Renting an Apartment You will soon be out on your own, possibly needing to find housing. Today’s lesson will help you understand the many factors that go into renting an apartment or house. We will cover: Expenses Terms & Conditions Advantages Disadvantages The Lease Agreement

Renting Expenses How much is rent? Read through the Scenarios from your packet Determine what’s important to you Will you need a roommate? What is a Security Deposit? Usually required to sign a lease Covers anything beyond normal wear & tear on the unit All or part is reimbursed depending on condition of unit when you leave. Some rental agreements will require first/last month’s rent Do I need Renter’s Insurance? Some rental properties require it Protects your property in the unit if there is any damage due to flooding/fire, etc. How much are utilities? See the Monthly Budget on the next page of your packet Renting Expenses Monthly Rent Security Deposit First/Last Month’s Rent Renter’s Insurance Utilities COST OF HOUSING SHOULD BE NO MORE THAN 1/3 YOUR SALARY Renting Expenses generally include: Monthly Rent, a Security Deposit, sometimes properties require you to pay first and last month’s rent upfront, Utilities, Renter’s Insurance. Keep in mind that the cost of housing should be no more than 1/3 your salary.

Advantages & Disadvantages of Renting Low move-in costs Fixed monthly expenses Easy to move Location choices Less maintenance & repair Fewer responsibilities May offer extra amenities (pool, fitness center) Typically less expensive then home ownership Other expenses may be included: electricity, water, sewer and/or garbage Subject to terms of the lease Rent may change with little notice Less privacy and transient neighbors Restrictions on noise level and/or pets Options to upgrade apartment are limited No tax deduction May lose rental if property is sold

What is a Lease? A legal contract between the tenant (you) and the landlord (owner of the rental property) specifying the responsibilities and rights of both parties. Lease agreements identify the rent amount, security deposit amount and details on items such as: payment for utility bills, late payment penalties, length of lease and eviction terms. Read through the next 2 pages in your packet: “Terms & Conditions of a Rental Agreement”

The Rental Lease Agreement On the next page of your packet, read through items 1-7 on the Lease Agreement. It’s important that you read and understand lease agreements before you sign them Take the rest of the time today to read through the remainder of the lease agreement. What questions do you have?