Real Estate • October 31, 2023

4 WAYS TENANTS LOSE MONEY

by Jennifer Daring

Ah, the joys of renting! No property taxes, no maintenance worries, and the freedom to pack up and move when you feel like it. But let’s be real—renting isn’t always a walk in the park. Despite the perks, many tenants find themselves losing money in ways that could be totally avoided. Yep, we’re talking about those “gotcha!” moments that have you screaming, “I wish I knew this sooner!” So, sit back, grab a cup of coffee, and let’s dive into the three main ways tenants lose money.

1. Skipping the Fine Print on the Lease

Imagine this—you’ve just found your dream apartment, and you’re so excited that you barely skim through the lease before signing it. Big mistake. Leases are legally binding documents, and they contain clauses that could cost you big time. For instance, your lease might have an “automatic renewal” clause that keeps you locked in for another term unless you give notice within a specific period. Fail to read this, and you might end up paying for months you didn’t intend to stay.

Then, there are those pesky “additional charges.” Some leases require tenants to pay for things like garbage collection, pest control, or even common area maintenance. These costs add up, and before you know it, you’re spending way more than you budgeted for.

2. Ignoring Apartment Flaws and Failing to Document Them

So you’ve moved in, and you’re just itching to unpack and decorate. But hang on a minute. Before you settle in, make sure you do a thorough walkthrough of the apartment and document any pre-existing damage. I’m talking about chipped paint, leaky faucets, cracked tiles—you name it. Take photos and make a list, then share it with your landlord.

Why is this so crucial? Because at the end of your lease, your landlord will do another walkthrough. If they find damages you didn’t report when moving in, guess who’s paying for them? Yep, that’s right—you. Even if you didn’t cause those damages, you could lose your entire security deposit, and maybe even incur additional charges.

3. Underestimating the Cost of Moving Out

I get it—moving is exhausting. And when the time comes to leave your rented space, you might be tempted to rush through the process just to get it over with. But moving out can be a minefield of hidden costs. Some leases charge a “cleaning fee” if you don’t leave the apartment in a specific condition. You may also face penalties for not giving sufficient notice before vacating.

And don’t forget about the cost of moving itself. Whether you’re hiring professional movers or renting a truck, the costs can spiral if you’re not careful. And let’s not even talk about the potential costs of breaking a lease early. Trust me, it’s not a route you want to go down if you can help it.

4. Breaking a Lease Early

Sometimes life throws curveballs at you. Maybe you got a new job in a different city, or perhaps you just can’t stand your noisy neighbors anymore. Whatever the reason, you’re considering breaking your lease early. But before you make that decision, you should be fully aware of the financial implications.

First, take another good look at that lease agreement—remember the one you carefully read before signing? Many leases contain clauses that specify the penalties for breaking it early. These penalties can range from losing your security deposit to being required to pay rent for the remaining months on your lease. Yikes!

Even if your lease has a more “lenient” early termination clause, there’s often still a cost involved. You might have to pay a fee equivalent to one or two months’ rent, or cover the cost of advertising the property until a new tenant is found. And let’s not forget, some landlords require a 30 or 60-day notice, during which you’re responsible for the rent even if you’ve already moved out.

Breaking a lease can also have long-term financial consequences. A broken lease can show up on your rental history, making it more difficult—and potentially more expensive—to rent a new place. Some landlords check rental history as stringently as they do credit scores, so a blemish like this can cost you in the long run.

So there you have it—four pitfalls that can have you unnecessarily losing money as a tenant. But knowledge is power, my friends. By understanding these traps, you can take steps to avoid them and save yourself some hard-earned cash. Read that lease carefully, document any issues upfront, and be smart about your move-out strategy. Your wallet will thank you!

Real Estate • March 1, 2023

The home inspection process: What to expect and how to prepare

by Jennifer Daring

Buying a home can be a complex and overwhelming process, and one of the most critical steps in this process is the home inspection. A home inspection is a thorough evaluation of a property’s condition to identify any potential issues or defects that could impact the safety or value of the property. In this blog post, we’ll discuss what to expect during the home inspection process and how to prepare for it.

What to Expect During the Home Inspection

The home inspection typically takes between 2-4 hours, depending on the size and condition of the property. During the inspection, the inspector will evaluate the following areas of the property:

Structural components: This includes the foundation, walls, and roof of the property.
Mechanical systems: This includes the HVAC, plumbing, and electrical systems of the property.
Exterior features: This includes the siding, doors, windows, and any outdoor structures like patios, decks, or pools.
Interior features: This includes the walls, floors, ceilings, doors, windows, and any appliances that will remain with the property after the sale.

The inspector will also look for signs of water damage, pest infestations, and other issues that could impact the safety or value of the property. Once the inspection is complete, the inspector will provide a detailed report of their findings, including any recommendations for repairs or further evaluations.

How to Prepare for the Home Inspection

To ensure a smooth and efficient home inspection, there are several steps you can take to prepare:

Make sure the property is accessible: The inspector will need to access every part of the property, so make sure that all areas are accessible, including the attic, crawl spaces, and any outdoor structures.
Clear away any clutter: The inspector needs to be able to see every area of the property clearly, so clear away any clutter or personal items that may obstruct their view.
Provide access to all utilities: The inspector will need to evaluate the HVAC, plumbing, and electrical systems, so make sure that all utilities are turned on and accessible.
Be present during the inspection: While not required, it’s a good idea to be present during the inspection so you can ask any questions and address any concerns that may arise.
Review the inspection report: Once the inspection is complete, review the report carefully and follow up with the inspector if you have any questions or concerns.

In conclusion, being knowledgeable about the home inspection and taking the necessary steps to prepare can help you navigate this critical step in the home buying process with ease. Keep in mind that the purpose of the inspection is to uncover any potential issues or defects that could affect the safety or value of the property. Therefore, it is important to review the inspection report thoroughly and follow up with the inspector if you have any questions or concerns. By being prepared and informed, you can ensure a successful and stress-free home inspection experience.

Real Estate • December 3, 2022

How to Review and Negotiate Offers

by Jennifer Daring

How to Review and Negotiate Offers

When you’re selling a house, you’ll likely get several offers, sometimes all at the same time. So knowing what to look for in the offers and when to negotiate is important. Here’s what you should consider.

Review the Entire Offer

Don’t just look at the dollar signs when you receive an offer. There’s a lot more to it, and if you focus on price alone, you may end up with the short end of the deal.

Look at all conditions the buyer requests, such as any contingencies, seller concessions, or even closing date requests. Then, look at the big picture and see how it fits into your plans.

Assess the Earnest Money and Down Payment

The earnest money and down payment is important to the real estate offer. They prove whether a buyer is serious about buying the home. A buyer that won’t make an earnest money deposit is likely less serious about buying your home than the buyer willing to put down 3% – 5%.

Also, look at their down payment on their pre-approval letter. Are they making the minimum down payment or making a larger investment in the home? The larger the investment, the more serious they are.

Closely Review What the Buyer Wants

A buyer’s offer will include many stipulations or requests. Pay close attention to them and see how they affect your bottom line. For example, are they asking for more personal belongings than you intended to include?

Even if they ask for more than you want to leave, consider the dollar amount they’re offering and compare it to what you’d lose if you provide the personal belongings.

Calculate Seller Concessions

If the buyer asks you to help with their closing costs, mortgage insurance, or to fix certain issues with the house, determine how much it reduces your profits from selling your home. Even if they offer the amount you want for the home, any help you provide the buyer reduces your profits.

Before agreeing to help with closing costs or cover the cost of certain repairs because that’s what the buyer wants, consider how it affects your bottom line. Sometimes it’s better to pass on the offer and accept the offer without as many concessions.

Consider the Contingencies

Many buyers will include contingencies in their offers. Contingencies are ways out of the contract without losing earnest money. This means the buyer will only buy the house if certain conditions occur. Evaluate the contingencies and determine which (if any) you want to accept.

Final Thoughts

Knowing how to review and negotiate offers is important. If you don’t like something in an offer, don’t be afraid to negotiate it. You don’t have to accept an offer at face value. Instead, decide what you want from the sale and evaluate your options.

Even if you only have one offer on your house, don’t rush into an offer. Instead, evaluate it and how it affects your bottom line before accepting any offers.