Real estate agent commissions for rental properties are either paid for by the tenant enlisting services or the property landlord.
The amount paid in agent commissions for a rental property depends on factors such as location, price, services provided, and local market practices.
Rental agents can help finding rental properties, accompanying tenants on showings, and assisting with negotiating rental terms.
Whether you’re a long-time renter or a college student exploring off-campus housing opportunities, navigating the rental market can be complex. Understanding the role of a real estate agent and how their services are compensated is crucial before beginning your search. Real estate agent commissions are applicable across the states, may it be rentals in Raleigh or rentals in Berkeley. However, agent commissions can vary based on state laws and negotiations.
This Redfin real estate article will explore the ins and outs of how real estate agents are compensated for rental properties and what services a client can expect during their search. By the end, you’ll be able to determine if hiring a real estate agent for their services is right for you. Now, let’s get started.
Who pays a real estate agent’s commission?
The party responsible for paying a real estate agent’s commission for a rental can vary depending on local regulations, market conditions, and the specific agreement between the parties involved. It’s essential to clarify this upfront to avoid any misunderstandings.
When a tenant pays the fee
In some markets, tenants may be responsible for paying a real estate agent’s commission. This typically occurs when a tenant enlists an agent to help them find a rental property that meets their specific criteria. The agent’s fee compensates them for their time, expertise, and resources used in searching for suitable properties, scheduling viewings, and assisting with the application process.
When a landlord pays the fee
More commonly, especially in competitive rental markets, landlords or property owners cover the real estate agent’s commission, including the tenant’s agent. This means that tenants may not have to pay for the services provided by their agent. But again, you’ll want to clarify the terms with your specific agent.
How much do real estate agents charge in commission for a rental?
Rental commissions for real estate agents typically range from one month’s rent to a percentage of the annual lease value. The exact amount can be influenced by several factors, including the property’s location, the rental price, the services provided by the agent, and local market practices. It’s always advisable to discuss commission rates and payment terms with your agent before engaging their services.
What services should you expect from a real estate agent helping locate a rental?
When working with a real estate agent to find a rental, you should expect a comprehensive suite of services designed to streamline your search. This includes:
Property search: Access to a wide range of listings, including those not publicly advertised.
Showings: Arranging and accompanying you on property viewings.
Negotiation: Assisting with lease terms and rental price negotiations.
Application support: Guidance through the application process, ensuring all necessary documentation is submitted accurately.
Market insights: Providing valuable information about neighborhoods, rental trends, and local amenities.
So, is having a real estate agent right for you?
Deciding whether to use a real estate agent for your rental needs depends on your individual circumstances. If you have limited time, are new to a city, or are struggling to find a suitable property on your own, an agent can be an invaluable resource. Their expertise and market knowledge can save you time and stress, ultimately helping you secure the right rental property.
Even as the Bank of Canada’s rate cuts make headlines, affordability challenges continue to squeeze Gen Z and younger millennials from both sides: rising rents and record-high housing costs.
“The return-to-office push has really redefined what ‘affordable’ means,” says Rishard Rameez, CEO and co-founder of Zown, a buyer-first real estate platform designed to help renters transition into ownership “faster, and with a lot less stress.”
Zown’s model is built for transparency, combining salaried realtors, trusted lenders, and instant pre-approvals. “Our goal is to put buyers first, not the system, by giving them more transparency, more support, and even up to 1.5% of the home purchase price back at closing,” Rameez explains. “So far, we’ve supported over $300 million in transactions and helped thousands of Canadians take that next step into homeownership with confidence.”
The return-to-office squeeze
As more companies call employees back into the office, whether hybrid or full-time, young renters are being forced to rethink how—and where—they live. “A lot of young renters who moved to smaller cities during the pandemic are now faced with either long commutes or higher rents if they want to be closer to work,” says Rameez. “Many are choosing smaller spaces downtown, splitting rent with friends, or even taking on micro-apartments to cut travel time.”
The financial strain of this shift goes beyond rent alone. “People are factoring in the total cost, not just rent, but transit, groceries, and time, and trying to find a balance between affordability and quality of life.”
Those unable to pay downtown prices are commuting longer distances to get to and from work each day. “We’re seeing a growing number of renters priced out of downtown who are now choosing longer commutes instead,” he says. “Many young professionals who work in the city are coming in from places like Hamilton, Kitchener, and even Niagara. They’re spending hours each day commuting—time that could otherwise be spent with family or on personal pursuits.”
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Despite the grind, many find the math still adds up. “For those who drive, the cost of parking and gas still often works out cheaper than renting downtown, which shows just how unaffordable the [Toronto] core has become.”
According to Rameez, this isn’t just an economic shift—it’s psychological. “People want flexibility, not just geography. During the pandemic, many prioritized space; now, they’re prioritizing access.”
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Housing affordability’s double burden
Even with the central bank easing rates, “affordability is still constrained by limited supply and high demand,” Rameez says. “The problem is structural; we simply don’t have enough homes being built fast enough. When rates fall, demand jumps back up almost instantly, pushing prices higher again.”
And for renters, “The effect is even more muted because rent prices aren’t tied directly to borrowing costs. What we’re seeing is people earning the same but paying more for everything: housing, food, and transportation, which leaves very little room to save.”
That squeeze has created what Rameez calls a “double burden”—the simultaneous pressure to keep up with rent and save for a down payment on a home. “There’s a recent report showing that nearly half of young Canadians are now spending more than 50% of their income on rent, which leaves very little room to save for a down payment or build an emergency cushion,” he says. “They’re caught in a loop where rent keeps rising faster than wages, so even the most disciplined savers feel like they’re standing still.”
To make matters worse, “Many homeowners 55 and up are choosing not to downsize because they either can’t find suitable alternatives or don’t want to give up their low mortgage rates,” he adds. “That’s keeping much-needed housing stock off the market and making it even harder for younger buyers to find entry points.”
Still, Rameez sees opportunity in the cracks. “We’re seeing a lot of renters now debating whether it makes more sense to own, particularly because condo prices have softened. In some cases, the cost to own is only a few hundred dollars more than renting, which is making buyers take a closer look.” He notes that Zown has seen “a 15–20% increase in interest from first-time buyers in the downtown condo segment, something we haven’t seen in quite some time.”
For those still renting, flexibility and creativity have become survival tools. “Co-living is definitely back, but it looks different now, furnished, managed, and community-driven,” says Rameez. “We’re also seeing flexible lease models where people can move between cities or properties within a network. It’s ideal for younger professionals who want stability without being locked in.”
Compact living is also on the rise. “Micro-apartments and modular housing are also gaining traction in urban centers,” he adds. “It’s about efficiency, using space smarter, not necessarily smaller.”
Multi-generational living, once considered a last resort, has quietly gone mainstream. “A few years ago, living with parents was often seen as a fallback; now, it’s a financial strategy,” says Rameez. “It allows younger Canadians to save, pay off debt, or build their down payment faster.”
“Your rent is your biggest monthly obligation for debt payments so it’s unfair that it’s not counted towards building your credit,” said Viler Lika, founder and CEO of rental services company SingleKey.
Companies like SingleKey, Zenbase, Borrowell, and FrontLobby offer such rent-reporting services, with varying fees and requirements. SingleKey works with landlords and property managers across Canada and screens more than 15,000 rental applications every month. Landlords pay a $30 fee for a tenant screening report, and renters pay $8 per month to report their rent payments on the SingleKey platform.
“This is a very powerful tool for graduating towards home ownership as a renter because you’re demonstrating to the lender that you have the ability to pay a large amount,” Lika said.
The platform accommodates pauses in rent reporting too—when you might move back in with your parents, for example—without harming your credit.
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Rent reporting isn’t risk-free
Lika believes rent reporting will make housing more accessible for renters while also reducing tenant delinquency risk for landlords. However, Alex Leduc, CEO and principal broker of Toronto-based mortgage brokerage firm Perch, cautions that such disclosure can come with its own set of concerns. “If [you] stop reporting, it would be a red flag to lenders and they would dig deeper,” he said. “And if [you] keep reporting and arrears show on [your] credit report, then [your] credit score would likely go down as a result.”
Leduc advises against opting into a rent-reporting program if you anticipate missing a payment or even paying a few days late. “Otherwise, you’re just shining a light on a poor repayment history that would’ve potentially gone unnoticed,” he said.
However, Leduc believes rent reporting can be beneficial especially for longtime renters, new immigrants, or aspiring homebuyers with little or no credit history. “Not having a credit score is a massive impediment to getting credit at all,” Leduc said. “When you’re trying to get a mortgage, you’re ultimately asking a lender to give you hundreds of thousands of dollars … They want to know you’ve managed credit successfully before.”
He said there are three key components to preparing a mortgage application: credit score, down payment, and income. And while a down payment can often be resolved—by receiving gifted funds from family, for example—having poor credit can be a “deal breaker.”
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Understanding credit ratings and scores
Money Mentors CEO Stacy Yanchuk Oleksy said credit ratings and credit scores are often misunderstood.
A credit rating is given for each of your credit products. It’s based on a scale of one to nine, with one being the best (meaning you’re at least making minimum payments on your credit card, for example). As you miss payments, you go up the scale. A credit rating of nine would indicate a debt in collection or even bankruptcy.
All of this information contributes to your credit score—a three-digit number from 300 to 900 that’s used as a predictor of how likely you are to pay back your debts. The higher the score, the more “credit worthy” you are.
Oleksy ,who is also a certified credit counsellor, said there are often misconceptions about what builds and harms your credit score. Being granted a high credit limit on your credit card, for example—even if you pay it off in full every month—can actually be disadvantageous, she said. “When your credit score is calculated, it looks at all that available credit and says that’s debt because [theoretically] you could go out to town tomorrow [and spend it].”
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Hunting for the right rental home in the UK can be challenging because there are numerous priorities to consider before making a choice. Families specifically look for their temporary rental homes to resemble their dream homes as closely as possible, aiming for a more stable and long-term tenure.
While nothing can be done with property sizes and locations, landlords can easily enhance interiors and gardens to attract family tenants. Doing so not only increases the home’s appeal but also creates a safe space for tenants. It can even lead to longer leases and strengthen the landlord’s investment, which the landlord can further protect through landlord insurance to avoid any future issues.
Understanding the tenant’s need
If you’re a landlord and want to attract and retain high-quality renters for long tenures, you must understand the expectations & desires that today’s tenants are looking for. This involves upgrading not only the aesthetic of the property, but also making the space multi-functional.
Given the latest modern rental market trends, families aren’t just looking for homes to live in. They are also seeking homes that are stylish to look at and have comfortable amenities. As a landlord, you need to think like that and plan your upgrades accordingly.
You can start by incorporating interiors that are both modern and classic, thereby enhancing the overall ambience of the rental. For example, you can use attractive furniture in the living room and bedrooms, and choose sophisticated paint colours for walls. To make the space more functional, adding more storage options is also a great idea. In short, you need to blend modern aesthetics with solutions to day-to-day needs.
If you’re investing in your rental homes through renovations, make sure that you also have landlord insurance to protect yourself from accidental damage, rent defaults, and liability claims. If you’re renting out the place to families for the long term, insurance is necessary to safeguard your investment in the property.
Interior enhancements that make a difference
1. Invest in functional, family-friendly furnishings
A well-furnished house will attract families seeking a beautiful place to live. Investing in wooden furniture is a good idea because it looks elegant and lasts longer.
While having aesthetically pleasing furniture is not mandatory, it can definitely become a plus point in attracting high-quality tenants who are looking for more than just a place to live and can afford to pay high rent.
2.Upgrade kitchens and bathrooms without overspending
You might need to upgrade the kitchen and bathroom to make your rental more modern and appealing. Using stylish wall tiles, decorative storage, and textured walls in your bathroom and kitchen are all easy ways to upgrade the look.
Choosing colour combinations for a kitchen can be challenging, as this space is integral to a family’s daily life. Try to add pleasing colour combinations instead of bright ones. For example, go with a simple paint colour that complements the kitchen cabinets.
Bathrooms also require the same attention because they’re a place where people want a relaxed atmosphere. You can dramatically transform a bathroom by using stylish tiles on the walls and floors. Another easy hack is to replace old taps and showers with stylish fittings. This can make the bathroom look modern and immediately grab the attention of tenants.
3. Go for low-maintenance premium-quality flooring options
Floor tiles can make your interiors shine, quite literally! Since it’s one of the most visible aspects of a home, it sets the tone. Invest in durable, stylish flooring if you can.
If you have a higher budget, you can go for either engineered hardwood or traditional hardwood. Although they will cost more, the overall look will be classy and refined.
4. Use a neutral wall colour palette
Using a neutral wall colour palette is a good hack because you don’t have to think about dark colour combinations, and neutral shades look timeless and classic. Some of the most popular colours are cream, off-white, and light shade colours.
When choosing wall paint, make sure you use a premium-quality, washable paint. This will save you from long-term expenses. You can also add subtle texture designs to make your walls look modern and appealing.
Garden and outdoor enhancements
Use seasonal plants in the garden
Rental homes with gardens are a significant bonus. A well-groomed garden can make a rental property look luxurious and refreshing. Having a garden on your property means taking extra care to maintain it, ensuring it is structurally sound and visually appealing.
Use low-maintenance plants to keep the gardening to a minimum, and try to choose plants that provide colour and interest throughout the year. You can also add container plants at the property’s entrance to make it look more appealing.
2. Improve outdoor lighting for safety and kerb appeal
To make your garden look more beautiful, you can install a range of outdoor lighting. Think about adding spotlights on big plants, solar lights along the pathway, or string lights in seating areas. As well as making the garden look warm and welcoming in the evening, lighting can make the space safer and easier to use after dark.
Families looking to rent a property aren’t are probably keen to find an affordable place to grow and build memories. By enhancing both the interiors and outdoor spaces with thoughtful, family-friendly upgrades, landlords can significantly increase their property’s appeal and attract family tenants.
Functional furnishings, stylish kitchens, well-lit gardens, and a better rental experience can lead to higher rental yields and more satisfied tenants. Just remember, while you are adding value to your property, don’t forget to secure it with comprehensive landlord insurance. It’s the safety net that protects your efforts and your property.
The traditional argument holds: While buying a home can build long-term equity and stability, renting can provide flexibility and fewer upfront costs. But as home ownership becomes a far-fetched dream for many young Canadians, can renting for life be a viable option?
Alex Avery, author of The Wealthy Renter, thinks so. “It’s different for every person, and each individual’s needs change over time, but I’m still a firm believer that renting is a great option,” he said.
Despite rental prices having soared since publishing his book in 2016, Avery says renting is still cheaper and carries less risk than buying. “People compare mortgage payments to monthly rental rates, but mortgage payments don’t begin to cover the full costs of home ownership,” he said. These costs can include notary fees, realtor commissions and region-specific taxes when purchasing the property as well as ongoing costs such as mortgage interest, property taxes, insurance, and various maintenance and repair expenses.
Avery was inspired to write his book during what he calls was a “speculative bubble” in the housing market at the time that he said created a perception of home ownership as an “easy out for savings,” especially in urban centres like Toronto and Vancouver. “[Young Canadians] were being pressured to buy a condo when the math never made any sense,” he said.
Should you rent and invest the difference?
Vancouver realtor Owen Bigland’s calculations paint a different picture however. With average monthly rent for a one-bedroom unit in his city now hovering around $2,800, a lifetime renter could spend at least $1.3 million by the time they’re 65 (not accounting for rent increases or inflation), according to Bigland. “And you’ll have zero to show for it. Where’s the savings here?” he questioned.
Photo of Owen Bigland by Natalia Anja Photography / The Canadian Press
Even if monthly rent was cheaper than a mortgage payment, Bigland said many Canadians will likely spend any savings rather than invest it and grow their wealth.
“A lot of Canadians don’t have the discipline to save as much as they should,” said Sebastien Betermier, an associate professor at McGill University who studies Canadian household spending.
With rents making up at least a third of household expenditures, and homes making up 70% to 80% of home owners’ wealth portfolios, Betermier says both renters and home owners alike are exposing themselves to big risks.
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Recent data from a survey by the Healthcare of Ontario Pension Plan and Abacus Data suggests the same. More than a third of Canadians report having less than $5,000 in savings, and those who own a home are increasingly relying on their home equity to fund their retirement.
The advantages of home ownership
Bigland preaches home ownership for this very reason. He encourages chipping away at your mortgage and building equity so you can benefit from any price appreciation in the future. “The only real cash shelter we get in Canada is the principal residence exemption,” he said.
Put another way, “you’re essentially renting [the home] from yourself,” said Betermier. He adds that your home can act as collateral should you need to borrow against it someday. Most mortgages from big banks typically include a built-in home equity line of credit (HELOC) at a favourable rate, according to Bigland. “It’s accessible money without selling your home.”
Avery, however, doesn’t buy this argument. “It presupposes that housing is a safer investment than other investments,” he said. “There are many places where house prices have gone down, where employment prospects change over time.”
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Investment alternatives if you’re not buying real estate
As an alternative to relying on your home as an investment, Avery suggests putting your money into an RRSP, TFSA, and the FHSA, which doesn’t necessarily need to go toward a home purchase. “You can learn about index ETFs too. There’s a lot of different ways to invest your money,” he said.
Avery, who’s gone the home ownership route himself, doesn’t think buying is a bad decision, but warns against it if you’re banking on it as an investment tool. “That’s conflating two different objectives,” he said. “One is to house yourself, and the other is to generate wealth.”
But Bigland, who’s also written a book on real estate and stock investing, says you should be doing both. He agrees renting can make sense in some situations like if you’re anticipating a change in jobs, but you should consider buying if you can commit to a location for eight to 10 years.
He suggests first-time buyers start with older buildings close to public transit often sitting on valuable pieces of land. “You’ll probably have a developer [buy] in 10 or 15 years, and that might be your exit strategy, he said. “Even if you’re a blue-collar guy, if you can get $40,000 down, maybe even forgo the car for a little while, you can do it.”
SALEM — A new ordinance will regulate the conversion of properties with two or more residential units into condominiums through a permitting process and new tenant protections.
The City Council approved the new rules 7-3 at its meeting Thursday.
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1568 Nome St. has been condemned by the City of Aurora.
Kyle Harris/Denverite
The City of Aurora is shuttering an apartment building with more than 90 units at 1568 Nome St. The reason? Years of unsafe conditions that property owner CBZ Management has failed to address, according to the city.
All residents of 1568 Nome St. had six days to pack their bags and be gone. Aurora Police could arrest anyone still there after 7 a.m. on Tuesday.
So on Monday afternoon, residents, many of them immigrants, scrambled.
Some threw away their belongings where trash had piled up outside the property. Others hoped to rent storage units or borrow space in friends’ and strangers’ garages. Some just stood against a wall looking at everything they owned and wondered what was next.
Where would they stay after they left 1568 Nome St.? Most people Denverite spoke to had no plan, but they’re trying to figure it out.
The City of Aurora says it’s doing what it must to keep residents safe.
“City management is obligated under the Aurora City Charter to enforce the city code and look out for the safety and welfare of all residents,” said Ryan Luby, a spokesperson for the City of Aurora. “1568 Nome St. is no longer suitable for human habitation. The building owners and managers made the decision to effectively abandon their paying tenants, and this is the unfortunate consequence. The risks of residents remaining in the building and being subjected to its rapidly deteriorating conditions are far too dire.”
Aurora officials say they are working with community organizations to provide “tangible solutions for the building’s residents.”
Aurora has found 85 rooms in 10 hotels and motels in the city where people can move, said Jessica Prosser, Aurora’s director of housing and community services. Eligible residents would be offered housing vouchers.
Prosser said the landlord typically pays for such relocation costs. In this case, the company is refusing, so the city is footing the bill — for now. Aurora plans to recover the costs from CBZ management at a later date.
A CBZ investor declined to speak on the record using his name with Denverite, so we declined to use his comments.
Volunteers say that if Aurora wants them to effectively shelter and house the residents of 1568 Nome St., they need more time.
Advocates are working hard to help residents in a crisis that some say has ‘blatant’ optics.
On Monday afternoon, a handful of caseworkers and volunteers — some bilingual and some not — gathered outside the complex to help connect panicked residents with social service organizations, motel rooms and more permanent housing.
Some were individuals lending a helping hand. Others came from nonprofits and activist groups, including the East Colfax Community Collective and Housekeys Action Network Denver.
V Reeves, an advocate with the HAND, was one of the people fielding multiple questions from families.
They have been a constant presence at homeless encampment closures and have seen firsthand how cities in the Denver Metro have handled both the homelessness and new immigrant crises.
“This has been especially heartbreaking and tragic to see,” Reeves said. “They’re not caring about optics, or even attempting to look like they care or attempting to act like they’re not racist. I feel like it’s very blatant this time. I think it’s a very clear sign that tenant rights don’t matter if you’re brown or if you’re from another country and if you’re a migrant here.”
For many, there’s simply not enough time to figure out their next move.
Organizers and residents told Aurora officials they are uncertain they can help pull off the move by Tuesday morning.
Initially, organizers asked the city to keep the apartment building open for two additional months to give the residents time to make a plan.
Then, organizers dropped their demands to the full 15 days allowed for by the city’s charter.
“We highly welcome and encourage the coordination from the City of Aurora, but for people to access the resources that they’ve made available, we, the tenants and the community, are asking for a nine-day extension,” said Nate Kassa, an organizer with the East Colfax Community Collective at a Monday morning protest at the Aurora Municipal Center.
Andrea Fuenmayor, a mother of two, said she still has no place to go after she leaves.
“The only support I need is a little more time,” she said.
BOSTON — Gov. Maura Healey signed a $5.1 billion bond bill Tuesday aimed at boosting the state’s dwindling housing stock, but critics say the plan will do little to help struggling renters and people now at risk of losing their homes.
The measure, approved on the final day of formal legislative sessions, includes a mix of bonding, policy changes, tax breaks and other incentives to help spur the much-needed development of new homes.
Healey, a first-term Democrat who has made housing a key part of her legislative agenda, described the measure as the “most ambitious” in state history to address what she called the state’s “toughest” challenge.
“The Affordable Homes Act creates homes for every kind of household, at every stage of life, and unlocks the potential in our neighborhoods,” Healey said in a statement. “Today we are taking an unprecedented step forward in building a stronger Massachusetts where everyone can afford to live.”
Under the plan, at least $2 billion will be devoted to the rehabilitation of more than 43,000 public housing units, with 25% of the money dedicated to preserving housing for those with low incomes.
The bill also calls for diverting $800 million to the state’s Affordable Housing Trust Fund to create and preserve affordable housing for households whose incomes are not more than 110% of area median income.
Among the policy initiatives in the bill is a proposal to authorize accessory dwelling units equal to or less than 900 square feet to be built by-right in single-family zoning districts in all communities.
The plan expands funding for the state’s Community Investment Tax Credit Program, which funds community development corporations that partner with nonprofits to build affordable housing across the state.
Under the tax credit program, donations to community development corporations that qualify are eligible to receive a 50% refundable tax credit.
The Senate approved the $5.4 billion housing bond bill in May and the House followed in June with a $6.5 billion bill. Differences between the two bills were worked out by a six-member committee, which announced a compromise on the final day of formal sessions.
Lawmakers rejected Healey’s controversial proposal to give communities the authority to add transfer fees from 2% to 5% onto property tax bills to fund affordable housing, which faced opposition from the real estate industry.
Lawmakers also rejected a plan to spend $1 billion to allow the Massachusetts Water Resources Authority’s water system to be expanded to the Ipswich River Basin, which includes Beverly, Danvers, Ipswich, Middleton, Peabody, Salem and other communities north of Boston.
And some housing advocates say the changes in the new law will do little to help people who are now struggling to pay the rent or facing foreclosure.
“The housing bond bill includes meaningful funding to support public housing and build new affordable housing, but legislators failed to include any tools to help renters who are facing enormous rent hikes and eviction today,” said Carolyn Chou, executive director of the group Homes for All Mass.
Homes for All Mass was pushing for inclusion of a proposal that would allow cities and towns to stabilize rents by pegging increases to the rate of inflation with a cap at 5% and protect tenants by banning no-fault evictions.
“We need strong rent stabilization now to protect people during the decades it will take to make housing more affordable in Massachusetts,” Chou said.
The housing bill was a top priority for Healey and other Beacon Hill leaders, who are trying to spur more home building amid a shrinking inventory that is edging first-time buyers out of the market.
The prolonged housing crunch is affecting the state’s economic growth, making it much harder to attract new families and companies, they say.
Massachusetts has some of the highest housing costs and rents in the country. The median price of a single-family home hit a record $609,000 in June, according to real estate industry reports. Meanwhile, single-family home sales were down in June versus the same month last year.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com
BOSTON — The Healey administration is lashing out at Steward Health Care System’s creditors for seeking to block $30 million in state funding to help transition the bankrupt company’s hospitals to new owners.
In a new filing in U.S. Bankruptcy Court, Assistant Attorney General Andrew Troop accuses a group representing creditors seeking to collect $9 billion in debt from Steward of engaging in “brinksmanship” in an effort “to wring out more value from qualified bidders or the commonwealth to salvage their own bad financial, investment or lending decisions.”
“Many of these creditors seem to have lost sight of the importance of providing safe healthcare over the long term, and instead seem intent on saddling bidders with potentially critical levels of debt or obligations, which will only make this crisis a recurring one,” Troop wrote in the seven-page statement.
While the state is “unable” to stop Steward from closing the two hospitals, Troop said it still has “significant police powers” to intervene in the federal bankruptcy process if it “does not result in a clear path to the sale of the hospitals.”
The fiery statement comes as a federal judge in Texas weighs a request from a group representing Steward’s myriad creditors to reject Gov. Maura Healey’s plan to devote $30 million in repurposed Medicaid funding to help transition the sale of six of Steward’s hospitals as part of the company’s bankruptcy proceedings.
Steward plans to put its 31 U.S. hospitals – including Holy Family’s locations in Methuen and Haverhill – up for sale to pay down $9 billion in outstanding liabilities owed to creditors. The company filed for federal bankruptcy protections in May.
Steward said it was not able to find buyers for Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer and announced plans to shut down the facilities in the next 30 days.
U.S. Bankruptcy Judge Christopher Lopez, who is overseeing the case, approved the request to close the hospitals following a hearing Wednesday in a Texas courtroom.
Bids on Steward’s Massachusetts hospitals and other states were due last week, but the company has not disclosed prospective buyers. A hearing on the sales was scheduled for Thursday, but the company asked the federal judge presiding over the case to postpone the proceedings until Aug. 13, without citing a reason.
Last week, Healey officials announced plans to provide $30 million in Medicaid funding to help ensure a “smooth transition” to new ownership for the company’s six remaining hospitals. Healey told reporters earlier this week that “not a dime” of the money will go to Steward or its management team.
But in a court filing this week, a committee representing Steward’s creditors asked Lopez to block the move, arguing that the transition funding would come “at the expense of the rest of debtors, their estates and their creditors.”
On Wednesday, Lopez approved a request by Steward and others to reject a master lease for all the hospital properties, saying the move “is in the best interests of the Debtors, their respective estates, creditors, and all parties in interest.”
The Attorney General’s Office sided with Steward on the lease issue and has accused the hospitals’ landlords – Medical Properties Trust and Macquarie Asset Management – of trying to block the move “to extract concessions from the Steward estate and their mortgagee.
“These hospitals – while each in name a lessee – have been forced to pay the costs typically associated with property ownership, including real estate taxes, maintenance, and insurance,” Troop said in the latest court filing.
Steward’s landlords objected to the request to reject the master lease, arguing in court filings that federal law prohibits the company from stopping rent payments “when their express intention is to continue conducting business in the landlords’ property pending a proposed sale.”
“If a debtor were permitted to reject a lease and stop paying rent, while continuing to conduct business in the landlord’s property, every debtor would do that,” lawyers for the two property owners wrote in a legal filing. “But of course that is not allowed.”
During the hearing Wednesday, Lopez also heard arguments for approving the Healey administration’s request to use the $30 million for transition costs, but it was not clear when he would issue his ruling on the funding.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.
BOSTON — The Healey administration is lashing out at Steward Health Care System’s creditors for seeking to block $30 million in state funding to help transition the bankrupt company’s hospitals to new owners.
In a new filing in U.S. Bankruptcy Court, Assistant Attorney General Andrew Troop accuses a group representing creditors seeking to collect $9 billion in debt from Steward of engaging in “brinksmanship” in an effort “to wring out more value from qualified bidders or the commonwealth to salvage their own bad financial, investment or lending decisions.”
“Many of these creditors seem to have lost sight of the importance of providing safe healthcare over the long term, and instead seem intent on saddling bidders with potentially critical levels of debt or obligations, which will only make this crisis a recurring one,” Troop wrote in the seven-page statement.
While the state is “unable” to stop Steward from closing the two hospitals, Troop said it still has “significant police powers” to intervene in the federal bankruptcy process if it “does not result in a clear path to the sale of the hospitals.”
The fiery statement comes as a federal judge in Texas weighs a request from a group representing Steward’s myriad creditors to reject Gov. Maura Healey’s plan to devote $30 million in repurposed Medicaid funds to help transition the sale of six of Steward’s hospitals as part of the company’s bankruptcy proceedings.
Steward plans to put its 31 U.S. hospitals — including Holy Family’s locations in Methuen and Haverhill — up for sale to pay down $9 billion in outstanding liabilities owed to creditors. The company filed for federal bankruptcy protections in May.
Steward said it wasn’t able to find buyers for Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer and announced plans to shut down the facilities in the next 30 days.
U.S. Bankruptcy Judge Christopher Lopez, who is overseeing the case, approved the request to close the hospitals following a Wednesday hearing in a Texas courtroom.
Bids on Steward’s Massachusetts hospitals and other states were due last week, but the company hasn’t disclosed prospective buyers. A hearing on the sales was scheduled for Thursday, but the company asked the federal judge presiding over the case to postpone the proceedings until Aug. 13, without citing a reason.
Last week, Healey officials announced plans to provide $30 million in Medicaid funds to help ensure a “smooth transition” to new ownership for the company’s six remaining hospitals. Healey told reporters earlier this week that “not a dime” of the funds will go to Steward or its management team.
But in a court filing this week, a committee representing Steward’s creditors asked Lopez to block the move, arguing that the transition funding would come “at the expense of the rest of debtors, their estates and their creditors.”
On Wednesday, Lopez approved a request by Steward and others to reject a master lease for all the hospital properties, saying the move “is in the best interests of the Debtors, their respective estates, creditors, and all parties in interest.”
The Attorney General’s office sided with Steward on the lease issue and has accused the hospitals’ landlords — Medical Properties Trust and Macquarie Asset Management — of trying to block the move “to extract concessions from the Steward estate and their mortgagee.
“These hospitals – while each in name a lessee – have been forced to pay the costs typically associated with property ownership, including real estate taxes, maintenance, and insurance,” Troop said in the latest court filing.
Steward’s landlords objected to the request to reject the master lease, arguing in court filings that federal law prohibits the company from stopping rent payments “when their express intention is to continue conducting business in the landlords’ property pending a proposed sale.”
“If a debtor were permitted to reject a lease and stop paying rent, while continuing to conduct business in the landlord’s property, every debtor would do that,” lawyers for the two property owners wrote in a legal filing. “But of course that is not allowed.”
During Wednesday’s hearing, Lopez also heard arguments for approving the Healey administration’s request to use the $30 million for transition costs, but it wasn’t clear when he would issue his ruling on the funding.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.
There comes a time in every rental agreement when you want to move out. Whether you’re moving across the country,buying your first home, or simply looking for more space, you’ll need to follow a few steps before your lease ends. And sending your written notice to vacate letter is one of those steps.
Outlined below are all the essential details you need to know about writing your notice to vacate letter, including why it’s important and what it needs to include. From protecting your security deposit to keeping a good relationship with your landlord, we’ve got tips and tricks to keep your move-out easy. Plus, we’ve provided a simple template to make things even easier for you to check this off your to-do list.
What is a notice to vacate letter?
A notice to vacate letter (aka lease termination letter) is a formal letter a tenant writes to their landlord or property manager to end their lease agreement. It’s an important legal document that protects the tenant and serves as proof they sent their notice within the required time frame. It also gives the landlord ample notice and enough time to find a new tenant or make other plans for theirrental property.
The tenant should include their contact information, intent to end the lease, and the date they wish to vacate. In most cases, a landlord or property managers require a notice to vacate letter from their departing tenants. But even when not needed, it’s a good idea to send one anyways.
Is a notice to vacate letter the same as an eviction notice?
Confusingly, an eviction notice is sometimes called a “notice to vacate.” But generally, a notice to vacate letter is sent from a tenant to a landlord, whereas a landlord can send an eviction notice to a tenant if they violate the terms of thelease agreement.
Landlords can also send a “no-cause notice to vacate letter” to a tenant. This is not a credit-destroying eviction notice, though it can also be called a “no-cause eviction notice.” Instead, a no-cause notice is a notice of non-renewal. In other words, your landlord can decide not to offer you a new lease agreement. This is usually the case when a landlord plans to sell or renovate the property.
Do you need to give a 60 or 30-day notice to vacate?
In most cases, you need to provide some sort of notice that you intend to end your lease. Some landlords require you to provide written notice. Some are less formal and ask for an email or phone call. Whatever the case, always get a receipt or confirmation when your landlord gets the notice. Failure to provide proper notice can result in fines owed to your landlord.
The notice period you’re required to give depends on your municipal and state laws. In most cases, 30 days’ notice to vacate is required for long-term leases. But 60 days is also common, though less popular. On the other hand, some cities don’t require such advanced notice. In Seattle, WA, tenants only need to give two weeks notice and only seven days are required in Raleigh, NC..Always double-check your lease agreement as well as state and local laws to ensure you know and follow the rules. Following what your landlord prefers usually makes things easier for you.
How much notice do you need to give for a short-term lease?
A short-term lease, sometimes called a tenancy-at-will agreement or a rental agreement, follows similar rules. A rule of thumb here is that a tenant should provide notice of at least one billable period before they wish to vacate. So in amonth-to-month lease, you would need to provide one month’s or 30 days’ notice. In a week-to-week lease, seven days notice is usually enough.
Notice to vacate letter template (tenant to landlord)
You can use the template below as a guideline when writing your formal notice to vacate. Keep in mind that the “reason for leaving” section is optional. If your reason for leaving has nothing to do with your landlord, it’s nice for them to know. For example, if you currently live in anapartment in Seattle, WA, and are moving out-of-state, you can consider saying, “I’m not renewing my lease, because I’m moving toBoston, MA, for my new job.”
If there was an issue with the apartment, this isn’t the best place to bring it up for the first time. You can include information about an ongoing problem if you want to, but it’s not required.
Below is a sample letter template for a 30 or 60 notice to vacate:
[Your Name]
[Street Number, Apartment Number]
[City, State, Zip]
[Your Phone Number]
[Your Email Address]
[Today’s Date]
[Landlord or Property Manager Name]
[Landlord or Property Address]
[City, State, Zip]
Dear [Landlord or Property Manager’s Name],
In accordance with my lease, I am writing this letter to provide a [number of days] notice that I will move out of my apartment [rental property address and unit number] on [move-out date].
(Optional) I am not renewing my lease because [reason for leaving].
Please contact me via [preferred contact method] to schedule the final inspection. Please send my security deposit of $[amount] to my new address:
[New address or forwarding address]
If you believe the security deposit should be deducted for any reason in accordance with our lease agreement, please send me an itemized list of costs.
You’re welcome to [call or email] me with any questions.
Sincerely,
[Your name]
[Signature]
How to send your written notice to vacate letter
Email is the most convenient way to send your notice to vacate letter, but you can also hand over a physical copy of your notice to vacate letter or mail it to their preferred address. If you want to be extra diligent when handing in your letter, you can ask your landlord to sign a receipt of notice. It’s a great idea to send a follow-up email to your landlord a week or two after sending your lease termination letter, especially if you haven’t heard from them regarding the inspection.
6 tips to consider when writing your intent to vacate letter
1. Read your lease agreement again
There’s likely a paragraph or two about the proper way to notify your landlord about moving out. Sometimes an email is acceptable, or your landlord has a preferred template. You’ll also want to note your security deposit amount and any special terms in the agreement.
2. Include the date
Whether you use this template or a template provided by your landlord, the date is very important. That’s what proves you met the requirements for adequate notice — the 30 or 60 days required by your lease.
3. Be kind and straightforward
Consider your letter a professional courtesy and a future investment. If you continue to rent, you may need a landlord recommendation or two in the future. This is an opportunity to continue to stand out as an excellent renter.
4. Make your new address and contact information prominent
You want to make things as easy as possible for your landlord to return your security deposit. Be sure to make your new address legible and prominent for your landlord in your letter.
5. Make scheduling the walkthrough easy
If there’s an issue with the condition of your apartment, your landlord or property manager will point it out during the final move-out walkthrough. And you want to be present to make sure you know what your landlord is noting.
6. Know the rules for breaking your lease early
If you’re breaking your lease, you’ll likely have to pay an additional fee. Sometimes you have the right to terminate early, like for medical reasons or military deployment. Follow the rules, document everything, and work with your local tenant’s rights office for guidance.
What if I change my mind about moving?
If you change your mind, you can reach back out to your landlord or property manager to see if you can still renew your lease. Just know that you don’t have the right to renew your lease after you’ve sent your letter (unless local laws allow it).
But that’s no reason not to ask your landlord or property manager if your current apartment is still available to rent again. Most of the time, it’s easier and cheaper to keep a renter in place rather than find a new one. And many landlords are happy to keep a renter they have a good relationship with.
What are the next steps after sending the notice to your landlord?
After sending a proper notice to vacate to your landlord and establishing your move-out date, there are a few additional things you can expect.
The unit may be shown to prospective tenants
Your landlord may ask for the right to show your apartment where a prospective tenant does a walkthrough. Your landlord is supposed to arrange showing times in advance, usually at least 24 hours. In some cases, you have the right to refuse a showing. Try to work with your landlord to create a showing schedule. For example, you can give them the most manageable days and times for you. This will maintain a good landlord-tenant relationship.
Schedule your move-out inspection
Your inspection should take place after you’ve moved out all or most of your stuff. If you have cleaning responsibilities, it’s best to have the walkthrough after you’ve cleaned. During the inspection, your landlord will check the apartment’s condition and point out anything they think is outside normal wear and tear. This is also an opportunity to discuss any repairs beforehand and gives you a chance to address them. Always ask for an itemized list of repairs to prevent any disputes with the security deposit.
Move into your next place
Now it’s time to unpack those boxes. You’ll also want to update your mailing address with your bank, student loan company, and other important entities. It’s also a great idea to set up a mail forwarding address, which you can do easily online through the USPS website. And don’t forget to update your voter registration.
Receive your security deposit back
As long as you leave your apartment in good condition, your landlord must return the security deposit within a specified time period according to the rules in your state. Generally, it’s between 15 and 60 days, but it’s a good idea to review local laws. Be sure your landlord knows where to send it and how to get in touch with you if they have any questions.
Moving in with a significant other or a friend can have its ups and downs. But, finding a roommate you know nothing about – whether it’s someone you found on Craigslist or an acquaintance you know little about – can be a bit intimidating. Before signing a lease or agreeing to live together, learning as much about your potential roommate as possible is important.
Living with a roommate is not for everyone, but for those who choose to, it can be a positive experience. It allows you to live independently while also having company in your apartment. A roommate is someone you can split chores, bills, and other expenses with. It’s also an opportunity to live in a city with a high cost of living. So, have you been eyeing anapartment in Austin, TX? Or perhaps arental home in San Diego, CA? A roommate may help you achieve that rental home.
Whether you’re moving into someone else’s place, they’re moving into yours, or you’re both new to the apartment, it’s critical to learn as much about the potential roommate as possible before signing a lease together. Dive into daily routines, hobbies, expectations, finances, and more. Here are 28 questions to ask a potential roommate before setting a move-in date.
Questions to ask potential roommates about expectations
1. What are your dealbreakers? Pet peeves?
It’s important to find out before it’s too late. Do they expect their space to be orderly at all times? Do they hate the smell of cologne? Be sure to pick up on any hints about the habits of a potential roommate that might align with one of your pet peeves, too. Everyone has their quirks, and sometimes you have to compromise.
“Being aware of what aggravates one another will not only help you make an informed decision but also avoid potential conflicts while living together,” shares Diggz, An online marketplace to find roommates that match your lifestyle and preferences. “You might find someone who claims to be very clean and likes to keep the place in order at all times. But will they flip out if you leave a dirty dish in the sink for 30 minutes? That might not be a big deal if you are just as clean. However, if you are generally clean and sometimes have “oversights,” you might argue with your roommate every time it happens.”
“As roommates, you’re bound to have disagreements, but knowing and accepting each other’s pet peeves will help you avoid crossing the line and maintain mutual consideration and respect,” adds Diggz. “Or, you’ll realize you won’t be good roommates and keep searching.”
2. How do you feel about sharing?
Be sure you’re on the same page when it comes to sharing anything, from clothes to groceries. Some people like to keep all their belongings to themselves, others don’t mind sharing things here and there. Also, think about shared spaces. How do you designate drawers in the bathroom or space in the fridge? Or, would you both be okay making those spaces more communal?
3. What’s your confrontation style?
Disagreements happen and will likely occur when sharing a space with someone. Establish an effective way to resolve conflict when it arises and before a situation escalates.
CoHousing Houston, an urban village in East End suggests asking yourself, “Am I willing to trade a little bit of convenience for a whole lot of connection?” They go on to say, “Sharing space with people means you might not get to have things exactly your way all the time, but it also means that you won’t suffer from isolation or loneliness.”
4. How do you cope with stress?
You’ll likely see your roommate at their worst, and it’s crucial for you both to know how to react and how one another can support each other. Some people require personal space, and others prefer to talk things out.
5. What temperature do you prefer to set the thermostat to?
This can be a more significant challenge than it may seem, but discussing with your potential new roommate about the ideal indoor temperature is essential.
“Unless you’re fortunate enough to have a smart climate-controlled home, your apartment or house will most likely have central heating and cooling,” says Diggz. “Being on the same page with your prospective roommate on how hot or cool they like the house or apartment could help you avoid arguments down the road. You might like the AC blasting throughout the summer, and your roommate might like to crack a window open and get fresh air. Make sure you agree on an ideal temperature for both summer and winter. Remember that the temperature you set your space at doeshave cost implications and impacts your utility bills. Address it upfront and avoid stressing over it when the time comes.”
6. What’s your worst habit?
This question goes hand-in-hand with question one. Maybe your potential roommate has a habit of leaving dirty clothes in the bathroom, not cleaning up after themselves in the kitchen, or even forgetting to lock doors. If these are dealbreakers for you, it’s a good sign that you aren’t compatible. Feel free to share your worst habit, too.
7. How do you decompress after a long day?
After a long, stressful day, everyone has their strategies to decompress. Do they take a long nap or go for a long run? Veg out in front of the TV or relax their mind with meditation? Go into a baking frenzy? Stake out your rituals early.
8. Do you have any food restrictions or allergies?
Be aware of a potential roommate’s dietary restrictions. If you can’t live without peanut butter, but they have a severe peanut allergy, living together might not be the best choice. Be sure to uncover all allergies and restrictions upfront.
Questions to ask potential roommates about their lifestyle
9. Are you still friends with your old roommates?
Conflict happens, after all. But, if a potential new roommate has nothing but negative experiences to share about former roommates, let your inner skeptic take charge. If they seem hesitant about answering this question, this can also be a bad sign, and it’s best to carry on your search to find a good roommate. Now’s the time to also ask about any references or ex-roommates you can speak to.
10. What do you like to do in your free time?
The answer to this question can tell you whether this person is generally a homebody or likes to spend their time away from home. If you enjoy hosting get-togethers or other in-home activities such as cooking or meditation, try to work out a schedule so you and your roommate’s events don’t coincide with one another. Or maybe you discover you have common interests and can establish a connection around that.
“If you have decided to live in a shared space, this question can be critical,” states Urban Campus, a coliving and coworking community. “Moving to a new city alone is a big step, and you should be proud of yourself for getting this far, but you don’t have to do the rest alone. Creating genuine experiences, visiting new places, and surrounding yourself with like-minded people are what we believe to be important aspects of your life, so even if you move here alone, you will be a part of something bigger.”
11. Do you smoke? Drink?
Smoking and drinking can be a deal-breaker, so it’s essential for both of you to be open about this. If either of you smokes, you might want to consider adding a clause in your agreement stating that smoking is prohibited inside the apartment. Set ground rules around drinking, too. Find out their drinking habits, like do they typically drink a glass of wine or have a beer with dinner, or do they drink primarily on weekends with friends in their apartment? Share your drinking habits so you can try to work something out. Even if you’re okay with smoking and drinking, consider setting ground rules around both.
12. How often do you have friends over?
Do they host dinner parties, have friends over all weekend, or bring their friends over during work? Know each other’s schedules and social habits to know if it will fit with your lifestyle.
13. Do you have pets?
Renting with pets has its pros and cons. If you or your prospective roommate have a pet, always comply with your building’s pet policy. Sometimes pets aren’t allowed, period.
Find apartments or rental units that allow pets if you or a prospective roommate have any. Even pet-friendly buildings sometimes have certain restrictions, such as breed type, dog size, and the number of pets.
If a potential roommate already has a pet, be sure to meet them before moving in together. Lastly, it’s important to talk about the financial obligations, rules, and responsibilities of pets. Will the pet be allowed on all the furniture? Will you both be responsible for taking the dog on walks? Cleaning out the kitty litter? Or, if you or your potential new roommate were considering getting a pet, but one of you has pet allergies, you might consider ruling out pets entirely.
14. How often do you travel?
This is a great question to gauge how often you’ll actually be sharing your living space with the other person. If you value your alone time, finding a roommate who frequently travels for business or visits family often might be the way to go.
15. Have you ever been arrested?
If someone answers “yes” to this question, you can’t assume they’re a bad person or wouldn’t be a great roommate. Just make sure you get the full story before signing the lease.
Questions to ask potential roommates about their habits and routines
16. What is your typical routine? Are you a morning person or a night owl?
Are the hours past midnight their time to blast music? Do they eat dinner extremely late, or make breakfast before the sun rises? Or perhaps they hop on the treadmill at 4 a.m. to get a sweat on before the workday. You and your potential roommate’s schedules don’t need to be the same, but if they’re different enough, you’ll need to learn how to accommodate each other’s routines and probably make sacrifices.
17. What time do you go to bed and wake up?
If your sleeping schedule is wildly different from your roommate’s, you may end up getting less sleep than you require, says Priit Kallas, founder of FixWillpower, a site with ideas on how to reach your goals. “Set rules for quiet time that let you get enough sleep.”
18. What are your cleaning habits and routines?
Cleaning is arguably one of the most important subjects. In fact, it’s one of the most common reasons why conflicts arise among roommates. Do they put away dishes after each use? Wipe kitchen and bathroom countertops down? Vacuum regularly? Which household chores do they despise? Which ones do you loathe? Learn about their cleaning habits, then you can split up cleaning chores and split tasks accordingly.
It’s important to note, however, that one person’s version of “clean” can be drastically different from your version. And remember, at the end of the day, it doesn’t matter whether you or the prospective roommate is clean or messy, just that your expectations align.
19. Do you work from home? What is your typical workday schedule?
We’re in the work from home era, and there are definitely pros and cons to having someone in the apartment all day. The electric and water bills may be higher for sure. However, having someone around to accept deliveries or be home for any home services, like setting up WiFi or letting the apartment cleaners in, might be a benefit. Choose what is more important to you.
Questions to ask potential roommates about finances
20. What’s the max you can spend on rent? Can you put part of the deposit down?
Rent increases are very common at the end of a lease cycle, so it’s important to find out whether your future roommate will be able to pay their share. Find out if they can split the security deposit, along with first and last month’s rent.
21. How will you pay for rent?
You don’t want to be late paying rent – or end up paying your roommate’s portion of rent because they can’t afford it. Be sure to find out if they have a steady source of income to pay for rent or if they’ll need a cosigner. You can even ask for references from previous roommates or see a pay stub.
22. Are you OK splitting utilities evenly?
It might not be worth the trouble if your prospective roommate is going to keep track of who uses more water or power. The apartment utilities cost can vary by building, city, and month. Find out if they’re comfortable splitting utilities down the middle.
23. Have you ever struggled to pay rent on time?
If your potential roommate has ever been in a situation where they couldn’t pay rent, knowing the story and how they handled the situation will tell you a lot about how a similar situation will unfold if it happens again.
Questions to ask potential roommates about compatibility
24. What do you want in a roommate? Are you looking for a new friend or just a roommate?
Be sure you are on the same page about your roommate relationship. If one of you is looking for a new best friend while the other prefers to keep their distance, the situation could end up rocky. Learn their expectations of the living arrangement.
25. Do you have any references?
This is typically already a requirement from the landlord or property manager, so it shouldn’t be too much of a hassle for your potential roommate to provide references. Past roommates, landlords, co-workers, employers, and family friends are all great resources. Ask for their phone numbers and emails.
26. What are some challenges you’ve faced in past living situations?
Noisy neighbors, lack of hot water, negligent landlords, and mold infestation are tough situations to deal with. Find out if they’ve ever faced a challenge like this and how they handled it. It can enlighten you on how they’ll handle less-than-perfect circumstances that may occur in the future.
27. Do you think we’d get along?
Your prospective roommate needs to be on board just as much as you are, and if they can’t see you two getting along it might be time to keep looking.
28. Anything else I should know?
This open-ended question can reveal a lot about a person. This can reveal other habits, hobbies, or expectations that weren’t mentioned in previous conversations.
Selecting a roommate is no easy task. Ideally, you want to end up with someone you are compatible enough to share a small space with. Asking potential roommates these questions is an essential part of the process and may determine your contentment at home. Be thorough, pay attention, and listen to your gut.
The process ofrenting an apartment comes with a laundry list of tasks and fees. From the application fee to the move-in fee and security deposit, it can seem like a never ending list of expenses before you even finish moving in. Most of these charges are straightforward, but administration fees are a bit more vague. It’s worth it to take time to get familiar with standard administration fees and what they cover, along withlocal landlord-tenant laws, so you understand what your landlord can and cannot legally charge you as a tenant.
What are administration fees? What do they cover? How do they differ from other fees? This Redfin article answers all those questions and more. It’s important to understand these fees whether you’re renting a two-bedroom apartment in Louisville, KY or a studio in Seattle, so let’s get straight to it.
What is an administration fee for an apartment?
Landlords charge tenants an administration fee to help mitigate the risk they take when pulling the unit off the market in case the prospective tenant doesn’t work out. The intent is to cover the landlord’s time to process the application, and is often considered a deposit to secure the apartment.
If your application is approved, the fee is non-refundable. If your application is denied, you should receive a refund for the application fee, minus any charges for the credit and background check.
How is the administration fee different from a move-in fee or a security deposit?
It’s easy to confuse the administration fee, security deposit, and move-in fee, as all of them are paid prior to moving in. We’ll walk through what’s involved with each one so you can approach any apartment application process with the correct information and budget expectations.
Administration fee
The administration fee pays for the landlord or property manager’s time and effort to process your application and hold the apartment for you. This fee typically ranges between $50–$350; some states regulate the amount landlords can charge to prevent unscrupulous behavior orrental scams.
Check your local landlord/tenant laws for specific information about fees that apply in your state. Though the administration fee is typically non-refundable, some landlords may credit the administration fee towards your first month’s rent.
Move-in fee
The landlord charges a move-in fee to cover costs for any light maintenance and touch-ups they make before a new tenant moves in. These may include repainting, carpet cleaning, or changing the locks. This fee is usually between $150–$350, which may be negotiable and is usually non-refundable. This fee is separate from the administration fee and is different from any fees charged when you move out.
Landlords do not always charge a move-in fee. Some use the previous tenant’s move-out fee to pay for any repairs and other work needed to get the apartment rent-ready for the next tenant. The move-out fee, assessed at the end of your tenancy, pays for any damage above normal wear-and-tear of daily life in the apartment and usually comes out of your security deposit. For example, if a pet chews up the carpet, you may be charged for its replacement.
Security deposit
The security deposit is the amount you pay at the start of your tenancy to cover any damage beyond regular wear and tear. The landlord can also use it to cover the rent if you leave without paying the last month’s rent. The security deposit is assessed upfront, while a move-out fee is charged at the end of your tenancy and is considered a separate fee from the move-in fee or the administration fee.
The security deposit is usually the same amount as your first month’s rent and helps protect the landlord from any damage you may cause to theirrental property during your tenancy. The amount can vary but is regulated by landlord/tenant law in each state. For example, if you scratch the wall during the move, stain the carpet, hang a TV and damage the drywall, or cause damage to window screens or blinds, the cost of those repairs will be deducted from the security deposit. The balance remaining after any damage is assessed should be returned to you within a set time frame in accordance with local laws.
How much are administration fees?
An administration fee is typically a one-time fee and ranges between $50–$350. Renters usually pay this fee after they are approved for the apartment and sign the lease. However, landlords can decide when to charge administration fees.
When are they paid?
Administration fees are paid at some point prior to the move in date. Some landlords may apply administration fees to the cost of running a background and credit check, which is paid at the time of application. Landlords could also add them to the first month’s rent. This would be paid when you get approved for the apartment.
Are administration fees refundable?
You could get it back if your application is denied. In most cases, you will not receive a refund for your administration fee. The landlord may consider the administration fee to be the same as the application fee, which would be non-refundable. Whether or not the landlord needs to refund the administration fee is determined by local landlord/tenant law. When considering yourbudget for an apartment, it’s best to include the administration fee as something you’ll pay and not get back.
Can administration fees be negotiated?
Landlords and property managers may not be inclined to negotiate the cost of the administration fee, but it doesn’t hurt to ask. A landlord may be willing to give up what they need to invest in qualifying a potential renter. They are legally required to screen each potential tenant 18 years of age and older, so the administration fee covers that process. They are not required to negotiate on the fee amount.
Are administration fees legal?
In most states, it’s legal to charge administrative fees. Some states limit the amount and how many different fees a landlord can charge prospective tenants, for example
In New York and Wisconsin, landlords and property managers can only charge a $20 application fee. In California, landlords can only charge an application fee, anything more can only be considered as part of the security deposit which is limited to two months’ rent.
According to the Canada Revenue Agency (CRA): “To make this election, attach a letter signed by you to your income tax and benefit return of the year in which the change of use occurs. Describe the property and state that you want subsection 45(2) of the Income Tax Actto apply.”
So, there isn’t a specific form to file to claim this election.
A taxpayer in Canada may be able to extend the four-year limit indefinitely, but this requires your employer or your spouse’s employer to ask you to relocate. It sounds like you relocated in order to look for work, Hugh, so this extension will not apply.
Filing an election late
The 45(2) election is supposed to be filed in the year you move out of the home. The deadline is the tax filing deadline for your tax return that year. This would be April 30 for most taxpayers, and June 15 for those who are self-employed or whose spouse is self-employed.
The CRA can accept a late-filed subsection 45(2) election, if your situation matches one from a list of extraordinary circumstances.
There is jurisprudence to support late-filed election. In Irene Gjernes v. Canada Revenue Agency, the CRA was ordered to reconsider a disallowed 45(2) election that was filed late by the taxpayer despite no extraordinary circumstances.
For the late-filed election, the CRA can levy a penalty of the lower of $8,000 or $100 per month past the due date. If the tax savings are more than the penalty, a late-filed election may be worth the penalty risk.
Capital gains tax when changing the use of a property
Since a home that is converted into a rental property is subject to a deemed disposition at the time of conversion, the fair market value at the time the rental began is the adjusted cost base (ACB) for capital gains tax purposes. A subsection 45(2) election could defer this conversion date.
Did you know that there are roughly 1.5 million eviction rulings in the United States each year? If you’re part of that 1.5 million, you may be wondering if it’s even possible to rent with an eviction on your record. How long do evictions stay on your record? And how can you find apartments with eviction forgiveness?
This Redfin article will answer these questions and more. Whether you’re looking for an apartment in Madison, WI or looking to rent a house in Las Vegas, NV, we’ll provide 12 tips for finding your next rental home, regardless of your eviction history.
What is an eviction?
An eviction is when a landlord forces a tenant to leave a property. Tenants can be evicted for violating terms in their lease, such as failing to pay rent on time, staying in the building past the end date of their lease, or having a pet when the building doesn’t allowrenting with pets. You might also be evicted because the building needs to undergo lead removal or another procedure which requires tenants to move out.
How to find out if you have an eviction on your record
Because evictions are legal proceedings, they’re included in your legal record. They also show up on your rental history report and your background check. To see if you have an eviction notice, you can request a copy of your rental history report from a reputable credit reporting agency. You can also run a background check on yourself for any signs of poor rental history.
If you have a prior eviction on your record, don’t worry. There are still ways you can find your next rental home.
How to rent with an eviction on your record
1. Try to get the eviction removed from your record
The first thing you should try if you have an eviction on your record is to have it removed from your record. This will make it much easier to rent future apartments or homes, regardless if you’re wanting to rent an apartment in Miami, FL, or a rental home in San Jose, CA. If your eviction was due to owed rent or other costs where you were delinquent in payment, you can offer to pay off past balances to have your eviction erased. You can also have your eviction removed from your record if the eviction was done illegally, such as not giving you enough notice.
2. Talk to your previous landlord
Chat with your previous landlord and offer to pay any outstanding balances. In some cases, property managers may be lenient and may even agree to erase the eviction from your record if past debts are resolved. They may even be willing to provide you with a positive reference for your new apartment.
3. Improve your credit score
Most landlords look for their tenants to have a credit score above 670 and higher. The higher your credit score, the more likely your landlord is to discuss your previous eviction to better understand the circumstances and get a complete picture of you as a renter. Plus, they’ll trust you more to pay rent in full and on time if you have a good financial track record.
Some ways toget your credit score up quickly include paying off past debts, especially high-interest ones like credit card debt. If you have only one or two lines of credit, you may consider opening another line of credit too, as that can improve your score. Lastly, avoid using more than a third of your credit limit every month. For example, if your credit limit is $3,000, keep your credit spending to $1,000 per month, and make sure you pay it off in full to ensure that your score continues to climb.
4. Offer to pay higher rent
Paying more rent each month won’t just pad your property manager’s pockets, it will make you a more attractive renter. By saying you’re willing to pay higher rent each month, you’re telling your potential landlord that you are a financially responsible renter. That can go a long way, though they will probably want proof of your income or assets to prove you can afford paying higher rent.
5. Obtain references
Another great way to showcase yourself as an attractive renter is to list letters of reference in your apartment applications. You may want to consider asking an employer or even a previous landlord for a reference. They can vouch for your ability to pay rent in full every month, as well as your ability to be a respectful tenant.
Your references can write letters for you, or you can list their emails or phone numbers alongside their names in yourrental application. Make sure that they are prepared to make the case that your eviction was a one-time thing that won’t ever happen again. After all, property managers want to hear that you’ve corrected your past actions and that you’ll be a responsible tenant going forward.
6. Create a renter’s resume or cover letter
Creating a renter’s resume or cover letter is a great way to showcase your strengths as a renter. You should treat a renter’s resume like you would treat a resume for a job; make sure it is typed, organized, and that it makes the best case for you as a renter.
Some things to include in a renter’s resume or cover letter are your name, contact information, monthly income, and employment history, just like you would include in an employment resume, and reasons why you would make a great renter. This should help strengthen your case.
7. Be transparent and offer an explanation
Your new potential landlord will definitely want to know about the eviction on your record. If you can, explain your eviction as honestly and clearly as possible on the phone, in person, or in a cover letter.
After explaining your eviction, remember to make a case to your new landlord about why and how you’ll be a great tenant going forward. For example, if you were evicted because you had a problematic pet, offer to introduce your pet to the landlord. The bottom line is that the landlord wants to know exactly what happened and what you’re going to do to make sure it will not happen in their rental.
8. Consider renting from a private landlord
Private landlords are just people who manage their own rental properties, rather than having a property management company do it for them.
Private landlords are often more understanding of past evictions, or they may even own apartments with eviction forgiveness. In general, renting from private landlords is a more personal experience than renting from a management company, which can work in your favor if you have an eviction on your record.
You can find properties owned by private landlords on social media sites as well as public marketplaces. Just be careful to vet the property beforehand to make sure that it is not arental scam.
9. Get a guarantor, co-signer, or roommate
Another way to strengthen your case is to get aguarantor, co-signer, orroommate who has excellent credit and doesn’t have an eviction. If a landlord knows that you have someone who is willing to back you up, they will be more likely to believe that you will be a reliable renter. Also, they will be reassured that you will pay rent in full and on time.
10. Offer to pay monthly rent in advance for a new apartment
One way to make your case as a potential renter with an eviction is to offer to pay rent in advance for a new apartment. If you can offer your new property manager the first two or three months’ rent up front, they will be much more likely to trust that you are serious about the apartment and that you’ll be a reliable tenant.
11. Offer to pay a higher deposit
No matter the reason for your eviction, offering to pay a higher security deposit can really strengthen your case as a prospective tenant. In order to make the most attractive offer, you’ll want to pay a few months rent up front as a deposit. It may be expensive, but paying a higher deposit is one of the best ways to make your case.
12. Find apartments that accept evicted tenants
Since renting to evicted tenants presents obvious risks for landlords, it can be hard to find apartments that cater to people with an eviction on their record. However, it’s not impossible. Some landlords and private property managers are willing to overlook past evictions.
How to get an eviction off your record
Whether you arerenting in Minneapolis or Tampa, there are some ways you can go about getting an eviction removed from your record. You may need to call multiple people to have your eviction removed from all of your paperwork, such as your legal record and credit report.
1. Pay or settle your rental debts
First, as mentioned earlier, offer to pay or settle your past rental debts with your previous landlord. Then, they may be willing to remove the eviction from your records.
2. Ask to have collections removed from your credit report
Having collections removed from your credit report can help your credit score as well as potentially remove traces of your eviction and any other debts from your record. There are two ways you can have collections removed from your credit report. You can either ask for a goodwill deletion if you’ve paid off the outstanding debt, or you can dispute it if the collection on your report is an error.
3. Ask to have the eviction removed from your tenant-screening reports
Tenant screening reports are sometimes used by landlords to see if they want to rent to you. If you have paid off your debts with your previous landlord or reached another settlement, you can ask them to remove the eviction from your tenant screening reports. You may need to follow up with a collections agency too to confirm that your landlord sent any owed balance to collections.
4. Dispute errors
As we noted above, in the event that an error was made by your landlord, credit bureau, or collection agency, you can dispute the errors to have the eviction removed from your record.
There are many ways an error can be made in the eviction process. For example, your landlord may not have given you proper notice of the eviction or filed the appropriate paperwork. Also, credit bureaus and collection agencies may report charges in an incorrect amount or possibly make another error.
To have your eviction removed from your record, you can dispute any errors made with your landlord, credit bureau, collection agency, or other company. If you can get the eviction removed, getting a rental will be a lot easier.
5. Take your eviction to court
If you believe you were wrongfully evicted, you can take your eviction to court to have it removed from your record, such as if you were wrongfully evicted due to discrimination, which is in violation of the Fair Housing Act
You can take your eviction to court if your landlord violated any rules regarding evictions. And if you win, your eviction should be removed from your record.
FAQs about renting with an eviction on your record
Does an eviction hurt your credit?
An eviction won’t directly impact your credit score. However, if you were evicted for past-due rent or other unpaid balances, that can hurt your credit. Additionally, if late payments have been sent to collections, that can really take a toll on your credit score.
How long do evictions stay on your record?
Once you are evicted from a property, that eviction stays on your record for at least seven years and up to ten years if any past-due balances were sent to collections. The records that show your eviction are typically included in your background check, tenant screening report, rental history report, and credit report. And because eviction rulings are made by local courts, the eviction goes on your legal record.
What should I do if my credit report includes an inaccurate eviction?
If an eviction is listed on your credit report by mistake, the best thing to do is to file a report with the credit reporting agency. You’ll need evidence that the eviction is listed on the report by mistake, along with proof of your payment history.
The bottom line on renting with an eviction
Although it isn’t easy to rent with an eviction, there are many ways to navigate how to rent with an eviction on your record. And, there are plenty of ways to have the eviction removed from your paperwork as well.
Dividends are after-tax profits a company distributes among its shareholders, typically every quarter, and can be paid in cash or a form of reinvestment.
Heath said a company that pays a high dividend reinvests less of its profit into growth, potentially losing out on opportunities to up its market value. In Canada, stocks with high dividends come from a narrow slice of the stock market—banks, telecoms and utilities.
“Ideally, an investor should consider a combination of stocks with high and low dividends to have a well-diversified portfolio,” he said.
Contribute to RRSP, save on taxes
“There’s a lot of taxpayers, investment advisers and accountants who really promote the concept of putting as much into your (registered retirement savings plan) as you absolutely can,” said Heath.
As a financial planner, he thinks the contrary. Heath says using RRSP contributions to get the biggest tax refund possible is not necessarily the best approach for people in low tax brackets and can hurt them in the long run when they withdraw those savings at a higher tax bracket in retirement.
“Sometimes, it’s OK to pay a little bit of tax, as long as you’re paying at a low tax rate,” he said.
It can be wise to use the low tax bracket by taking RRSP withdrawals early in retirement, even though it might feel good to withdraw only from your TFSA or non-registered savings and keep your taxable income low.
Renting an apartment or house can relieve some of the responsibilities that come with home ownership: maintenance, pest control, trash removal, and yard work. The list goes on.
It does not, however, eliminate the need to buy insurance. Many renters believe their landlord is responsible for insurance but that is only partly true. Your landlord is responsible for insuring the building and grounds against damage or loss. Unfortunately, this does not include your personal belongings, personal liability, or a place to live if your rental becomes uninhabitable. For instance, flood damage to valuable items such as a laptop, flatscreen television, or sofa would not be covered by your landlord in the case
This is where renters insurance comes in. Here’s what you need to know about insurance for people who rent or lease their living space. Find out what renters insurance is, how much it costs, what it does and does not cover, and why you need it.
What is renters insurance?
Renters insurance is a contract between you and an insurance company that provides financial protection if your personal property is damaged or stolen or you damage the property of others.
It’s made up of three types of insurance coverage—personal property, liability, and in most cases, additional living expenses.
“Your renters policy can protect you at home and anywhere in the world,” says Jennifer Wilbert, assistant vice president of personal insurance property at Travelers Insurance. “If you’re in a hotel on vacation you could be afforded the same protection of your personal property you would have at home.”
Personal property coverage: This coverage pays to replace or repair your belongings—TVs, books, cookware, paintings, clothing, furniture, etc. Protection includes damage or loss from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water, and other disasters. Floods and earthquakes are not covered, but you can obtain a separate rider for those types of disaster.
Personal liability coverage: Liability coverage provides protection against lawsuits for injury or property damage that you or your family members cause to other people. It also pays for damage your pets might cause to other people or their property. (Not your own property or the property you rent.)
Additional living expenses: Depending on the coverage you choose, your renters insurance may also pay for a place to live if, for example, your apartment building burns to the ground. It may also pay for lodging, meals, and other expenses while you wait for your apartment building to be repaired or rebuilt.
How renters insurance works
Renters insurance works much like homeowners insurance, minus the dwelling coverage. In fact, most companies that offer homeowners insurance also offer renters coverage. If you are migrating from home ownership to renting because you’re downsizing or changing jobs, check with your current insurer first, especially if you have other policies such as auto, boat, or life with that company, since bundling is a cost-saving measure.
“There are many different ways to structure renters insurance and what it covers and what you can add to the policy,” says realtor and rental specialist Andrew Pasquella at Sotheby’s International Realty. “Beyond furniture and electronics, it’s not uncommon to have jewelry like engagement rings on a renters insurance policy as well.”
Since insuring your personal property is up to you, first determine how much stuff you have and what it is worth. Here’s the process of applying:
Take inventory
Start by compiling an inventory of your belongings and enter them into a spreadsheet along with an estimate of each item’s value. It’s a good idea to photograph or make a video everything you own. For expensive items, make sure to write down any serial numbers that could help verify your claim.
Choose actual or replacement value
You have two options when it comes to estimating the value of damaged or stolen property: actual or replacement. Actual value is what the item is worth today after depreciation. Replacement value is how much it would cost to replace the item with a new one.
Replacement value is easy to calculate: Actual value, technically actual cash value (ACV), involves a complicated formula: R × (E – C) / E = ACV where R = replacement cost of the item; E = expected lifespan of the item; C = current age of the item; and ACV = actual cash value.
For example, if your TV costs $1,000 to replace, has an expected lifespan of 10 years, and is 5 years old, its ACV would be:
$1,000 x (10-5) / 10 = $500
Insuring belongings for its replacement value is more expensive than insuring for actual value, so the decision comes down to cost of insurance compared to your ability to make up the difference between ACV and replacement value.
Calculate personal liability coverage needed
Once you’ve figured out how much personal property insurance you need, you’ll want to consider the amount of liability coverage you require. Liability insurance provides coverage against a claim or lawsuit that results from an injury or property damage to others while on the property you rent. Liability coverage has a limit or the maximum amount the insurance company will pay. In many cases, your property owner will require a certain level of liability coverage before letting you sign a lease. Experts recommend liability coverage of at least $300,000.
Add living expenses coverage
Additional Living Expenses (ALE) coverage pays your temporary living costs if a disaster makes your rental property uninhabitable. Note the word “additional” meaning that you will be reimbursed for the additional daily living expenses of temporary housing beyond your normal living expenses. ALE typically covers the additional cost difference for a hotel, temporary rentals, restaurant meals, and other expenses you incur while your rental home is being repaired or rebuilt. Coverage is typically a percentage, i.e., 30%, of your personal property coverage. It also often has a time limit—in other words, one year.
Obtain a quote
Armed with an estimate of the type and amount of coverage you need, begin your search for an insurance company.
Seek advice from family and friends
Check with the insurance company you use for life or auto insurance for a bundling discount
Ask about discounts for safety devices (smoke detectors) and security systems even if installed by the property owner. Also, check into ongoing (disappearing deductible) discounts if you do not file a claim for a set period.
Check the insurance rating of any company you consider. The credit rating agency AM Best rates an insurance company’s ability to pay claims.
Don’t hesitate to obtain quotes from multiple insurers. An online search of companies that provide renters insurance will let you compare types of coverage available, and most will let you obtain a quote online.
Finally, explore premium costs with different deductibles (the amount you pay before insurance coverage kicks in). The higher the deductible, the lower the premium, but the more you must pay upfront.
Choose an insurer
If you like what you see after obtaining a quote, start the application process. You can also apply to multiple insurers to get firm rates. As with getting a quote, many insurers will let you apply online. Once you’ve chosen an insurer, if possible, pay an entire year’s premium up front for the lowest cost.
File a claim
At some point you may suffer damage or loss, or someone may be injured on property you rent and you may need to file a claim. Almost all insurance companies have an 800 number to call to file a claim; many also let you file claims via their apps or websites. Have that number programmed into your phone so you don’t have to search for it when you need it. Here are some other things to consider depending on the circumstances:
If a crime has been committed—arson, theft, burglary, or vandalism, call 911 to report the crime, seek medical help for any injuries, and file a police report. Make note of the names of any officers with whom you speak. Notify your property owner so they can take action as needed, and call your insurance company, as soon as you are able, to report any damage or injuries you suffer.
If there is injury but no crime, call 911 to get medical help, notify your property owner so they can take any action they need to, and contact your insurance company to report the accident as soon as you’re able.
If there’s damage but no crime or injury, contact your property owner followed by your insurance company. Report the damage to your insurance company.
Note that there is a hierarchy when for reporting an event and filing an insurance claim. Seek medical help, seek law enforcement assistance, inform your landlord, and finally call your insurance company. When you contact your insurance company, report the injury, loss, or damage and start the claims process (or if you’re not ready, ask how long you have to file a claim).
Ask if the injury, loss, or damage is covered and if not, why? Make sure your claim exceeds your deductible. If it’s close, you may decide not to file. Find out (approximately) how long it will take to process the claim. Remind your agent of his duty to make sure you receive the proper claim forms within a time frame set by the state. Ask what you need to do next.
For example, if you need to find alternative housing, ask about the specifics of that coverage, and keep all receipts for anything you spend. If there is loss or damage, make a detailed list of what’s missing or damaged and its value.
Finally, if you are not satisfied with the service you receive from your agent or claims representative contact your insurance company. If you’re still unhappy, contact your state insurance department or local consumer protection office for help.
What does renters insurance cover?
Coverage is limited to three areas: personal property, personal liability, and additional living expenses (ALE).
Your personal property and that of covered family members both on and off your rented residence will be repaired or replaced, depending on selected coverage, at their current or replacement value if they are stolen, damaged, or destroyed.
Medical bills for your guests (not you or family members) are covered if they’re injured on your rented property and the incident is deemed an accident. The same coverage applies to the property of guests that you or family members or pets accidentally damage or destroy.
If you are displaced from your home by a covered event, ALE coverage will reimburse you for extra living expenses you are forced to bear because of that displacement. This includes hotel costs, meals, and travel.
The table below lists coverage types under renters insurance and a general description of what is and is not covered in most policies.
What does renters insurance not cover?
Renters insurance, like all insurance, comes with limits. You won’t get paid until you meet the deductible has been met, and you won’t get paid more than the stated coverage limits for property, liability, and living expenses.
“Typically, renters insurance may have limitations on payout on theft of items such as jewelry, art, or other valuables,” says Wilbert. “To ensure items such as engagement rings, etc. have proper coverage, consider a valuable items rider.” You’ll want to speak to your insurance rep if you have questions about specific coverage areas.
“It’s important to remember that most renters insurance will not cover anything structural with the home,” notes Pasquella. “So, if walls, windows, or roofs get damaged, the landlord will be responsible for those, not the renter.” This means that most renters insurance will not cover damage to the property you rent, even if the damage is accidental.
Vehicles are not covered since they are subject to their own insurance. Finally, damage due to floods or earthquakes is not covered, though supplemental insurance can be purchased that covers many of these exclusions.
If you use your apartment or home as your business, your renters insurance may not be enough to protect your business assets. In this instance it might be best to consider adding a business insurance policy.
How much renters insurance do I need?
It’s important to put some thought into determining the amount of insurance you plan to take out. Having enough coverage is critical and the amount of coverage you need can vary greatly depending on location and landlord requirements. To ensure your numbers are adequate, consider the following:
Personal property
The total value of your personal property represents the amount of coverage you need for your belongings. “A typical renters insurance policy ranges from $20,000 of personal property coverage to $100,000 of coverage,” says Joyce.
If you decide to use actual value as your basis, the amount of coverage you will require will be lower (and less expensive). Just remember that in the event of a loss, you will have to make up the difference in price if you decide to replace the item.
Personal liability
As noted, your property owner may require you to have a certain level of personal liability coverage. But no matter what’s required, experts generally recommend at least $300,000 in personal liability coverage and that should be your target. “I’ve seen renters insurance requests range from $100,000 to multimillions,” says Pasquella.
Living expenses
ALE coverage will be the difference between the cost of living in your apartment or rented house and the cost of temporary housing, up to the limit, of course. ALE coverage is typically a percentage of the personal property amount of your policy.
Deductible
The deductible you choose ($500 or $1,000 is common) will have an impact on the premium you pay, but as with “actual vs. replacement” coverage, the less you pay now, the more you will pay later.
According to Wilbert, “Coverage should be updated when dealing with considerable changes to your personal property, which could lead to additional savings or added protection.”
Keeping all these factors in mind, the amount of insurance you need is the figure that best represents a balance between the amount of loss you could cover with cash on hand and the highest premium you can manage without breaking your budget.
What is the difference between homeowners and renters insurance?
Neither renters nor homeowners insurance is required by law. For homeowners, insurance is generally stipulated by their mortgage lender, and for renters the property owner typically requires a minimum amount of liability insurance.
The primary difference between homeowners and renters insurance relates to coverage. The policies are nearly identical except when it comes to coverage of the dwelling (house or apartment). A homeowner owns (or is paying for) a home. A renter is not. The homeowner must insure the structure, something the renter doesn’t have to do.
Other coverage, including personal property, liability, and living expenses are the same for both homeowner and renter. One exception could be that a landlord (property owner) who does not live in the rented property may not have a need for additional living expenses coverage and may decline that.
The table below offers a comparison of the types of coverage taken out by renters and homeowners, as well as factors that affect the cost of that coverage. It’s worth noting that of the five types of coverage, dwelling is the only one that’s not part of renters insurance. Likewise, of the six named factors that impact the cost of insurance, only the age and condition of the building is not shared.
The building-related omissions from renters insurance affects cost in a major way. The need to cover the cost of the dwelling means that homeowners insurance, on average, is more than seven times the cost of renters insurance.
The takeaway
The fact that renters don’t have to insure the building where they live does not diminish the importance of renters insurance. The need to cover loss of personal property, insure against lawsuits, and pay additional living expenses is reason enough that renters need insurance. Throw in the fact that most property owners require it, and that should seal the deal.
Moreover, since renters don’t have to insure the most expensive part of homeowners insurance (the home), renters insurance is a fraction of the cost of homeowners insurance. The minimal cost of renters insurance and the peace of mind it brings, make the decision to purchase it an easy one.
Shopping around for any insurance plan can be quite complicated. To help you better understand which providers are right for you, we put together comprehensive guides on jewelry insurance and small business insurance.
Who qualifies for Colorado’s Temporary Rental Assistance Grants?
To qualify for the program, you must meet all of the following requirements:
You must live in Colorado and have a valid rental lease
You must make 80 percent or less of the median income for your area. In Denver, for example, that’s a maximum of $85,200 for a family of three. (Use the calculator here to look up the 80% limit for your county and family size.)
You must be behind on rent payments
You must have a document from your landlord demanding rent payment, which could include a notice of eviction, a notice of non-payment, a notice to quit, documentation related to landlord-tenant mediation, or a court summons. (See here for examples.)
You must not have another source of money with which to pay rent
You must have experienced a “substantial life” event that has affected your ability to pay rent, including events related to mental and physical health; a loss or decrease of income; a death in the family; needing to leave your home due to domestic abuse or; a “substantial unexpected expense”
You must not have received aid from an emergency rental assistance program within the last 12 months
You can only apply for yourself; landlords cannot apply on behalf of tenants
The funding is only available to pay rent at your primary residence
How do I apply for rental assistance?
The state will open applications for the program once a month, on the 15th, for a six-day period. The first round was opened on Feb. 15 and closes at 5 p.m. on Feb. 20.
Next, the state holds a lottery with all the pre-applicants. The winners of the lottery receive an invitation to fill out a longer application, which they must do within a week.
After the full applications are filed, it could take four weeks for final approvals, plus another one or two weeks for payment.
The maximum grant is five months of rent or $10,000, whichever is less. The money is paid directly to the landlord.
The current program will run until its $30 million in funding is exhausted, unless the state provides more money. More than 5,000 households faced eviction in Colorado this January, and more than 60,000 may be behind on rent, according to a recent U.S. Census survey — so, the state expects demand will be high.
The money must be spent by June 30 under current law. The state will hold monthly lotteries to disburse the money, but it also could run out of money earlier than June.
Rep. Javier Mabrey, a Democrat, called on the state’s budget writers to find more money for the program.
“This should absolutely be a permanent program,” he said. “We’ve seen over the last few years how [rental assistance] has created stability for Colorado renters.”
Sen. Barbara Kirkmeyer, a Republican, said it would be tough to find the money to do so. Roughly half of the $30 million relief fund came from federal dollars, which aren’t available going forward, she said.
“At this point, I don’t really see or know where we would get funds to provide for additional emergency rental assistance after June 30, because that would mean general fund monies, and we’re really very tight on the general fund monies at this point,” Kirkmeyer said.
The state legislature has a relatively small amount of money to spend on new programs this year. While revenues are growing, the new money has been eaten up by inflation, previously authorized spending and the requirement to pay billions in TABOR refunds.
Gov. Jared Polis’ initial budget proposal did not include any new money for the rental relief program in the next budget year, and it left only about $15 million for the legislature to spend, though state lawmakers could also modify his request to find more to spend.
Kirkmeyer said she’s focused on coming up with more money for higher education, public schools, and the rates paid to Medicaid providers.Polis’ budget proposal noted that more funding for rental relief could come in the future from Prop. 123, a voter-approved measure that will provide hundreds of millions of dollars for public housing programs.
Clay raised seed funding in 2023 and is initially launching the product to home owners in the Greater Toronto Area as an alternative to reverse mortgages and the simple—although not always ideal—option of selling a property to downsize or become renters.
What is a home equity sharing agreement?
The HESA is a relatively straightforward concept. You give some of your home equity to Clay in exchange for cash today. Clay will get paid when you sell your home in the future, up to 25 years down the road, meaning you don’t need to make monthly payments in the meantime.
The limit for a HESA is up to 17.5% of your home’s value, up to $500,000. However, most home owners will get nowhere near that $500,000 limit. The average Canadian home price in December 2023 was $657,145, according to the Canadian Real Estate Association. That would translate to a potential lump sum cash payment of $115,000. The maximum payment of $500,000 would apply to homes valued at around $2.8 million.
An interesting option with the HESA is that you can buy back Clay’s share of your home anytime after the first five years. So, it’s not an irreversible decision. But there are a few costs to consider.
Before you can access a HESA, your property is independently appraised to determine its fair market value. Clay will then apply a risk adjustment rate of 5% to determine its starting value for the HESA. Home owners must cover a 5% origination fee and a closing fee of 1% of Clay’s share of your home appreciation (or $500, whichever is greater). The home owner must also pay the cost of inspections, appraisals and fees to cover the registration of Clay’s charge on the property.
So, Clay gets a good deal on purchasing some of your home’s equity at a lower price, and you pay the ongoing maintenance costs for 100% of the property going forward. The origination and closing fees can also add up. These nuances help make the HESA a good investment for Clay.
Should retirees consider a HESA?
I give Clay credit for its innovative approach to helping seniors access their home equity in retirement. Retirees who can’t tap into their home’s value may not have sufficient income to cover their expenses. Some retirees want to use home equity for gifting to their children during their lives, sometimes to help them get into homes of their own.
A simple alternative may be to downsize or to sell and become a renter. But downsizing can be costly when you consider the transaction costs, including real estate commissions and land transfer tax.
Compared to previous years, food prices should stabilize in 2024. However, keeping your kitchen stocked will still keep your grocery bill high. According to Canada’s Food Price Report 2024, overall food prices are expected to increase by 2.5% to 4.5% over the course of next year (whereas food inflation jumped by 4.7% in November 2023). So, if you’re a single adult who spent roughly $375 on food per month this year, you can expect to shell out from $385 to $392 monthly by the end of 2024.
The Food Price Report suggests that you can expect baked goods, vegetables and meats to take a big bite out of your budget. However, you’ll get some relief with canned goods and dried pasta. The good news is that food prices will increase at a more gradual pace than in 2023.
What you can do: Consider meal planning
During the pandemic, I started meal planning as a strategy to deal with grocery costs. It’s been helpful in ensuring that our family stays within our food budget and doesn’t fall into the temptation to order takeout. Meal planning consists of deciding what you will eat for the upcoming week and then adding only the ingredients you need to your grocery list.
Personally, I like to make extra lunch portions when preparing dinner, which helps cut back on costs. Another option is to buy items in bulk when they go on sale and then divvy them up into smaller quantities and store them in the freezer. This works well for sliced fruits, vegetables, meats and seafood.
4. Consumer debt will continue to grow
Gen Z will continue to face financial pressure in 2024, so managing debt will become even more important. Between Q3 2022 and Q3 2023, the average credit card balance in Canada increased by 9%, according to TransUnion Canada. The increase was fueled by an increase in the cost of living and the cost of credit, thanks to higher interest rates. Unless the Bank of Canada starts reducing interest rates and daily living expenses start to come down, it’s likely that debt will continue to grow in 2024.
What you can do: Start a side hustle to pay off debt
To become financially secure, 40% of Gen Z are interested in generating more sources of income, such as starting a side hustle, according to a BMO survey. Considering there’s only so much you can do to cut expenses, you might want to consider growing your income so you can more easily pay down your debt.
Once you have some disposable income, prioritize paying off high-interest debt, such as credit card debt, which can help to squash your debt load. If you’re carrying a monthly balance, call your credit card provider and ask if they can lower the interest rate. If you’re fresh out of school and borrowed money to pay for your studies, it’s a good idea to focus on repaying your student loans.
5. Travel will rebound in spite of high travel costs
Despite rising travel costs, young travellers are eager to escape the daily grind. Many young people would rather spend their hard-earned money on experiences instead of goods. Regardless of being in a tight financial situation, 2024 may be the year many Gen Z make their dream vacations happen.
