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Find out how to get started trading cryptocurrency in this step-by-step guide.

This article originally appeared on Finder.com and has been republished here with permission. 

The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

There are lots of different ways of making a profit–or losing money–from cryptocurrency. Trading is one of the most popular.

This guide explains where to begin, including how to choose a trading style, how to devise a trading plan, what to look for in a trading platform and things to consider.

Cryptocurrency Trading

Disclaimer: Information on this page is not financial advice or an endorsement of cryptocurrency or any specific provider, service or offering. Cryptocurrencies are highly volatile and high risk, and past performance is no guarantee of future results. Crypto products and providers come and go as regulations change. Make sure the one you’re interested in is available, and talk with a financial professional before making a decision.

How to Trade Cryptocurrency

There are five steps to getting started:

  1. Do your research and work out whether cryptocurrency trading is right for you.
  2. Decide whether you want to do long term or short term trading.
  3. Choose the trading method that’s right for you.
  4. Learn how to place trades and read charts.
  5. Choose an exchange and start trading.

This guide walks you through each of these steps.

The Different Types of Cryptocurrency Trading

The first step is to decide between long-term or short-term cryptocurrency trading. Both are very different.

Long-Term Trading

Long-term traders buy and hold cryptocurrencies over a long period of weeks, months or even years, with the intention of selling at a profit or using it later.

If you believe the value of a cryptocurrency will grow in the long run, and don’t want the stress of actively trading, then this might be your style, and a good first step may be learning how to safely buy and hold cryptocurrency.

Short-Term Trading

Short-term trading is about taking advantage of short term cryptocurrency price swings by creating and executing a trading strategy.

It’s more active, stressful and risky than long-term trading, but it also offers faster and larger potential returns for those who do it right, and lets you profit from cryptocurrency prices dropping as well as rising.

If this is what you’re looking for, you can either read on for a beginner’s guide or compare cryptocurrency trading platforms to get started.

Choose a Trading Method

The second step is choosing a trading method. This is important, because all of them are quite different and require different techniques. In some cases, the same cryptocurrency exchange will offer several different types of trading.

There are two different ways of making short-term cryptocurrency trades.

1. Trade cryptocurrencies directly against each other

Trade a range of cryptocurrencies against each other, or against fiat currency, aka “real money,” to accumulate more crypto or fiat currency through repeatedly buying low and selling high.

If you do it right, your funds grow.

If you do it wrong, your funds shrink over time, as bad trades and changing markets eat away at your holdings.

The value of your cryptocurrency will rise and fall, but there’s no risk of immediately losing all your money to a bad trade.

✅ Good for: Beginners, accumulating cryptocurrency, avoiding excessive risks, keeping things simple.

❌ Not so good for: High-risk high-reward strategies, profiting from markets dropping.

2. Trade cryptocurrency derivatives

Trade cryptocurrency derivatives, such as Bitcoin futures or Ethereum options. You don’t necessarily have to own any cryptocurrency at all to trade crypto derivatives and can simply bet on the markets if you want.

Derivatives trading offers much more flexibility than simply buying and selling cryptocurrencies, but it’s also more complex and better suited to advanced traders. There are several different types of derivatives, such as futures, options and perpetual swaps, all of which have their own nuances and may be used simultaneously.

Trading crypto derivatives lets you use leverage–magnifying gains and losses–open short positions to directly profit from cryptocurrency price drops, mitigate risks by hedging and make big trades even if the markets are relatively quiet. They can also be a very fast way of losing money.

✅ Good for: Leverage, large profits–or losses–even in flat markets, fast gains or losses, high-risk high-reward strategies, flexibility in any market conditions.

❌ Not so good for: First-time cryptocurrency traders

Cryptocurrency Trading for Beginners

Before you can start trading, you need to be sure cryptocurrency trading is right for your circumstances and that you understand the risks associated with it. You’ll also need to know what all the buttons do.

Fortunately, most cryptocurrency exchanges have similar-looking market pages, and you can safely ignore a lot of the information on the page.

Here’s an example from the Binance cryptocurrency trading platform, showing the Bitcoin/USDT market with the important parts annotated.

The red and green box at the top is the price chart. At the bottom is where you place your buy and sell orders. Sandwiched between the two, in this particular case, is a place where you can click through to derivatives. It’s a completely separate market, where people trade futures contracts rather than Bitcoin itself.

Let’s zoom in on the bottom part, where you place buy and sell orders. There are two things to pay attention to here: your order type and the amount you want to buy or sell.

In this case, Binance offers three basic order types: market, stop-limit and OCO.

  • Market. Place a buy or sell order at the current market price, to execute immediately.
  • Stop-limit. Once you select this, you will be prompted to choose a separate stop price, and limit price. Once the asset (Bitcoin in this case) reaches the stop price, it will sell for at least the limit price, if possible.
  • OCO. “One cancels the other.” This is two stop-limit orders combined, where one cancels the other if it’s triggered.

Market and stop-limit are the basic order types you’ll find on almost all exchanges, while OCO is a bit less common. Different exchanges will sometimes have different order types, and slightly different rules about how they can be placed.

How to Make a Trading Plan

The difference between gambling and trading is having a plan. Creating a plan is a three step process:

1. Look for patterns

The basic principle of reading charts and creating trading plans is to look for patterns in previous price movements, and then use those to try to predict future movements.

Some patterns emerge frequently enough across multiple markets that they’re given their own names, such as resistance and support. But others are much more obscure, and are never given names of their own.

For example, if you think Bitcoin goes up when Ethereum goes down, or that Bitcoin rises when the US dollar falls relative to the Chinese renminbi, or anything else you can think of, that could be a pattern you can trade on.

2. Make a plan and stick to it

The two basic components of a trading plan are:

  • A place where you take profits
  • A place where you cut your losses

For example, someone’s basic plan might be to sell 33% of their Bitcoin for every $1,000 the price goes up (taking profits), or to immediately sell all their Bitcoin if prices drop below the current support line (cutting losses). To lay out this plan, they could set up a series of stop-limit orders.

This is not necessarily a good plan, but it would ensure that the amount they gain or lose is within sensible boundaries no matter what the market does.

As traders get more experienced, they can create increasingly sophisticated trading plans that tie together more market indicators, and allow for much more nuanced trading strategies.

Experienced traders typically use cryptocurrency trading bots to execute their strategies, because they tirelessly follow complex trading plans faster and more reliably than a human ever could.

3. Experiment

It’s good to test trading theories before throwing real money at them. Paper trading or backtesting can be useful here. Both features are often found on trading platforms.

Paper trading is a way of using fake money on the real markets, so you can test a trading strategy in real, current conditions. Backtesting is when you put a trading strategy through historical market movements to see how it would have performed.

If you’re a beginner trying to get your head around the basics of reading charts and spotting patterns, you may want to read the step-by-step guide to cryptocurrency technical analysis for a sense of how to start spotting patterns.

Related read: How to Invest in Stocks: A Guide to Getting Started

What to Watch Out For

Cryptocurrency trading incurs many of the risks of trading on any other market, as well as some unique challenges.

  • Volatility. Cryptocurrency is volatile. This is one of the things that makes it attractive to traders, but it also makes it very risky. Double-digit intraday price swings are common, and drastic shifts can happen in just minutes.
  • Unregulated, manipulated markets. The cryptocurrency markets are largely unregulated compared to more traditional markets. It’s an open secret that wash trading and market manipulation are common. They’re also a lot less liquid than many other markets, which can contribute to the volatility and make it easier for well-moneyed “whales” to manipulate prices, force liquidations and similar. Exchanges themselves are sometimes accused of manipulating their own markets against their own customers.
  • Inaccurate patterns. Markets will often follow patterns, but often they won’t. This is a risk when trading anything, but the unique characteristics of the cryptocurrency market means it’s a particular challenge there.
  • Being over-exposed. Don’t bet more than you can afford to lose. Limit your exposure and consider setting up take profit and stop loss orders to limit your exposure in the event of drastic swings.
  • Using excessive leverage. Many cryptocurrency exchanges will offer up to 100x leverage, dramatically magnifying the potential risks. The volatility of cryptocurrency, combined with high leverage trading, can see positions be liquidated extremely quickly.
  • Not knowing when to fold. Whether you’re up or down, it’s important to know when to close a position and either take profits, or cut your losses.

Related read: 7 Habits of Successful Savers & Investors

Compare Cryptocurrency Trading Platforms

When choosing a cryptocurrency trading platform, consider factors such as whether it offers derivatives or leverage, what kind of order types it allows and how easily it can integrate with cryptocurrency trading bots.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators’ websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Source: credit.com

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Vibrancy and energy pulses through Franklin’s downtown district.

Shoppers wander in and out of clothing boutiques, vintage stores, home decor shops and more. Eateries are packed, while a steady stream of customers cycle through the coffee shops and cafes.

People come for movies or bowling, or stick around for weekend festivals or evening concerts.

“We have a really good variety of shops, compared to other places where everything is kind of the same. A lot of the shops have the shop owners in there working, which helps to created a sense of community,” said Christina Fletcher, owner of Possibilities: Home Re-Imagined.

Local business owners and officials want to make it easier for more people to experience all downtown Franklin has to offer. Nearly 30 boutiques, restaurants and other retailers are teaming up for a special shopping event, Shop the Blocks, on Thursday.

“Hopefully, it can become a somewhat regular thing,” said Jess Giles, executive of Discover Downtown Franklin. “Different people may not be able to shop because of work, now they can be in the downtown area.”

Participating businesses will stay open late for customers, adding special offers and deals, and providing other treats during the into-the-night experience.

Banding together and working as a team to spark sales emphasizes how unique and special Franklin’s downtown business community is.

“A rising tide lifts all ships. It’s been a weird year, so this is a way we can come together for shop owners,” said Fletcher, who is organizing the event.

Shop the Blocks is the most recent example of downtown businesses banding together to spark sales and reach new customers. Events such as the Holiday Open House and Shop Small Saturday have focused on bringing people in to shop, enticed by special deals and potential giveaways.

Discover Downtown Franklin and other local officials recently met with Indiana Main Street, an organization focused on helping downtowns revitalize. One of their key suggestions was for businesses to offer expanded, later hours, Giles said.

“People are wanting to shop either on Mondays or in the evening. Before we were even able to send out the results of that discussion, Christina had already come up with the idea and voiced it to other active merchants in town,” she said.

Fletcher, who moved Possibilities into its new home earlier in 2023, had done similar events with like-minded shops in the past. Their new location at 101 E. Jefferson St. linked the grouping of vintage stores and boutiques on either end of Jefferson Street, serving as a bridge for shoppers.

“When we first opened up here, the city and the chamber (of commerce) were excited because it was a connector, but what comes with that is people weren’t used to shopping here,” Fletcher said. “I thought this was a way to get the word out that we’re here, and working with other business owners to get more people downtown.”

Quickly, a large number of other businesses signed up. With Franklin becoming a destination for trendy stores selling home decor, repurposed furniture, vintage decorations and more, they hoped to take advantage of the extended hours.

“A lot of the shops close so early, so people can’t go shopping even though they want to,” Fletcher said.

But a diverse range of businesses also wanted to be part of Shop the Blocks. Eateries such as Millie’s Ice Cream Co., Frozen Paradise, Court Street Cafe, Benjamin’s Coffeehouse & Bakeshop, The Local Grind, 1823 Bakehouse and Hoosier Cupboard Candy, Snacks and Ice Cream will give shoppers a taste of what Franklin has to offer.

People can pick up something to read at Wild Geese Bookshop, fabric art supplies at the Knitting Otter and a new candle at Middle Davids Artisan Candles.

Even kids can find something fun, as Toodleydoo Toys is taking part as well.

To entice people to Shop the Blocks, each place will have unique offerings showcasing what makes them special. Some plan out wine sampling for people while they shop; others serve appetizers or other finger food.

Possibilities will have its one-of-a-kind tasting bar available, allowing people to sample different olive oils and balsamic vinegars.

“I didn’t want it to be too structured. I wanted them to be able to do their thing, and allow customers to experience those shops for who they are, not a construct put up around it,” Fletcher said.

One-day-only sales and deals will also be available.

Fletcher is optimistic that the event will be popular with the community, enough so that participating businesses, and others who want to be a part of it, are interested in additional Shop the Blocks.

“Other communities have First Fridays and things like that, so we want to turn it into a monthly event,” she said.

IF YOU GO

Shop the Blocks

What: Nearly 30 local shops and restaurants extend their hours for an evening of unique shopping and dining experiences. The event is designed to stimulate local economy, encourage community members to support local businesses, and provide an exciting and vibrant atmosphere for attendees.

When: 5 to 8 p.m. Thursday

Where: Various downtown Franklin businesses

Participating businesses: FrenChic, Farm Girl Mercantile, Salvage Sisters’ Antique Market, Bay 7 Vintage, Possibilities: Home Re-Imagined, The Grove – Botany Boutique, Toodleydoo Toys, Franklin Jewelers, Eclectic Jade, Small Town Girl Boutique, Vintage Whimsy, Blackbird Design is At Home With Heartland, At Home With Heartland, Middle Davids Candles, Wild Geese Bookshop, Millie’s Ice Cream Co., Frozen Paradise, Court Street Cafe, Benjamin’s Coffeehouse & Bakeshop, T-Shirt Express, Thanks for The Thyme, The Local Grind, Brick Street Boutique, The Knitting Otter, BYTAVI, 1823 Bakehouse, Hoosier Cupboard Candy, Snacks and Ice Cream, Madison Street Salvage

Information: ShopTheBlocksFranklin.com

Source: dailyjournal.net

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The popularity of growing your own garden has literally, well, grown over the past few years from homegrown herbs to houseplant huddles. But embarking on the journey of nurturing an indoor garden is an exciting yet daunting endeavor, especially for those taking their first steps into the world of plants.

Gardening indoors is a great way to connect with nature while developing personal responsibility. Plants also offer therapeutic and health benefits, making growing greenery multi-beneficial. We’ve gathered our ultimate indoor garden ideas tailored to first-time plant owners, providing inspiration and insights to help you curate your own green garden.

Benefits of growing plants

Developing your green thumb has multiple benefits that make nurturing plants not only a fulfilling hobby but also a rewarding lifestyle.

Stress reduction

Studies show that people who spend time cultivating plants have less stress in their lives. Plants soothe human beings and provide a positive way for people to channel their stress into nurturing. Indoor plants also help improve attention span and memory due to the daily tending to the plants.

Hobby/ learning opportunity

Growing your own indoor garden is a great way to spend time while learning about something new. Depending on the plant you growing, you have to research the specific needs and tend to them as needed, making it a great pastime within the comfort of your own home.

Aesthetic appeal

Plants add a touch of nature, color and vibrancy to the room they’re placed in. This easily increases the appeal of a room and serves as a great conversation starter as well.

Cons of indoor gardening

Of course, with all the benefits, comedy has a few downsides when it comes to green thumb life.

Limited space

When living in smaller quarters, plants can require more space to grow. This limits your selection of the type of plants you can grow. In smaller quarters like an apartment, you also run into the trouble of finding ample natural lighting which certain plant types require.

Maintenance and care commitment

Embracing your green thumb requires a lot of commitment when it comes to tending to the plant and keeping up with the maintenance surrounding your greenery. Depending on your plants, this can include watering, fertilizing, pruning, repotting and cleaning loose soil or fallen leaves.

Harmful for furry friends

Plants are not exactly pet friendly. Many common indoor plants are toxic to pets if ingested. Pets, especially cats and dogs, might be curious and nibble on leaves or dig in the soil, leading to potential poisoning. This requires research into non-toxic plants or just choosing plants that are out of pet’s reach.

Indoor garden ideas to get you started

By following these steps and tips, you will create an appealing arrangement for your indoor garden that will enhance the overall aesthetic of your space.

Assess your space and lighting, especially in small spaces

When embarking on your plant-growing journey, the first step is to find the best spot in your apartment based on space and lighting. You may have a lot of ample floor square footage for a cluster of plants, a top of a bookshelf to fill with greenery or space in the kitchen for a small herb garden. It all depends on the natural lighting in the space and the open room for plants to grow.

Select your plants and gather the necessary supplies

Now that you’re aware of the space you need to fill and the access to lighting, it’s time for the fun part, selecting your new plant or plants. When looking around, it’s important to also research the specific care requirements for each plant you choose so you’re aware of the commitment that comes with each one. This involves pots, containers, soil/fertilizer, watering supplies, gardening gloves and other additional tools depending on what the greenery requires. With your tools and plants in mind, check out these arrangement ideas and their suggested plants.

Placement ideas for your indoor garden

Location, location, location applies to not only your home but to your garden as well. Here’s how to make the most of the space you have and watch your new garden thrive.

Vertical garden

A vertical garden is a popular choice for those who lack usable floor space for their gardens. Use hanging planters, wall-mounted shelves or trellises to grow your trailing plants in a controlled way.

Recommended plants: pothos, philodendron, string of pearls, spider plant and English ivy.

Herb garden on a window ledge

Most apartments have window sill space which can make for the perfect spot to start an herb garden. Herbs require light so placing them here ensures better success for growing your herbage.

Recommended plants: basil, chives, mint, parsley and thyme.

Terrarium

If you’re looking for an arrangement that’s a little less time-consuming and more contained than free-standing plants, look no further. These mini-ecosystems, contained in a glass container, are filled with smaller plants and decorative items.

Recommended plants: succulents, tillandsia (air plants), mosses, ferns and fittonias.

Floating shelf garden

Another easily manageable garden idea is a floating shelf garden. Floating shelves are great for arrangements of compact plants and succulents. Because floating shelves are higher on walls, this is a great option for pet owners.

Recommended plants: string of pearls, golden pothos, succulents, lipstick plant and burro’s tail.

Corner cluster

For apartments with more floor space, consider a corner cluster. This is a more traditional garden and is ideal for those wanting to grow exotic plants that require vertical and horizontal space to grow. Typically, pre-potted larger plants thrive here, creating visual interest while serving as an outlet of creativity when designing the cluster.

Recommended plants: fiddle leaf fig, snake plant, monstera deliciosa, bird of paradise and ZZ plant.

Centerpiece

If you’re intimidated by taking on a larger garden, opt for a centerpiece garden to start off. Centerpieces are great decor while allowing gardeners to learn and practice their skills before taking on larger green projects.

Recommended plants: bonsai trees, succulents, miniature orchids, tillandsia (air plants) and peace lilies.

Nurturing nature’s beauty with indoor garden design

Gardening has the power to not only make indoor spaces look better but also provide us with fresh goodies and a unique hobby. No matter your level of plant knowledge, indoor gardening is a superb way to connect with nature, learn new things about yourself and enjoy the simple happiness of watching your plants thrive right alongside you. Breathe new life into your apartment today!

Source: apartmentguide.com

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A great Listing pre-qualification script pulls out critical facts so you can be best prepared to not just take the listing, but to price it right in the first place! Not prequalifying is unprofessional and can waste your time and the sellers. Always prequalify, 100% of the time! Price it to sell, not to sit.  

The best price reduction conversation is the one you never have to have. All pricing scripts are best used at the listing table!  

Don’t lose the listing of a motivated, have-to-sell seller over price. If they have sell, you have to take the listing! Someone is going to make a commission. Shouldn’t it be you?  

Proper previous planning prevents pitifully poor pricing!  

Don’t go to your next listing appointment unless you know the following items:  

What the seller wants, needs or thinks it’s worth

Pricing the home correctly in the first place prevents future price reduction drama. It’s not unusual for a homeowner to believe that their home should fetch a price higher than the comps. You should always find out how they arrived at ‘their’ price. Learn that information before you arrive at the appointment so you can better strategize, explain the pricing strategy and consider how to ultimately price the home.  

Try saying the following when the seller requests a list price that is too high: “That’s interesting, ‘seller.’  How did you arrive at that price?” Listen to their answer, carefully!

Secret #1

Sellers overprice out of either ignorance or arrogance. Even in a hot seller’s market, there is aspirational pricing. You can price too high. Ignorance is when they just don’t know how to price a home. Square feet matters, bedrooms, baths, views and condition are all taken into account. Arrogance is when they won’t listen to comps and have reasons other than real value to try to justify their price. 

Secret #2

Sometimes, especially in a low-inventory market, your potential seller client may know about comparable sales you didn’t capture. Private sales, for sale by owner and other sales not found in your MLS could be really good comparable homes, so ask good questions and don’t just assume your seller is overpriced.  

The average days on the market

You should know this stat for properties like your subject property. This information helps set both your expectations and the homeowner’s expectations. Not just for your town or even zip code, but for their neighborhood, school district and MLS code. Drill down as best you can to understand the days on the market for homes as similar to theirs as possible. Sometimes even the style of the home can make a difference.  

The list to sell price ratio

This data helps you combat the ‘price it high, let them negotiate’ objection. It can also help you know if you can price it right on the mark and expect to get slightly more. Are homes selling on average for 105% of the list price? Or, are sellers in the subject neighborhood typically settling at about 95% of the list price?  

Know the number of homes competing with your subject property

What are you up against? How would it compare in the eyes of the buyer? If you’re showing your new listing versus its competition, do you look priced right, overpriced or priced so well you’d be dying to write an offer and snap it up?  

Secret: If you’re the only home on the market in the entire zip code or MLS code,  you can price it higher than you could if there were seven other competing homes, all within the same neighborhood. Especially if the competing homes are basically the same size and age. In that case, you need to be staged better and priced better than your competition or you’ll be the  one who’s stuck doing price reduction calls in about 60 days.  

Secret: The next time you have to do continuing education, take an Appraisal class. This will help you become more confident in your pricing strategy. It will show you multiple ways of arriving at the correct price. Don’t just use ‘cost per square foot’ to arrive at the right price!  

New construction in the area that competes with your potential listing

Remember when builders provide in-house financing, they often can sell a more expensive home for the same payment as your resale. If there are new homes going up, be certain to tour them and understand the builder’s perks and financing before you go to your listing appointment.  

Secret: A resale home for $350,000 may be competing with new construction as high as $500,000 if the builder has buy-downs and in-house financing with incentives that reduce the mortgage interest rate. Know what’s going on with the new construction! Have the new build salespeople explain their different mortgage plans to you. Ask lots of questions like, ‘what happens when they have build clients who need to sell their old  house?’ 

What is the seller’s time frame

Ideally, when does the home need to sell and close by?  

Secret: If they don’t actually have a time frame, you may have a problem! The less motivated they are, the higher they may wish to price the home. That is a recipe for a tough relationship.  

What is motivating the sale?

When you know why they want to or have to move, you can use this to stay on task during the appointment, referring to their needs and making it more about them than about you. This can also greatly affect your pricing strategy. If they are closing on a new home in 60 days, your strategy will be different than if they want to sell first, rent for a while and then decide what to do later. If you don’t find out, you’ll be left guessing, and guessing is not a good strategy.

Secret: You can actually win a competitive listing situation by simply asking and then focusing on exactly what the seller really needs. Be the one who is their problem solver, not the agent who assumes they know everything. Sellers appreciate the attention to detail and focus on their needs.  

Are they listing and buying or just listing?

Is there a referral needed for where they’re moving to? Are they already in contract on something? Is there more than one transaction for you to help them with?  

What happens if it doesn’t sell?

Or, if they don’t get their ideal price? Is keeping the house an option? If they’re thinking about  perhaps turning it into a rental property, you should do your research about going rates for a home like this one. Can they break even or make money on the potential lease payment, or would they be losing every month? You can see how it would affect your strategy and pricing. 

How did they happen to call you?

Track your sources of business. Tracking where your listing appointments are come from will tell you what’s working. Do more of what’s working and fewer things that are speculative and costly.  

What’s the bottom Line?

Don’t go to any listing appointment without having the answers to the ten points we discussed here. Knowledge equals confidence. Ignorance equals fear. You’ll present more confidently and walk away with not only the listing but also the seller’s trust. Start out the relationship right if you expect to have a great relationship, including repeat and referral business!  

Tim and Julie Harris host a podcast for real estate professionals. Tim and Julie have been real estate coaches for more than two decades, coaching the top agents in the country through different types of markets.

Source: housingwire.com

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Being a landlord isn’t all lounging around in designer sweatpants while the rent checks roll in.

If you’re managing your property yourself, you’ll find there’s more than a little legwork involved. Whatever your reasons, (and there are plenty, ranging from investing in property to getting stuck with a house you don’t want to live in), buckle up. We’ll be walking you through how to be a landlord.

How to price your rental

A lot of factors go into pricing a rental, but in the end, it’s all pretty simple. If you don’t hit the sweet spot, it’s either going to sit empty or cost you money.

Either way, you lose.

Here are the most important things to keep in mind:

1. What are your costs? Before anything else, do the math and find out how much you need to charge to not actively lose money. Take into account your mortgage payment, housing taxes, HOA fees, upkeep and repair costs, and anything else that will eat into your profit.

It’s okay to not pull in much extra cash right away, so long as you’re in the rental business for the long term. With time—and smart money management—you’ll pay off the mortgage and get your rental income (mostly) free and clear.

2. Timing is important. Just like the housing market, the rental market has slow and busy times of the year. Generally, they match up pretty closely. Demand is highest in the summer, when schools are out and the weather is good. You’ll be able to charge slightly higher prices in the warm months than the dead of winter.

3. High rent is not worth a bad tenant. Sure, the goal of a rental property is to make you money. But there’s more to it than setting your rent as high as you can and accepting anyone who’ll pay it. A good tenant—one who sticks around for multiple years, pays rent on time, and doesn’t damage your property or suck up your free time—is worth more than an extra few hundred dollars.

4. How much are other apartments going for? When in doubt, take a gander at comparable units on the sites you’ll be using to advertise your property. Just remember to take more than zipcode into account. Other factors include:

  • Nearness to amenities
  • Appliances (washer, dryer, dishwasher)
  • Renovations
  • Square footage
  • Layout
  • Carpet vs hardwood

5. Tenants will pay for something that looks like a good value—even if it really isn’t. Ever seen rental listings advertising things like “heat and water included?” This is a tactic used to attract renters without costing you money.

How?

It’s pretty simple.

If you’ve rented out this particular property in the past (or can get in touch with someone who knows what’s what), then you have a good estimate of what the monthly utilities cost—and that you can use in your favor. Say electricity usually costs about $70 a month. By rolling that into the monthly rent at $80 or $90 a month, you get a little extra cash and an attractive offer for renters.

How to advertise your rental

Once you’ve figured out your pricing strategy, it’s time to start attracting potential tenants. Back in the dark times, that meant putting an ad in the classified section of your local newspaper and hoping for the best.

These days, though, renters tend to start their search online, and that means you need to know where and how to put your best foot forward.

First, pictures. To really sell your property, you’re going to want to use recent pictures of your (clean!) rental. When writing the description, make sure to include all your good features. If there are one or two negative things about your rental, don’t try to hide them. Being honest can actually help you build trust with potential renters.

Which sites you use depends on your needs. Landlords generally agree, for instance, that Craigslist gets them a lot of attention, but that Zillow delivers the better quality tenants.

Here’s a quick list of some of the sites you should consider using:

Of course, some old school techniques like yard signs and referrals are definitely worth trying out. Test out your options. Soon you’ll find a combination that works best for your area and clientele.

How to screen potential tenants

Attracting the tenants is the easy part—it’s the picking that takes some time and energy.

1. Ask for a rental application. You can find templates online. Look for one that asks for current and previous employers, income level, contact info of previous landlords, number of occupants, number of pets, and personal references.

2. READ that application. Okay, so this is probably a no-brainer, but you should be able to weed out a lot of applicants at this stage. So they aren’t employed? Don’t have a (net!) monthly salary that’s at least 3 times the rent and can’t get a cosigner? Have previous evictions or references that don’t check out?

Those are all very good reasons to not rent to an applicant.

3. Run a credit and/or background check. Once you have your handful of maybes, it’s time to dig a little deeper. All three off the credit bureaus (Experian, TransUnion, Equifax) offer credit screening for landlords, and some even do background checks, too. They each had different offerings, so take a look at each before deciding.

Remember, though: a credit check doesn’t tell the whole story. While they’re usually a pretty good barometer when it comes to judging a person’s fiscal responsibility, there are situations where they don’t show you the whole picture. After all, filing for bankruptcy 5 years ago and staying current with your payments ever since is a little different than, say, skipping out on your last 4 credit card bills—both of which can tank your score.

4. Meet for the in-person walk through. Don’t be afraid to go all Sherlock on prospective tenants in-person. There are plenty of questions to ask yourself in order to get a sense for what sort of tenant a person will be.

  • Did they show up on time?
  • Is their car well-cared for?
  • Are their children well-behaved?
  • Do they know what kind of questions to ask about your property?
  • Have they tried to lie about their credit score or job?

Just make sure not to base your decision on age, gender, race, religion, or disability—that’s against the law and can get you sued (plus, it’s generally agreed upon to be pretty gross).

How to write a rental contract

First things first—are you a lawyer?

If the answer is no, don’t write your own lease.

As we’ll get into later, there are a lot of laws surrounding housing agreements, and when you’re not familiar with all of them, it’s alarmingly simple to get yourself into trouble.

To get started, you can find templates online for your state or city.

From there, though, it’s worth the money to have a lawyer look over it, especially if you’d like to customize it. If you do it right, it should be a one-time cost for a lease agreement you can use over and over.

How to figure out your rights as a landlord

Did you know that you can’t enter your rental without giving the tenant advance notice?

Or that you can’t evict a tenant by changing the locks—even if they haven’t paid rent in months?

A long list of laws govern the relationship between landlord and tenant, and it’s part of your new job to know them.

The tricky part is that many of these laws vary from state to state. While there’s no replacement for consulting a lawyer if you run into trouble, this resource on state landlord/tenant laws is a great place to educate yourself before you get started.

Useful tips for first time landlords

If you found your way here, I’m going to take a guess: you haven’t been at this landlord thing long. Heck, maybe you’re in the middle of buying your first rental property right now.

Here are a few things the pros already know:

1. Set your available hours. Unless you’re okay with tenants calling you to fix their toilet at 10pm, find a window of time that works for both of you and agree to it ahead of time.

2. You can collect rent payments online. Technology, amiright? These days, you collect rent from anywhere in the world—awesome if you don’t live near your property or choose to interact with your tenant as little possible. There are plenty of services available (Rentpayment.com, Cozy, and ClearNow are just a few). Do your research to find one that fits your needs.

3. Be wary of renting to family and friends. You’ve probably heard that sage advice to never do business with family or friends. Well, you probably don’t want to rent to them, either. If you value the relationship, it’s best to keep money out of the equation.

4. Your tenants don’t need to know you’re the owner. Think about it: instead of telling your tenant they can’t paint the kitchen chartreuse and facing their resentment, you play property manager and blame the owner for being a spoilsport. This is an especially helpful (and legal) tip if you’re not great at confrontation or have any reason to be extra conscious of your safety. Just remember: if your business contains your name, you’ll need to change the name of the LLC so paperwork won’t tip off your tenants.

5. Document the state of your property before and after each tenant. It’s possible to wind up with a wild animal of a tenant no matter how well you screen. By knowing exactly what sort of damage has been wrought upon your property—and having the pictures to back it up in court—you’re in a much better position to hold onto your money.

6. Document any agreement you make. You’re probably noticing a pattern here: when in doubt, document. That holds especially true for any changes you agree to make to your standard lease after it has been signed. In this case, what you need is called an “addendum to a lease.” You can find templates online, but it can pay to use a lawyer.

7. Consider insurance. Landlord insurance may not be required by law, but it can definitely be worth it in the event of property damage or accidents.

Source: totalmortgage.com

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The average cost of homeowners insurance in Kansas is $2,955 per year, or about $246 per month, according to a NerdWallet analysis. That’s more than the national average of $1,820 per year.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state. Even if an insurer serves your state, it may not write policies for all homes in all areas.

Why you can trust NerdWallet

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

The best homeowners insurance in Kansas

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the best homeowners insurance companies.

More about the best home insurance companies in Kansas

State Farm

Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

State Farm

Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

State Farm is a great choice for homeowners who like to work directly with a representative, as the company sells policies through a wide network of agents. And its attention to customer service has paid off; the company has fewer customer complaints to state regulators than expected for a company of its size.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

Chubb

Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Great set of discounts

NAIC complaints

Far fewer than expected

Chubb

Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Great set of discounts

NAIC complaints

Far fewer than expected

Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and it pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

Chubb policyholders may also be able to take advantage of the company’s HomeScan service, which uses infrared cameras to look for problems behind the walls of your home.

Farmers

Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

Farmers

Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.

American Family

Comprehensive coverage for homeowners in 19 states, mostly in the West and Midwest.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

American Family

Comprehensive coverage for homeowners in 19 states, mostly in the West and Midwest.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

Founded in Madison, Wisconsin, American Family receives fewer consumer complaints than expected for a company of its size. You may be able to customize your policy with optional add-ons such as identity theft, equipment breakdown or service line coverage, which pays for repairs to water, power or other underground lines that run to your house.

Homeowners may be able to save on their premiums by installing smart-home devices, bundling multiple policies or setting up automatic payments.

USAA

Offers perks and affordable rates for the military community.

Coverage options

Below average

Average set of discounts

NAIC complaints

Far fewer than expected

USAA

Offers perks and affordable rates for the military community.

Coverage options

Below average

Average set of discounts

NAIC complaints

Far fewer than expected

USAA sells homeowners insurance to veterans, active-duty military members and their families. If you fall into one of those groups, you might want to look into USAA’s offerings. The company’s homeowners policies include some unique perks such as deductible-free coverage for military uniforms and coverage for identity theft.

Homeowners in Kansas can take part in the company’s Connected Home program, which gives you a discount on your policy if you buy and install approved smart-home devices. These include water leak sensors, cameras and thermostats.

How much does homeowners insurance cost in Kansas?

The average annual cost of home insurance in Kansas is $2,955. That’s 62% more than the national average of $1,820.

In most states, including Kansas, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Kansas, those with poor credit pay an average of $5,195 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 76% more than those with good credit.

Average cost of homeowners insurance in Kansas by city

How much you pay for homeowners insurance in Kansas depends on where you live. For instance, the average cost of home insurance in Wichita is $3,250 per year, while homeowners in Topeka pay $2,605 per year, on average.

Average annual rate

Average monthly rate

Dodge City

Garden City

Hutchinson

Junction City

Kansas City

Leavenworth

Overland Park

The cheapest home insurance in Kansas

Here are the insurers we found with average annual rates below the Kansas average of $2,955.

What to know about Kansas homeowners insurance

When shopping for the best home insurance in Kansas, make sure to consider the potential for severe weather, including tornadoes, hailstorms, snowstorms, earthquakes and flooding. Read your policy carefully so you understand what’s covered and what isn’t.

Tornadoes

As part of Tornado Alley, Kansas gets more tornadoes than most states, seeing 68 tornadoes in 2022

. These storms can seriously damage homes, including roofing, windows and the structure itself.

Most home insurance will cover damage caused by strong winds. However, Kansans may have a separate wind and hail deductible, typically 1% to 2% of the dwelling coverage limit, which is the amount your insurer will pay to rebuild your house. So if your wind deductible is 1% and your house has $250,000 of dwelling coverage, you’d have to pay for the first $2,500 of wind damage yourself.

Another factor to consider is the cost of rebuilding your home if it’s destroyed. Talk to your insurer to make sure you have enough dwelling coverage to rebuild should that happen.

Flooding

Flooding is a concern for homeowners throughout Kansas because of heavy rain or rapid snowmelt. Standard homeowners insurance policies typically do not cover flood damage, so homeowners in flood-prone areas may need to buy separate flood insurance to protect their property from water damage.

To find out your risk, check out the Federal Emergency Management Agency’s flood maps and RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low-risk, it may be worthwhile to buy flood insurance for extra peace of mind.

Remember that while you can buy flood coverage at any time, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

Thunderstorms and hail

Kansas is no stranger to spring storms, including punishing hailstorms bringing softball-sized hail that can damage your home. As with tornadoes, you may have a separate wind/hail deductible, typically 1% to 2% of your dwelling coverage.

Winter storms

Kansas can see harsh winter conditions, from freezing temperatures to blustering blizzards. A chilly winter wonderland can cause problems for Kansas homeowners, including frozen pipes or roof collapse under the weight of snow.

Homeowners insurance generally covers winter-related damage, but some types of damage may require extra coverage. For instance, you’ll typically need a separate flood insurance policy to cover flood damage caused by snowmelt.

Earthquakes

While not a massive risk for Kansas, the prevalence of earthquakes has increased over recent years, especially along the state’s southern border. However, standard homeowners insurance policies do not typically cover structural damage caused by earthquakes. You’d need to buy additional earthquake insurance.

Earthquake insurance often has a separate deductible, which can be between 5% and 25% of your dwelling coverage limit. If you have a 5% deductible on $200,000 of coverage, you’d need to pay $10,000 to repair earthquake damage before your insurance covers anything.

Kansas Insurance Department

The Kansas Insurance Department regulates the state’s insurance industry and provides consumer education on insurance and securities. The department’s staff can answer your questions about insurance by email at [email protected] or by phone at 800-432-2484.

Additionally, if you have a complaint about your insurer, the Kansas Insurance Department serves as an advocate. You can file a complaint online or can send in the consumer complaint form via mail or email.

Amanda Shapland contributed to this story.

Frequently asked questions

Is homeowners insurance required in Kansas?

Home insurance is not required by Kansas state law. However, your lender may require you to buy home insurance.

Does Kansas home insurance cover earthquakes?

Standard home insurance in Kansas does not cover earthquakes. If you live in a higher-risk area of the state, you may want to investigate separate earthquake insurance.

How can I save money on homeowners insurance in Kansas?

There are several ways to save money on home insurance in Kansas:

  • Shop around to make sure you’re getting the best rate.

  • Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but your premiums will be lower.

Source: nerdwallet.com

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Baby boomers who’re planning on downsizing or leaving the real estate market altogether could send “shock waves” through the industry, according to a couple of new studies.

Fannie Mae’s Economic Strategic Research Group said in its report that homeownership demand from younger generations is “insufficient” to replace the void being created by departing older owners.

In a second study by the Stephen S. Fuller Institute at George Mason University, researchers say there is a significant number of older owners of large homes in the Washington D.C. area, and these could cause a “baby boomer sell-off” that could later be repeated in other parts of the U.S.

The concern stems from the fact that baby boomers, or those who were born between 1946 and 1964, own a significant portion of American homes – around two in five of the total residential properties in the country. Other generations own just 14 million homes between them.

As their twilight years approach, health and other issues will force baby boomers to move. Fannie Mae’s researchers say up to 11.9 million older owners will move out of homeownership between 2016 and 2026, while another 13.1 million to 14.6 million will depart between 2026 and 2036.

The fear is that this “generational unloading” of homes could have negative consequences for the home sales market, Fannie’s researchers say. Younger generations do not have the same desire or financial means to buy homes that baby boomers leave behind, they reason.

However, Dowell Myers, a professor at the University of Southern California, argued against this theory, telling the Washington Post it’s impossible to predict price impacts 10 years from now.

““We do not mean to be alarmists,” Myers said, though he said the issue will prompt more consideration for public and private policies that may cushion the potential fallout. He points to financing programs, for example, that could help urge more millennials to buy their first homes.

Meanwhile the National Association of Realtor’s chief economist Lawrence Yun also weighed in on the subject, saying he does not see any reason for despair. He said population growth in the U.S. and the impact of foreign buyers should ensure “no measurable declines” from baby boomers.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
Latest posts by Mike Wheatley (see all)

Source: realtybiznews.com

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If you’re contemplating a move to a different state, perhaps because it’s cheaper to own there, you might want to look at this map from Gallup.

They conducted a poll during the second half of 2013, asking a random sample of about 600 adults in each state if they would like to leave their state if they could, or simply stay put.

Sadly, 50% of those in Illinois said they’d get the heck out of there if they could, making it the least desirable state in the union.

The feeling was mutual in Connecticut, where 49% indicated a willingness to move to a different state. Maryland ranked third in terms of getting out at 47%, followed by Nevada (43%) and Rhode Island (42%).

Conversely, the fewest residents would leave even if they could in the grand state of Montana. There, only 23% said they’d take off if given the opportunity.

Other popular states included Hawaii (23%), Maine (23%), Oregon (24%), and New Hampshire (24%). Less than a quarter of residents in those states would choose another state to call home.

Overall, 33% of residents nationwide indicated a willingness to move to another state.

What About the States Where Residents Will Actually Move?

Gallup’s first question was just hypothetical, which allowed respondents to romanticize a potential move.  They also asked residents how likely it was that they’d actually move in the next 12 months.

On average, just six percent said it was very likely or extremely likely that they’d they move in the next year.  Another eight percent said somewhat likely, 14% said not too likely, and 73% said not likely at all.

In other words, most individuals plan to stay put, whether they like their lousy states or not.

But a whopping 20% of Nevada residents are extremely/very/somewhat likely to move in the next 12 months, which leads the nation in terms of potential mobility.

For 30% of Nevadans, work/business was cited as the top reason to depart, followed by family/friends, then weather.

Illinois was second, with 19% saying they’d potentially move in the next year, with work once again the main reason and weather a close second. In case you didn’t know, it’s really, really cold in Illinois.

Arizona was third at 19% as well, with work the top concern, followed by family/friends, and then weather. In Phoenix, temps rise above 100 degrees for much of the summer. Fortunately, everyone has A/C.

Maryland and Louisiana rounded out the top five, with 17% of respondents in both states indicating a likely move for the same reasons mentioned.

Meanwhile, very few people in Maine have plans to move, with just eight percent saying a move was extremely/very/somewhat likely in the next 12 months.

Iowa (8%) and Vermont (8%) also had the smallest proportion of residents planning a move, followed by Minnesota (9%) and West Virginia (9%).

While the sample size is small, it can provide clues regarding which states may see an influx of residents, and vice versa.

In the more popular states, home prices and rents may increase as time goes on, which could make it more attractive to buy in those areas.

If everyone is leaving, or wants to leave, buying a property, especially to rent out, could be a losing endeavor, especially if home prices have appreciated strongly in recent years.

Of course, many residents want to move because the overall cost of living in their state is too high, so that doesn’t necessarily mean real estate won’t be a good investment there either.  It’s just harder to live the dream.

Some particularly strong, heavily populated states based on the map above include Texas, Oregon, Minnesota, Wisconsin, and Colorado.

Source: thetruthaboutmortgage.com