8 Things You’ll Regret Not Asking Your Landlord Before Moving In

 
 

Moving can be stressful.

Beyond the mind-boggling logistics of moving all of your stuff (how is it that you really don’t notice you’re accumulating that much stuff until you have to box it up?!), there’s the added part of having to deal directly with the law as well as navigating a whole other myriad of systems built to not benefit you, the tenant. To put it lightly, it’s quite easy for even the most prepared of renters to slip up somewhere along the move-in process. One of the most common “oh shoot” moments? Forgetting to ask your landlord an important question before signing the lease.

I believe that one of the most powerful learning tools we have is each other, so, in this light I have asked my noble colleagues to come forward and speak to these “If only I had thought to ask!” moments. From small maintenance-related troubleshooting to money-saving tactics, here are the eight questions that would have saved us down the line:

1. Can we negotiate a maximum rent increase for resigning the lease?

Gen X had Ross and Rachel as their great “will-or-won’t they” relationship. For Millennials, it seems like it might be, “Is my landlord going to raise my rent when my lease is up?” But here’s a fun tip: You can get yourself out of this renter’s Schrödinger’s Cat paradox simply by asking your landlord as soon as possible—as in before signing the lease. Caroline Ammarell, AT’s senior manager of content strategy and analytics, says she regrets not asking her landlord to include a maximum rent increase for the following year’s renewal in her previous apartments’ leases. For her current apartment, she not only asked her landlord before signing, but was even able to negotiate the figure. Not only has it allowed her to better plan ahead, but she figures it’ll probably save her some money in the future.

2. Can we add a rent-responsible clause?

One thing Nicoletta Richardson, our associate senior news editor, regrets not asking for an old apartment? The process, penalties, and accepted situations for breaking a lease. Knowing your potential exit strategy up front can save a lot of time and frustration if you end up having—or wanting—to move.

Besides going over the lease-termination specifics, Jose Castro, AT’s director of operations, also recommends asking your landlord if you can include a rent-responsible clause in your contract. While you’ll normally have to pay your landlord a penalty to break a lease, this addendum states that you’re responsible for finding a replacement tenant, and if you succeed, you suffer no penalty. Even if you’re not planning on having to break your lease mid-year, it’s a good thing to include—your future self might thank you.

3. What the “actual rent” is on the lease?

Unfortunately, some landlords can be trying to pull tricks—at least that’s what happened to Laina Zissu, AT’s programmatic sales and strategy manager. On her last lease, she discovered that though she signed the lease at market value—the “actual rent” on her lease was almost double. Though her building was rent-controlled, this caveat meant that her landlords technically could raise her monthly rate up to that figure on the lease. The best way to avoid this happening? Simply ask to confirm that the actual rent is the same as what you’re paying each month.

4. Are there any improvements to the unit that the current tenants are planning to take?

You’d be surprised what safety measures your landlord has to install for you—and what you’re responsible for. Case in point? Though Nicole Lund, our associate commerce editor, saw a deadbolt in her apartment in her viewing, she didn’t learn until after she moved in that the previous tenants had installed it and subsequently took it with them. If Lund wanted the extra security measure, too, she was told it was her responsibility to purchase and install. Prevent ending up like Lund and confirm that what you see in your viewing is what will be in the apartment on move-in day.

5. What’s your cell number?

When Richardson first looked at her current apartment, she noticed the unit had some unfinished upgrades. She brought them up to her landlord who assured her they would be taken care of by the time they moved in. Come move-in day, though, some projects weren’t completed, like turning the gas on. She e-mailed the landlord and he said he’d get someone to come the next day. So Richardson worked from home to let the person in; however, when he got there, it turned out that the gas switch was not easily accessible. The two of them went to call the landlord for information—but they realized they only had his work number and he wasn’t in the office. It eventually was all worked out, but it was a headache that could have been solved had Richardson asked for his direct line before moving in.

6. Are you planning on making upgrades to other units anytime soon?

Here’s a story: Two weeks after Jean Simon, web engineer, moved into her current apartment, she found out that the three other empty units in her building were getting their carpet and replaced with hardwood floors—but not hers! She regrets not asking her landlord if there were any plans to upgrade units in the building, because she would have delayed her move-in date or made arrangements to accommodate floor installation. Now, she’s stuck with carpet until she moves out.

7. What’s the unit’s maintenance history?

When Drew Wilchak, AT’s desktop support technician, moved into his current apartment, he noticed that his stove wouldn’t catch a flame. As it turned out, the gas had been shut off in his apartment while the unit was unoccupied due to a leak. Long story short, the issue took six whole months to fix(!).

Had Wilchak taken a note from many homeowners and asked about the unit’s maintenance history before he signed the lease, he might have avoided cooking on a hot plate for half a year and the headaches of coordinating with his management company. Knowing if the unit has had any problems in the past or if it’s been awhile since it’s seen maintenance can help you prevent future inconveniences (or pass on the unit if it seems problematic!)

8. What are the average cost of utilities for summer and winter?

And here’s my own regret! Who would have known that while having central air and heat is a life-saver, it’s also super expensive in the summer and winter, and suprisingly so? I surely did not, and therefore did not budget well enough for those months (eek!) I would have, though, had I taken senior product manager Jane Hunt’s advice and asked my landlord what the average cost of utilities were for the summer and winter months.

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The Type of Renovation You Need to Save Up for, Based on Your Home’s Age

 
 

Buying a mid-century marvel or a 1970s fixer-upper sounds like a dream at first.

Just the very thought has us picturing stained-glass windows and groovy fireplace tile, but these decades-old homes often come with a tough reality: repairs. Not all houses are created equal. The type of upgrades your place will need (either now or in the near future) is largely dependent on when it was initially built. According to the 2022 U.S. Houzz and Home survey, homeowners with places constructed between 1961 and the early 2000s will invest around $20,000 in their spaces, which is 11 percent over the national median spend on a renovation. 

And while that’s a daunting figure, knowledge is power. Houzz put together a list of the types of upgrades you should expect to splurge on, based on a property’s age. Read this before you decide to put a down payment on that charming ranch or quirky split-level.

If It’s Pre-1960s

Get your ladder ready. Twenty-six percent of respondents who own a house that’s 50 years or older said they spent their resources on upgrading or replacing their roofing. Coming in at a close second, 25 percent shared they invested in new windows or skylights.  

If It Went Up Between the 1960s and 1970s

While 1970s-inspired decor might be all the rage right now, 29 and 28 percent of people living in places from this era allocated their budgets to gut kitchen and bathroom renovations, respectively. If you find yourself in this boat, we suggest swapping your dated wood cabinets and pastel sink for timeless Shaker cupboards and a value-boosting farmhouse sink.

If You Scored a Home From the 1980s or 1990s

For more recent builds, the focus is on functionality. Updating plumbing systems accounts for 26 percent of people’s spending, while 25 percent have focused on adding home security like electronic alarms and window locks.

If You’re Living in the 2000s and Later

Even new construction doesn’t always cross off every box on a potential buyer’s wish list. Fifty-nine percent of those polled plan to dedicate their savings to little luxuries, like sprucing up their outdoor space’s irrigation and lighting. Inside, they’re adding smart thermostats and integrated speakers. With enough care, your home will age gracefully.

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Can Your Landlord Raise the Rent More Than Once Per Year? Here’s What Experts Say

 
 

No matter where you live, there’s a solid chance your rent has risen in the past few years.

Rent prices increased in 79 of the largest 100 U.S. cities during the month of August, according to Apartment List’s most recent national rent report. And so far in 2022, rents are up 7.2 percent — but year-over-year growth has slowed to 10 percent, down from 18 percent at the beginning of the year.

Still, you’ve probably come to expect that by the time your lease renewal notice comes around, you’ll receive a rent increase should you choose to renew. But given that rental vacancies are lower than usual (this could be because high interest rates are sidelining would-be buyers) and the rental market is hot, could your landlord pounce on this opportunity to raise your rent multiple times in one year? 

The answer is a resounding “probably not.” But really you need to look to your lease agreement for the most definitive answer.

If your lease provides for a mid-year increase, then yes, your landlord can increase the rent, explains Steven M. Katz, Esq., an attorney in Columbus, Ohio with Katz, Pryor & DiCuccio LLP, who specializes in contract law and landlord-tenant law. But if your lease is silent on this topic, then no, your landlord can’t unilaterally raise your rent. 

“For the landlord to raise rent in the middle of a lease, that would constitute a modification of the contract,” Katz says. “To modify a contract there must be consideration given by both parties. For example, if the tenant is behind on rent, the landlord may offer to forgo an eviction in exchange for a raise in rent moving forward.”

Despite these binding contracts, it’s not unheard of for some landlords to try to raise rent on unsuspecting tenants. And the protections that are in place could vary by state laws and city ordinances. For this reason, Katz recommends that renters be familiar with tenant rights, laws, and protections in their home state. 

If you think there’s been a breach in contract, you can start by contacting your local tenants’ rights organization, which should be well-versed on the local laws in your area, says Leonard Ang, the CEO of iProperty Management, an online resource guide for landlords, tenants, and real estate investors.

One more thing: If you go to renew your lease and you’re presented with a rent increase, you may have some negotiation power — especially if you’re a good renter with a strong on-time payment track record. 

“Rent is always negotiable, and smart renters know to ask for what they want, especially with a new lease or a renewal,” says Jonas Bordo, the CEO & cofounder of Dwellsy, a home rental platform. “Maybe a deal is possible… higher rent in return for new appliances or an extra parking space, for example, might be a deal that would benefit both you and your landlord.”

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How To Buy a Home When You Have Student Loan Debt

 
 

Debt is one of the most common barriers to homeownership. Mortgage lenders are often loath to extend credit to wannabe homebuyers who owe four, five, or even six figures.

And while Americans can be in the hole for a number of reasons, student loan debt is one of the leading factors that hold a lot of would-be homebuyers down. In fact, almost one-third of student debt holders say the debt has prevented them from buying a home, according to the research team at Education Data.

Recently, the Biden-Harris administration set an executive action to provide up to $20,000 in debt cancellation to Pell Grant recipients (and up to $10,000 to non-Pell Grant recipients) who make less than $125,000 a year ($250,000 for married couples). But the student loan forgiveness plan isn’t a cure-all.

“It may help a group of young Americans move into a position to buy a home years ahead [of] what had become the norm,” says Ruth Shin, founder and CEO of real estate company PropertyNest in New York City. “However, we are also looking at interest rates rising as well as a scarcity of inventory on the market in the near future, so we may have to wait a couple of more years before we see a difference.”

Still, though, the path to homeownership for buyers with student loan debt might be less rocky in the future. Nearly 20 million borrowers are poised to have their student debt canceled completely, and an estimated 40 million people will be eligible for some relief.

“Homeownership is an achievable goal even if a buyer has student loan debt. It just may take some planning,” says Glenn Brunker, president of Ally Home in Detroit. “In addition to having an open and honest conversation with a mortgage professional about their unique financial situation, prospective homebuyers with student loans can take specific steps that will help them achieve homeownership.”

If you’re one of the many Americans preparing to enter the homebuying sphere with student loan debt, here are some tips and expert-approved recommendations for navigating the process.

Refinance your student loan and pay down private loans first

If you’re looking to buy a house in the near future, the first thing you should do is lower your monthly student loan payments by refinancing.

“Refinancing student loans and lowering the size of your payment is the best way to get a mortgage with a student loan on your record,” says Shri Ganeshram, CEO and founder of Awning, a real estate company for investors. “Lenders look at the size of your existing monthly debt load compared to your income when determining your eligibility to borrow. By refinancing your student loans, you could decrease your monthly debt payments and allow yourself to qualify for a mortgage.”

Ganeshram also urges borrowers to make paying off private loans a priority, because these types of loans typically carry an interest rate and are not part of President Joe Biden‘s student debt relief plan.

Understand the debt-to-income ratio

Your mortgage application won’t look very favorable if your debts far outweigh your income. And if you carry student debt, it’s going to affect your debt-to-income ratio.

Different lenders have different DTI limits. Get familiar with your preferred lender’s DTI limit, especially if you’re eligible for student loan debt relief.

“You’ve got to manage your debt-to-income ratio,” says Martin Orefice, CEO of Rent to Own Labs in Orlando, FL. “If you have a student loan balance, you may struggle to qualify for a mortgage. But the $10,000 (or $20,000 for Pell Grant recipients) in loan forgiveness [via the student debt relief plan] can help reduce your debt-to-income ratio.”

Inquire about getting an FHA loan

The student debt relief plan will help some wannabe homeowners, but other borrowers with high student loan balances might not reap the benefits.

“If individuals with a high student loan balance receive a $10,000 debt reduction, it will likely not change their ability to qualify for a mortgage to purchase a home,” says Eric Jeanette, president of Dream Home Financing and FHA Lenders in Adelphia, NJ. “The lower balance will not change the monthly payment unless lenders are forced to also recast the loan.”

“Buying a home with student loan debt is possible, and the easiest path is to use a Federal Housing Administration loan to finance the home,” Jeanette says. “FHA guidelines require lenders to use the actual payment amount or 0.5% of the student loan balance (when no payment is referenced) to determine the payment amount used in the debt-to-income calculation.

“If your student loan debt is $50,000, then the lender would use $500 as the monthly payment for the student loan in the debt-to-income ratio calculation,” he continues. “With many student loans in a deferred status, using the half-percent model for the payment is beneficial.”

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What Experts Say Will Happen with Home Prices Next Year

 
 

Experts are starting to make their 2023 home price forecasts. As they do, most agree homes will continue to gain value, just at a slower pace.

Over the past couple of years, home prices have risen at an unsustainable rate, leaving many to wonder how long it would last. If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and its welcome news for homeowners who may have been led by the media to believe their home would lose value.

Historically, home prices have appreciated at a rate near 4%. For 2023, the average of six major forecasters noted below is 2.5%. While one, Zelman & Associates, is calling for depreciation, the other five are calling for appreciation. The graph below outlines each expert forecast to show where they project home prices are going in the coming year.

 
 

To understand why experts are calling for appreciation next year, look to the economics of supply and demand. Dave Ramsey, Financial Expert, says this:

“The root issue of what drives house prices almost always is supply and demand . . .”   

Two things are driving home prices upward. First, the undersupply of homes on the market is an issue we continue to face in this country. We still don’t have enough homes on the market for the number of people that want to buy them. To further that point, we’re still in a sellers’ market nationally, and in that scenario, home prices tend to appreciate.

Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away any time soon.

Bottom Line

Experts are calling for home prices to appreciate next year, although at a slower pace than the previous three years. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come.

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