Renting a Residence

Key Questions When do you plan on renting your first apartment? How much do you think that it will cost? Do you think that you will need a roommate?

Selecting a Rental Unit Tenant- person who pays for the right to live in a residence by someone else Landlord- person who owns the property that is rented

Size and Cost Normally the size of the apartment dictates its cost Location also factors in the cost

Advantages of Renting Mobility and Fewer Responsibilities Low Initial Costs

Mobility and Fewer Responsibilities Usually you can move with 30 days notice If cost goes up you can find another place No major repairs or maintenance

Low Initial Costs Buying a house requires a large down payment Renting an apartment usually costs from $0 to the cost of the 1st months rent

Disadvantages of renting Few financial benefits A restrictive environment

Financial and lifestyle restrictions In some cases renting is more expensive Homeowners are eligible for tax deductions Homeowners own their property

Legal issues Lease is a legal document that defines the conditions of the rental agreement between tenant and landlord

The cost of renting Several factors affect and determine the price of reality

location The neighborhood or location will determine price

Living space The amount of space you want can determine price Usually the larger the space the more expensive the rent

utilities At some places you pay the utilities At others the landlord pays the utilities It will be in the lease Utilities are things such as electricity, gas, water, etc.

Security deposit A security deposit is an amount of money paid to the owner of the property to guard against loss or damage that the tenant might cause

Renter’s insurance Renter’s insurance covers the loss of a tenant’s personal property

Evaluating Housing Alternatives Advantages Disadvantages Renting an Apartment Easy to move Low maintenance Low financial commitment No tax limit Limitations on activities Less privacy Renting a House More space Higher utility expense Some limitations on activities No tax advantage Owning a House Pride of ownership Plenty of space Tax benefits Financial commitment High living expenses Limited mobility Owning a condominium Fewer maintenance costs Access to recreation and businesses Less privacy than in a house Need to get along with others Typically small and limited space Hard to sell Owning a Mobile Home Less expensive than other ownership options May be hard to sell Possible poor construction quality

Activity Apartment Comparison Activity