Y OU ’ RE O UTTA H ERE ! 4.1 F INDING THE RIGHT LIVING SPACE FOR YOU !

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

L ESSON G OALS I can define key terms associated with renting an apartment. I can calculate the rent I can afford based on my net pay (using the 30% rule) I can explain the main components of a lease.

L ESSON G OALS I can compare the costs and benefits of renting. I can research an apartment that meets my needs and wants.

Rent - an agreed sum paid at fixed intervals by a tenant to the landlord Tenant - one who has the occupation/ temporary possession of lands or tenements of another; specifically: one who rents or leases (as a house) from a landlord. Terms to know when renting: 5

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. Terms to know when renting: 6

Before you Rent: 7 Putting together a checklist of what you do and do not want in your living space 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.

Before you rent 8 Practice calculating what you can afford to pay for rent: (no more than remember 30% of your net pay): If your monthly net pay is $3,000 (hint: $3,000*30%)=$ Again, you should not spend more than 30% of your net pay. Calculation check: Your Rent / 30% or $900/30%=$3,000

Before you rent: Your Turn 9 Practice calculating what you can afford to pay for rent: (no more than remember 30% of your net pay): If your monthly net pay is $4,000 Show work here: Calculation check: Show work here:

Apartment Other Options Condominium Dorm House What 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) between the Landlord and the Tenant (more later) Offers amenities or desirable or useful features or facilities of a building/complex Examples include: washer/dryer, pool, gym, playground) Has an opportunity cost … 12

If you want to move into your own apartment you must sit down and make a list of wants and needs, research what is available online, and then go look at potential locations. LOCATION, LOCATION, LOCATION AND WHAT ELSE? 13

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? List 4 here: 14 OTHER THINGS TO CONSIDER

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? List 4 here: 15 OTHER THINGS TO CONSIDER Talk with your neighbor and list 4 things that you need to consider when selecting a location !

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 your 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 (Continued) Components of a lease: 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. 20

READING A LEASE (Continued) Components of a lease: Services that may be paid by the landlord – including utilities. Utilities that may be included: Water Heat Electricity Air conditioning Cooking gas Internet (or basic cable) 21

READING A LEASE (Continued) What is the difference between a utility and an amenity? 22

READING A LEASE (Continued) Components of a lease Security deposit (lst and last month’s rent) 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 ) 23

READING A LEASE (Continued) Components of a lease 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 court if you break the terms of the lease. 24

F IND A REAL A PARTMENT … Using Using the zip code, your apartment perfect fit: Complete the Project Grid by choosing 2 apartment complexes and writing the particulars for both a 1 and 2 bedroom apartment in that complex. Fill in the chart completely. Which apartment would you prefer and why?