Rent Increase Laws: What Landlords Can (and Cannot) Do

rent increaseseccolo74/iStock

Rent increases are never, ever fun. Every year, I hold my breath when it’s time to renew my lease, in the hopes that the hike is still within my housing budget. Sure, it may be easier than ever to find homes for rent online, but I love where I live, and would like to stay there as long as I can.

Fortunately, my landlords have always played fair. But let’s be frank—some don’t. And when that happens, it leaves many tenants wondering: What are the rules on raising rent, anyway?

Read on for answers to the questions that keep renters up at night.

How often can landlords raise rent?

Landlords can’t just raise your rent whenever they feel like it; they have to wait until whatever contract you’ve signed with them expires, says Robert Pellegrini, president of PK Boston, a real estate and collections law firm with offices in the Greater Boston area. That means that if you have a lease, they can’t raise it until the lease term expires.

For example, if you’ve signed a one-year contract, it’ll be a year before rent can go up, or two years if you’ve signed a two-year lease (which is why signing a lease for two years or longer is wise, to keep the rent down).

Meanwhile, if you’re renting month-to-month, your rent can’t increase until the end of any given month. Simple rules. But real rules.

How much notice should renters receive of rent increases?

In most states, renters must be granted at least 30 days’ notice before a rent increase is enforced, although that can vary based on how much the rent will actually go up. In California, for instance, that advance notice expands to 60 days if the increase is more than 10% of the rent.

These rules are also typically true for a “tenant at will” (i.e., you do not have a lease) and, more surprisingly, a tenant in a rooming house, where you are likely to pay rent weekly.

“In this case, one would assume that seven days’ notice would suffice. Not the case!” says Pellegrini. “Tenants in rooming houses still require 30 days’ notice for a rent increase.”

No matter how strange your leasing terms may seem, or how unorthodox your housing situation, you may be surprised when it comes to your rights concerning rent increases.

How much can landlords legally increase what renters pay?

As unfortunate as it may be, rent increases are common, and many tenants expect some kind of increase every time their lease comes up. Still, some renters might find it hard to believe just how much the price of their housing goes up every year.

“When it comes to how much a landlord can raise rent, anything flies,” says Pellegrini. “There are no rules, and it’s totally at their discretion.” Except, of course, if you’re living in a rent-stabilized or rent-controlled apartment, in which case there are strict government provisions in place governing how much rent can be raised (or if it can be increased at all).

Finding one of these rent-controlled apartments is something like locating the holy grail. So, if you don’t know if you have a rent-controlled apartment, the chances are you do not.

If that’s the case, you, your lease, and your wallet are mostly at the mercy of your landlord and the rental market in your area. However, there are some exceptions to what your landlord can do, for example: raise the rent to punish a renter.

“If it looked to a judge like the landlord was raising rent punitively—say, for example, to get ‘payback’ for the tenant contacting the Board of Health for a health code violation—then this is not OK, and the landlord could be found guilty and made to pay as much as triple damages and court costs,” says Pellegrini.

In this case, it’s not about your rental agreement, the length of your lease, or even a housing market increase in your area. It’s about what is legal and illegal. If you think you may be a victim of a punitive rent increase, contact a lawyer.

Can a landlord raise rent retroactively?

The short answer is no. In most cases, if a landlord has slapped a tenant with a retroactive rent increase, he was negligent in letting the tenant know about the increase at the appropriate time. The renter can’t be held responsible for a rent increase he or she genuinely didn’t know about.

“Often, a landlord provides notice of the increased rent retroactively together, to try to bully renters out, knowing that the tenant might be overwhelmed due to the ‘back rent’ and would be more likely to vacate,” says Pellegrini.

If this is the case for you, be aware that a tenant can file suit against a landlord, or simply counterclaim if an eviction has already been initiated by the landlord.

What should renters do if they think their landlord illegally raised the rent?

So, now that you know a bit more about rent increases: What if you’re realizing that your rent may have been increased illegally?

Maybe your rent was increased illegally on a rent-controlled apartment. Or, perhaps you’re looking through your rental agreement and realizing that you weren’t due for an increase.

There are things you can do to protect yourself from an illegal rent increase.

“A tenant should keep track of every correspondence they receive,” says Pellegrini. “They should also take notes when communication is verbal, and keep track of the dates of each communication.” This is especially important when trying to prove harassment (to pay rent or otherwise).

But don’t assume that your landlord is automatically the bad guy.

“In my opinion, the vast majority of landlords do the right thing, and, out of the slim percentage that do not, they aren’t even aware that they did something incorrectly,” says Pellegrini.

“So, in all but a few cases, I’d highly recommend that the tenant communicate with the landlord first if something doesn’t seem right. If the tenant ends up in court, or starts things off in a threatening way, they should remember that the landlord owns the property. And, if the landlord finds the tenant to be difficult to work with, the landlord is entitled to allow the tenancy to expire and find a new tenant.”

So, you should yourself (and your money) from an unfair increase, but don’t go so far as to threaten your landlord and put your housing situation at risk. Remember that your landlord could have made an honest mistake.

It’s also possible that you could have miscalculated an increase along the way. If you come on too strong to correct the situation, you could potentially end up facing eviction.

—————

Watch: Is It Smarter to Rent or Buy?

The post Rent Increase Laws: What Landlords Can (and Cannot) Do appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

7 Simple Home Improvements to Beat the Winter Blues

Winter can be a tough time of year for many of us, especially after all the holiday excitement dwindles down. It’s cold. It’s dark. It’s gloomy. And this is when many of us start to feel the winter blues settling in. 

But there is good news. By planning out a few simple home improvements you can easily transform your space into a happier and cozier place to be, while also enjoying time spent inside. Sprucing up your home can feel good during any season, but certain projects are perfect for giving you a much-needed mood boost during this time of year. 

So, if winter is getting you down, consider these home improvement projects to help you beat those winter blues, no matter how short the days are or how low the temperatures drop.

painted living room

1. Repaint living spaces

Feeling like your home is in need of a dramatic change? A new coat of paint can be a cheap and effective way to switch things up in no time. During this time when many of us need a mood booster, take a page out of the psychology book, and surround yourself with colors that help you relax and increase happiness. In general, cool colors have a calming effect, while warm colors add comfort and can be invigorating. White can help brighten rooms by reflecting light. It makes a small space feel larger and more open, which can help you feel more energized.

Painting can require some patience, especially if you are considering a brand new color, but it’s easy enough for even a DIY beginner to accomplish. And, with the right attitude and a few friends or even some favorite music, you can make repainting your walls fun, too. If you’re feeling overwhelmed by your painting project, consider hiring a local painting company to tackle it for you.

kitchen lighting

2. Update your home’s lighting 

What better way to brighten and warm your spirits this winter than with the perfect lighting. Not to mention it’s an easy and affordable way to make your home a more comfortable place to spend time.

Instead of sticking with whatever fixtures came in your home when you bought it, you can use the doldrums of winter as an excuse to try this simple home improvement. Light fixtures are affordable and can often be installed without an expert. Whether you repurpose your holiday string lights or invest in a daylight lamp, the options are endless. You can also completely change the ambiance in your home simply by replacing any harsh white bulbs with calming yellow ones.

skylights in living room

3. Maximize natural light with windows or skylights

With the shorter days and gloomy weather, one of the main factors leading to winter blues this time of year is the lack of natural light. The best solution for this is to increase the amount of sunlight in your home. If your current windows aren’t letting in enough light or air, it may be time to upgrade. 

Skylights can also be an excellent way to improve natural light. This is true even if you live somewhere like Miami, where the sunlight is abundant. Skylights can be installed in many areas of your home, with kitchens and baths being among the most popular choices. Adding more light and sun can go a long way in making the winter darkness a little easier to manage.

simple home improvements bright entryway

4. Install a sound system

There’s nothing like a great song for instantly lifting the spirits. Playing some of your favorite tunes at home is the perfect remedy to help fight your winter blues. It’s a bit less impactful, though, when you’re listening to music through tiny laptop speakers. If you want to really immerse yourself in the sound of your favorite songs, invest in a home sound system.

Setting up a surround sound system or a sound system that plays across multiple rooms is quite simple. Modern technology allows for easy connectivity with Bluetooth, ensuring your home is ready for fun without a costly or complicated setup process.

simple home improvements bathroom

5. Improve organization

After spending months inside due to the pandemic, followed by the holidays, your home may be overrun by clutter. Think about how good you’ll feel when you’ve cleaned your house, and everything has been put back in its rightful place

Improving the organization of a space can occur in a number of ways, from purchasing storage boxes and bins to custom pieces for the closet. A few simple home improvements can go a long way. Whether that’s just going through old mail, sorting clothing to donate, or filing papers, organizing can help create a nicer living space. If you’re feeling overwhelmed with the process, bring in a professional organizer or declutter to help.

6. Add greenery to beat winter blues

Plants are amazing gifts of nature. In both work and home environments, live plants can boost your mood, productivity, concentration, and creativity. Plants come in all shapes and sizes, from tiny succulents to large potted plants, making greenery a functional and flexible option for everyone. You can choose from flowers, greek plants like ferns, or even herbs to add color and life to any room.

If you have a large living area, potted trees can also be an excellent addition and one of the simplest home improvements you can do. Available from local nurseries and mail order services nationwide, plants make it easy to add a dynamic living focal piece to any room.

bedroom sanctuary simple home improvement

7. Create a bedroom sanctuary

There’s nothing quite like having a cozy place to escape to on a cold winter day. From fluffy blankets and bedding to essential oils and warm, ambient lighting, your bedroom can be a place of peace from the moment you walk in. Flannel sheets can keep you nice and warm while a plush rug to sink your toes into will add comfort. 

Making it through yet another winter may seem tough, but a few simple home improvements can be just what you need to turn a cold-weather frown upside down. From a little repainting to installing skylights, there’s plenty you can do to increase your happiness and take your home from bland to beautiful this season.

The post 7 Simple Home Improvements to Beat the Winter Blues appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Source: redfin.com

Fannie, Freddie Overseer Looks to End Federal Control Before Trump Leaves

Mark Calabria, who heads the Federal Housing Finance Agency, testified before a Senate committee in June.Astrid Riecken/The Washington Post/Bloomberg via Getty Images

WASHINGTON—The federal regulator who oversees Fannie Mae and Freddie Mac is pushing to speed up the mortgage giants’ exit from 12 years of government control but has yet to reach an agreement he needs with Treasury Secretary Steven Mnuchin, according to people familiar with the matter.

Mark Calabria, a libertarian economist who heads the Federal Housing Finance Agency, has made it a priority to return Fannie and Freddie to private hands, a goal shared by Mr. Mnuchin. How that is done could affect the cost and availability of mortgages backed by the companies, which guarantee roughly half of the $11 trillion in existing home loans.

Completing the complex process before President Trump’s term ends on Jan. 20 is a long shot, and President-elect Joe Biden is considered unlikely to continue the effort. But Messrs. Calabria and Mnuchin could succeed in taking steps that would be difficult to reverse, such as significantly restructuring the government’s stakes in the firms.

The Treasury secretary must agree to any move to alter the terms of either the companies’ bailout agreement or the government’s stakes. One person familiar with the effort said Mr. Mnuchin is supportive of locking in a path to private ownership but mindful of steps that could disrupt the housing-finance market.

Mr. Calabria has met twice recently with Mr. Mnuchin to discuss an expedited exit of the companies from government control, most recently the week of Nov. 9, according to people familiar with the meetings, which also involved Larry Kudlow, the director of the White House’s National Economic Council. Mr. Mnuchin was noncommittal about the push, the people said.

Fannie and Freddie don’t make home loans. Instead, they buy mortgages and package them into securities, which they then sell to investors. Their promise to make investors whole in case of default keeps down the price of home loans and underpins the popular 30-year fixed-rate mortgage.

The government seized control of Fannie and Freddie to prevent their collapse during the 2008 financial crisis through a process known as conservatorship, eventually injecting $190 billion into the companies. In exchange, the Treasury received a new class of so-called senior preferred shares that originally paid a 10% dividend. It also received warrants to acquire about 80% of the firms’ common shares.

One option under discussion would entail a complex capital restructuring that would eventually reduce the government’s stakes in the firms. Such a move would be aimed at opening the door to new, private investment.

Still, it is a delicate issue because U.S. officials don’t want to cause investors to doubt the government’s backing of the firms, which have helped pin mortgage rates at record low levels during this year’s pandemic-induced economic slump. Moreover, it is politically sensitive because depending on the design, it could effectively move Wall Street investors ahead of taxpayers in line to receive any future profits.

As part of that set of decisions, Mr. Mnuchin would have to determine whether to write down the government’s more than $220 billion of senior preferred shares in the firms. Because those shares give the Treasury first claim on profits, private investors will have little incentive to take new stakes in Fannie and Freddie as long as they exist in their current form.

Such a move would likely push up the value of shares that investors acquired at fire-sale prices after the 2008 crisis. Some lawmakers are worried taxpayers would be short-changed.

In a letter to Messrs. Calabria and Mnuchin last month, Sens. Mark Warner (D., Va.) and Mike Rounds (R., S.D.) said taxpayers must be paid a fair market value for whatever stake they give up.

“Any other means of reducing their investment would be tantamount to a transfer of wealth from the taxpayers who stepped in to save [Fannie and Freddie] to private investors looking for a windfall,” they wrote.

It is unclear how seriously officials are considering another legal move that Mr. Calabria has raised in the past: an order formally ending the conservatorships but requiring the companies to operate with significant limitations on their businesses until they raise enough capital to operate independently through retained earnings and possible future stock sales. Supporters say the move would be akin to downgrading a sick patient from the emergency room to a regular hospital room.

One person familiar with the matter said the policymakers aren’t considering such an order, fearful it could upend markets.

Any single step, such as restructuring the government’s stakes in the firms, would normally require dozens of employees across the White House, Treasury and other agencies many months to complete, according to current and former government officials.

Industry officials warn that an abrupt overhaul to the company’s legal status could spook risk-averse investors in mortgage-backed securities issued by Fannie and Freddie, which are seen as nearly as safe as Treasurys.

“An end to conservatorship would be a material change from what we’ve had, and it will take time to explain to investors what risks do and do not exist,” said Michael Bright, CEO of the Structured Finance Association, whose members include investors in Fannie and Freddie securities.

In a sign that Mr. Calabria is eager to complete unfinished work quickly, the FHFA on Wednesday completed a rule requiring the companies to hold as much as $280 billion in capital once they exit conservatorship, up from $35 billion currently.

The post Fannie, Freddie Overseer Looks to End Federal Control Before Trump Leaves appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

How to Make Tough Decisions as a Couple

Marnie and Tom live in a nice suburb in the Midwest with their two young children. Marnie’s mother, Elaine, lives about an hour away.

When the kids were babies, Marnie's mother used to drive to Marnie and Tom's every day to see her grandkids and help out. But lately, Marnie's mother's health has been declining, so she can’t drive over anymore.

One day Marnie gets an idea: What if she and Tom sell their house and move closer to her mother? Then the kids would be able to see their grandmother more often. Plus, Marnie would be able to keep a closer eye on her mother in case her health gets worse. Seems like a perfect solution.

There’s only one problem—Tom doesn’t want to move. Tom likes the neighborhood they’re in. He thinks he and Marnie paid too much for their house, but other than that he’s very comfortable.

Tom says no.

Tough decisions and zero-sum situations

Faced with big decisions like this, a couple will ordinarily try to compromise. But in this case, there’s really no half-way. Economists call this kind of thing a zero-sum situation. Someone’s going to win, and someone’s going to lose.

For over thirty years, I’ve watched couples struggle with zero-sum problems. Some more successfully, and some less so.

Some classic zero-sum problems for couples involve whether or not to move—often for one partner’s career—and whether or not to have another child. But there are lots of others.    

For thirty years, I’ve watched couples struggle with zero-sum problems. Some more successfully, and some less so. Today, we’re going to talk about what works, and what doesn’t, when you’re faced with one of these situations.

Three ways not to make tough decisions as a couple

 First, let’s talk first about what doesn’t work. There are three main approaches that don’t work. Unfortunately, most couples try all three:

Mistake #1 – Trying to convince your partner they'll be better off

The first mistake is to try to convince your partner that they’ll be much happier if they do things your way. In Marnie’s case, this might involve demonstrating to Tom all the wonderful things about the neighborhood she'd like to move to. Wouldn't Tom be better off there? 

No one likes to be told they’ll be happier if they just do things your way.

 Here’s the problem: No one likes to be told they’ll be happier if they just do things your way. It's better to assume each person has good reasons for feeling the way they do. And that those reasons aren’t likely to change. In couples therapy, we call this "staying in your own lane."

Mistake #2 – Suggesting there's something wrong with your parnter for disagreeing

The second thing that doesn’t work is to suggest there’s something wrong with your partner. Otherwise, they'd see it your way. If only they were less anxious, less obsessive-compulsive, less oppositional, less stuck in their ways, or less damaged by unresolved childhood trauma. Then they’d surely agree with you!

A lot of people get sent to my office for therapy by their spouses for just this reason. Believe me when I tell you, it doesn’t work.

A lot of people get sent to my office for therapy by their spouses for just this reason. Believe me when I tell you, it doesn’t work. It usually just leads to a lot of bad feeling.

Mistake #3 – Appealing to your partner's love

The third thing that doesn’t work is to appeal to your partner’s love and insist that if they really love you as much as they say they do, they’ll give you what you want. Almost every couple tries this.

Marnie is no exception.

“Tom,” she says, one night as they're getting ready for bed, “Don’t you see how I can’t sleep at night worrying about my mother? I can't stop thinking about how she’s missing out on so much of our kids’ lives. Can’t you see what this is doing to me? Don’t you love me?”

 “The answer’s still no,” says Tom. “And it has nothing to do with whether I love you or not.”

I'd be inclined to agree. Just because you love someone, that doesn't mean you're responsible for giving them everything they want. 

A better way to make tough decisions as a couple

The good news is there’s a much better method. There are three steps involved.

Step One:  Let’s make a deal

In business, this would be a no-brainer, right?  You’d never ask someone to give you something you want for free. Instead, you’d find out what their price is.  

In marriage, it’s the same thing. The main question is: What’s going to motivate the other person to do a deal?

Let’s see what happens when Marnie tries this approach.

One night in bed, just before they turn off the lights, Marnie turns over to face Tom.

“Tom, what can I give you to make you agree to move?” she asks.

Tom is silent.

“A promise to never complain ever again about you watching TV?”

Tom smiles. “It’s going to cost a lot more than that,” he says.

Marnie thinks some more. “How about if I agree to spend every Thanksgiving and Christmas with your family?”

Tom shakes his head. But now Marnie has the idea. She’s not asking for favors anymore. She just wants to do this deal.         

“I'll do all the cooking and cleanup three times a week,” she says. "And we spend Thanksgiving and Christmas with your family."  

Tom raises an eyebrow. Now he knows she's serious. "Let me think about it,” he says, and turns off the light.

Time for Step Two.

Step Two:  The $64,000 Question

The following night, Tom is sitting at his laptop paying bills. Suddenly it hits him. “Marnie,” he says, “I think I see a way to do this. If we’re going to move, let’s get a smaller house and start saving money again. What do you think?”    Marnie’s actually been hoping for a bigger house. It’s painful to hear that this is what Tom wants. But hey, now he’s named his price. That means he’s in the game.

To me, this looks promising. Marnie gets something she wants very much. And she pays for it, fair and square. Same thing on Tom’s side.

Marnie thinks for a minute.  

“Let’s see what we can find,” she says.

Step Three: The Price is Right

Now comes the fun part.

The following Sunday, Marnie and Tom drop the kids off with her mother and start house-hunting in earnest. After a few weekends, they find a house they both like well enough. It breaks Marnie’s heart to be downsizing, but it was the only way to make things work. And it helps that once they find a place Tom likes, Marnie gets him to agree to new cabinets and closets.

Decision making builds strong relationships

 A good deal will have both of your dreams in it. That’s important, because it means you’re both fully in. You never know how a move like this is going to work out. If it goes well, you both share the satisfaction. If not, you share the blame.

A good deal will have both of your dreams in it.

One sign of a good deal is that in the end, neither of you got everything you wanted. The final result didn’t look exactly like what either of you originally had in mind.

But hey, isn’t that the case with anything creative? Eventually you have to face reality. And in a couple’s relationship, reality often takes the form of the person next to you in bed.

Sometimes life brings you to a fork in the road, where no compromise is possible. When that happens, assume you’ll need to do some serious deal-making—as if your relationship depended on it. Which in fact, it will.

Eventually, you have to face reality. And in a couple’s relationship, reality often takes the form of the person next to you in bed.

As Yogi Berra famously said, “When you come to a fork in the road, take it!”

In the long run, how you settle the issue may matter more than which fork you take.

Source: quickanddirtytips.com

How To Avoid Being House Poor

How Much Home Can I AffordEarlier this year, I published the post Is Being House Poor Limiting You? While no one ever thinks they will fall into being house poor, it does happen to some. Due to this, when asking yourself the question “how much home can I afford,” it’s best to think about ALL of the expenses that go into homeownership.

There are many “hidden” costs that go into homeownership that many do not think about when buying a home. While some homes may seem affordable, there are many factors and expenses to think about.

According to recent data from Zillow:

  • U.S. homeowners on average spend more than $9,000 per year in hidden homeownership costs and maintenance expenses
  • U.S. homeowners pay an average of $6,042 per year in unavoidable hidden costs: homeowners insurance, property taxes and utilities
  • U.S. homeowners pay an average of $3,435 per year in annual optional costs including house cleaning, yard care, gutter cleaning, carpet cleaning, and pressure washing.

That’s a lot of extra money each year that many homeowners do not realize that they may need to pay for.

By not knowing about these costs, a person may become stressed due to the amount of debt they may rack up from being house poor. It may also delay retirement, lead to a house being empty (there might be no money left to decorate), and more.

There are things you can do though so that you can make sure you don’t fall into a house poor situation, though. When pondering the question “How much home can I afford,” think about the many tips below.

 

Add up all of the costs.

Buying a home can easily lead to being house poor if you don’t do enough research. This can limit you because you may be even more house poor than you originally thought.

When some families buy a home, they don’t think about the total cost of homeownership. While you may be able to afford the monthly mortgage payment, you may not be able to afford everything else if you don’t do your research.

Before you say “yes” to a home, I recommend you add up all of the extra costs that you may have to pay for if you decide to buy a specific home.

Other homeownership costs include:

  • Gas. Many homes run on gas in order to have hot water, to use the stove, and so on.
  • Electricity. Generally, the bigger your home then the higher your electricity bill will be.
  • Sewer.  This isn’t super expensive, but it is generally around $30 a month from what I’ve seen.
  • Trash.  This isn’t super expensive either but it does cost money.
  • Water (and possibly irrigation).  Water bills can vary widely. I know many who live in areas where the average water bill is a few hundred each month.
  • Property taxes. Property taxes can vary widely from town to town. You may find yourself looking at two similar houses with similar price tags, but the property taxes may vary by thousands of dollars annually. That is a LOT of money. While it may seem small when compared to the actual home purchase price, remember that you have to pay property taxes annually and a difference of just $3,600 a year is $300 a month for life.
  • Home insurance. Home insurance can be cheap in some areas but crazy expensive in others. Don’t forget to look into the cost of earthquake, flood, and hurricane insurance as well as that can add up quickly depending on where you live.
  • Maintenance and repairs. Even if your home is brand new, you may have to pay for repairs, which is something that many don’t realize. No matter how old your home is, repair and maintenance costs will eventually come into play.
  • Homeowners association fees. This can also vary widely. You should always see if the house you are interested in is in an HOA because the fees can be high and there may be rules you don’t like as well.
  • Home furnishings. Furnishing your home can be done cheaply, but I know some who buy huge homes but can’t afford to put anything in them, such as a table, a bed, and so on. Why own a $500,000 house if you don’t have any furniture?

Related: Home Buying Tips You Need To Know Before You Buy

 

Buy for less than what you are approved for.

Many potential homeowners are approved for home loans that are somewhere around 30% to 35% of their salary before taxes.

That’s a lot of money. This amount is before taxes as well, which means that your actual monthly home payment would be a significant portion of your take-home income each month. Many who buy at the full approval amount cannot afford their homes due to the fact that it is such a significant percentage of what they earn.

If you don’t want to be house poor, then you should make sure to buy a home that is less than what you are approved for. You should also add up all of the costs of owning a home and make sure it is an amount that you are comfortable with.

Related posts:

  • Renting Out A Room In Your Home For Extra Money
  • How To Live On One Income
  • Ways To Make An Extra $1,000 A Month

 

Have an emergency fund.

An emergency fund isn’t just to protect you from your job. They also exist to help you in case something goes wrong with your home.

Your roof could spring a leak, a tree may fall on your home, a pipe may burst, there may be an electrical problem and more. Homes have many things that go into them and you never know if something may need to be fixed.

By having an emergency fund, you will have a fund that will help you if something were to go wrong. It will be you be more prepared so that you don’t have to take on any debt in order to help pay for an expense.

What would you say to someone who asks “How much home can I afford?” Do you know anyone who is house poor?

 

The post How To Avoid Being House Poor appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com