© South-Western Educational Publishing Renting a Residence

GOALS © South-Western Educational Publishing Renting a Residence  Describe several housing rental alternatives.  Discuss potential living arrangements and moving choices.  List the advantages and disadvantages of renting a place to live.  Describe the elements of a rental application, rental inventory, and lease.  Discuss landlord and tenant responsibilities.

© South-Western Educational Publishing Housing Alternatives  On-campus Housing  If you are a college student this is one alternative  Dormitory – on campus building that contains many small rooms that colleges rent to students o Contains needed furniture o Usually have a roommate o Most dorms have lounges for watch television and facilities for doing laundry o Eating facilities near by for students in on-campus housing

© South-Western Educational Publishing Housing Alternatives  On-campus Housing  Sororities and fraternities o Provide on-campus housing to some of their members o Must be a member of the sorority or fraternity Pledging – process one must go through to become a member. Generally seek members with goals, abilities, and ideals similar to those of the organization

© South-Western Educational Publishing Housing Alternatives  On-campus Housing  Housing cooperatives o Get a room similar to a dorm room o Have responsibilities such as Keeping room clean Share in cooking, cleaning, maintaining the building, etc o Typically have lower rent

© South-Western Educational Publishing Housing Alternatives  On-campus Housing  Major advantages of on-campus housing o Proximity to classes and campus activities o Access to campus resources (library, health center, etc) o Feeling of being part of campus life

© South-Western Educational Publishing Housing Alternatives  On-campus Housing  Disadvantages o Pay a flat fee for housing and meals whether you use them or not

© South-Western Educational Publishing Housing Alternatives  Apartments  Rent based on o Size and quality of the apartment o What other facilities are provided o Distance to other parts of town

© South-Western Educational Publishing Housing Alternatives  Apartments  Apartment can be located through brochures, newspaper ads, online, etc  Efficiency Apartment (Studio Apartment) o Contains one large room and a bathroom o Less living space o Less expensive

© South-Western Educational Publishing Housing Alternatives  Apartments  Larger apartments o Contains separate living and dining areas in a variety of floor plans Townhouses – two story models

© South-Western Educational Publishing Housing Alternatives  Apartments  Apartments are usually multi-unit buildings with many units  Often provide other facilities such as o Laundry room o Storage area o Swimming pool o Tennis courts o Etc

© South-Western Educational Publishing Housing Alternatives  Apartments  Sometimes utilities are included in the rent, sometimes not  Before renting people should be aware of the rules of the apartment complex o Pets o Restrictions on noise o Etc.

© South-Western Educational Publishing Housing Alternatives  Duplexes  A building with two separate living units. o Typically each unit is exactly the same, but with separate entrances o Duplexes often offer more space and more privacy

© South-Western Educational Publishing Housing Alternatives  Duplexes  May include o Garage o Carport o Private laundry facilities  In some cases duplex renters are expected to perform maintenance activities

© South-Western Educational Publishing Housing Alternatives  Condominiums  An individually owned unit in an apartment style complex with shared ownership of common areas.  Condo owner becomes member of the homeowners association which is responsible for the property management o Each owner pays a monthly fee to cover the cost of maintaining common areas (such as recreational areas) and the outside portion of the units o Individual owners are responsible for maintaining the interior

© South-Western Educational Publishing Housing Alternatives  Houses  Rental houses have many advantages o More living space o Privacy o Neighborhood living  More expensive to rent than apartments

© South-Western Educational Publishing Living Arrangements  Some considerations (roommates)  Personal habits – drinking, smoking, etc  Cleanliness – is neatness important or not  Ability to pay – do all roommates have steady employment or other sources of income so that all can pay rent  Goals – do they somewhat match your roommate

© South-Western Educational Publishing Living Arrangements  Some considerations (roommates)  Leisure activities – do roommates share interests  Transportation – will it be shared, etc.  Personality types  Do you really know your roommates

© South-Western Educational Publishing Where To Live  Will depend on finances  For college students living on-campus the decision will be made for you  Renting requires more planning and decision making

© South-Western Educational Publishing Where To Live  Things to consider when deciding where to live  Deposits and fees o Security deposit – a refundable amount paid in advance to protect the owner from possible damage or non-payment. Will get money back if you take care of the property and pay your rent on time o Utility companies may also require a deposit o Fees – non-refundable charges such as a cleaning fee for the next renter

© South-Western Educational Publishing Where To Live  Things to consider when deciding where to live  Length of time you plan to live there o Leases are a commitment to stay for a period of time and you may face penalties if you leave sooner

© South-Western Educational Publishing Where To Live  Things to consider when deciding where to live  Distance from work or school  Distance from places you will frequently go to o Shopping o Laundry o Gas stations o Etc

© South-Western Educational Publishing Where To Live  Things to consider when deciding where to live  Repairs and maintenance you are expected to perform  Financial experts advise that you allot 30 percent of your total budget for housing. This may require that you have a roommate initially until you can afford it on your own

© South-Western Educational Publishing What to Take  Rental houses may be furnished or unfurnished  Furnished – basics provided such as furniture and some appliances  Unfurnished – may have appliances, but nothing else  Fewer the items furnished, the lower the rent

© South-Western Educational Publishing What to Take  Can buy or rent furnishings, but rent to own options are very expensive

© South-Western Educational Publishing What to Take  Household and personal items to set up a house  Towels, wash clothes, sheets, etc  Cleaning supplies (mops, brooms, buckets, cleaners of various types)  Personal items (shampoo, soap, etc)  Clothing, shoes, etc  Dishes, silverware, pots, pans, etc.  Lamps, clothes hangers, clocks, radio, televisions, decorations of various types  Rugs, draperies, shower curtain, etc.  Many of these items can be shared with a roommate

© South-Western Educational Publishing Planning Your Move Set aside savings to cover security deposit, rent, fees, and initial expenses

© South-Western Educational Publishing Planning Your Move  Have a reliable source of income to pay all bills  Rent  Utility bills  Any other expenses  Will probably have to fill out an application and landlord will probably run a credit report

© South-Western Educational Publishing Planning Your Move  Accumulate over time what you will need for the living quarters  Make a list and check off as they are obtained  Plan to move with your career goals in mind

© South-Western Educational Publishing Planning Your Move  Make arrangements for transporting furnishings  Professional movers (very expensive)  Friends

© South-Western Educational Publishing Group Financial Decisions  All roommates are responsible for meeting their share of the obligations  Rent  Utilities  Cable  Internet charges  Groceries  Etc

© South-Western Educational Publishing Group Financial Decisions  Their should be group budgeting so that each person pays his or her fair share  All roommates should agree to the plan of allocating expenses

© South-Western Educational Publishing Moving Costs  Includes time and money spent in packing, storing, transporting, loading and unloading, and unpacking

© South-Western Educational Publishing Moving Costs  Professional movers  Charge according to o The amount you have to move o Distance to new location o How much packing they have to do

© South-Western Educational Publishing Moving Costs  You can have substantial savings by  Renting a truck  Using own labor of completing all tasks of moving

© South-Western Educational Publishing Installation Charges  Phone  Cable  Electricity  Etc.

© South-Western Educational Publishing Advantages of Renting  Landlord – the owner of rental property  Tenant – the person who rents property for a landlord

© South-Western Educational Publishing Advantages of Renting  Mobility  Easier to move when a good job opportunity comes along somewhere else

© South-Western Educational Publishing Advantages of Renting  Convenience  Laundry facilities  Recreational facilities  Often conveniently located near shopping malls, downtown areas, etc

© South-Western Educational Publishing Advantages of Renting  Minimal responsibilities  Landlord has responsibilities for repairs, maintenance of grounds, etc  Social life  Can meet others and socialize etc

© South-Western Educational Publishing Advantages of Renting  Lower living expenses  Typically lower than the cost of buying a house

© South-Western Educational Publishing Disadvantages of Renting  Noise  Live in close proximity to other people which may result in noise problems  Lack of privacy  People may hear your conversations and other activities

© South-Western Educational Publishing Disadvantages of Renting  Small quarters  Usually less living space than other alternatives  Lack of storage space  Less cabinet and closet space

© South-Western Educational Publishing Disadvantages of Renting  Lack of parking  Some provide no parking or limited parking

© South-Western Educational Publishing Rental Agreements  When renting you must fill out an application form that allows the landlord to check  Your employment and income  Previous rental experience  Credit rating  Etc.

© South-Western Educational Publishing Rental Agreements  Landlord wants to assure that you are a good risk  Will pay on time  Be a good tenant

© South-Western Educational Publishing Rental Agreements  Landlord can refuse rental based on:  Past rental history  Employment record  Credit rating

© South-Western Educational Publishing Rental Agreements  Landlord cannot refuse rental based on:  Race  Religion  National origin  Sex  Marital status

© South-Western Educational Publishing Leases and Month-to- Month Agreements  Lease – a written agreement that allows a tenant to use property for a specified time period and rent.  Six months  One year  Two years  Any other agreed upon time

© South-Western Educational Publishing Leases and Month-to- Month Agreements  With a lease  Landlord cannot raise rent until the lease expires (unless agreed upon in the lease)  If you move before the lease expires, you are still responsible for the remaining rent payments  Most leases require a 30 day notice prior to leaving (at the end of the lease) and require that landlord inform you of rent increases

© South-Western Educational Publishing Leases and Month-to- Month Agreements  Month-to-Month  Can leave anytime, as long as you give the required notice  Does not require you to pay rent for a period of time longer than a month, but also does not lock in the rent for more than a month

© South-Western Educational Publishing Leases and Month-to- Month Agreements  Both lease and month-to-month rental agreements include provisions for  Deposits and their return to you  Termination of rental  Rent payments  Tenant and landlord responsibilities  Etc.

© South-Western Educational Publishing Leases and Month-to- Month Agreements  It is important that you understand all parts of the agreement

© South-Western Educational Publishing Rental Inventory  When you live in a rental property it is expect that you will leave it in the same condition that you find it, with no damage

© South-Western Educational Publishing Rental Inventory  An inventory of the property should be completed when moving in and should note the condition of the property  Broken windows  Missing window screens  Holes in walls  Torn carpeting  Plumbing problems  Appliance problems  Any other problems with the property

© South-Western Educational Publishing Rental Inventory  Inventory should be done along with the landlord  When you move out, an inventory should be completed again so that a comparison can be made with the original one  This will determine how much of your security deposit you get back

© South-Western Educational Publishing Landlord Obligations Most states have laws that require that the landlord provide a property that is livable at all times

© South-Western Educational Publishing Landlord Obligations  Must meet the following conditions  The exterior (roof, walls, doors, and windows) is weatherproof and waterproof  Floors, walls, ceilings, stairs, and railings are in good repair  Elevators, halls, and stairwells meet fire and safety regulations (smoke detectors are required in most states)

© South-Western Educational Publishing Landlord Obligations  Must meet the following conditions  Adequate locks are provided for all outside doors, working latches are provided for all windows, and exits meet fire and safety regulations  Plumbing facilities comply with local and state laws and are in good working condition  Water supply is adequate

© South-Western Educational Publishing Landlord Obligations  Must meet the following conditions  Lighting, wiring, heating, air conditioning, and appliances are in good condition and comply with building and safety codes  Buildings and grounds are clean and sanitary, garbage receptacles are adequate

© South-Western Educational Publishing Tenant Obligations  Read, understand, and abide by the terms of the rental agreement

© South-Western Educational Publishing Tenant Obligations  Pay the rent on or before the due date  Failure to do so results in o Late fees o Termination of the agreement o Eviction – the legal process of removing a tenant from rental property

© South-Western Educational Publishing Tenant Obligations  Give 30 to 60 days notice of intent to move  Prevents the loss of security deposit  Allows the landlord time to rent the unit

© South-Western Educational Publishing Tenant Obligations  Keep the premises in good, clean condition, and to prevent unnecessary wear and tear or damage to the unit  Use a dwelling only for the purposes intended  Allow the landlord access to the living unit to make repairs or improvements

© South-Western Educational Publishing Tenant Obligations  Obey the rules of the apartment complex or community living area  Quiet hours  Use of recreational facilities  Use of laundry facilities  Parking regulations