Y OU ’ RE O UTTA H ERE ! F INDING THE RIGHT LIVING SPACE FOR YOU

D O N OW How often do you think of moving out someday? If you were to rent a one bedroom apartment what would be most important to you in regard to this apartment or its location? Predict some of the pitfalls of moving out without a plan…

S TANDARD 4.1Understand factors associated with the cost of living space choices and furnishings.

Rent - an agreed sum paid at fixed intervals by a tenant to the landlord Tenant - one who has the occupation or temporary possession of lands or tenements of another; specifically : one who rents or leases (as a house) from a landlord T ERMS TO KNOW WHEN RENTING 4

Landlord -the owner of property (as land, houses, or apartments) that is leased or rented to another Lease - a contract by which one conveys real estate, equipment, or facilities for a specified term and for a specified rent. T ERMS TO KNOW WHEN RENTING 5

B EFORE YOU RENT 6 Putting together a checklist of what you do and do not want will help you make an informed choice. Consider what you can afford NOTE: You should never use more than 30% of your net pay on your monthly housing payment.

Y OUR CHECKLIST What would you include on your checklist?

Apartment Our primary Focus for this lesson Other Options Condominium Dorm House W HAT CAN YOU RENT ? 8

RENTING Renting: Is often the least expensive housing option Offers a set monthly expense Has minimal maintenance responsibility Provides the ability to relocate relatively easily when your lease expires. Requires a contract (lease) Offers amenities: An amenity is a desirable or useful feature or facility of a building or place (Washer/Dryer) Utilities are heat, electric, gas, cable and phone hook up 9

If you want to move into your own apartment you must sit down and make a list of “wants,” research what is available online, and then go look at potential locations. L OCATION, L OCATION, L OCATION & W HAT ELSE ? 10

F ACTORS What factors into location decisions? Please personalize your answer…

What is one of the most important things to consider in choosing the location where you will live? Accessibility to work and school What other things would you consider? 12 OTHER THINGS TO CONSIDER

The landlord of your apartment has insurance, but it probably only covers the building where you live – not your belongings or your liability for accidents. If your possessions are stolen during a break-in or damaged by a fire or severe weather, a renters insurance policy will allow you to recover the value. 13 WHAT IS THE ADVANTAGE OF HAVING RENTERS INSURANCE?

ADVANTAGES OF RENTING Flexibility No repair or property maintenance costs Wide variety of amenities More freedom to relocate 14

READING A LEASE Components of a standard lease: Landlord information - identifies the landlord and how to contact them. Tenant names - include the names of ALL roommates on the lease. Apartment address - street address and apartment number. 15

READING A LEASE Components of a lease: - continued Rent - exact amount of payment and how often it is paid (weekly, monthly, etc.) Additional fees - for certain services, such as replacing a key, allowing pets, carports, and late fees and so forth. Services paid by the landlord – such as water or any other utilities. Security deposit (1 st and last month’s rent) 16

READING A LEASE Components of a standard lease: - continued Policies – such as pets or redecoration (painting) Lease start date and end date Month-to-Month - Can give notice and leave before one-year without penalty 12 Month Lease – Would not be able to leave before one year unless willing to forfeit security deposit (penalty for breaking lease) Landlord’s right of entry - conditions under which a landlord can legally enter your apartment Requires everyone's signatures 17

H OW MUCH DO I NEED TO EARN ? What monthly income would you need to afford the apartment? Example: If I found an apartment that cost $1,200 per month and I know that I can only use 30% of my monthly take home pay on my housing expense I would need to bring home (net pay/take home pay) $4,000 per month in order to afford that apartment.

O N YOUR O WN If you rented an apartment how much would you want to spend per month? Please divide this answer by.30 to find your net income necessary to fund this apartment. New example: If Charlene has a yearly salary of $60,000, then what monthly maximum can she spend on an apartment using the 30% rule?

F IND A REAL A PARTMENT … Using find two one-bedroom apartments two two-bedroom apartments in South Jersey (within 40 miles of 08060) Fill in the chart completely, include: rent, length of lease, square footage, rules regarding pets, laundry accessibility, appliances included, storage, utilities (amenities), parking availability, closet space, and are their ceiling fans? Also include nearest mall & school district Which apartment would you prefer and why?

E XIT T ICKET Please complete this after finishing the researching of the apartment exercise online. What 2 factors were most influential in your renting decision? How might your choice have been different if you knew- A. You would be moving in 1 year? B. Your job may not have steady hours?

* Please share your answers with a neighbor and record 1 of their ideas.