You’re engaged and ready to plan your wedding. Along with plenty of excitement about your big day, you might also start to feel some sticker shock as you research prices for the ceremony and reception.
SoFi’s most recent survey found that the median price of a wedding is $10,000, and a large portion of that typically goes toward the reception venue.
The average cost of a wedding is $30,000, according to a recent survey of couples.
Fortunately, there are a number of ways to save for the wedding of your dreams. Reducing the costs of the venue helps with one of the largest expenses.
There are free wedding venues, as well as relatively inexpensive wedding venues to consider as you’re creating your budget. Below are four affordable places to hold a wedding. By selecting one of them, and adding some unique personal touches, you can make the day truly your own.
Plus, if you discover that you could use help financing your wedding, we have suggestions for that, too.
This could be at your own home, or that of a parent, friend, or other loved one, which will likely be one of the most affordable wedding venues around. Benefits of this choice (besides the lack of rental fees) include the flexibility to have your ceremony on just about any day of the year, plus you have a ready-made shelter if the weather isn’t ideal. Want a pet-friendly ceremony? It doesn’t get any better than a home wedding for having your beloved dog be your ring bearer.
Also, any home upgrades made for the ceremony can be enjoyed for a long time afterward. Just decide how much of the event will be held outdoors, what rooms of the house should be made available to wedding guests, and how to ensure enough seating.
You can keep it simple by focusing on certain aspects for home improvement. For instance, if you envision yourself making a grand entrance by walking down a staircase in your wedding dress, you might think about a staircase remodel for your ceremony.
On the other hand, if your powder room could use a glow-up, you might want to concentrate your efforts there for a beautiful bathroom refresh. As a bonus, a project like this could add value to your home.
Check to be sure your officiant of choice is able to perform the ceremony, plan the parking logistics, find out how to comply with any noise ordinances, and so forth. Also, this could be a perfect time to do some outdoor landscaping that will beautify your special day and your home for years to come.
City Hall Wedding
A city hall wedding can be a very chic choice. You aren’t restricted to the city hall or courthouse by where you currently live. You could choose one that has special significance to your relationship, perhaps the city where you first fell in love.
Or, you can get married in the city hall where you’ll enjoy your honeymoon or your family vacation. As another strategy, you can choose the city hall based on its beauty. For instance, the city hall in San Francisco has a stunning white column and gold-capped roof.
The fee for a city hall wedding varies by state and municipality. Generally, it ranges from $30 to $88 or more. Call the location to learn the exact cost.
There are usually designated days and times for city hall weddings, so find out what they are in the location of your choice and how that would work in conjunction with your post-wedding celebration. Also, ask if there’s a limit to the number of wedding guests you can have, and whether you’ll be able to have bridesmaids and groomsmen, given the logistics.
Perhaps there are beautiful parks in your town or city full of unique flowers, landscaping, and more — or maybe there is one with special meaning to you, say, where the two of you attended college.
If that’s the case, you could contact the relevant parks department and find out any details about fees and permits. How accessible is the location for guests? If it’s a small park in the center of town, it’s likely to be fairly accessible. If it’s deep in the heart of a national park system, you may need to decide how to make it practical for guests to find and attend.
Other considerations for a park wedding include shelter in case of rain, having enough public restrooms (are they readily available or do you need to rent portable options?), and how comfortable you are getting married in an open space.
You might also need to find out what the park’s policy is on receptions. Can you set up tables and have food brought in? Or are you imagining a picnic complete with champagne? Dream it up, brainstorm details, and get confirmation from park officials.
One bride who got married in Glacier National Park wore her grandmother’s dress. In and of itself, that might not be unique — but the dress had been made out of the silk parachute her grandfather used in World War II! What unique touches can you bring to your own special park wedding?
Beach Wedding
You might consider a beach wedding, with its possibilities for one-of-a-kind photography, soft breezes, and tropical drinks. As practical considerations, do you plan to have a ceremony along the ocean on a public beach or will you locate a private beach? The permits you’ll need will likely be quite different if you plan to have just your ceremony there versus if you also plan to have a beachside reception complete with food, drink, and music.
You’ll also need to create a Plan B or otherwise have shelter available if the weather doesn’t cooperate. And, where you plan to have the ceremony, geographically speaking, may help to dictate what time of year your wedding should be scheduled. For instance, for a July wedding at your favorite beach, think about how far in advance to plan summer travel.
Then figure out the final details. Do you plan to have alcohol at your reception? That often isn’t permitted on beaches, but there are some that do allow guests to imbibe. Do you want to rope off a section of the beach? Build a bonfire? Again, you might want to ask what the rules and regulations are for the beach you have in mind and be flexible about modifying plans to help make it all come together.
Budgeting for Your Wedding
Even when you choose a free or inexpensive wedding venue, you’ll still likely want to come up with some creative ways to save money for the food, music, drinks, flowers, photography, video, and so on.
You can also explore different ways to help cover some of the wedding costs. For instance, a wedding loan might be an option to explore to help pay for your big day. Or perhaps your families might be able to help out financially with some of the venue-related expenses, such as catering.
During a discussion with your partner, you could both try to determine who will pay for what, and how much you’re willing to spend. It could help to discuss priorities so you’re in agreement about where to splurge and where you’re willing to compromise.
If, for example, you know that having beautiful flowers is important to both of you, that could rise to the must-have category. And maybe you want to spend more on photography and less on videography — or vice versa. What’s important is that you mutually create and agree upon a plan that’s unique to you and your special day.
Financing Your Wedding
When it comes to financing your wedding, a wedding loan could be a good option for your needs. These loans are unsecured personal loans used to cover wedding costs. Rates on personal loans tend to be lower than credit card rates, and they can offer more flexibility on the term of your loan and the amount you can borrow. Plus, you’ll get a fixed rate.
A personal loan from SoFi can be a fast, simple way to get extra cash for your wedding. You can apply online and, if you qualify, you can get the money as soon as the same day.
Explore a personal loan at SoFi — check your rate in just minutes!
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
You’ve champagne-toasted to your engagement, basked in post-engagement bliss, and happily researched the latest table decor trends on Pinterest.
It’s easy to get lost in the excitement of your wedding and focus on the fun parts, like trying on dresses. But before you get too far into planning, it’s a good idea to take a breath and crunch a few numbers.
In addition to being a joyous occasion, a wedding can also be a significant expense. While the price tag can vary widely depending on the level of luxury you go for and where you live, the median cost of a wedding is $10,000, according to a recent SoFi survey.
Besides the basic expenses like the dress, venue, catering, and rings, there are also lots of unexpected wedding costs, both small and large. And those can really add up. Being aware of these costs can help you plan ahead and save for your dream wedding.
Whether you’re paying for your own wedding, or getting help from loved ones, having realistic budget can help ensure that your wedding doesn’t wreak havoc on your finances.
1. Bachelor and Bachelorette Parties
Since these events happen in advance of the wedding, it’s easy to forget to include them in your initial budget. But planning for these festivities is crucial, since they can come with a hefty price tag.
Guests spend an average of $1,500 on these parties, according to Savings.com. When travel is involved, the cost can go up even more. For instance, those who flew to an international bachelor or bachelorette destination spent about $2,000 in total.
Sometimes the host and guests will opt to cover the cost of accommodations and activities for the bride and groom, but that’s far from guaranteed.
And even if your costs are partially covered, you may still need to chip in for your airfare, meals, and incidentals.
In the whirlwind of wedding planning, it can be easy to forget about some of the more technical steps of getting married.
You’ll need to apply for a marriage license, of course, typically with the relevant county clerk’s office. Some states have a fixed fee, while others vary by county or city. The fees can range from about $10 to $115.
3. Insurance
You know that you’ll need to pay for a wedding venue, but you may not be aware that many of them require you to also purchase insurance. These policies typically cover damage to the venue or injuries to guests or vendors.
Some wedding insurance policies also reimburse you if something goes wrong, such as a venue becoming unavailable or a vendor not showing up. Wedding insurance costs range from about $125 to $550 for basic coverage, but the price can be higher for more expensive events.
If you’re mailing correspondence to your guests, don’t forget that you’ll need stamps, too. These can add up when you consider that you may need them for save the date cards, invitations, RSVP envelopes, and thank you cards.
A postcard stamp costs $0.48, and a First-Class Forever Stamp for an envelope costs $0.63. Let’s say your save the date is a postcard and your invitations, RSVPs, and thank you notes use envelopes. Mailing these items to 150 guests in the U.S. could cost more than $300.
5. Alterations
The perfect wedding-day outfit requires not only paying for a dress and a tuxedo or suit, but also likely shelling out for alterations.
Some stores and custom tailors include the cost of alterations in the price of the garment, but others don’t. For a wedding dress, changes such as hemming the gown, adding lace or beading, or taking it in can cost anywhere from $200 to $800 or more.
6. Beauty Treatments
You’ll want to look your best on your big day, and that likely requires spending some cash. Hair and makeup for brides costs $250 on average, and some stylists charge extra for a trial. If you’re paying for your bridesmaids to get hair and makeup done as well, the cost could also be around $170 per person for both services on average.
Brides may also choose other beauty treatments, such as facials (with an average cost of $50 to $100) and manicures and pedicures (the average cost ranges from $45 to $80). Body art, like mehendi for Indian brides, can cost hundreds of dollars.
The groom may also choose to pay for services like a haircut (an average cost of $30) and professional shave (about $15 to $50).
7. Gifts
You are probably expecting to receive gifts from your guests, but don’t forget that you may want to give some out, too.
It’s customary to give thoughtful thank you gifts to your wedding party, with especially nice presents going to the maid of honor and best man. Expect to spend $75 to $100 for each bridesmaid or groomsman.
You may also want to give tokens of appreciation to your parents and grandparents, particularly if they helped pay for the wedding. If you have friends who helped out, perhaps by doing a reading at the ceremony or serving as an officiant, you may want to thank them with a gift as well. And you’ll also want to give a gift to any children participating in your day, such as a flower girl or ring bearer.
Last but not least, it can be meaningful to exchange gifts with your new husband or wife. By including these significant items in your budget, or by exploring the option of a wedding loan to help cover them, you can make sure you can afford them when the time comes.
8. Wedding Weekend Events
Your initial wedding budget may not have included other gatherings you’re hosting, such as the rehearsal dinner, welcome drinks, or a brunch.
Depending on the number of guests, all of these events can cost a pretty penny. The average cost of a rehearsal dinner is around $2,400, while brunches can start at $22 per person.
9. Lodging and Transportation
You’ll probably be paying for a hotel for one or more nights if your wedding isn’t in your hometown, or if you just want to stay somewhere special.
You also likely won’t want to drive yourselves around on the big day. If that’s the case, factor in the cost of a limo or fancy bus to get you to and from the wedding locations. The average cost of a wedding limo is $75 to $150 an hour.
If you’re providing transportation for guests as well, expect the amount you spend on transportation to go up significantly.
10. Rentals
More likely than not, your wedding venue and caterer won’t provide everything you need. You’ll typically need to pay extra to rent linens, flatware, and glassware. You may also want to rent other items, such as heating lamps, a cake stand, string lights, candles, or a photobooth. These items can add hundreds of extra dollars to your costs.
Financing Your Wedding
So how do you afford all the wedding expenses — both the ones you plan for and the hidden ones that crop up? Here are some ideas for financing your dream wedding.
Budgeting and Saving
The first step is to a make a budget, but you’ll want to be sure to avoid some common budgeting mistakes. Add up all the anticipated wedding expenses, including the lesser-known charges above. Then, you and your partner-to-be can track your monthly expenses and income and see how much you have left over to save each month.
If that isn’t enough to get to your goal, see if you can find ways to reduce living expenses or earn extra cash. SoFi, a complementary tool for SoFi members, can help you track your spending and cashflow in real time against a set budget, to help prevent you from going over — and help you save for the big day.
Trimming Expenses
If your wedding budget is more than you can afford, you may be able to find ways to lower some of the costs. For example, perhaps a friend can officiate instead of paying a professional.
Family and friends may be able to help you create DIY paper goods, bouquets, and centerpieces. Or you could send digital Save the Dates and invitations, rather than paying for printing and postage. Some couples even self-cater their weddings. There are a number of creative ways to save money.
Personal Loans
Along with saving and cutting costs, a wedding loan, which is a type of personal loan, could help finance your wedding. With SoFi, eligible borrowers may qualify for loans with interest rates that are generally lower than the interest rates charged by credit cards.
Personal loans are flexible and may be used for almost any purpose, so they can help you cover wedding expenses that come up. It takes just a few minutes to apply online, and these loans have fast funding and flexible repayment options.
Learn more about using a SoFi personal loan to help you finance your dream wedding — including paying for any unexpected expenses.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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If you’re considering a small business loan, it’s important to familiarize yourself with the different types of small business loan fees. In addition to interest rates, fees can impact how much a small business loan ultimately costs.
Lenders charge fees on small business loans to cover a variety of costs, like loan application and origination, check processing, and underwriting, and you could also face fees for late payment or prepayment. Which types of fees apply will vary depending on which lender you use and the type of loan you get. But knowing what to look out for can help as you compare loans in an attempt to minimize how much your small business loan costs overall.
Why Choose a Small Business Loan?
No matter how fantastic an idea may be, in most cases, it can’t become an actual business without the working capital to get it off the ground. If you’re not yet ready to pitch investors and don’t have the personal funds to bootstrap your business, you may want to learn about how a small business loan can help you turn your business idea into a reality.
Of course, small business loans are for more than just startups. Whether you’re looking to hire more employees, purchase more equipment or inventory, or just scale your idea from your bedroom to a co-working space, small business loans can provide the capital to make it happen.
Some reasons a small business loan may be right for you include if:
• You want to build business credit, potentially allowing you to qualify for larger loans in the future.
• You want to scale your business.
• You want to make your business more efficient with new equipment.
• You want to purchase more inventory.
• You want to hire and train more employees.
Before taking out a small business loan though, it’s important to ensure you have the financial foundation to manage your loan debt.
Small Business Loan Rates and Fees
Here are some common fees associated with small business loans.
Application Fee
Lenders incur certain fees when processing your application (e.g., credit checks and property appraisals). This fee covers those costs, and it will apply regardless of whether your application is approved.
Origination Fee
Lenders charge origination fees to cover their administrative costs, such as phone calls, emails, and interviews necessary to finalize a small business loan. The amount of this fee varies from lender to lender.
Check Processing Fee
If you make your loan payments via check, you may be charged a fee to cover the time and labor it takes to process a check. You may want to keep this in mind when deciding how you’ll make your loan payments.
Guaranty Fee
If you’re taking out a loan through the Small Business Administration (SBA), you’ll likely have to pay a guaranty fee. While the SBA guarantees loans, it doesn’t make loans, and thus generally assesses this SBA loan fee for its involvement.
Late Payment Fee
Like many loans, small business loans typically charge a fee when you make a late payment. You’ll want to ensure you set up a plan to make your loan payments on time to avoid this fee.
Underwriting Fee
The process of underwriting can be tedious — your lender needs to comb through your business’ finances and review market research and historical trends. The underwriting fee covers the cost of performing this task. It could either be charged as a percentage of the loan amount or a flat fee.
Prepayment Fee
Some lenders charge you for paying your loan off too early. They may do this for a variety of reasons, but one might be because they lose money in interest charges when you pay your loan principal before it’s due. This is an important fee to be aware of when mapping out your payment plan.
Additional Funding Options
If these fees don’t sit well with you, there are other options to consider that may make funding your business more accessible to you.
Family and Friends
Many people start their business with family loans, which is essentially money borrowed from family and friends. Using these individuals as initial investors can help you stay out of commercial debt, meaning that you can wait to apply for a small business loan when you might need to borrow a larger sum.
However, going into business with loved ones could be a risk. It might sour the relationship if things go south.
Crowdfunding
A number of small businesses have successfully been funded through sites like Kickstarter, GoFundMe, and Indiegogo. A great idea with a strong marketing plan could generate enough excitement and financial support to get things going.
Keep in mind that crowdfunding sites generally require a percentage of the funding received. Additionally, there could be a risk of idea theft or plagiarism by putting your idea out there early.
Credit Card
You could turn to credit cards as a quick route to getting capital for your business without a lengthy application process. However, interest rates may be high. Further, carrying significant credit card debt could potentially impact your credit score, affecting your future chances of qualifying for loans.
Small business loans can charge a variety of fees, including application fees, origination fees, underwriting fees, guaranty fees, and others. Some are avoidable, such as bypassing check processing fees by opting for another payment method, or steering clear of late fees through consistent on-time payments. Which fees will apply will ultimately depend on the lender and loan type, but fees can play a role in how much a small business loan ultimately costs.
As you explore your options for funds, you might also look into a personal loan. While you cannot use a personal loan for business expenses, it could help you to consolidate high-interest credit card debt you might have incurred, for instance. SoFi personal loans offer low, fixed rates, and allow you to borrow up to $100,000.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Pet ownership comes with an array of costs, and medical care can be one of the big ones. Does that mean you should get health insurance for your pet? Is pet insurance worth the cost?
Insurance policies for pets are more worthwhile for some pet parents than others. A policy that covers general pet wellness and preventive care may not make economic sense, but a policy that covers accidents and illness may be a good move for pet owners who would have trouble covering a hefty vet bill should their pet suddenly be injured or become sick.
But plans vary significantly on what they cover — and what they cost. Here are some key facts to consider when shopping for a pet insurance plan.
Average Cost of Pet Healthcare and Emergencies
Between food, daily care, equipment, and toys, the cost of owning a pet can be high. The cost of veterinary care can also stack up pretty fast.
Pet healthcare costs vary widely, depending on the region and what kinds of care your pet may need. But dog owners spend an average of $362 per year on routine vet visits, while cat owners shell out an annual average of $321 on routine care, according to the American Veterinary Medical Association.
Heartworm tests can tack on another $35 to $75 annually, with monthly preventive medications costing from $6 to $18 apiece. This means an annual cost that can range between $107 and $291 for heartworm prevention, while flea and tick prevention can cost from $55 to $215 per year.
Even a healthy pet may need emergency care, ranging from a few hundred dollars to thousands. Wound treatment and repair, for example, can run as high as $2,500 for a dog. Emergency surgery for a large dog can cost up to $5,000.
In fact, emergency room bills for pets can run as high as $10,000 when adding in hospitalization costs.
Once a niche product, pet insurance policies have been steadily gaining in popularity. Indeed, many employers now offer pet plans as part of their benefit packages. But what exactly is pet insurance — and how does it work?
Like health insurance for people, pet insurance is intended to ease some of the costs of keeping your pet healthy. You can choose from different levels of coverage, with each plan costing a monthly or annual premium based on how much coverage you choose.
Some plans cover accidents and injuries, some only cover accidents, and others include wellness and preventive care. The more comprehensive the coverage, the higher you can expect the cost to be.
As with health insurance for people, pet policies include exclusions, various levels of coverage, copays, deductibles (a certain amount you must pay out of pocket before coverage kicks in), and payment limits.
Most pet insurance policies exclude preexisting conditions and hereditary or congenital conditions. Some carriers will not accept pets younger than 8 weeks or older than 12 years, and many policies have waiting periods before benefits for injury, illness, and orthopedic care begin.
Pet insurance typically uses a reimbursement model: You pay the full amount due when you take your pet in for care, then submit a claim to the insurance company.
What Pet Insurance Covers
Pet health insurance offers several types of coverage, each with its own list of coverage options and costs. The three most common types of coverage are:
• Accident and illness. This typically covers treatments and tests for accidents and illnesses.
• Accident-only. This coverage generally takes care of accidental injuries, such as poisoning or ingestion of a foreign object, being hit by a car, cuts, and other physical injuries. Accident-only coverage is often preferred by owners of older pets that have aged out of comprehensive coverage.
• Wellness plans. Wellness plans tend to cover preventive-care visits, such as checkups and routine vaccinations, and you can buy one as a stand-alone policy or as an add-on to an accident and illness policy.
Before deciding whether you want to buy a pet insurance policy, it’s a good idea to download sample policies from insurers. You can then review each policy for limitations, exceptions, and copayments. You can also reach out to a rep with questions.
What Pet Insurance Doesn’t Cover
Some pet insurance options have breed-specific exclusions, or it could cost extra to cover specific breeds.
As mentioned, just about every pet insurance policy excludes coverage of preexisting conditions.
Many plans also limit the amount you can claim, either annually or over your pet’s lifetime.
Wellness plans likely will not cover any treatments having to do with accidents, common injuries, or any other emergency treatments.
Accident-only plans will likely not cover any cost associated with illness, while accident and illness plans will likely not cover any preventive care or any care related to preexisting conditions.
An accident and illness plan with a wellness add-on provides the most comprehensive coverage. But again, it will likely not cover any care for a preexisting condition and could come with breed restrictions. That’s why it’s essential to read the fine print of every policy option before deciding which one is right for each pet.
How Much Pet Insurance Costs
The cost of pet coverage varies widely, but the average accident and illness premiums cost $640 a year for a dog and $387 for a cat, according to the North American Pet Health Insurance Association’s latest figures.
Accident-only premiums — covering things like ingestion of a foreign body, lacerations, motor vehicle accident, ligament tears, and poisoning — average $200 for a dog and $122 for a cat, the association reported.
In an Insurance.com survey of 800 pet owners who have pet insurance, 48% said the policies had saved them money. So, about half said the insurance was money-saving and half said it was not.
Costs can rise, depending on a number of factors:
• Your pet’s breed (purebreds may cost more to insure because they are more susceptible to some hereditary conditions)
• Age (plans tend to cost more as your pet ages)
• Region (the higher cost of vet care in some areas is factored into your premium)
• The coverage you choose
Keep in mind that once a pet reaches a few years old, most pet insurance providers will increase rates every year at renewal time.
Pros and Cons of Pet Insurance
Pet insurance can make pet treatments and services more affordable: As you make annual or monthly premiums, the insurance company bears the brunt of covered expenses.
Pet insurance also may help protect the emergency funds in a checking and savings account or savings account. If your pet is young or healthy, or you choose a lower tier, you can get accident and illness coverage for a fairly low cost.
But it’s important to read the details. Many plans limit the amount you can claim, either annually or over your pet’s lifetime. If your pet suffers a major medical problem, you could quickly max out your plan’s limit and find yourself paying the difference.
Depending on the cost of the premium, wellness-only plans and wellness add-ons may not be worth the price, since they can end up costing about the same as, or more than, paying out of pocket for routine care.
If pet insurance may be a possibility for your household, here are issues to consider before making a decision.
Research Which Pets Are Covered — and for What
Plans have different enrollment requirements. Typically, though, once a pet is enrolled in a plan, lifetime coverage is available — at least for as long as premiums are kept up. It’s a good idea to check to see if a plan requires a vet visit before enrollment.
Once plans have been identified that would likely accept your pet’s enrollment, find out what each of the policies covers. For plans that go beyond accident coverage, find out specifically what the benefits include. Will the policy, for example, cover ongoing treatment for a condition, or would a policyholder need to pay an add-on fee for continual care?
Investigate the Reliability of Pet Insurance Plans
Once a list of providers has been narrowed down to ones that would accept your pets, it’s a good idea to check the companies’ track records.
This includes the length of time they’ve been in business and how many policies they have in effect.
You may want to see which ones are rated by the Better Business Bureau and what those ratings are, and read online reviews. Who develops their policies? Are there veterinarians involved?
Compare Deductibles and Payout Limits
Pet policies come with deductibles. Sometimes it’s an annual deductible. Other times, it can be applied per illness or injury.
If that’s the case, then once a deductible is met for that condition, maximum reimbursements may be paid out for that particular injury or illness. If, though, a pet develops multiple conditions, a deductible would need to be met for each one individually.
If the deductible is applied per incident, monthly premiums may be lower. A low annual deductible may sound appealing but will have a higher premium than plans with a higher deductible.
Alternatives to Pet Insurance
Again, like humans, unexpected expenses can come up from time to time with a pet.
Another way a pet owner can pay for both expected and unexpected vet bills is to have an emergency fund earmarked for your pet. Stashing a little bit of cash each month into a pet care fund can slowly add up.
Whether you do or don’t spring for pet insurance, you may be able to avoid emergency care by monitoring your pet’s diet and exercise and staying up to date on vaccines and heartworm prevention treatments.
Even knowing the most common ailment associated with your pet can help keep a minor problem from turning into something major.
Finally, you may want to shop around for the lowest price on the veterinary services you need.
The Takeaway
Is pet insurance worth the cost? Pet insurance that covers accidents and illness may be a reasonable hedge against a huge vet bill. The payoff for wellness coverage is less clear. If you do decide to take out pet insurance, be aware of all of the policy’s limits and exclusions.
Life is full of unexpected events. Insurance is meant to ease the burden of paying the full cost of an accident, illness, or loss.
While SoFi can’t cover your pet, we can insure just about everything else. We’ve teamed up with some of the industry’s best insurance companies to bring you fast and reliable insurance coverage.
Learn more about reliable insurance options with SoFi Protect.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Renting out part, or all, of your home on a rental platform can be a lucrative sideline. Just keep in mind that it can take an investment of time, effort, and money to create and maintain a welcoming space for guests. And, the plan could potentially backfire if you side-step some key legal and insurance steps.
To help ensure your venture is a success, here are some things you may want to consider before you start renting on Airbnb or a similar site.
1. Understanding Local Rental Laws
Before listing your home on a home-sharing site, it’s a good idea to research and make sure you fully understand local laws regarding renting out your home.
Laws that govern home shares vary around the country. In some cities, for instance, it’s illegal to rent a home as an Airbnb unless it’s your primary residence. In others, hosts can only rent out a portion of their home, and must be present during the guests’ stay. Laws about short-term rentals are also constantly changing.
If you own a condo or belong to a HOA, there may be other legal hoops to jump through, since you will likely need to get permission before opening your doors.
2. Checking With Your Landlord (if You’re Renting)
Looking to rent out a room in your home you rent? It can be wise to first carefully read through your own rental agreement.
Leases and agreements can contain language barring renters from subletting the home outright or without the express consent of the landlord. If you’re unsure even after reading the fine print, you may want to have a conversation about it with your landlord.
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3. Talking to Your Neighbors
While neighbors can’t tell you what you can and can’t do on your own property, they can make things difficult for you.
Prior to renting out your home, you may want to do the neighborly thing and pop in or give them a call to let them know what you are planning and do your best to ease any of their concerns. Who knows — they might even end up keeping an eye on the property for you while you’re away.
4. Being Prepared to Pay Taxes
Sure, renting your home on Airbnb may bring in a nice source of passive income. Like all income, however, this may be subject to state and federal taxes.
Generally, if you rent all or part of your home for more than 14 days in a year, you will need to pay taxes on the income. Vacation rental host sites typically send a Form 1099-K to hosts who had more than 200 reservations, earned over $20,000 in a year, or had taxes withheld from their payouts.
5. Considering All the Expenses Involved in Renting
While it may be more fun to think about the extra income that could result from your home rental, it can also be important to think about all the expenses involved.
For example, you may have to purchase items to get the space ready, along with any amenities you will offer guests (like toiletries or coffee), and cleaning supplies (or, pay for a cleaning service), and more.
You may want to make a list of all your potential expenses and consider how it will affect your potential profits.
💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.
6. Finding a House Manager if You’d Rather Not do all the Work
Does managing your listing, bookings, and maintaining your rental property sound like a lot? You might consider hiring a manager to do it for you.
There are a number of property management companies around the country. that specialize in managing short-term home rentals.
These agencies will handle everything from writing (or boosting the exposure of) your listing to communicating with guests to cleaning and taking care of repairs. Some charge a commission (i.e., a percentage of bookings), while others charge a flat monthly service fee.
7. Making Space for Guests
Prior to accepting your first guests, it’s a good idea to make sure you have room for them — and that typically means more than just a clean, freshly made bed.
You may also want to offer some empty drawers so that guests can unpack their clothing, and possibly also a free shelf in the bathroom for their toiletries.
8. Putting Away Valuables
While it’s nice to think that everyone is trustworthy, that may not always be the case. It can be a good idea to safely stow away any valuables when you are opening your home to people you don’t know.
You can do this by getting a heavy-duty safe. Or, you might want to lock off one room of the home as an “owner’s closet” that guests cannot access.
9. Checking With Your Insurance Company
Airbnb offers its hosts its own insurance known as Host Protection . Though this covers a wide array of potential issues, including bodily injury to guests and any damage to the property, it may not cover everything. Plus, different home-rental platforms may offer different levels of insurance coverage.
It can be a good idea to also check in with your own homeowners or renters insurance to see what type of coverage these policies offer.
10. Writing a Detailed Description
Ready to list? When it’s time to write a description of your home, it’s a good idea to make your listing as detailed as possible, and even include the flaws of your home. A home need not be perfect to list on Airbnb. However, the company suggests that honesty is the best policy.
It can be a good idea to tell guests exactly what they’ll find when they arrive, as well as highlight your home’s special features, such as the location or unique amenities of your space. For more ways to make your listing stand out, you may want to check out Airbnb’s writing tips .
11. Taking High Quality Photos
Before taking photos of your space, you may want to spend some time arranging everything as if you were getting ready to welcome your first guest. This can help showcase your space to its best advantage, and also help set your guests’ expectations before they book.
It’s also a good idea to shoot in landscape format (photos in search results are typically displayed in landscape, so vertical photos won’t showcase your space as well), shoot in the middle of the day when there is plenty of light, and to highlight any unique features or amenities.
12. Creating an Information Binder
It can be helpful to make a packet of information for your guests which includes key information, such as the Wi-Fi password, your contact number, and house rules (such as check-out time and anything that guests need to take care of before they leave).
You may also want to include instructions on how to work on anything quirky, such as the television or coffee maker, as well as local entertainment and restaurant options.
13. Offering A Few Extra Amenities
There are millions of listings on Airbnb. If you’re hoping that your rental will make financial freedom a reality, you’ll want it to stand out from the crowd.
Throwing in some extras can help encourage guests to choose your home over others. Are you near a popular beach? You may want to consider keeping some beach chairs and sand toys stored in the garage for guests to use.
Simple add-ons, like the use of your bicycles or a parking tag, may not cost you much (or anything) to offer, yet significantly increase the popularity of your listing — along with your earnings.
14. Making a Decision about Pets or No Pets
Before you list your property it’s a good idea to decide if you want your home to be a space for pets or not.
This is a personal decision, but you may want to consider whether or not your space is well-suited for pets (a light suede couch, for example, might not last very long). If you do decide to make your home pet-friendly, you could add in an additional fee for cleaning.
15. Learning How to Price a Property Right
You may think your home looks and feels like a million bucks, but that doesn’t mean travelers will pay a premium.
To understand how to price an Airbnb listing correctly, it’s a good idea to comb through comparable listings in your area to get a sense of what other people are charging.
You can also use a free calculator like airDNA . You just need to input all your data, including home size, if it’s pet-friendly, location, etc., to get a recommended price for your listing.
💡 Quick Tip: An emergency fund or rainy day fund is an important financial safety net. Aim to have at least three to six months’ worth of basic living expenses saved in case you get a major unexpected bill or lose income.
16. Deciding How You Want to “Screen” Guests
It is against Airbnb’s nondiscrimination policy to decline a booking based on “race, color, ethnicity, national origin, religion, sexual orientation, gender identity, or marital status” or impose different standards for specific guests.
What hosts can screen for are people who may not be a good fit for their property by being as descriptive as possible in their listing. If your home is not a good fit for children, you may want to make that clear in your listing.
Do you want to limit the noise after specific hours to respect neighbors? You may want to be specific about that in your listing so you bring in the type of customer you are hoping to attract.
17. Learning About Enhanced Cleaning Standards
Airbnb, along with other rental platforms, now require hosts to use an enhanced five-step cleaning protocol to help curb the spread of Covid-19.
The protocol includes special measures, such as using disinfectants approved by your local regulatory agencies for use against Covid-19 on all high-touch surfaces (and letting them stand for the amount of time specified on the label) and washing all dishes and laundry at the highest heat setting possible.
18. Thinking About Turnover Time
Before you rent all or part of your home on a rental platform you will want to think about not only when you want to rent your home out, but also how long it will take you to get it properly cleaned (using the five-step protocol) and ready for the next guests.
Will you need 24 hours between guests or can you get the home ready in just a couple of hours? This will determine exactly what dates you are able to accept guests, as well as what check-in time you want to put in your listing.
19. Testing Your Rental With Friends
When you’re getting close to listing your space, you may want to try testing out the system with a few friends.
Inviting people you know and trust to rent your space (free of charge or for a low fee) won’t do much to get that extra income stream flowing, but it can help you work out the kinks, as well as garner you some (hopefully positive!) reviews.
Friends can also tell you honestly what you might do differently or change to improve the rental experience. This way, you’ll feel confident once people you don’t know arrive.
20. Being Ready for Bookings Right Away
With millions of users all over the world, it may be a good idea to go into listing your property believing you’ll receive guests right away.
While this may not happen, it’s better to be prepared for visitors, than wait to see how your listing performs before readying your space for guests.
21. Looking At Your Reviews
After guests depart they may leave you a review of their stay. It’s a good idea to not only look at the reviews but to take them to heart. Reviews can make or break Airbnb rentals.
While it can be tough to digest criticism of your home, if guests complain about something that can be easily fixed, it can be in your best interest to fix it.
Reading positive reviews can be a good way to see your rental from an outsider’s perspective and make changes to improve your listing.
22. Accepting the Fact You Can’t Please Everyone
Sometimes, people are just difficult, or nitpicky, or just aren’t the right match for your listing and will leave a nasty review that feels unwarranted.
If you see a review that falls into that camp, it can be wise to just forget it and move on. This can often be a better approach than starting a fight in the comment section, which may only end up making you look bad to potential future guests.
23. Working Toward Superhost Status
Becoming an Airbnb superhost can increase your earnings by giving your more visibility and letting guests know that they can expect the best when staying with you.
Superhosts are featured in search results and get a Superhost badge on their profiles and listings to help them stand out. After each year as a Superhost, they’ll get a $100 travel coupon.
To become a Superhost, hosts must complete at least 10 stays in the past year (or 100 nights over at least three completed stays), have a 4.8 or higher average overall rating, respond to 90% of new messages within 24 hours, and cancel bookings less than 1% of the time.
24. Deciding If Airbnb Is the Only Platform for You
After deciding to list on Airbnb, it’s then time to decide if that’s enough. There are, after all, a number of other home rental platforms to choose from, including Vrbo, Booking.com , and Flipkey . It’s up to you how many different listings you’re willing to maintain.
25. Keeping Your Calendar Up to Date
Once you list your home on Airbnb (or any other rental platform), it can be wise to keep your rental calendar as up-to-date as possible. This way, guests don’t accidentally book a stay when you have your in-laws visiting or when you otherwise want to use your own space.
If a date looks to be free to a potential guest but you forgot to mark it as unavailable, it can become a frustrating experience for both parties.
The Takeaway
If you have an extra room, or your home is vacant for several months out of the year, you may be tempted to list it on a home rental site.
But before you start posting photos on Airbnb, there are several things you may want to think through — from legal and insurance issues to the time and expense involved in getting (and keeping) your space ready for guests.
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