Canadian Finance Blog

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Renting is the Craze Now! Here’s How to Prepare for It Posted: 12 Dec 2011 02:00 AM PST This economy has produced an unlikely winner in the housing market. If you have a home that won't sell and you don't have the option of staying put, your home could be a cash generator for you. Here's why, over the past year the demand for rental property has surged and it is expected to continue. If you have a property that won't sell, consider renting it. As demand rises, the rental rates rise higher with it. What was once a major headache for no real return may now be worth the time and hassle. If you're planning to rent your home, here are a few things to consider. Escrow Before you rent your home, save some money. Something is going to go wrong with the home and at some point one of those repairs will be a major expense. Just for repair expenses, keep at least $3,000 to $5,000 in liquid funds. In addition to those funds, be prepared for the problem renters who don't pay. Eviction proceedings can cost a lot of money, take more than a year to resolve and in that time you may not receive any rental proceeds. Have enough money saved for that scenario. Insurance Regular homeowners insurance isn't going to cover your rental property. Additional liability protection is needed to protect you from lawsuits that could arise from your renters becoming injured on your property. Problem Renters If only the world were the kind of place where everybody paid the debts they owed and took care of property that was loaned to them as if it was their own. That's not the world we live in and if you rent long enough you're going to get the wrong people renting. They'll tear up your rental property, won't pay on time or at all, and you'll have the stress and headache of trying to get them out. Run a credit check, check references, and examine their application closely. Property Manager For about 10% of your monthly rental you can hire a property management firm to handle your rental property. You pay them so you can be a silent partner. They market the rental property, screen renters, collect the renal payment, and handle the repairs. Especially if you no longer live close to your property, a property manager is worth the 10% you'll lose. The housing market, much like the world's banks, is loved about as much the flu but in every market, some lose and some win. Your home doesn't have to be a loser. There's a good chance that somebody would be happy to rent it if you have the resources to be a landlord. It's not for everybody and you may not rent it for enough to cover your mortgage payment but that's a worse case scenario. The chances are higher than you think that renting your property may produce a little bit of income. Related Posts: Four Ways to Deal with a Home That Won't Sell Insurance You Can Do Without – Rental Car Insurance Residential Property Investing For Beginners Renting is the Craze Now! Here's How to Prepare for It originally appeared on Canadian Finance Blog on December 12, 2011.

Canadian Finance Carnival #66 Posted: 11 Dec 2011 02:00 AM PST Budgeting Glen Craig at Free From Broke presents How and Why We Rationalize Spending , saying “When we spend and we know we shouldn’t we have a tendency to rationalize our purchase to make ourselves feel better. See how and why we rationalize spending.” Geoff at Car Negotiation Coach presents When is the Best Time to Buy a Car?, saying “When should you buy a car to get the best possible price? This post breaks it down and shows how your timing can affect car prices.” Career Dan at Sweating the Big Stuff presents Why You Shouldn’t Do What You Love for a Career, saying “Making money is great, but doing what you love for a living can be dangerous. Here’s why!” Corey at 20s Finances presents Graduation from College and Its Financial Challenges, saying “Graduation from college marks a pivotal point in young adults’ lives. It forces them to deal with many financial challenges at one point.” Debt and Credit Kevin at Invest It Wisely presents The 3 Stages of Financial Despair, saying “The road to financial independence isn't always smooth and straight. There can be stumbling blocks along the way, and it's also possible to end up on the road to financial despair.” Jason at Live Real, Now presents Future Me Returns, saying “What would your future-you have to say to you? Here is what mine has to say to me.” Echo at Boomer & Echo presents MBNA Canada’s Aggressive Marketing Tactics, saying “MBNA Canada markets its MasterCard's aggressively through direct sales, telemarketing, Internet, and point-of-sale techniques.” Cash Flow Mantra at Cash Flow Mantra presents Paid Off a Business Credit Card, saying “In the near future, I will be considering my overall goals for 2012 some of which will include financial goals for my LLC. As I sit down and reflect on this past year, I am encouraged by the progress I have made and will be looking forward to even more in the year ahead. Having a sense of what is possible will make it easier to sit down and work out those goals.” Money Cone at Money Cone presents Why You Should Have a credit Card Issued by a Credit Union, saying “Big Banks put shareholders interest ahead of customer interest. So do Credit Unions. But with a Credit Union, you are the shareholder.” Green Panda at Green Panda Treehoue presents The Extreme Method For Killing Debt After College, saying “How you can get hardcore about debt after college.” Economy Hank at Money Q&A presents Is The American Dream Dead Or Alive?, saying “Is the American Dream dead? I don’t think that it is. We all continue to want to the same things in life, and the economy has only intensified our ability to be resilient and optimistic.” Extra Income Marie at Money Spending Mommy presents Work from Home, saying “Working at home can be very fulfilling and it makes a change from the traditional daily grind, so if you're looking for something new it could be one to ponder.” Linsey at 1099 Mom presents 3 Essential Questions to Ask Before Paying for Twitter Followers, saying “Here are some things you need to ask before paying someone to increase your Twitter followers, as failing to employ just the right strategy may, in fact, actually hurt your social media influence.” Mike at The Financial Blogger presents My Plan To Make 10K/Month, saying “The plan to make more money next year.” Frugality D.J. at The Family Wallet presents Five Budget Friendly Christmas Decorating Ideas, saying “There are easy ways, and beautiful ways, to decorate your home for the holidays and stick to your budget.” Miss T. at Prairie Eco Thrifter presents How to Save Money on Transport Cost, saying “Ditching your car in favour of using public transport more often is great for the environment and by not having your car on the road as much, you can do your bit for the planet. As well as being more green, it can also be good for your wallet too. Here's how to save money on getting around.” Mike at Rewards Cards Canada presents Using Loyalty Rewards For Holiday Gifts, saying “According to a recent survey, more Canadians than ever plan to redeem loyalty rewards for gifts this year.” SavingMentor at HowToSaveMoney.ca presents How to Minimize Your Cell Phone Bill with a Smartphone and Data Plan, saying “The Internet has significantly changed the way we communicate. Many people have already eliminated their monthly home phone by using Voice over IP (VoIP). Similarly, the business case for Enterprise VoIP is compelling. It eliminates separate voice and data services and the associated cost of maintenance.” Kelsey at Money Mum presents 6 Tips for Eliminating Food Waste, saying “Using leftovers and budgeting wisely can save money – and resources. Learn to become cognizant of how much food you really do dispose of, and then consider these tips to improve the efficiency of your kitchen:” Pam at Frugal Living presents How to Eat Healthy on a Budget, saying “Eating healthy doesn't have to cost more. Here are some tips for staying healthy on a budget.” Investing MR at Money Reasons presents Having Stock Dividends Pay Money For Allowance, saying “Why not establish a passive income stream via dividend stocks now? This will take the mystery about of such a concept and make it more real.” Kanwal Sarai at Simply Investing presents Cisco Announces First Dividend Ever, but I Am Not Buying any Shares, saying “Cisco recently announced its first ever cash dividend. But I won't be rushing to buy Cisco shares, here's why:” Investor Junkie at Investor Junkie presents Could Disney Make a Good Addition to Your income Portfolio?, saying “Even though income is important to an income portfolio, it's worth considering companies that will provide earnings down the road. Disney just might be one of them.” Net Worth Journey at Net Worth Journey presents Self Employed Retirement Plans, saying “Discover your retirement planning options if you are self-employed.” IS at Intelligent Speculator presents Even Warren Buffett Has Terrible Ideas, saying “Did you know that Buffett makes mistakes?” Martin at Studenomics presents How Can You Improve Your Credit Score Right Now?, saying “Time to build that credit score.” Div Guy at The Dividend Guy Blog presents Do You Have What It Takes To Be A Dividend Investor?, saying “What it takes to be a dividend investor.” Lifestyle Kevin at Thousandaire presents Thousandaire Countdown #4 The Adult Baby Song, saying “The number four song on the Thousandaire Countdown is the Adult Baby song. It talks about an adult baby and why taxpayers shouldn’t fund his lifestyle” Evan at My Journey to Millions presents My December 2011 Net Worth Update, saying “From November 1, 2011 to November 30, 2011 my net worth increased only 1.32% From January 2011 to November 30, 2011 my net worth has increased 64.41%” Matt at Living in Financial Excellence presents Developing an Attitude of Gratitude, saying “If you've ever gone through tough times, you've learned to live without. Too many of us are unwilling to give up some of those creature comforts until we're forced to give them up. When we're forced into the situation, we often find it's not as hard as we thought it would be.” John at Passive Family Income presents Winter Snow: Charming Holiday Treat or Lawn Killer?, saying “With winter quickly approaching – for those of us who haven't already been pelted with a snowstorm like the one that hit the Northeastern United States – there are several things that can be done to ensure your lawn is the envy of the neighborhood when Old Man Winter does his final bow at the start of Spring.” Eddie at Finance Fox presents Do You Give Your Spare Change To A Homeless Person?, saying “Sharing with others , when you have abundance goes way back in history. Giving back in any form is the simplest act of human kindness.” Peter at Bible Money Matters presents 5 Ways to Celebrate the Birth of Jesus, saying “While American businesses delight on the frenzy that is Black Friday, we don't have to fall into the commercial trap of Christmas. We can take steps to remind our children each Christmas what the holiday is really about—celebrating the birth of Jesus, not how many presents we can receive.” Lazy Man at Lazy Man and Money presents Things I Like: Progressive International’s Lettuce Keeper, saying “Today’s thing that I like is this Lettuce Keeper from Progressive International. I saw the high reviews on Amazon and decided, “for under $15 I can give that a shot.” I’ve had it since this summer and after about a dozen uses, I see that it earned those high reviews.” Kay Lynn at Bucksome Boomer presents 6 Ways to Earn Citizen Rewards, saying “The other day my co-worker recounted his recent experience catching a vandal spray painting graffiti in his neighborhood. Not only was he happy to have the person responsible for repeated bouts of tagging away from his home, but there was a side benefit.” Jon the Saver at Free Money Wisdom presents Insights from the Bible on the Redistribution of Wealth, saying “Does the Bible call us to engage in the redistribution of wealth through the apparatus of the state? This is actually a more complex question than it seems at first glance, and I'll tip my hand up front and make the following assertions: There is no directive in the Bible for the state to engage in redistribution of wealth (other than, loosely, the tithe—which we'll get to shortly), BUT We are required to do what the authorities (a.k.a., the state) command of us. This makes the answer yes AND no—but mostly yes. Why do I feel this way?” Sustainable PF at Sustainable Personal Finance presents Living in a Shipping Container, saying “After their life is over making trips across the ocean, shipping containers are often auctioned off to the highest bidder. Sometimes these high bidders are businesses looking for cheap storage options, or even to continue shipping with. Or, if you want to get really crazy, you can build a house with them. Before you poo-poo the idea, check out some houses built from storage containers.” Philip at PT Money Personal Finance presents Hottest New Toys for Christmas This Year, saying “Includes a list of this year’s hot toys as well as last year’s.” Marissa at Thirty Six months presents Canadian Car insurance for high risk drivers, saying “A break down of options for car insurance for high risk drivers in canada.” Real Estate MD at Passive Income Now presents How to Find a Tenant For Your Rental Property, saying “How to get a tenant in your rental.” Saving Beating Broke at Beating Broke presents Save on Health Insurance with These Tips, saying “Health insurance is one of those things that only seem to get more expensive each year. Doctor's visits, medications, and surgical procedures can cost you a fortune if you do not have coverage. This is why every person needs to have health insurance. Here are a few of the ways that you can lower the cost of health insurance.” Lisa at Thriftability presents Emergency Fund: Necessity or Overrated?, saying “Life never completely goes according to plan–the car breaks down, someone loses hours at work, school tuition increases. Creating an emergency fund sees you through these "what ifs" without dramatically impacting your budget. In addition, an emergency fund provides a financial cushion – outside of your normal budget – so that you do not need to use your credit cards and rack up debt in times of crisis.” J.B at My University Money presents Save Money At The Bar By Using Practiced Methods, saying “Here are some ways to save money at the bar without doing the obvious…and not going” Other Aloysa at My Broken Coin presents Battling Shopping Addiction: Self-Assessment, saying “Discover how I am going to fight the battle against shopping addiction. I’ve struggled with this problems and here is my personal story.” 101 Centavos at 101 Centavos presents A Brief History of Insurance, saying “The following post was contributed by Nina Bernice exclusively for 101centavos.com. The need to protect ourselves against risks is one of the oldest and insurance is the perfect way to do so, learn more here!” Craig Ford at Money Help For Christians presents 45+ 'Two Thumbs Up' Christian Book Suggestions, saying “Christmas book suggestions for Christians.” Related Posts: Canadian Finance Carnival #35 Welcome To The Canadian Finance Blog! Canadian Royalty Trusts Canadian Finance Carnival #66 originally appeared on Canadian Finance Blog on December 11, 2011.

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