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

DO NOW How often do you think of moving out when you turn 18-21? What “stuff” would you bring with you? Where do you think you would like to live and why does this location appeal to you?

DO NOW(A NSWERS )

S TANDARD 4.1 -Students will be able to understand factors associated with the cost of living space choices and furnishings.

S TUDENTS WILL BE ABLE TO RESEARCH AND IDENTIFY THE RIGHT LIVING SPACE FOR THEM Compare the costs and benefits of renting Explain the elements of a standard lease agreement (e.g., security deposit, due date, grace period, late fees, and utilities).

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 6

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 7

B EFORE YOU RENT 8 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.

B EFORE YOU RENT 9 Practice calculating what you can afford to pay for rent: (remember 30% of your net pay): Your monthly net pay is $3,000 (hint: $4,000*30%)= The rent is $900 (hint: $900/30%)=

Apartment Our primary Focus for this lesson Other Options Condominium Dorm House W HAT CAN YOU RENT ? 10

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. 11

RENTING Renting: Requires a contract (lease) Offers amenities An amenity is a desirable or useful feature or facility of a building or place *Washer/Dryer * Has an opportunity cost … 12

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 ? 13

C REATE A POSTER My Apartment Thoughts… Location plus a picture Something nearby(mall, gym, park etc.) plus pic. Pets(cat, dog, fish tank, bird etc.) plus a picture Key Items inside the apartment- 3 pics

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? 15 OTHER THINGS TO CONSIDER

ADVANTAGES OF RENTING Flexibility No repair or property maintenance costs Wide variety of amenities More freedom to relocate 16

The landlord of your apartment has insurance, but it probably only covers the building where you live – not __________belongings or your liability for accidents. 17 WHAT IS THE ADVANTAGE OF HAVING RENTERS INSURANCE?

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 their value. If someone is injured during an accident in your home, renters insurance will help protect you in the case a liability lawsuit. 18 WHAT IS THE ADVANTAGE OF HAVING RENTERS INSURANCE?

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. 19

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 (lst and last month’s rent) 20

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 21

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.

READING A LEASE Components of a standard lease: - continued Policies – such as _____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) 23

READING A LEASE Components of a standard lease: - continued Landlord’s right of entry - conditions under which a landlord can legally enter your apartment Requires everyone's signatures Is legally binding…you can be taken to ____________________if you break the terms of the lease. 24

F IND A REAL A PARTMENT … Using find two one-bedroom apartments in South Jersey (within 40 miles of 08060) Fill in the chart completely. Which apartment would you prefer and why?