchens and living rooms; this helps reduce bill costs and many more.

It brings a sense of community

Co-living offers a sense of community. This is beneficial to people that don’t like living alone or don’t like living with anonymous neighbors.

It offers social activities

In co-living spaces, neighbors get to know each other through social activities organized by people in the community.

Flexible lease

Co-living is one of the best options for people who travel a lot or visitors who are under a tight budget. It also provides a flexible lease, and you can sublet when your housemate is away for a long time.

Disadvantage of co-living

Less privacy

One of the disadvantages of co-living is that you won’t have much privacy in your life.

Noise

Another disadvantage of co-living is that it can be noisy sometimes. This mostly gets extreme if your roommates or housemates are party pricks.

Potential conflicts

It’s inevitable to have some conflicts when living with strangers; to avoid this, everybody should be mindful of boundaries and be honest while communicating.

What is renting

Renting is also an option for individuals looking for places to live. Renting involves signing a lease and paying a rental fee to a landlord for the property. You can find numerous rental apartments in New York City, including studio apartments, large houses, and many more.

You can select a payment schedule that includes monthly or annually. Renting will provide flexibility about the location you want to live in, but renting is more expensive than co-living, and you will have limited control over property changes.

Advantages of renting

Compared to other living concepts, renting offers a lot of benefits. Some of them include

Privacy

You will have a lot more privacy when you rent an apartment because you will be living alone. You can also control your living environment because you aren’t sharing your home with anybody. This point benefits people looking for a private lifestyle and valuing their personal space.

Chances of building equity

Even though you don’t own the apartment you rented, you can choose to rent-to-own or participate in the lease-buying agreement, so you build equity in the apartment.

Zero maintenance responsibilities

Another benefit of renting a property is that you don’t need to deal with the maintenance responsibilities of the house you rented because this is not your take but the landlords. This is also beneficial if you don’t want to experience any stress and maintenance expenses.

Disadvantage of renting

Even though renting has a lot of benefits, it still has some drawbacks to consider before moving.

Expensive

Generally, renting is more expensive than co-living, especially if you want to live in urban regions. You must also pay pet fees and more secure payments.

Less sense of community

Since you don’t share anything with other people, this often leads to a less sense of community. This cannot be easy, especially if you are used to living in areas with a good sense of community.

No shared resources or responsibilities

Unlike in the co-living method, renters can’t share resources or responsibilities because they don’t even have housemates. This can increase their sense of isolation, and this can be difficult, especially for people used to communal settings.

Comparing co-living and renting

If you want to choose one between the two options but don’t know how to, here are some factors you should look at before making your decision.

Your budget

Your budget is an essential factor to consider when choosing between the two options. Co-living is cheaper than renting an apartment, but still, you should look at the cost of both options, such as the rent, bills, and additional fees. Ensure to choose one that is more financially feasible for you.

Lifestyle

The kind of lifestyle you want also matters. Co-living offers a social and communal environment, while renting provides more privacy and personal space. Do you usually entertain guests, or do you typically live alone all the time?

Social preference

You should also look at your social preference before choosing any living concept. Do you like to share responsibilities with others, or do you want everything for yourself? Are you comfortable living with others, or do you prefer living alone?

Wrap up

Co-living and renting are both two good options to consider when looking for a perfect house to live in.

Both offer significant advantages; however, before you choose any of them, it’s best to weigh the pros and cons of each and look at things like your budget, the kind of lifestyle you prefer, and your social preference.

Tips for Pricing Your Rental

Investing in real estate is a great way to grow your wealth, but you have to make many decisions that can impact your finances. For example, not only do you have to buy property to rent, but you also have to deal with maintenance costs, contracts and leases, and figuring out how much to charge for rent.

Pricing your rental correctly the first time can help you save money on marketing and prevent your property from staying vacant for too long. However, many landlords often price their rentals incorrectly, which can deter would-be renters from even applying. There are many things to consider before you set the price of rent. Here are tips for how to price your rental to help you reach more prospective tenants and fill your vacancy.

Look at Comparable Properties

Whether you’re a landlord for a house or an apartment complex, you need to know how much similar properties in the area charge for rent to help you stay competitive. Focus only on rentals similar to yours. For example, there’s no reason for your rent to be equal to the rent of a house that offers more square footage. Instead, look for properties that are as similar as possible and in the same neighborhood. Features to consider include the number of beds and baths, types of homes, new construction, and rental upgrades.

You can find comparables online or work with a realtor who can help you understand the different price points in the area if you’re unfamiliar with a certain city or neighborhood. Of course, you can also use sites that help people find rental properties like Zillow.

Amenities

Renters are willing to pay more for better amenities. Therefore, you shouldn’t price all of your units the same even if they have the same number of bedrooms unless they are exactly the same. Ultimately, the rent price should depend on the desirability of the unit. For example, someone in an apartment complex will be willing to pay more for a unit on the end because there are fewer neighbors and more windows. Therefore, even though their unit is exactly the same as the one in the middle of the building, they have different features they’re willing to pay for.

You can typically charge more for a property based on its views. For example, properties with good views instead of a parking lot are typically worth more in the eyes of renters. Additionally, updated appliances, more space, and higher floors are more desirable, allowing you to charge more.

Profit

You invested in real estate to make a profit and grow your wealth. So while you must remain competitive, you should also make a return on your investment. Of course, you can’t expect to become cashflow positive quickly in real estate since it’s a long-term investment strategy. Of course, first, you’ll need to pay off the mortgage and deal with monthly bills associated with the business.

However, eventually, if you price your units correctly, you can start making a profit. Remember that some landlords don’t start making a profit until they’ve had their properties for years or decide to sell them. Your goal should be to price the unit to at least cover your expenses. If you’re losing money on the property, you may have over-invested.

Market Demand

While the prices on comparable properties will help you price your property correctly, you should also look at the market demand. If there’s more demand, you can increase your rent, but if there’s less demand, a higher price could leave you with a vacancy for longer. Ultimately, when the economy is bad, demand for rentals might increase because people are leaving their homes. However, a bad economy can also mean demand for cheaper apartments because people are downsizing.

When there’s greater demand for a property or unit, you can charge higher for rent. However, you should reevaluate the demand every few months because it can shift dramatically throughout the year, especially depending on the economy.

Pets

Allowing pets can help you stand out from the competition and help you get more tenants quickly because not all apartments or rentals allow pets. You can charge a non-refundable pet deposit fee and monthly pet rent when you allow pets. Many apartments don’t allow pets because they can damage carpets and walls.

However, by charging a non-refundable pet deposit, you’ll ensure your unit is covered in case a pet destroyed something. Additionally, people are willing to pay more for an apartment that allows pets because they want to bring their dogs and cats to a new home.

Increasing Rent

The cost of rent increases every year, but prices fluctuate frequently. If you’re going to raise the rent, you should determine how much so that you won’t price yourself out of the market. Renters already living in rentals expect their rent to increase every time they sign a new year-long lease.

However, you can keep your current tenants happy by reducing the amount you raise the rent. For example, a new tenant that just signed a lease should pay more than someone who has lived in the apartment for years because it’s easier and more affordable to keep existing tenants than find new ones.

Location

We’ve already touched on amenities like beautiful views, but if your rental is in a great location, like Tampa, Florida, with grocery stores and entertainment nearby, your property will likely be worth more than one that requires someone to travel a greater distance. So even though you might not have the most scenic views and your renters may have to look at parking lots or streets, if you have a good location that can help tenants easily get where they need to go, you can typically charge more.

Final Thoughts

The best thing you can do as a landlord is not price yourself out of the market. Even if your rental offers higher-end amenities and features, you might still be unable to charge as much as you want based on other factors like the economy and location. If you’re unsure how to price your rental, consider working with a local real estate agent who can help you understand all the different factors to consider while helping you compare your rental to the competition.

Julia Olivas

Julia Olivas graduated from San Francisco State University with her B.A. in Communication Studies. She is a freelance writer where she loves sharing her passion for digital marketing and content creation. Outside of writing, she loves cooking, reading, making art, and her pup Ruby.

7 Ways Renters Can Spruce Up Their Home

There are always rules when you’re a renter, including rules for getting approved to be a tenant in the first place. You’re expected to follow strict rules when renting from the credit check to the lease agreement and what you can do in the home.

As a renter, it might feel like you have limited options for making your rental feel like home. However, renting doesn’t mean there aren’t any options for decorating. If you talk to your landlord, you can find out what types of cosmetic changes are acceptable and which are not. For example, some landlords will not allow you to paint your walls, while others will allow paint as long as you paint it back before you move out. Even if your landlord is strict about how you can decorate your home, there are still tons of things you can do to make it homier. Here are a few ways renters can spruce up their homes.

1. Paint (If Allowed)

As we’ve mentioned, some landlords will not allow you to paint. However, many landlords understand that their renters will want to paint their walls to make their homes more unique. So if your landlord allows paint, you might just have to deal with painting it back to a white color before you move out. Painting your room is an affordable way to refreshen a space and you can have fun doing it!

If you’re unsure of your lease agreement’s stance on painting, you can always review it or call your landlord to understand the types of cosmetic changes you can make in your home. The good news is that there are options even when you can’t paint your walls. For example, you can use wall decals to make any boring white wall sparkle with personality. You can also invest in peel-and-stick wallpaper that will allow you to completely transform any and every room in your home. Then, when you’re done with the wallpaper, all you have to do is peel it off, and there will be no damage done to the walls.

2. Spruce Up the Yard

If you’re renting a house or condo and have a yard all to yourself, you can make your rental feel more like home by sprucing up your yard. If you’re allowed, you can start a backyard garden. However, once again, check your lease agreement to understand what changes you can make to the yard. If you want to discuss different options with your landlord, feel free to do so.

When trying to convince your landlord to let you change the yard in some way, always point out how it can improve the yard, such as adding flowers to the front of the house can add curb appeal. Landlords are more likely to say yes when you can show them how your changes can improve their bottom lines or increase the home’s value.

3. Upgrade Hardware

Renters can easily upgrade kitchen and bathroom hardware and switch it back when they move out. Replace doorknobs, cabinet pulls, dresser knobs and anything else that you can to add a splash of your personality to any room. Upgrading hardware is affordable and can change the feel of any room. Be careful when changing hardware, though. You’ll need to ask your landlord permission to drill new holes. You can also choose not to replace any hardware with something that would require additional holes.

4. Window Treatments

Most rentals come with standard, boring blinds that typically break if you try to clean them. However, you can upgrade your rental by changing out your window treatments and replacing boring blinds with curtains.

Many landlords allow you to add curtains to your home, but be careful about color. Some lease agreements may state that your window treatments must be a certain color or have a certain color, such as white, pointing outward. Luckily, many curtains come with one color for the apartment and white facing outside of the apartment, so you can find a color you love to help spruce up your decor.

If you need to install a rod to hang your curtains, you can purchase curtain rod brackets that require no drilling or hang your curtain rods with Command™ hooks that won’t damage your walls.

5. Peel-and-Stick Flooring

We’ve already discussed peel-and-stick wallpaper, but you can also change up the appearance of your kitchen and bathroom floors with peel-and-stick flooring for any room that doesn’t have carpet. By changing the way your floor looks, you can make your bathroom and kitchen look more high-end without spending thousands of dollars on replacing the floors or asking for your landlord’s permission. When you’re done with the flooring, all you have to do is peel it off and replace it with something new to change how your kitchen or bathroom looks.

6. Add Your Own Photos

You can get any photo on your phone enlarged and printed on a canvas to help add your personal touch to any rental. Whether you want to showcase how cute your pet is or put a large framed picture of your family in your hallway, you can make your home more personal to you even though you don’t own it. When putting your own photos on the walls, be careful not to drill any holes. Instead, you can use Command™ Strips attached to any photo frame and stick your favorite images on your wall. Don’t have any good photos to use? You can create your own art and get it printed!

7. Use Mirrors

Many rentals are smaller than we want them to be, but you can make your space feel bigger by adding mirrors. Mirrors are a cost-effective way to make any room feel larger. When deciding where to put your mirror, look for places that can bounce natural light off of them and reflect the outdoors. Depending on your preferences, you can use any shape of mirror you want, or you can choose a variety of different mirrors for one space.

Final Thoughts

Being a renter means having fewer options when it comes to decorating your home, but that doesn’t mean you can’t add your own style to your apartment or rental house. There are many ways to transform a space, including the use of color, designs, and wall art to make your rental feel like your home.

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a contributing writer at 365businesstips.com where she shares knowledge about general business, marketing, lifestyle, or financial tips. During her free time she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.

Buying vs Renting – should you buy a house?

Buying or to renting a place to call home is one of the questions on many people’s minds at a certain point in life. If you are settled in a place with a good job and can foresee yourself staying there in the nearest future, would it be more advantageous to continue to rent or take out a mortgage?

The answer generally depends on individual’s choice, as you may have different values to the usually home buying route. Of course, there are benefits to renting a house, but the advantages of buying supersede that of renting. It gives you a sense of security and satisfaction in having a place to call your own – permanently. With that said, outlined below are a few key benefits you enjoy when you buy your own home as against renting.

1 – Equity building

One major benefit of buying a home is in building equity. As you make your mortgage payments, the amount of money you owe on a home reduces. And the more your home value increases, the more money you save. You can even consider mortgage as a forced savings plan. When you pay rent, you are technically making someone better off by paying their mortgage and building up their equity. Of course, renting can initially be cheaper than buying a home, but many see it as throwing money down the drain. If I may ask, why do you want to be building savings for someone else when you can contribute towards your own investment?

2 – Modify to taste

It is always fun to create a living style that is all your own. As a homeowner, you can always make changes to your home to suit your taste and preference. You can renovate, customize, and paint the walls any color you wish etc. In fact, there won’t be anyone to tell you what you can and cannot do. But if you rent a house, you are always at the mercy of whatever the homeowner will allow you to do.

3 – Unparalleled stability

The stability you experience when you have your own home is unparalleled. You understand that if you lock in an interest rate your payments remain constant. If you rent, you have no control over the increments in rental payments. The property owner may evict you or even sell the home from under you at will.

Final thought about buying vs renting

Renting a home can be a great place to start. But when you buy your own home you have a sense of permanence, and it also contributes positively to your financial future as you are constantly building equity. Additionally, buying a home provides security for your family knowing that they have a place to call their own.

Top 5 Reasons to Rent a House

Most of us have a dream of buying a house which should have all facilities. There is no harm in thinking about a better place for living and giving a comfortable life to your family, but is it important to own a house when you can get all in a rented house? Also, some people want to buy a house but they cannot own it due to many reasons, for them renting is the most viable option as it allows them to save money and invest later.

If you are young and want to buy a house later, you can rent a house and skip added responsibilities that come with homeownership. You need to have adequate savings and budget when you want to buy a house. On the other hand, renting gives you a lot of freedom to live the way you want. If you want to live in a dream location, but do not have funds for the down payment, renting a house can be the safest option. Renting a house makes you less accountable for its wear and tear. If you prefer renting, you also save repairs, paying for taxes, and insurance to keep up with other expenses. You cannot spent your entire savings buying a house and live life in restrictions.

The idea is not to discourage you to buy a house, but to make you understand that renting is okay too. Especially in the current situation, renting is a better idea when real estate markets are badly hit due to coronavirus outbreak. Also, fast-rising home prices and higher mortgage rates make you think about whether it is right to buy a house or not. Since home ownership has always been considered as an important part of owning wealth, it could be problematic if the same trend continues for long.

Searching for Rent to Own Homes In Ontario

Searching for Rent to Own Homes in Ontario can still be considered a viable option for many due to several reasons. It is the hub of many activities and most offices being located here make it a diverse cultural hub of this time. Living there cannot be boring, but altogether a different experience for people who prefer an interesting life and need all facilities like healthcare, clean streets, and a good public transport system. Not only this, but the weather also makes another reason for people to come here and live to rent houses. There are many reasons to rent a house. So, let’s know the benefits of renting a house in the city.

Why Do I Need to Rent a House?

Move Easily – When you are young, buying a house in a location where you are not planning to live longer can restrict you to explore job opportunities that you can get elsewhere. If you want to move to another city or state due to any reason, you can simply end the lease and go where you want to. It means renting a house can give you a lot of flexibility and freedom to do what you want to do personally and professionally.
Selling and buying problems – It is not easy to buy or sell a house. Buying or selling a house in certain areas can be difficult. On the other hand, there are some places where renting a house is better than buying. People keep migrating due to their jobs and another issue, so buying a house can tie them into a responsibility.
Budget – Buying a house is expensive than living on rent because there are too many types of expenses you have to bear like maintenance charge, repair cost, insurance cost and other fees. It is not easy to mortgage a loan and make regular payments even when you have financial issues.
Flexibility – Renting a house gives flexibility to people or couples which means you can share an apartment between friends and colleagues and cut the extra cost. You are free to make a decision when you want to move out or if you do not want to continue with the lease anymore.
Location – Rent a house and enjoy living in different locations, it means if you like a beach house you can rent it or if you want to live in colder places you can do that too.

When you buy a house, you consider many facilities like school, hospital, and transport. If you live in a place with great infrastructure, there are chances that home value will increase. But what happens when you do not earn enough to pay for the loan that you have taken later or what if the house you own deteriorates later. On the other hand, if you live in rent you can move out at the end of your lease. So, it is important to consider many things before you venture out and buy a house.

Author: Eernesto T Felder

Renting vs Buying: What to Consider

Buying a house is the pinnacle of success—or, at least it used to be. It seems as though more and more people are abandoning the popular dream of homeownership and setting their sights on financial accomplishments that are more realistically attainable, like luxury vehicles, designer watches, and worldly travels.

That’s not to say purchasing a property is entirely off the table, though. There are plenty of affordable properties under 20k that you could buy without sending yourself into debt for several decades. There are two sides to every coin, but ultimately, there’s no single “correct” answer—it all comes down to your personal priorities. If you’re debating renting vs buying, consider these points to help you decide which option suits you best.

What’s on your time horizon?

If you’re thinking about buying a house, make sure to consider your timeline in two to 10 years from now. Will you be in the same city? Have the same job? Are you ready to settle down?

The people who like to rent are usually those that value flexibility and mobility; they don’t want to be tied down to a 15- or 30-year mortgage that locks them into one location. Of course, life happens and plans can always change, but if you have to sell your home shortly after buying it in order to move to a new city or place your child in a better school district, for example, you could lose money on your initial investment.

Bottom line: Purchasing a home is an investment in your future, but it’s a long play that will require you to live in the same place for at least two years. Just like any investment, there’s risk involved should the real estate market crash and you owe more on the property than what it’s worth.

How is your credit looking?

You’ll need a positive credit history whether you’re applying to rent or buy a house, but it’s much more important in the case of the latter. Most of the time, homeowners rely on financing to purchase a property; it’s pretty rare for someone to have a few hundred thousand sitting around in cash that they can use to complete the sale in one fell swoop.

Lenders will look at several things when reviewing your mortgage loan application, including your age and income, but credit history is one of the most important qualifiers. Not only do you need a strong credit score to finance a house, but it’s in your best interest to take the time to increase your score as high as possible in order to receive low rates.

A good number demonstrates less perceived risk, so the lender will be likelier to charge less interest on top of the principal balance—saving you a significant amount of money in total borrowing costs in the long run.

Bottom line: If you’ve missed a few bill payments in the past and are sitting on mismanaged debt, you should clean up your credit history before trying to buy a home.

Do you have money saved up?

One of the biggest differentiators between renters and buyers is the money they have saved up in the bank. Even with approved financing, you’ll need to place a sizable down payment—or, the portion of the purchase price that you pay upfront in cash—to show the lender you’re invested in the property and likely to repay the loan.

Many people think they need a down payment of at least 20% of the total price in order to buy a home, but that conventional wisdom doesn’t apply much today. While it’s true that a 20% down payment can help you avoid private mortgage insurance and save you tens of thousands of dollars in the long run, this barrier to entry is pretty steep for first-time buyers.

You can buy a home with anywhere between 5-15% down upfront, and there are also down payment assistance programs that can help you come up with the cash. Renting will also require a down payment, security deposit, and money on-hand for application fees, but these costs are usually cheaper than a mortgage and its affiliated costs.

What many people fail to realize, though, is that every rent payment they make likely goes toward paying off the landlord’s mortgage, and the price comparison isn’t that far apart. For example, if rent costs a thousand per month, a mortgage payment might be only 15% more. Rather than throwing that money down the drain on rent, those funds could be better applied to building your own wealth in home equity and increasing your net worth. You could also look into rent-to-buy homes in your area that can help you achieve the best of both worlds.

Bottom line: You’ll need to budget and save up for a home, which often leads people to stick with rent that’s easier to afford while keeping up with the cost of living—but putting in the work can pay off tenfold if you apply the cost of rent toward a tangible asset that you eventually own over time.

Are you financially responsible?

When you buy a home, the hard work doesn’t end once you get the keys in your hand. There are a lot of ongoing costs that you’ll need to keep up with, such as property taxes and maintenance repairs. And, whereas a renter could simply call up the property manager to fix a leaking sink, that responsibility will fall on you to repair yourself—unless you prefer to pay someone to do it for you.

Bottom line: If you don’t want to deal with the hassle of property maintenance and the ongoing costs of homeownership, it might be better to rent so you know exactly how much money to budget every month.

Do you have competing goals?

Finally, check in with your financial goals to see if there are competing priorities. Let’s say you just graduated from college; would you rather pay off your student loans or invest in the real estate market? Do you need a down payment to purchase a new vehicle?

Bottom line: It can be challenging to pay off debt or save money when owning a home, so consider your financial goals and decide what to accomplish first.

By keeping these thoughts in mind as you compare renting vs buying, you’ll be more likely to make the right decision for your financial future.

Samantha Rupp

Samantha Rupp holds a Bachelor of Science in Business Administration and is the managing editor for 365businesstips.com. She lives in San Diego, California and enjoys spending time on the beach, reading up on current industry trends, and traveling.

Who Likes To Rent

The letting industry is booming. The average rent across the UK rose by 2.5% in September 2019 when compared to the same month a year previously. If you’re comparing letting agent fees, landlords are also seeing favourable prices due to the influx of online letting agent offerings.

Increasing average rent and lower letting agent fees are however being offset with tax break cuts & tenant fee bans. So, while there are ever changing variables being faced by landlords, renters are pushing forward unfazed.

It’s clear that in the long term, buying your own property/investing in a buy to let will put you in a better position financially. Aside from those that can’t afford the infamous property deposit, there are those that actually choose to rent.

In this article we look at some of the people that choose to be renters, as opposed to renting due to limited financial options.

The Bachelor

Picture the young, career driven and smart individual (male or female!), enjoying life and exploring where they want to end up in the future.

Rather than buying a long-term property, say a 3 bedroom in the outskirts of London, they may decide they want to rent a modern apartment close to the city.

Now these types of property can be valued in the £1,000,000’s! While the bachelor may not have the financial backing at this stage, their lifestyle may not yet suit a property that’s further out away from the city nightlife.

Schools

Parents consider nearby schools as a high priority when deciding where to live.

The best schools are in the most prominent areas, where the houses come at a premium. In addition, parents already located in the region are unlikely to move, lowering supply of houses in that particular area and therefore adding to the price premium.

Parents are willing to pay premium rents in these areas. The extra rental cost can be judged as offsetting costs that would have occurred in putting their child(ren) into a costly private school.

The Renting Landlord

Commonly, a landlord has a property that for various reasons, they don’t want to live in. It could be too close to parents, too far from work or not big enough.

When not wanting to sell, an option is to let out the property, while renting in a property more suitable to themselves.

This allows them to live in a suitable property, while still reaping the rewards of rental income.

Vitally, if you’re one of these individuals looking for a letting agent for your property, you can use Rentround when comparing letting agent fees & performance to get yourself the best deal.

The Divorcee

Sadly, divorce is a part of life.

During or straight after a divorce, the former husband or wife will have a period of instability in their lives. They may be using the opportunity to think about moving to the city or looking to stay near what used to be their family home to stay in close proximity to their children.

During this period, a rental property would be suitable vs. committing to buying a property.

The Contractor

Rather than being a permanent employee with a regular job, the contractor is set up under a private limited company. The person may move from company to company when their contract expires. The benefit of this type of working is high day rates and pre IR35, lower tax vs. a permanent employee.

As a new contract is taken on, the location may vary drastically compared to the contractor’s previous location.

Therefore, renting makes sense in this situation, in comparison to constantly buying & selling or living in hotels.

“I’ll get married soon”

Some people are in long term relationships or single and have their fingers crossed of finding someone soon with the aim to get married. With this mindset and possibility, buying a property as a married couple makes sense.

A couple is likely to have a larger deposit and making it a joint decision on which property to buy, makes the moving in transition easier.

The Speculator

These savvy individuals may be predicting a future down turn in the market. So instead of buying while the price is high, they decide to pay rent up until a potential crash hits prices. The individual can then buy a property at a better price, increasing their profit substantially.

In addition, after a crash it’s common to see interest rates cut and tax subsidies from the government, to re-stimulate the economy as per the 2008 crash fallout. This adds to the benefit of buying after a crash.

However, predicting a crash isn’t easy. If you get it wrong, you could see yourself on the wrong side of property price increases.

All in all, there are many reasons why people prefer to rent as opposed to buying a property. Financially, yes the favour is usually in buying a property. However, for personal, family & work-related reasons, renting provides the flexibility that is often required in people lifestyles.

About the author: Raj Dosanjh is the founder of letting agent comparison site Rentround. Wearing many hats, Raj also runs a consultancy in the banking industry and his own martial arts club.

Can you be a landlord? How to generate rental income

Have you recently bought an investment property? Or are you downsizing and debating what to do with your family home now that it is no longer needed as your family has dispersed? Many people in this situation employ the services of a management company who will prepare the property, advertise it, vet perspective renters, collect rent and take are of repairs. Of course they do this in exchange for a percentage of the rental income that the property generates. This can range from a set yearly nominal fee to a full months rent per calendar year or more.

If you want to get into this business yourself without a management company, it’s important to be savvy and smart.

First of all, get to know all the local laws that apply. If the property needs renovating or remodeling, make sure all the work is above board and that you get the appropriate certificates to show that you are following regulations on everything to do with electrical, fire etc. This could save you some major headaches down the line. If you are changing the use of a property then even more paperwork and certification will be required.

When it comes to the type of renovations you do, also take a look at the neighbourhood to help you decide what should be done. You do not want your property to make the whole street look bad. But you also do not need to install gold-plated taps unless your property is in Beverly Hills. Stay in keeping with the area. If it’s not an essential upgrade and it won’t increase the amount of rent you can charge, think carefully before taking on extra expenses.

When it comes to setting the rent, you can take clues from looking at similar properties in the area. It’s important to get the rent at a level that is appropriate – reasonably affordable but not so cheap that people wonder what’s wrong with the place. Rent is your income. If the property is an apartment in an urban area, you might expect a higher turnover in tenants. With this in mind your forecasts should allow for occupancy for 10 full months per year only. In more rural settings, it can be more difficult to find a tenant but there should be less of a turnover. A good rule of thumb is to allow 12.5% of the annual rental income toward repairs and required upgrades.

Set up easy and clearly defined ways for your tenant to pay their rent.

Online is often simplest and gives you automatic records with your bank. Don’t allow arrears to build up. You are the landlord and have the right to demand the agreed rent. However, don’t be unreasonable. Communication is key in this situation and, whilst you may need the intervention of some legal entity, this should be a last resort that follows personal engagement. If your tenant goes into arrears and does not engage with you, check the law and begin eviction proceedings as soon as is legal whilst still attempting resolution.

Finding the right tenant is of course crucial to your rental income.

The first thing to do is market the property. Get some good photographs and write a comprehensive description for an online post. You might decide to arrange an afternoon of open house or set up individual showings with interested people. To make sure you’re not wasting your time, you can also put a short questionnaire online. Like this you will have essential information about them before setting up the viewing. Doing this initial stage by email and online is a big time-saver compared to doing it in person or on the phone.

In the US, you will of course check credit ratings of every perspective tenant. A score of 600 or below is considered bad. In Europe, we rely more heavily on references. Look for references from their previous landlord and employer. Get a copy of their legal ID and their national identity number. Meet them personally. Find out how many people they are planning on bringing to live with them. Have a proper legal rental contract for you both to sign, and give them a copy (free templates are available online for this). Have clear rules about smoking and pets, and put this in writing in the contract.

If you personally live nearby your rental property, it’s easier to keep an eye on it and make sure it’s being cared for appropriately. Of course you should not turn up unannounced or go snooping around when they aren’t home. You must respect their privacy. If you live further away, you might consider employing someone locally. If the property has a garden, having a local gardener to visit regularly will help to keep it looking well without relying on the tenant’s efforts. You will definitely need a local handyman you can call when repairs are required.

It is worth keeping the property in good condition.

In most countries expenses on repairs, cleaning and maintenance are all allowable as claims against your rental income to reduce the amount of tax you will have to pay on your income. So keep good records of these expenses. Your tenant will also appreciate living in a place that is well maintained and where they have a landlord who responds promptly to repair requests.

You can list your real estate on www.listproperty4free.com – start working on your rental income today.

Use our website to post real estate listings for free

No matter if you are a private seller or a real estate agent you are probably always happy to know another online platform to post real estate listings for free.

In this article, we like to show you quickly some of the features we offer when you list your real estate ad on www.listproperty4free.com.

Can I upload Images with my real estate ad?
Yes – you can upload up to 100 Images with your free ad.

Can I set the location of my real estate ad (Mapping Functionality)?
Yes, this is one of the main features of our website. You can set the location of your property. As a result it will show the location in your ad as well as showing your property on the map on our homepage.

Can I link to outside sites?
No. We currently do not support links to other websites. Rather, if you sign up as a real estate agent you kinda have your own page within our website. This will show like this:

www.listproperty4free.com/properties-by-agent/your-name

Am I required to create an account?
Yes. You will need to create an account to be able to post your real estate ad for free but there are no strings attached. Therefore, you can easily delete your account anytime you wish and all your data will be deleted.

Are there Special Promotion Options?
Yes, you can book extra features with your ad but this is not free of charge. Please see our pricing page for more details.

Can I post an international ad?
Yes, it does not matter where your property is located. It can be anywhere in the world.

What are you waiting for? Post real estate listings for free for thousands of new possible buyers or tenants on www.listproperty4free.com.