roommate

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I almost never pay the entirety of my rent. I don’t have roommates and I’ve never been evicted. In the four years I rented a one-bedroom New York City apartment, I paid the full rent only one month. I now own a condo in Portland, Oregon, and I almost never pay my mortgage.

I’m able to keep my condo and apartment because I let strangers pay my bills for me. I’ve created a situation where my home generates income.

Letting Strangers Pay My Rent

Here’s how I did it in New York City for four years: I traveled nearly every week for my job as a management consultant. I was out of town Monday-Thursday most weeks. I reasoned that other people like me may have the opposite commute pattern, where work brings them to New York weekdays. I posted an ad on Craigslist for a “part-time roommate”, and sure enough, lots of people were interested in paying me for the privilege of staying in my cute, East Village apartment three nights a week while I was away.

With an aggressive savings plan and the money generated from my “roommates,” I was able to squirrel away enough money for a down payment on a condo in Portland, where property is much less expensive than in New York.

I purchased a reasonably-priced condo between the trendy Pearl District and Nob Hill areas. With permission from my company, I relocated to Portland for two months while working on a West Cost project. Living in Portland gave me the opportunity to decorate and fully outfit the condo. Before moving back to New York at the end of the project, I hired a local management company to handle advertising, tenant screening, and rent collection. The management company rents out my furnished condo to business people coming to Portland for 3-6 month stretches or people in town on extended vacations.

These are just a couple examples of ways people can turn their home into an income-generating asset. My circumstances are a little unusual, but the concept is nothing that can’t work for nearly everyone in some capacity. In my experience, there are four main ways nearly anyone can leverage their apartment or home to generate income:

  • Vacation Rental. When you know you’ll be out of town for several days, post an ad for your home in the vacation rental section of Craigslist. Other great resources are AirBnB.com and SecondPorch (a Facebook application).
  • Home Exchange. Consider doing a home exchange when you take vacations. If you have a home in Maine, you can potentially “swap” with a couple in Paris for a week or longer (fun fact: Europeans seem to love Maine). A great place to start is HomeExchange.com, a vacation swapping website.
  • Room for Rent. If you have an extra bedroom in your home, consider listing it on a site like AirBnB.com, where travelers all over the world look for inexpensive accommodations.
  • Part-Time Roommate. If you travel regularly for work, find someone with the opposite commute pattern who needs a place to stay in your home city. Craigslist and social media like Facebook and Twitter are great resources for this.

One Potential Scenario

To give a sense of the income potential of these arrangements, let’s take an example of a couple who lives in a 2-bedroom home in Portland, Oregon. Assume they live in a fairly desirable area and use their spare bedroom as a home office and guest room.

  • They rent their spare room to vacationers four nights a month, charging $50/night. Annual income: $2,400.
  • Once a year, they take a 10-day vacation in Europe. This year, they opt for a home exchange, saving $150/night in hotel costs. Annual cost avoidance: $1,350.
  • They usually go camping a couple times over the summer. They rent out their home two weekends each summer, charging $150/night. Annual income: $600.
  • During the holidays, they travel cross-country to visit family. They rent out their home over Thanksgiving (four nights) and Christmas/New Year’s (10 nights) at $150/night. Annual income: $2,100.
  • Total annual income/cost avoidance: $6,450.

This is a fairly realistic scenario, with prices typical for Portland. Let’s assume this couple earns the local median income of $56,000 for a two-person household. With minimal work and a little flexibility, this Portland couple is able to boost their income by nearly 12% annually.

To take this a little further, let’s say they continue renting out their place, earning $6,450 annually for five years. They invest their income with an 8% annual return. At the end of five years they’ll have $37,800. Then they have a baby, so they stop renting out their space. They convert the second bedroom into a nursery and stop taking long vacations. They leave the $37,800 in the investment account, which continues to earn 8%. By the time their child is 18 years old and ready for college, the account will be worth over $150,000, which should cover their child’s Harvard education (assuming the kid is smart, like his parents). Not bad, right?

Is This Realistic?

Many people think that this story doesn’t apply to them. They think either that no one would pay to stay in their home, or that it would be too weird to have strangers around their stuff.

When I first had these doubts, I had to tell myself: I like my home, don’t I? Is it that far fetched a notion that someone else might, too? As for the aversion to having someone else around my stuff, I had to think through that reaction: Was I really willing to turn down hundreds or thousands of dollars of income because I wanted to protect my things from being near strangers? I had to discipline myself not to let my Stuff take over my life, limit my opportunities and cost me money.

After conquering my doubts, I forged ahead. Looking back, I have no regrets. My belief is there’s no harm in trying — all the listing services I mentioned (except HomeExchange.com) are free. If you’re curious to give this a try, spruce up your place, take some well-lit photos, and write a snappy ad. The more positive energy you put into your home and your ad, the more success you’ll have. You’ll likely be surprised at how many people are interested in paying to stay in your home, and you may even make some friends while you’re at it!

A Final Word of Advice

Be sure to check your lease, zoning laws, or condo bylaws to ensure you’re not violating any rules. Also, check with your homeowner’s or renter’s insurance policy to ensure you’re covered for damage from renters and visitors.

Source: getrichslowly.org

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Save more, spend smarter, and make your money go further

If there’s one thing in life to always bank on, it’s to expect the unexpected. While we like to think we have everything figured out, it’s hard to predict when certain events will occur. Whether it’s an accidental fender bender in stop-and-go traffic, a crushed roof from a fallen tree branch, or an unanticipated medical emergency, having the right insurance coverage might save you time, money, and headaches.

One insurance coverage policy that may be worth investing in is renters insurance. Pew Research Center found that more people are renting today than at any point in the past 50 years. This study also found that certain demographic groups, such as those with lesser education, young adults, and non-whites, are more likely to rent than other groups. With more renters on the market than ever before, it’s important to consider the various financial protections renters can take advantage of.

If you’re living in a rental property and want to ensure you, your belongings, property, and guests are covered from any unforeseen circumstances, continue reading our guide to renters insurance coverage below.

What is Renters Insurance?

Renters insurance is a form of risk management that protects you and your property, and generally provides legal defense fees and medical costs for anyone who may become injured on your rented property if you are found at fault. Renters insurance is like most insurance policies, such as home and auto insurance, where you buy a policy and make recurring payments. Then, if anything were to happen, such as a burglary, you can make a claim, and your renters insurance will provide a certain level of compensation for the stolen items.

What Does Renters Insurance Cover?

If you’re wondering, “What does renters insurance cover?” the answer is, quite a lot, depending on the coverage you select. From vandalism to explosions and everything in between, renters insurance coverage may give you peace of mind knowing your valuable items are protected.

Personal Property

You can never predict when disaster strikes. Your roof caves in after a blistering snowstorm, freezing you out of your home. You run down the street to get some groceries and return to find your apartment was ransacked. Or, a clueless driver plows right through your living room. It’s either happened to you or someone you know and while sympathy can ease some of the pain, usually money is the only way to replace valuable items like furniture and electronics. That’s where renters insurance coverage comes in handy.

Here’s a list of some events where a renters insurance policy might have tenants covered:

  • Theft: If someone breaks into your house and steals your personal property, such as your laptop, cash, or other items, your renters insurance may cover you once you pay your deductible. Renters insurance doesn’t only cover items in your home either. If you go on vacation and get pickpocketed, or someone breaks into your car while shopping at the mall, you can file an insurance claim for those losses as well.
  • Vandalism: If someone breaks into your home and decides to destroy your property with mischievous intent, you can file a claim to get reimbursed. So, if the neighborhood kids decide to drive by and smash your mailbox with a baseball bat, your renters insurance policy will have your back.
  • Fire, windstorms, lightning, hail, or volcanic eruptions: Basic renters insurance may cover damage inflicted by fire, windstorms, lightning, hail, and even volcanic eruptions. If a flash storm rolls through during the summer and your home gets struck by lightning, many of the damages might be covered.
  • Smoke: While fires are covered under renters insurance, so is smoke. Sometimes, smoke can damage your personal property without a fire even being present. For example, if you live in an apartment complex and a neighboring unit catches on fire and smoke seeps into your apartment, your renters insurance coverage can help with smoke-related damages.
  • An aircraft or vehicle that’s not your own: Unfortunately, if you happen to drive your car into your home, renters insurance usually won’t cover the expenses. However, if another driver or an airplane crashes into your apartment, renters insurance might come to the rescue and pay for damages that are covered within your policy.
  • Snow, ice, or sleet collapse: While it’s a good practice to shovel snow off of your roof, sometimes it’s extremely difficult or impossible. If heavy snow, sleet, or ice causes your roof to collapse, your renters insurance policy can help cover replacement costs for damaged items.
  • A short-circuit: A short-circuit is when an electrical device malfunctions or fails. A short-circuit can cause a variety of problems, such as a damaged TV or appliance. And, if your power goes out and all of your food in your fridge and freezer spoils, you can file a claim to cover the cost of your perished food.
  • Water or steam overflow: You never know when a pipe will burst, and when it does, it can lead to all sorts of problems. Rest assured knowing your renters insurance policy may cover damages that result from water or steam overflow.
  • Frozen plumbing: Sometimes, the sheer cold is strong enough to freeze the water in plumbing and HVAC systems. Then, if you try and run hot water, the frozen water can expand and may lead to a cracked piped, pouring water throughout your home. Some renters insurance plans may cover these damages. However, if you were away when the frozen pipe burst and you didn’t take necessary precautions to keep your home properly heated, you may be at fault and left with no coverage.
  • Water or steam-heating appliances: Additionally, any water damage from water or steam-heating appliances, such as your dishwasher or laundry machine, may be covered by your renters insurance policy.
  • Falling objects: Have you ever wondered what would happen if an asteroid came crashing through your home? If so, have peace of mind knowing your renters insurance coverage may take care of the destruction from falling objects such as fallen trees and space debris.
  • Riots: If a riot breaks out around your apartment and someone damages your personal belongings, your renters insurance coverage can help take care of the costs.
  • Explosions: Whether a transformer blew up or someone set off an explosive device that causes damage to the home you rent, your renters insurance policy may help pay for any of your items that were destroyed.
  • Other scenarios: Renters insurance may cover other scenarios as well. For example, Trulia explains how renters insurance can cover things such as waterbed leaks and even dog bites. Additionally, renters insurance can even cover bank or credit card forgery if a thief snatches your financial information from your home and decides to go on a spending spree.

Living expenses

The answer to the question, “What does renter’s insurance cover?” is not complete just yet. Let’s say, for example, a tree came crashing down in the winter, leaving a gaping hole in your home or apartment. You most likely won’t be able to live in your house, or you might freeze. If your place of residence becomes uninhabitable, renters insurance can help cover your living expenses while your rented home or apartment is under construction. These expenses include things such as hotel costs, groceries, and other incidental expenditures.

What Does Personal Liability Renters Insurance Cover?

A final area of expenses rental insurance covers is personal liability. Renters liability insurance may cover you if you are at fault for injuries that occur on your property. For example, if someone gets hurt on your property and decides to file a lawsuit, renters liability insurance might help pay for your legal fees, as well as medical expenses of the person who got injured.

Renters liability insurance may also cover the expenses of another person’s stolen or damaged property that happens in the home or apartment you rent. So, if you decided to borrow your brother’s laptop, and it was destroyed after a fire, a renters liability insurance might take care of the cost.

Ultimately, coverage can vary between insurance providers, so do your research and consider all of your options before selecting a renters insurance policy.

What Does Renters Insurance Not Cover?

While it may seem like renters insurance covers everything, there are a few things that are often not covered.

  • Personal belongings damaged from natural disasters such as earthquakes and floods: If you live in a high-risk area for natural disasters, such as Tornado Alley, along a river, or in a hurricane-prone area, you may need flood, earthquake, or other types of specialized insurance policies.
  • Theft or damage to your vehicle: While the valuables inside your car may be covered by renters insurance, any damage to your car, or theft of your car, is not typically covered. To insure your car, you might consider purchasing auto insurance.
  • Your roommate’s belongings: Unfortunately, your roommate won’t be able to freeload off your renters insurance plan. Instead, if they want their valuables covered, they will need their own renters insurance policy.
  • Damage caused by rodents and pests: Any damage from rodents such as bed bugs, mice, cockroaches, and other pests are often not covered by renters insurance.
  • High-value items like jewelry, antiques, and family heirlooms: If you have expensive items, such as antiques, high-end jewelry, or other valuable pieces, your renters insurance may not cover the cost if they’re stolen or damaged. Instead, you might consider purchasing additional coverage or buying a standalone policy.
  • Damages incurred from nuclear war or terrorism: This may not be your first thought, but many renters insurance policies exclude damages from nuclear war or terrorism on their plan. If you’re worried your home or apartment may be subject to destruction from war or terrorism, you might consider purchasing extra coverage.

How Much Does Renters Insurance Cost?

According to the Insurance Information Institute, the average cost of renters insurance premiums in 2016 came in at about $185 a year. Broken down monthly, the average renters insurance policy costs about $15.50 per month. When searching for renters insurance, it’s also important to know how your credit score comes into play.

The Insurance Information Institute explains how your credit score may impact your insurance score to determine if you have a history of making claims. A history of filing more claims may lead them to charge you more money. At Turbo, you can take advantage of our financial health tool and obtain a free credit report to determine where you stand so you can purchase a renters insurance policy that fits in your budget.

Key Takeaways on Renters Insurance

If you’re asking yourself, “What does renters insurance cover?” hopefully you can use this guide as a resource. Renters insurance coverage is a great way to protect some of your personal items and belongings, as well as the belongings and health of others visiting your property, so consider if this kind of policy is right for you.

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Apache is functioning normally

We asked for some of your most horrific moving stories and you came through. We’ve picked our favorite for this round, but we’d love to hear more. If you have a moving horror story that you’d like to share, get social with us on Facebook or Twitter. You might just make our next round!

Moving Truck vs. Apartment Building

“I was living in an economy apartment near a small college. I rented a huge moving truck so that I could get all my stuff in one trip. I backed up a bit too much and hit the building. The entire apartment was moved nearly a foot off the foundation. I didn’t bother asking for my security deposit back.”

The Dead Parrot

“My friend was working as a mover in Boston. He and the occupant went into the bedroom and started moving the bed. When they lifted up the box spring to bring it to the truck, there was a dead parrot underneath the bed. No one said anything about it. When he got back it had mysteriously disappeared.”

A Friendly Chat with the Landlord

“Our landlord came over for a chat about what turned out to be bogus complaints from the neighbors. It got a little heated, and my roommate’s psycho dog went for him and bit his hand. The landlord left muttering about having the dog put down. I came home from work the next day to find all of our belongings on the sidewalk and the house had been bulldozed to the ground.”

Related: Can a landlord not renew a lease? 

The Cat Litter Disaster

“When I moved out of my last apartment, the very last thing I moved were my two cats and their litterbox. I manage to get the cats into the car, but when I go to grab the litterbox, a freak heavy rainstorm erupted out of nowhere. By the time I got the litterbox to the car, things had devolved into what I lovingly call “litter soup.” It was BEYOND nasty. I decided on the spot to just wheel around to the dumpster and heave the whole thing in.

So instead of driving to my new apartment, I made a detour to the store to buy a new litterbox. The store I was going to was at the bottom of a big hill. I went zooming down the hill, realizing too late that the bottom of the hill was COMPLETELY flooded because of this freak storm. And my car dies completely. My cats are SCREECHING, I’m covered in the remains of the litter soup, and I’m now outside the car, knee-deep in water, trying to push my car into the parking lot. By the time I got to the store, I was a drowned smelly rat.

I walked in the door, and the cashier said, “Welcome to Kmart… can I…?” and I just said, “LITTER. NOW.”  I got myself, the cats and the new litterbox to my new place, but my clothes were so wet they were entirely unwearable, the whole car smelled like cat pee, and my cats had meowed so hard they were both hoarse and sounded like chain-smoking Brenda Vaccaro cats. It was pretty rough.”

The Dreaded Black Ice

“Wanting to get an early start, we hit the road on a November morning before dawn on I-80 through Nebraska. We were in a rental truck with our care on a tow hitch. After about a half an hour, we hit a patch of black ice and did a complete 180 degree spin before coming to a stop in the center median. Luckily, we stayed upright the entire time. No real damage and nobody was hurt, but it was pretty freaking scary.”

More Cat Fun

“We were starting our move to Arkansas and the movers kicked up a lot of dust and cat dander in our old apartment. This led to me having an asthma attack, which I didn’t realize was really bad until the next morning when I had to take a breath between words. I ended up in the ER the day we were to drive halfway there. Monitors, oxygen, the whole thing.”

Related: Best cat names of 2017

The Jackknife Disaster

“I was moving apartments from Seattle to Detroit, towing one car behind my hired moving truck. We got turned around on the rutted dirt roads outside of Cheyenne and jack-knifed the entire combination outside a storage place next to our hotel, at 2am. We found the local sheriff climbing over the rig the next morning.”

See Also:  The ultimate moving checklist

We want to hear your moving horror stories! Get social with us and we’ll feature our favorites in Volume 2!

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Wouldn’t it be great if we could live comfortably in the biggest, busiest cities in the world with whatever we earn from our regular, underpaid jobs? Many of our favorite TV shows seem to insinuate that’s very much possible, leaving us to question our very existence and the choices we’ve made.

It just seems that some of TV’s most memorable characters can afford so much with their 9 to 5 jobs, without sacrificing too much. For example, Ross Geller lives in a two-bedroom apartment in New York and Philip Banks is happy in a 5-bedroom mansion in Bel Air – so what’s their secret?

Conservatory Blinds 4 Less, a UK company, has gathered some data regarding the realistic average wages of 5 of our favorite on-screen characters and matched them against real-life monthly expenses like rent, food, healthcare, child care, transport and other necessities.

The goal? To find an answer to the question: Could these pop culture icons live so comfortably in the real world? See below for a breakdown — or check out the interactive slideshow for a quick overview:

Homer Simpson

Homer Simpson is one of our favorite indolent characters. He lives with his wife Marge and his three children — Bart, Lisa and Maggie. Homer works at the Springfield Nuclear Power Plant as a Nuclear Safety Inspector and he is the family’s main provider, as Marge is a stay-at-home mom.

Since we’re using real world averages for all the characters’ earnings, let’s assume that in the real world Homer would earn about $4,299/month.

Now, the median rent price for a 4 bedroom house in Springfield, Oregon was $1,297 per month in 2019, and real estate agents recommend that your rent should cost no more than 1/3rd of your monthly earnings.

Considering other expenses such as utilities, food, healthcare, transport and other necessities, the whole family would need around $5,788.76 per month to make ends meet. So realistically, they would have gone bankrupt in no time — or would have likely downsized to a smaller structure to serve as the Simpson’s house.

Ross Geller

A paleontologist by profession, Ross Geller from Friends has a Ph.D. from Columbia University. He’s the kind of guy who’d love to settle, but somehow becomes some sort of divorce champion among his friends that fathers two children with two different women.

Ross is responsible for all his expenses, so according to some recent calculations, living in a two-bedroom apartment at 19 Grove Street and having a pretty cool lifestyle (with incredibly frequent coffee breaks throughout the day), would cost him around $4,931.51 per month.

University Professors earn an average of $3,836.25 per month (after tax). You do the math, but if we’re right, real-life Ross would be unable to afford everything we’re presented with in the show. However, he could continue living in NYC if he’d choose a smaller apartment with a significantly lower rent.

Philip Banks

Philip Banks is a main character on The Fresh Prince of Bel-Air – a strict man, yet a kind, loving husband and father. Philip is a federal judge which should normally have an annual income of $68,176 after tax, or $5,681 per month.

Considering that he lives with his family in a 5 bedroom mansion in Bel Air, their overall expenses should reach a monthly total of $10,696.

Banks would obviously need to double his income in order to afford such a lifestyle. While the family is likely to have some money saved up, without any lifestyle changes, the Banks would not be able to live in their gorgeous mansion for too long.

Sheldon Cooper

Dr. Sheldon Lee Cooper from The Big Bang Theory is a Caltech theoretical physicist, an unsung genius who started college at the age of 11, and received his first Ph.D. at the age of 16. Despite the fact that he has countless annoying habits, Sheldon still managed to get under our skin.

As a theoretical physicist in the real world, Sheldon would earn an average wage of or $7,225.50 per month.

Since the monthly costs of living in a 2 bedroom, 1 bathroom apartment in Pasadena would reach an average of $4,882.29 (including bills and other necessities), Sheldon is more than capable of affording his lifestyle.

Not to mention than he also has a roommate for the biggest part of the show, so that should definitely help him put some money in the bank for darker times. We’re finally facing a realistic approach here (though I would love to see what the study would say of Penny’s entire living situation).

Walter White’s house

Walter Hartwell White Sr., also known as Heisenberg, is the main character in Breaking Bad. The former chemist drastically changed his life after being diagnosed with Stage 3A inoperable lung cancer. In order to afford treatments and provide for his family in the event of his passing, Walter starts cooking crystal meth.

In this particular case, we can only assume the amount of money Walter gets for meth cooking – a lot! It is crystal clear that he can afford just about anything his heart desires. But with a bunch of people wanting him dead or in jail, paying rent is Walter’s last concern.

Bottom line

The next time you see a character living “the good life”, try to consider things from a more realistic point of view. Living in the middle of a big city and having a cool lifestyle requires a serious monthly income, and sometimes a movie is just a movie.

Also, please don’t consider getting into the meth business – this kind of stuff never ends well.

More homes from popular TV shows

Is It Real? Charlie’s Beach House in ‘Two and a Half Men’
Tracking Down Barney Stinson’s Apartment from HIMYM? Challenge Accepted!
Daniel LaRusso’s House on Cobra Kai: A Real-Life Tuscan-Style Villa
Decoding the Mystery of Captain Raymond Holt’s House in Brooklyn Nine Nine

Source: fancypantshomes.com

Unemployed? Underemployed? Here’s how to get help

For a long time, GRS readers have been requesting a list of resources for low-income families struggling to get by. I haven’t put anything together because I don’t know much about the subject. Fortunately, I know somebody who does. In this guest post, Donna Freedman lays out the nuts and bolts of finding help when you’re in financial distress.

Plenty of people who once made a good living are joining the ranks of the poor and the working poor. They need help, but they’re not getting it. Some are too proud to ask. Some don’t know what kind of help is available because — you guessed it — they’ve never needed it before. Some are simply overwhelmed or paralyzed with anxiety or shame.

We all want to think that we can take care of ourselves. Pride is a terrific thing to have — until you’re looking at a sick spouse or a utility shutoff notice.

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Should you get a roommate? (Infographic)

Wondering if it makes financial sense to get a roommate? Here are some tips that will come in handy when debating whether you should live alone or split the costs with other people. Click on “Launch Infographic” for an expanded view.

The post Should you get a roommate? (Infographic) appeared first on MintLife Blog.

Calibrating and Circumventing the Cost of College

It’s a common refrain that today’s college graduates are entering into the worst job market and economy since Hoover was around. We’re told that an undergraduate degree means less than what a high school diploma once was, yet we’re investing more in school than ever before. Post college debt is a major emotional weight on the backs of this newest generation, and colleges encourage debt with ease — don’t worry about it; you don’t have to pay it off until after you’ve graduated and have a well-paying job.

We’re sold on it and it’s a hard sell, not only by schools, but by the banks’ ad dollars, as well. Previous generations didn’t start life with so much debt, and in the middle of a job-killing recession no less. You probably aren’t going to pay off that kind of debt waiting tables. Realize that college debt most likely means postponing life goals such as mortgage, car, marriage, and maybe even children.

Good-to-know facts about college debt
How big of a problem is the cost of college? Consider the following:
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How to Move Out at 18: The Ultimate Guide to Moving out at 18 with No Money

Inside: In this guide, you will learn everything you need to know about moving out at 18 with no money. This includes…

Read More… How to Move Out at 18: The Ultimate Guide to Moving out at 18 with No Money