Pros and Cons of Having a Roommate

Whether your living space is too big for one person or you’re looking to share expenses, getting a roommate is sometimes a good idea.  Ideally it would be best to live with someone you already know (or someone with whom you have a mutual acquaintance), but if you’re moving to a new city, you may not have that option. Below are a few pros and cons of having a roommate and tips for finding one.

Pros

Sharing expenses. One of the biggest reasons a person finds a roommate is to share expenses—rent, utilities, and even food. Most of us think it’s just city dwellers who find roommates, but even those who live in more rural areas must share space sometimes to save money.

Shared living space. People who live alone often do so by choice, but if you’re naturally a people person, living alone might not be for you. You may not become the best of friends with your roomie, but you want to share your home with someone who has tolerable personal habits, respects your space and personal property, and is generally pleasant to live with.

Equal distribution of labor! Keeping a house is no small task, and every person in the house (or apartment) should be responsible for certain chores. If you live with only one other person, sit down and talk about the household chores and who wants to do what. If you have more than one roommate, hold a meeting and draw up a list of chores.

Cons

Unless you do a careful screening process (or have some solid referrals from friends or family), one of the biggest drawbacks to having a roommate is you could find yourself with someone you just can’t live with. From nasty personal habits to annoying friends (because their friends and family will show up at your place sooner or later) to a radical difference in work and sleep schedules, sometimes co-habitation isn’t for everyone.

Where to find a roommate.

First, ask your friends or family if they are personally looking for a roommate to save some money. If not, ask them if they know anyone who is. You’ll probably feel more comfortable living with someone who has a mutual friend or other connection in common (you can ask your acquaintance some straightforward questions about the person so you know about their personality, habits, and background right up front).  Taking on a roommate can be a big risk, so you should get all your due diligence out of the way before you decide. Interview the person, just as you would for a job opening. Remember—you’re looking for someone to share your personal living space, so you want to make sure you’re comfortable with the person and the living arrangement.

You can also broaden your search for a roommate by posting information on social media or looking on sites like Roommates.com, Craigslist, or Roomie Match. Depending on the site, some of them do compatibility tests, personality assessments, and other data-gathering to determine the best fit for you.

With luck and the right screening process (your gut instinct counts—if you have an uneasy feeling about anyone you speak with, cross them off your list), you’ll find a compatible roommate and your living arrangement will work out just fine.  

Renters’ insurance is always a smart purchase regardless of how many roommates you live with. This coverage will reimburse you for lost or damaged personal property. If you live with someone, you should all have your own renters’ policies to ensure you each have the coverage you need.

Do you, or have you ever, lived with a roommate? How did you find them? We’d love to hear about your experience in the comments below!

What New Landlords Should Know

Being a landlord can be a good way to make extra income and occupy a building that might otherwise remain vacant, which could run the risk of becoming a blighted property. But being a landlord is also a big responsibility that requires a lot of time, money, and other resources to keep the property in good shape.

If you’re a new landlord, there are a few things you should do before you rent out a property. Read on to learn more.

Know your rights. Both landlords and tenants have their own respective rights; read up on landlord-tenant laws so you know what each side is entitled to before you advertise the space.

Decide on a price. Do your homework. Research similar properties in your area to determine a fair price for the monthly rent.

Set limits.  You can determine what tenants can and cannot have in the residence. For instance, will you allow pets? If so, how many? What kind?

Advertise the property.  Depending on where you live and what kind of residence you’re renting, you may want to casually mention your vacancy to friends or family and ask them for referrals first.  If you don’t get much interest or aren’t happy with the folks you do speak with, widen your search by posting your vacancy on social media or different property rental websites.

Screen potential tenants. Keep in mind that by being a landlord, you’re opening yourself up to a host of personality types when it comes to potential tenants. Protect yourself and your rights by screening each applicant—usually a background check and credit check will suffice, although some landlords still ask each applicant for references.  You can never be too careful about who you take on as a renter, so you want to make sure you’re doing the necessary due diligence to protect your rights as a landlord and your property.

Customize each lease. You can work with an attorney or property manager to draw up a lease, or save yourself some money and download a customizable template. In it, clearly state the terms and conditions of renting the property as they were explained when you agreed to take on the tenant. You can choose to negotiate the terms of the lease at renewal or keep them the same.

Inspect property regularly. The landlord-tenant relationship goes both ways—just as you have certain expectations of your tenant, they have certain expectations of you as their landlord.  A big part of that is doing routine maintenance and tending to any unexpected issues that pop up. Some problems may be able to wait; others, not, but you should respond to any maintenance calls as quickly as possible.

What other tips would you add for new landlords? We’d love to hear from you in the comments below!

Condo vs. Apartment: What's the Difference?

If you ask most people the difference between a condo and an apartment, you’d likely get responses like: “A condo is a fancy apartment”, “Condos are more expensive”, “Condos are nicer.”  While none of these responses are wrong, there is a lot more to living in an apartment or condo than these simple answers suggest. The key differences between a condo an apartment have less to do with appearance and more to do with ownership. Price-wise, depending on the location, rent is usually roughly the same for a condo or a more upscale apartment.

Let’s look at each type of residence—if you’re considering moving into either, you’ll have some of the information you’ll need to make the right decision.

Condo

A condominium is defined as a building or group of buildings in which each unit is owned by the tenant; an apartment building is owned by a landlord. Due to its ownership structure, a condominium complex typically has its own homeowners’ association.

Other information:

-Because condos are individually owned, these units are typically well-maintained, often with higher-end appliances, fixtures, and other upgrades.  (So even if you rent a condo, you’ll probably find that the owner keeps it in pretty good shape.)

-The owner of the condo can renovate or remodel the space however they like.

-Residents of a condominium complex usually have shared common areas, such as a gym, pool, and garage or designated parking area available for their use.  

-There’s usually more flexibility with a condo’s amenities (garbage, water, and sewer, and even additional services like snow removal) as part of the rent because of the homeowners’ association’s collective bargaining power.

Apartment

Apartments are owned by a landlord or leasing management company, so any requests for repairs or other issues must go through the owners.

Other information:

-Unfortunately, because a tenant doesn’t own the apartment, there’s no way to know how they will maintain the space. Landlords usually ask for references and tenants pay a security deposit, but even that doesn’t guarantee they’ll leave the apartment in pristine shape.

-Tenants usually can’t redecorate or remodel an apartment on a large scale without the landlord’s permission.

-Apartments aren’t just in multi-floored buildings in cities. You can find apartments in small- to medium-sized towns and cities. They're in renovated old homes, above or behind small businesses, restaurants, and bars, or in traditional apartment-style housing.

-Amenities are usually standard (water, sewer, garbage); tenants can sometimes, but not always, negotiate the terms of the lease.

ETA Benefits Group works with several homeowners’ insurance carriers that provide coverage for any type of residence (home, condo, motor home, and renters’).  Do you need a new policy or are you looking for a better one? Contact us!

Have you ever lived in an apartment or condo? What was your experience? We’d love to hear from you in the comments below!

Spring Break Insurance Needs for Your College Student

Spring is right around the corner, which means college students will be leaving campus for their annual spring break in just a few weeks. As if you didn’t worry about your child being at college enough already, sometimes just talking about spring break getaways can take your stress to a whole new level!  Although you may not have any input on your child’s itinerary, you can make sure they have the insurance they need while they’re off campus.

If your child is traveling, encourage them to purchase travel insurance. This coverage will protect them from costs related to cancelled reservations, many of which are nonrefundable and can come with steep penalties. Travel insurance can also help cover costs if your child’s trip is cut short due to an accident or injury (and it doesn’t necessarily have to happen to your child. If a family member passes away while your child is away from home, they won’t lose any money if they decide to return early to attend the funeral).   If your child is going abroad, consider travel medical and international health insurance, available for both short- and long-term trips. Many domestic health insurance plans will only cover a portion (at most) of an individual’s health care costs when they are out of the country, so buying a policy when going overseas is a wise investment.

Even if your child isn’t traveling to somewhere exotic, if they live off-campus and plan to be away for the entire break, make sure they have renters’ insurance. This coverage will protect their personal possessions in the event of a fire, flood, burglary, or other unfortunate situation.

And finally, be sure your child has the right personal property coverage, especially if they are living on-campus. Some schools require students to have at least a basic policy to protect agains

t unforeseen circumstances (again—fire, flood, burglary), so be sure they have enough coverage if they’re leaving any valuables, like electronics or sports equipment, in their dorm or apartment over break.

Is there anything else you’d add to this list? We’d love to hear from you in the comments below!

Insurance Needs for Your College Student

In just a few weeks, college campuses will be coming back to life after a long, quiet summer. Freshmen will be participating in orientation, trying to navigate their way around campus, and adjust to life away from home; upperclassmen will be catching up with friends, getting mentally prepared to take their most challenging classes, and start thinking about graduation and securing a job or internship. There’s so much for students to think about; chances are insurance isn’t near the top of that list. This is something parents can think about instead. If your child is going off to college this fall, there are some insurance policies that can benefit them while they’re away from home:

Renters. If your child will be living in an off-campus apartment, encourage them to purchase renters’ insurance.  There are several benefits to this type of coverage:  it will cover personal belongings (including furniture, clothing, and electronics) if they are damaged or stolen; medical payments for anyone who is injured at your child’s apartment, and expenses if your child’s residence is having major repairs and he needs a place to stay for a few days.

Auto. Your child may or may not have a car on campus for various reasons. (Some colleges don’t allow freshmen to have cars, for example). Some carriers offer discounts on car insurance depending on how far your child will be from home (more than 100 miles is the standard distance for the discount with most carriers). It’s a good idea to leave your child on your insurance policy, otherwise their coverage will lapse when they purchase their own policy, resulting in a higher payment.

Identity theft.  With so much business conducted online and personal information a prime target for hackers, identity theft is a real potential risk for college students. Identity theft insurance, along with credit monitoring plans and similar services, is meant to protect your child from the expenses incurred from having their identity stolen. This type of coverage is relatively new, only a few carriers sell it, and it’s gotten mixed reviews—financial and cybersecurity experts say that protecting confidential information, such as Social Security numbers and bank account PINs, is a better strategy than purchasing identity theft insurance. It is best to do your research and weigh the advantages and disadvantages before you buy this type of coverage for your child.

If you’re sending your child off to college and want to make sure they have the right insurance, contact us. We work with over 50 carriers, and as independent agents, we can shop the market to find the best coverage at the best price.

Have you purchased any of the above policies just for your college-age child? What was your experience? We’d love to hear about it in the comments below!