Renting a Residence Section 6-5

Selecting a Rental Unit  A person who rents is called a tenant.  The person who rents the place to you is called a landlord.

What to Look for Before Renting an Apartment  Location  Finances  Building  Layout andFacilities

What to Look for Before Renting an Apartment: Location  Near school or work  Near shopping  Near public transportation  Near recreation

What to Look for Before Renting an Apartment: Finances  Amount of monthly rent  Amount of security deposit (often the same as one month’s rent)  Cost of utilities (is anything included in your rent)  Length of lease

What to Look for Before Renting an Apartment: Building  Condition of building and grounds  Recreation on premises  Parking facilities  Security system  Condition of hallways, stairs, and elevators  Access to mailboxes

What to Look for Before Renting an Apartment: Layout and Facilities  Size and condition of unit  Type and controls of heating and cooling units  Plumbing and water pressure  Type and condition of appliances  Condition of doors, locks, windows, closets, and floors

Advantage of Renting: Mobility  You can talk with your landlord and possibly leave within a matter of days if you need to relocate.  You may not be sure of where your job will take you if you are just starting out, so you may not want to settle into a house.  You may want to hold off on a house until you figure out where life is going to take you.

Advantage of Renting: Low initial costs  Renting does not require thousands of dollars as a down payment like a house.  It also does not require costs like lawyer fees, home owner’s insurance, and closing costs.

Advantage of Renting: Fewer responsibilities  If something breaks, you call the landlord.  Landlord usually takes care of mowing the lawn and shoveling snow.  Don’t have to worry about paying property taxes or insurance.

Disadvantage of Renting: Few financial benefits  You are not eligible for some tax deductions.  Subject to rent increases.  Homeowner’s pay can pay off their mortgage and eliminate their housing cost. A tenant will always have a house payment.  Homeowner’s can sell their house and make a profit (and get the money back they put in), but tenants will never get back the money they paid in rent.

Disadvantage of Renting: Lifestyle Restrictions  You may not be allowed to have pets, paint walls, or have loud parties.

Disadvantage of Renting: Legal Issues  Bound by a lease.  Never sign a lease without reading it.  Lease gives the landlord the right to take legal action if you do not pay your rent or if you damage the property.

What else affects the cost of renting?  Location  Some locations will cost more in rent than others  Living space  Bigger places will probably cost more  Utilities  You may have to pay some or all of your own utility bills  Security Deposits  Money the landlord may keep to pay for damages you may have caused in the rental. If there are no damages, he must give it back.  Renter’s Insurance  Will cover the loss of personal property due to damage or theft.

Review  What are the things you look for when renting an apartment?  What things affect the amount of rent you would pay for an apartment?  What type of apartment would best suit two friends who plan to become roommates?