Archive for January, 2009

Why Buy Renter’s Insurance

January 30th, 2009

Renter’s insurance should never be considered an option or a luxury, just a simple fact of life if you’re a renter. The following are good reasons to buy renter’s insurance, but you shouldn’t even need convincing, it’s such a simple choice.

It’s Cheap

Renter’s insurance is really very inexpensive, for just a couple hundred (way less than your car insurance) you’ve protected all of your property from potential damage or complete loss. Over the course of the year this is really a negligible cost for the peace of mind you’ll receive.

It’s Not Just You

In most situations, renters share property with other people, people who may not be as responsible or diligent as you are and they can cause damage to your property, it’s totally out of your control. But on the other side of that argument, you may be the one who causes damage to someone else’s property (imagine a fire that’s your fault) and you’re suddenly responsible for all of their damaged items. Renters insurance protects you from this expense.

It’s Your Money

You may falsely assume that any damage to property, be it yours or someone else’s, or injury to someone will be your landlord’s responsibility. This is simply wrong in most cases. If the damage or injury happens on your rental property or due to your negligence you’re the one who will be held responsible and have to pay.

Protect the majority of your assets by spending a little on renter’s insurance. It really is one of the most important investments you can make.

You too can be a Great Landscaper

January 29th, 2009

shutterstock_20398510Even if you don’t have any landscaping experience you can teach yourself in no time at all. Many people find this hard to believe, but it is the truth. Sure, there are some people who are better at landscaping than others. But in the long run you can do a lot of the work yourself which allows you to get the right look and feel while also saving money. How does that sound to you?

If you are interested in doing your own landscaping follow the three tips below to get started:

1. Buy the proper tools. You need the right tools if you are going to make your yard look good. For instance, instead of digging holes with a spade when planting a tree, buy yourself a new shovel. This is a basic purchase but one that will save you time while also making your yard look better.

2. Don?t go overboard. More is no better when it comes to landscaping. Chances are that you have seen homes with yards that are overflowing with plants, flowers, trees, garden gnomes, and much more. Take a minimalist approach to landscaping, and you will be surprised at just how good your yard looks when everything is said and done.

3. Take cues from others. If you are having a difficult time getting started take a walk around your neighborhood to get some ideas. Soon enough your head will be full of ideas, and you will be well on your way.

Anybody can landscape their own yard if they have the proper tools and ideas. Once you have these two things all you need is time to complete the job.

What The Madoff Scandal Can Teach Real Estate Investors And Managers

January 28th, 2009

Check your numbers.

The recent fiasco stemming from Bernie Madoff’s elaborate Ponzi Scheme has cost many investors billions of dollars. From wealthy individuals to schools and non-profits, the truth is slowly being uncovered that thousands of wealthy people did not check their numbers.

The Guardian reports that, after much research, it would seem that Madoff never traded any shares and simply made up the figures he sent to investors in neat trustworthy-looking statements. They were so delighted with the unbelievable returns that they neglected to check the numbers.

Check your numbers.

  • When you go over receipts, expense statements, and bills, are you in the habit of looking for irregularities? Make regular reviews a part of your work habit. Even the best bookkeeper has bad days and may start writing checks on a Friday afternoon that would never be written on a Monday morning.
  • Do you know how long a building project or repair should take under normal conditions? Do not be afraid to request itemization on any bills that seem too high or even, too low. A remarkably-low bill may be an attempt at making money from your sloppiness. If you aren’t sure of a price, call around and get an estimate. A few minutes can save you a few dollars quickly and a large sum over the long term.
  • When you consider a new property, do you take the time to check the numbers or are you liable to get caught up in the excitement of a high return? Taking the time to research typical occupation rates and costs can be time-consuming and boring, but the effort will reward you with a clear picture of the investment you’re looking at.
There may not be much Madoff’s investors can do about their lost money. Taking the time to learn from their mistakes offers a way for the rest of us to gain value from those bad investments. Check the numbers!

Is Renting Cheaper?

January 28th, 2009

In the past the argument could be made that by renting you were just throwing money away, but by buying a home you were spending the same amount of money on an investment that would pay out in the end. This just isn?t the case anymore. In very populous areas, the coasts, its more expensive to buy right now and the prediction for the future of home values is that it will continue dropping for at least three to five years and probably wont rise much after that, if at all.

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Also the costs of home ownership are more expensive than for renters, where basically your maintenance and repair costs are very limited if not nonexistent. You?ll also be paying more in insurance for a property that you own that you would in renter?s insurance. All roads are currently leading toward renting as the better choice in this economic crisis.

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But if you look at things from a different angle, this is the time to get a really good deal on a home as housing prices drop. Just make sure you?re financially stable enough that you won?t suffer from current layoffs and other financial issues the country is facing. You?ve got to consider it a long term investment if you plan on making money in the end, but for just the right person, buying could be a good investment.

New Floors can Add Value

January 27th, 2009

shutterstock_22007008Adding value to your home can be done in many ways. Some people want to add value before they sell their home, others want to do so because it makes them feel good, and some consider this a huge benefit when dealing with a rental property. No matter what situation you are in, adding new floors to your home is one of the best ways to increase its value. As simple as this, sounds it is the truth.

Of course, before you decide to add new flooring you need to consider your current situation. If you already have high quality flooring making a change could be a mistake. But chances are that there will be at least a few rooms in your home that could use some updating in this department.

What type of flooring should you consider? This depends on many factors including your budget, what is currently available, and your home?s d?cor. For instance, you may want to add real hardwood floors throughout your home but this is an expensive endeavor. In turn, you may want to lay laminate instead in order to keep your costs down. To go along with this, you want your new flooring to stay consistent with what you already have in place.

Do new floors cost a lot of money? They sure do. This holds true no matter if you are interested in carpet, tile, or hardwood. But remember this: the money you spend on flooring is going to increase the value of your home. In the end this is what you are trying to accomplish, right?

First Time Renter Tips

January 26th, 2009

Moving into your first apartment is a very exciting experience, but it also can be a bit nerve wracking as well. Use the following tips to make the transition go a little more smoothly and so you know what to expect.

Rent What You Can Afford

Experts suggest you rent a place that is no more than 25-30% of your monthly income. For first time renters though, you actually should try to go a little bit lower and stay in the 20-25% range. The reason for this is there are certain things you???ll need to set up your new home that you don???t have and some of these items can be very expensive, like furniture. So by keeping the monthly rental fee lower you can purchase all of those things that make an apartment home.

Read the Lease

Sure, you???ve seen the People???s Court, you know how important it is to read and understand contracts before you sign them, but you???d be shocked at how many people still don???t bother. Take the time to read the contract thoroughly so there are no surprises in the future.

Be Respectful

For some first time renters the lure is the idea of being able to party all the time but this is simply not the case in most rental units, and do you really want to live somewhere where this is the policy? Be respectful of your neighbors and in turn they???re more likely to be respectful of you. This doesn???t mean you can never have a party just be reasonable in the time, frequency, the number of guests and the volume level.

Basically, you need to be a good renter to have a good experience in your first apartment. Respect yourself, your neighbors, your landlord and your pocketbook and you???ll be thrilled with your first foray into the renting world.

Apartment Safety

January 23rd, 2009

It???s no surprise that the vast majority of renters say that the crime statistics in a neighborhood weighs on their decision of whether to rent or not. People simply want to be safe and there are certain things you can do to hedge your bets and make your home a little safer.

Lock Up

If your home doesn???t have deadbolts, get them immediately. If you have to, petition your landlord, even if you have to foot the bill, deadbolts are a great way to add a little protection to your home. Along the same lines, use your locks all the time, even when you???re inside your home in the middle of the day. Being extra cautious can???t hurt.

Make Shift Locks

In addition to having the proper locks on your doors, add wooden rods to sliding doors and windows, specialty pins can be inserted into the wooden frames of windows and sliding doors as well so people cannot lift them off of their tracks and gain access. And there are now door jambs for traditional door knobs as well that work with the same concept as a wooden rod in a door track.

Look for Lighting

Take a nighttime walk and see if there are places to hide in the shadows. If there are do what you can to brighten the area or eliminate the hiding spot. Do this seasonally as bushes are great camouflage in the spring and summer months.

Know Your Neighbors

Get to know the people who live next to you, its remarkable how people will ignore the screams of another if they don???t know the person, but when an acquaintance or even friend cries for help the reaction is immediate. In fact, your neighbors may be diligent enough to notice people lurking around before it escalates into a criminal act.

Be as diligent as possible to keep yourself, your neighbors and your neighborhood safe and free of crime and everyone???s living experience will be better.

Upgrade your Kitchen on the Cheap, Gain Value

January 22nd, 2009

shutterstock_22513579There are many ways to increase the value of a home. One that you don?t want to overlook as a homeowner is the kitchen. A simple remodeling project can help to increase the overall value of your home, and if you are selling, it can give you the best chance at achieving success. While many people think that upgrading a kitchen is an expensive project this is not always the case.

The way you decide to upgrade your kitchen depends on what you currently have in place. To go along with this, upgrades must be based on your budget as well. For instance, you may want to hang new cabinets. This is a great way to upgrade your space and effectively increase the value of your home, but at the same time you need to consider all of your options. Are you going to buy basic, pre-made cabinets from a large hardware store? Or will you spend the extra money on custom cabinets?

One of the best ways to upgrade your kitchen without spending a lot of money is to do the work on your own. Do you know how to hang cabinets? Can you lay new flooring? Even if you don?t have experience you can learn as you go along if you have the right tools and a little bit of guidance from a professional handbook or video.

To increase the value of your home you should consider upgrading your kitchen. Believe it or not, you don?t have to spend an extraordinary amount of money to make your kitchen a more enjoyable and valuable space.

Pet Liability

January 21st, 2009

One misconception that has led to a lot of landlords not allowing pets on their property is that landlords are responsible if the pet injures someone. This simply is not true, the liability lies with the pet owner.

Even if your pet has never so much as given anyone the evil eye, its best to protect yourself if you???re renting. Some people just rub animals the wrong way, much as they do people, and your friendly pet may take offense and lash out at this person. Suddenly you???ve got a dangerous pet and a possible lawsuit looming. To protect yourself, get renter???s insurance and be sure to let your insurance provider know that you???ve got pets.

Each insurance policy varies, but look for one that at least gives the person fouled by your pet $500 in medical expenses (look for more if you can because if plastic surgery is involved it can get very expensive), $500 in property damage, and at least $300,000 in liability coverage.

And this isn???t just for people with man???s best friend as a pet, although dogs are most often the culprit in animal bite cases, they???re far from the only ones ever to offend. No matter what sort of pet you have, you need to protect yourself from potential lawsuits. It???s something every responsible pet owner should do.

Save Money, Look into Selling your own Home

January 20th, 2009

shutterstock_22239283Most people think of making money when they sell their home. And while many people are right in this regard others are not. Remember, there are a lot of costs that go into selling real estate. One of the most overlooked is the fee (commission) that you will pay your real estate agent. Fortunately, there is a way around this and it is known as selling your home by owner. In other words you are the one selling your home; you don?t hire an agent. In turn, the six percent (or more) that you would pay an agent stays in your pocket. As you can imagine, this is a large chunk of money no matter how much your home sells for.

While there is nothing wrong with selling on your own, especially since it can save you money, this process can bring stress to your life. When you work with a real estate agent you are not doing much except keeping your house in good condition and communicating from time to time. Your agent is the one in charge of marketing, taking people through your home, etc. But if you don?t have an agent this is your job. Are you up to the task? Is it worth the money that you will save?

Before you decide to put a ?for sale by owner? sign in your yard consider what goes along with this. Weigh the pros against the cons to see if this is the best way to move forward.

There is no arguing that you can save money by selling your home without an agent. But at the same time you also need to know that this puts you fully in charge of your situation. Are you willing to take on this responsibility without professional help?