P E R S O N A L F I N A N C I A L M A N A G E M E N T P R O G R A M Renting

R E N T I N G2 Topics Include: Renting versus Buying The Housing Office Type, Location, Cost Negotiating the Deal Rental Inspection Renter’s Insurance International Renting Renting versus Buying The Housing Office Type, Location, Cost Negotiating the Deal Rental Inspection Renter’s Insurance International Renting

R E N T I N G3 Renting vs. Buying Buy Move a lot Unfamiliar with area Low on cash Can’t or won’t maintain Prefer fixed expenses Don’t want to risk losing equity Okay with not personalizing Don’t need tax advantage of home ownership Don’t want to be a landlord Ready for stability and sense of community Have cash for a larger initial investment Provides a tax advantage Want your equity to grow Don’t mind being a landlord Don’t mind more variable expenses Like fix your own home Want to remodel and/or personalize Rent

R E N T I N G4 The Base Housing Office Required First Stop – Briefings, Counseling, Information, Listings, Programs – Basic Allowance for Housing (BAH) Based on pay grade, zip code, dependency status Payable when authorized to live off base Required First Stop – Briefings, Counseling, Information, Listings, Programs – Basic Allowance for Housing (BAH) Based on pay grade, zip code, dependency status Payable when authorized to live off base

R E N T I N G5 Factors to Consider Needs versus Wants – Need to have vs. nice to have – Amenities Type of Rental – Size, number of rooms and bathrooms – Closet space, basement, storage – Utilities, appliances, furnishings – Parking, yard Needs versus Wants – Need to have vs. nice to have – Amenities Type of Rental – Size, number of rooms and bathrooms – Closet space, basement, storage – Utilities, appliances, furnishings – Parking, yard

R E N T I N G6 Location of Rental Distance to work School system – Safety of area City, suburb, country Availability of mass transit Proximity of childcare Proximity of services – Shopping, base facilities, libraries, police, fire, etc. Distance to work School system – Safety of area City, suburb, country Availability of mass transit Proximity of childcare Proximity of services – Shopping, base facilities, libraries, police, fire, etc.

R E N T I N G7 What can you afford to rent? Prepare, or update, your financial plan or budget Review your credit history – Set your price range – Based on budget – Based on BAH amount – 30% of net income for housing costs Save for deposits and any application fee Prepare, or update, your financial plan or budget Review your credit history – Set your price range – Based on budget – Based on BAH amount – 30% of net income for housing costs Save for deposits and any application fee

R E N T I N G8 A word on roommates: Roommates rent together for social and/or financial reasons Factors to Consider – Who pays for what – Noise, food, neatness, pets, smoking, visitors, etc. – Extended absences (deployments) Legal Issues – See NLSO before you rent! Roommates rent together for social and/or financial reasons Factors to Consider – Who pays for what – Noise, food, neatness, pets, smoking, visitors, etc. – Extended absences (deployments) Legal Issues – See NLSO before you rent!

R E N T I N G9 Conduct Your Search The Internet Personal Contacts Local Newspapers/Magazines The Base Housing Office Bulletin Boards Real Estate Agents Rental Agents Apartment Complexes The Internet Personal Contacts Local Newspapers/Magazines The Base Housing Office Bulletin Boards Real Estate Agents Rental Agents Apartment Complexes Rental Search Worksheet

R E N T I N G10 The Application Process Bring all necessary paperwork Be prepared to pay a fee Be prepared to pay a security deposit Bring all necessary paperwork Be prepared to pay a fee Be prepared to pay a security deposit

R E N T I N G11 Negotiate the Deal Renter’s incentives Term of the lease Improvements Inspect the property Use a move-in/move-out checklist Take pictures Review the lease (NLSO?) Get everything in writing Renter’s incentives Term of the lease Improvements Inspect the property Use a move-in/move-out checklist Take pictures Review the lease (NLSO?) Get everything in writing

R E N T I N G12 Renter’s Insurance It’s up to you! Minimal Coverage: Personal Property Liability coverage Inventory It’s up to you! Minimal Coverage: Personal Property Liability coverage Inventory

R E N T I N G13 Reduce Premium Costs Shop around Raise deductibles Ask for non-smoker’s discount Install fire alarm/extinguisher Use same company as life and auto insurance Shop around Raise deductibles Ask for non-smoker’s discount Install fire alarm/extinguisher Use same company as life and auto insurance

R E N T I N G14 International Renting Complicated Non-routine items Landlord/tenant responsibilities Changing currency Attend an Overseas Transfer Workshop at the FFSP Complicated Non-routine items Landlord/tenant responsibilities Changing currency Attend an Overseas Transfer Workshop at the FFSP

R E N T I N G15 Summary Identify “needs” and “wants” Visit the Base Housing Office Decide on type, location, and amenities Calculate your budget and get your credit report Use all your resources to search Negotiate and keep everything in writing Inspect the Property Purchase Renter’s Insurance Identify “needs” and “wants” Visit the Base Housing Office Decide on type, location, and amenities Calculate your budget and get your credit report Use all your resources to search Negotiate and keep everything in writing Inspect the Property Purchase Renter’s Insurance

R E N T I N G16 Print Your Certificate Click on the following link to add your name to the certificate and print it: Renting Click on the following link to add your name to the certificate and print it: Renting