2017 Update: Grocery Delivery in Columbus: Is it possible?

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In 2011 we reviewed (See options #1 and #2 there) the more convenient grocery shopping options offered by Meijer (then called "Grocery Express") at their Westerville store and The Hills Market (Home Delivery Service) which is still available.  Meijer has since changed the name of their Grocery Express service to "Curbside" and no longer offers it in Columbus at any stores.  Interestingly, Meijer now has a "Shipt" service that appears to rival the home delivery service offered by The Hills Market (I guess they read our blog post).  We will have to test out Shipt soon.

We recently did a test of Kroger's "Clicklist" service.  This is basically the same as Meijer's old "Grocery Express" and new "Curbside" service.  Here is how Clicklist went:

Semi-Option #3: Kroger Clicklist

Description: With this service, you go online and pick out the groceries you need (normal online shopping here), pick a one hour window when you can pick them up at the store.  When you arrive in your one hour window, there are designated Clicklist parking spots.  In front of the parking spots there are signs with a phone number.  You call the number and tell them your name.  A few minutes later, a Kroger employee brings the groceries out to your car and places them in your trunk.  The items are bagged and placed in one of 2 color coded bins (cooled and non-cooled bins).

Cost: First 3 are free, $5 for each trip after that.

Conclusion: The Kroger online store is EXCELLENT!  Not only is it nicely arranged and easy to use (many websites, even in 2017, are bad) but if you utilize a Kroger card, it knows what you bought during previous shopping trips and throws those things on the main page for easy re-selection! I spent about 20 minutes during my initial online shopping trip (mostly browsing) but this will take probably half this time next time.  

I came to the store half way through my 1 hour window.  From the time I parked to the time I drove away was 14 minutes.  If the items you selected are not available, they substitute at no additional charge.  If there is no substitute, well, you don't get that item.  They provide you a print-out summarizing the changes (both substitutions and which items were not available).  

This service (and likely a much better version) is the future. Picture an Amazon warehouse with robots picking your groceries off racks and loading them into a bin which is hand delivered to your car.  Unless you need groceries urgently, you should never go in the grocery store again (by using Clicklist of course). Happy grocery shopping!

The REAL Cost of Owning a Home

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The age old debate, buy vs. rent.  The media loves dwelling on this issue. The decision is faced by all of us at some point.   In our "Renter to Homeowner - Outdoor Yard Tasks" we laid out every cost we could think of that a homeowner would incur on the outside of their home. Now we'll visit the interior and core ownership costs.

A few key points before we begin:

  • There is a certain level of spending which is required to keep a home at what we'll call par-value.  Many homeowners choose to avoid this spending as they simply can't afford it. Hopefully they find this post before their next home purchase.  This is largely where "flip" properties come from.
  • The home considered in this post is a conventionally financed single family property. We'll assume a typical suburban yard and a total home market valuation of $175k.
  • A detailed financial analysis (We've done one ourselves) comparing home ownership costs with rent payments will almost always show that the major deciding factor is home appreciation/depreciation.  A renter does not see the upside or downside of home market values.  If you buy a home, the only way you will save money over renting is if your home appreciates.  I like to say that renting is like buying insurance.  This insurance protects you from the potential downside of market valuation and the large investments occasionally required by homeowners.
  • Optional costs like phone, internet, dog walking, etc.. will be ignored here as they are the same as the renter would pay.  (Unless your landlord throws in free dog walking!)
  • Some of the monthly costs listed below to cover an entire category are based on our extensive database of property operating costs. 

Now to the costs..... 

To purchase your home, you will have to pay "closing costs".  This money pays for the professionals needed to transfer the property to you and prepare your loan.  These costs are variable and are typically in the range of $2000 to $5000.  Many people do not think about these costs as if they were spread out over every month the home is owned.  If the home is owned for 7 years, this cost is approximately $42 a month.  This thinking is where the banks came up with A.P.R. concept. 

Once purchased, your approximate $1300 monthly payment to the bank will cover the following items: 

  1. Property Taxes (Paid to your local city/county by the bank, in Ohio this is mostly for school costs)
  2. Homeowners Insurance (What we like to call "Fire" insurance, as it does not really cover much else) 
  3. Interest payment on your loan (Paid to the bank for loaning you the money)
  4. Principal payment on your loan (To pay down the amount owed to the bank)

Once owned here are the costs you will incur moving forward on the interior of the house:

Repairs ($90 a month)

  • Fireplaces
  • Appliances
  • Electrical Fixtures
  • Furnace / Air Conditioner
  • Water Heater
  • Electrical System
  • Sump Pumps
  • Plumbing
  • Garage Doors and Openers
  • Drywall

Maintenance ($40 a month)

  • Furnace Filters
  • Water Heater Annode Rods
  • AC System Re-Charges
  • Fireplace sweep
  • Door and Window Hardware upkeep
  • Fire Extingushers
  • Smoke and Carbon Monoxide Detectors
  • Lightbulbs
  • Pest Control
  • Alarm Systems

Improvements ($120 a month)

  • Windows
  • Paint
  • Carpet
  • Flooring
  • Cabinets
  • Fixtures
  • Energy Improvements (Insulation, Air Sealing) 

Time -  Awww, yes.  It will be you dealing with the above repairs, maintenance and improvements.  No landlord to be found.  Let's assume you spend an hour a month dealing with these issues. ($50 a month)

Utilities  - Water, Sewer, Trash, Electric and Gas.  These will be roughly the same as the renter and will typically costs you around $300 a month.

Cleaning - These costs and/or time are arguably the same as the renter would incur. The average cleaning company charges 10 cents per square foot per month for cleaning services.  We'll assume $175 a month for our example.

Appreciation / Depreciation - The house will have to be sold eventually.  When it is, the change in market value must be faced.  A depreciated home will force you to sell the property for less than you paid.  Appreciation is where home ownership pays off as discussed above.  We'll assume +/- 2 % per year for our example ($290 a month).

Summary

Lets ignore utilities (equal for the renter) and add up the monthly cost.  We'll add in $160 a month for outdoor costs as discussed in a previous post linked above:

42 + 1300 + 90 + 40 + 120 + 50 + 175 + 160 +/- 290  =  $1,977 +/- 290.  

 We have always heard that you should count on out of pocket costs equaling 150% of your mortgage payment.  In this case 150% of $1,300 is $1,950.  We believe this is a good rule of thumb.  As you can see, the appreciation or depreciation of 290 can make a big dent in your monthly costs.  When considering buying a home you must think about this market value fluctuation risk.

As you can see here, the worst case monthly cost could be $2,267.  This is significantly more than the $1,300 mortgage payment.   Alternatively, the best case monthly cost will only run you $1,687.  Not bad and probably less than renting (We would charge around $1750 monthly rent for the home described here).

Happy house hunting!

 

Housing Quality of Life: It's the Little Things

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Truly, it's the little things that can make or break a new residence. Don't be caught unaware when looking for your next home. Many issues aren't immediately obvious, and you can be sure the listing or leasing agent won't be pointing them out.

Here's a list of things to keep any eye out for:

  • Ease of highway access.
  • Neighborhood street surface quality.
  • Traffic levels during different times of the day and days of the week.
  • Sidewalks: Is the neighborhood car-centric or pedestrian-centric? Are the sidewalks well-maintained?
  • Shade quantity.
  • Ambient noise levels (explore this during multiple times of the day. Beware of intersections with stop signs or traffic lights - accelerating vehicles are LOUD, motorcycles are worse). Also drunks.
  • Ambient light levels: Nonexistant or overbright street lighting, or a neighbor's 24h floodlight).
  • Upcoming nearby construction projects (road or development).
  • Window size, quantity, and quality.
  • Shared walls (a la apartments/condos) are a mixed bag. It feels better in winter (less heat loss), but noise can be a concern.
  • Age and quality of mechanicals and appliances.
  • Power outlet (3 prong?) locations and quantity. GFCIs near water.
  • Natural and artificial light sources and quantity.
  • ISP/cable TV availability and competition (Check for fiber availability).
  • Cellular voice and data service quality on your preferred provider.
  • Broadcast HDTV reception quality.
  • Responsiveness of the local municipality in general.
  • Responsiveness of the local municipality to snow removal.
  • Trash and recycling service options, days and cost.
  • Property tax rate (and upcoming levees).
  • HVAC quality and average monthly cost (ask for previous bills).

Happy hunting!​

​

Single Family Home Investments - "Load Up On Them"

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Peter and I are big fans of Warren Buffett and his investing knowledge.  Here is an interview with him on CNBC earlier this year sharing his thoughts on single family home investments:

http://www.youtube.com/watch?v=XOGP6hd0B24&sns=em

​​Buffett describes single family homes as a "Very Attractive Asset Class" and notes that management of this type of investment is very important.​  He also notes the low mortgage rates available today.

​We agree with this thinking and believe there will not be a better time in our lives to buy SF Homes.

How To Renew A Lease (and get a free upgrade!)

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Landlords HATE switching tenants. It's a ton of work for them, introduces a lot of uncertainty into their finances, and carries a lot of risk. They love it when you renew your lease - for them, there's essentially zero work involved, and they're assured another year of rent checks from someone they already know. You can use their preference to your advantage. I got an email from a friend asking if it was standard for a landlord to offer a free upgrade when you renew your lease. Here is my response:

"That doesn’t sound standard, per se, to me. However, landlords do need to replace things as they wear out due to normal wear and tear. Do you know how old the carpet is? Or when it was painted last? I think it would be totally reasonable to ask for the interior to be painted or the carpet to be replaced if those things weren’t done right when you moved in (ie, if the paint or carpet is more than 3 years old).

"Now that I think about it, there are a few items I would ask him to take care of while renewing your lease. You could even write these directly onto the lease. You are absolutely correct in having high expectations of him while signing on for another year. Landlords will always sink to the lowest possible level of maintenance and attention for their tenants that they can get away with. Most landlords, anyway. The way to rectify that is to have high expectations and just pretend it’s normal. Form letter:

Mr. X,

Thank you for the opportunity to renew the lease. It’s a great location and I enjoy living here here, and look forward to at least another year.

As I have been living here for nearly 3 years now, there are a few maintenance items that have cropped up. Sorry I didn’t get around to emailing you about these sooner, I’ve just been really busy.

  • Wall patch in master bedroom to be sanded and painted
  • Kitchen cabinets/drawers fixed
  • Master bedroom door doesn’t shut properly
  • Electric space heaters removed
  • Large gaps around living room windows filled/caulked

I have also noticed that the carpet is getting pretty worn out and is due to be replaced. Nothing serious, just normal wear and tear. I know this is typically done between tenants – I have no problem working around your schedule - just let me know what day to expect them and I’ll be sure to accommodate. If you take a look and feel the carpet does not require replacing, please arrange to have it professionally cleaned as would be typically done between tenants.

One other item – you had mentioned getting washer/dryer hookups installed at some point(this was before I even moved in). Has that been done?

Thanks!!

As you can see, the tone of the letter is formal, and strong yet polite. Feel free to steal the template above to use when contacting your landlord.

Did you negotiate an upgrade when renewing your lease? Let me know in the comments below!

14 Things To Ask Your Potential New Landlord

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Ready to find that perfect place, and not get ripped off in the process? It's easier than you think, with a little prep work. When you set up a time, inquire who will be showing the unit. It is preferable to have a walk-through with the actual owner of the property (not just a manager or his shady cousin). Be sure to allow yourself plenty of time, and don't rush.

Take pictures of every room while you are there – it will show you are serious and that you won’t be taking any crap when it comes to security deposit, because you have a record of the move-in condition. Don't be afraid to poke around and ask questions about anything that seems unusual.

The apartment should be perfectly clean and everything in it should work when you move in. If the landlord is too lazy or cheap to have the place cleaned when showing it to prospective tenants, that's not a good sign.

Get any “promises” to fix this or install that in writing. You can even mark right on the typed-up lease – that is totally fine. Hand-written sentences “Landlord agrees to have washer fixed by move in date. Landlord agrees to upgrade windows by X date” etc.

Things to ask the landlord about:

  • Who pays utilities?
  • What type of heat does it have?
  • Are there washer/dryer hookups?
  • How much do utilities run on average?
  • Who do I call for maintenance?
  • Have there ever been pets? (allergies)
  • How long have you owned the building/house?
  • Is there a dishwasher?
  • How new are the windows? (heating/cooling cost)
  • Do the unit have central AC?
  • Will the locks be changed when I move in?
  • Are the exterior walls insulated? (heating/cooling cost)
  • Are the interior walls insulated? (noise)
  • Will the carpet be professionally cleaned before I move in?

Items to take note of when viewing the unit:

  • All doors/windows open and close easily (not painted shut), and the locks work.
  • Safe egress from bedroom windows.
  • General condition of the paint/trim/drywall/fixtures etc.
  • Listen for neighbors – how is the soundproofing?
  • If multi-story or above-ground: No broken steps on the stairwell, handrails in good shape.
  • GFCI outlets anywhere near water (sink, tub) [GFCI outlets have those TEST/RESET buttons w a light]
  • Enough counter space?
  • Enough closet space?
  • Enough storage space?

In general, the idea is to get a feel for how well-maintained the place is. If it's not in good shape now, there's no reason to believe it ever will be. Beware of promises! Good luck and happy hunting!

Finding Rentals in Columbus

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"Where do I look online to find a new apartment?"

A lot of people have been asking me lately where to look for apartments and rental properties for rent. So, I decided to compile a list for Columbus. Share and enjoy - leave your tips in the comments!

There are a few websites specific to Columbus, so if you want to "shop local", check here first:

  • Metro-Rentals.com - this site has a limited number of properties, but covers many areas. It breaks down the city by neighborhood, which is nice. Also worth a look is its sister site,
  • Suburban-Rentals.com - what it says on the tin. See above.
  • ColumbusRealEstate.com - which is run by the Columbus Dispatch. A decent amount of properties here, but sparse on details. Basically an online version of the paper classifieds.
  • Columbus Underground Urban Living - new site with rental listings, in addition to condo and home sales. [added 5/1/12]

The big hitters are nationwide, but do a good job with our city. Links go to the Columbus listings:

  • Craigslist.com - The default answer. It has the highest number of listings and covers every geographical area of the city.
  • Padmapper.com - Great. Basically a huge Google Maps, with the location of places for rent overlaid. It pulls data from CL and Apartments.com. Absolutely check this site - they have a cool blog too.
  • Zillow.com - Another good one. Their main area of focus is home sales, but they cover apartments and houses for rent as well. Map-based interface.
  • Trulia.com - Similar to Zillow; they have a nice interface and appear to have a few hundred listing for rentals in Columbus.
  • Apartments.com - They don't have as many listings as Trulia or Zillow. Worth a look, I mean they own the domain, right?
  • Rent.com - A big hitter. You must register to search.
  • ApartmentFinder.com - I like this one. Large pictures, good descriptions.
  • ColumbusOHForRent.com - This is actually a nation-wide company that sets up little websites for each city, and the Columbus one only shows 33 rentals in the entire city. Skip it.
  • ApartmentGuide.com - The most rentals I've seen on one site. Over 600 in Columbus, apparently.
  • Rentals.com - Sure are a lot of these, aren't there?
  • RentalHouses.com - Yawn.
  • ColumbusRent.com - Another one of those "clone for each city" websites.
  • Hellocolumbus.com - Another one of those "clone for each city" websites.
  • ForRent.com - Not a lot there.
  • Oodle.com - A lot there.
  • RentJungle.com - This is quite similar to Padmapper.com [added 3/8/11]
  • ForLeaseByOwner.com - What it says on the tin [added 3/8/11]
  • Hotpads.com - Similar to RentJungle and Padmapper [added 3/3/12]

Local property managers and rental companies:

I must give partial credit for this list to Metro-Rentals.com - they have a great list of Featured Owners which is well worth a look. The following is by no means exhaustive, but should provide a good start if you want to contact these companies directly or browse their websites.

 

Did I miss anything? Let me know in the comments and I'll add it.