Living On Your Own Adult and Family Living Unit 13

Define Housing Alternatives Apartment – One rented living space in a multi- family building; can be high-rise, low-rise; furnished or unfurnished; one-bedroom or more; efficiencies, flats, and studio apartments Apartment – One rented living space in a multi- family building; can be high-rise, low-rise; furnished or unfurnished; one-bedroom or more; efficiencies, flats, and studio apartments Assisted Living – Apartment or room in a facility where some services are provided, such as meals, housekeeping, and some transportation Assisted Living – Apartment or room in a facility where some services are provided, such as meals, housekeeping, and some transportation Condominium – Multi-family building in which each individual owns his or her unit; may be one or more level Condominium – Multi-family building in which each individual owns his or her unit; may be one or more level Objective 1

Define Housing Alternatives cont. Custom-built House – House built with an architect’s design and the buyer’s specifications Custom-built House – House built with an architect’s design and the buyer’s specifications Duplex – Two separate Living units in one building; they share one wall Duplex – Two separate Living units in one building; they share one wall –Other common-wall buildings are triplexes (3 units) and fourplexes (4 units) Manufactured House – House constructed partially or completely in a factory, then transported to the building site, where construction is completed; also called pre-fab Manufactured House – House constructed partially or completely in a factory, then transported to the building site, where construction is completed; also called pre-fab –Some can be moved by attaching wheels Objective 1

Define Housing Alternatives cont. Loft – Apartment or condominium on top floor of a business building that has been converted into living units Loft – Apartment or condominium on top floor of a business building that has been converted into living units Nursing Home – Facility in which individuals needing nursing care have individual or shared rooms Nursing Home – Facility in which individuals needing nursing care have individual or shared rooms Older or “Pre-owned” House – Single-family house that other families have owned Older or “Pre-owned” House – Single-family house that other families have owned Rent House or Room – Single-family house or individual room that is rented in a house Rent House or Room – Single-family house or individual room that is rented in a house Objective 1

Define Housing Alternatives cont. Retirement Home – House designed for older adults, usually accommodates their physical restrictions Retirement Home – House designed for older adults, usually accommodates their physical restrictions Townhouse or Row House – Two-level house that shares two walls with other houses; one of several houses built in rows Townhouse or Row House – Two-level house that shares two walls with other houses; one of several houses built in rows Tract House – House built by a developer who builds an entire neighborhood at once using a few basic plans Tract House – House built by a developer who builds an entire neighborhood at once using a few basic plans Objective 1

Define Housing Alternatives cont. University Housing – Apartments or rooms built and maintained by government for low rent University Housing – Apartments or rooms built and maintained by government for low rent Vacation or Resort House – House most often in recreation area; second house a family owns; may be smaller or quainter than primary residence Vacation or Resort House – House most often in recreation area; second house a family owns; may be smaller or quainter than primary residence Objective 1

Complete Assignment Sheet #1 Objective 2

Identify Factors to Consider When Selecting Housing Amenities – special features, such as swimming pools, tennis courts, laundry room The following factors should be examined carefully before renting or purchasing any type of housing: Basic Personal or Family Needs and Standards – Number and purposes of rooms, amenities, security, cleanliness, and safety Basic Personal or Family Needs and Standards – Number and purposes of rooms, amenities, security, cleanliness, and safety Objective 3 Words to Know

Identify Factors to Consider When Selecting Housing cont. Cost – Insurance, maintenance, taxes, utilities, security deposits, or down payments Cost – Insurance, maintenance, taxes, utilities, security deposits, or down payments Interior Conditions and Appearances – Condition of walls, floor, plumbing, kitchen and bathroom fixtures, lighting, and water pressure Interior Conditions and Appearances – Condition of walls, floor, plumbing, kitchen and bathroom fixtures, lighting, and water pressure Exterior Construction and Appearances – Condition of facade, roof, lighting, landscaping, driveway, sidewalks; consider maintenance required to keep at acceptable level Exterior Construction and Appearances – Condition of facade, roof, lighting, landscaping, driveway, sidewalks; consider maintenance required to keep at acceptable level Objective 3

Identify Factors to Consider When Selecting Housing cont. Location Convenience – Access to public transportation, police and fire protection, shopping areas, recreation and entertainment, churches, schools, hospitals, work places, libraries, availability of city trash removal, and street cleaning Location Convenience – Access to public transportation, police and fire protection, shopping areas, recreation and entertainment, churches, schools, hospitals, work places, libraries, availability of city trash removal, and street cleaning Neighborhood Character – Appearances of other homes, noise level, adequacy of lighting, and traffic safety Neighborhood Character – Appearances of other homes, noise level, adequacy of lighting, and traffic safety Objective 3

Identify Factors to Consider When Selecting Housing cont. School District – Reputation and location of schools in area, availability of busing School District – Reputation and location of schools in area, availability of busing Site Orientation – Direction house or unit faces, prevailing wind and sunlight Site Orientation – Direction house or unit faces, prevailing wind and sunlight Utility Costs – Expense of heating, cooling, water, sewage, trash service, and electricity Utility Costs – Expense of heating, cooling, water, sewage, trash service, and electricity Zoning Regulations – Types of housing and businesses near the residence Zoning Regulations – Types of housing and businesses near the residence Objective 3

Spending Guidelines for Housing The amount of money a person can spend on housing depends upon several factors: importance of housing to the buyer or renter, amount of income, available cash, and future ability to continue payment. Because taxes and fees vary, the guidelines below are for housing only, not including utilities and upkeep. Those amounts must be figured in addition to the housing payment. Mortgage companies use four guidelines to help determine if you qualify for a home loan. Objective 4

Spending Guidelines for Housing cont. Housing-to-Income Ratio This ratio compares the sum of the monthly housing expenses (including payment on loan, homeowner’s insurance, property taxes, and condo fees) to monthly gross income: Housing expenses should equal 28% or less of monthly gross income Housing expenses should equal 28% or less of monthly gross income Dept-to-Income Ratio This ratio compares the sum of monthly debt obligation (including the prospective mortgage) to monthly gross income. Dept payment should equal 36% or less of monthly gross income. Dept payment should equal 36% or less of monthly gross income. Objective 4

Spending Guidelines for Housing cont. Minimum Down Payment Requirement Down payments vary. Three to five percent is common. Some programs allow for a zero down payment; some companies require up to 20% down payment. Down payments vary. Three to five percent is common. Some programs allow for a zero down payment; some companies require up to 20% down payment. Credit History If applicant has a record of being unreliable in repaying debts, the loan may be denied. Loans approved for high credit risks may have higher interest rates. Credit history must reflect ability and willingness to pay in full on time; even if you can afford the payments, you may be considered a poor risk because of your previous behavior. Credit history must reflect ability and willingness to pay in full on time; even if you can afford the payments, you may be considered a poor risk because of your previous behavior. Objective 4

Complete Assignment Sheet #2 Objective 5

Describe Fees and Deposits Associated With Housing Landlord – property holder; land owner Lease – legal document granting use of property and stating terms of agreement between landlord and tenant Tenant – renter; leaseholder; lessee Objective 6 Words You Should Know

Describe Fees and Deposits Associated With Housing cont. Once a housing decision is made and a moving date set, the next step is to check with utility companies regarding fees and deposits for services. The following are common: Telephone installation fees and deposits Telephone installation fees and deposits Cable television hookup; this may include Internet services. Cable television hookup; this may include Internet services. Objective 6

Describe Fees and Deposits Associated With Housing cont. Security deposits on rental property Security deposits on rental property This deposit is commonly required in a lease. Before moving in, the future tenant pays the owner a specific amount to cover any possible damage to the property. When the tenant moves out of the property, the cost of repairing damages is deducted from the deposit and the remaining money is refunded to the tenant. This deposit is commonly required in a lease. Before moving in, the future tenant pays the owner a specific amount to cover any possible damage to the property. When the tenant moves out of the property, the cost of repairing damages is deducted from the deposit and the remaining money is refunded to the tenant. Objective 6

Complete Assignment Sheet #3 Objective 7

Identify Conditions to Check in Leases Lease-purchase – provides option for purchasing property after renting for a specific length of time; may or may not apply rent to sales price Periodic Lease – no specific period of time specified; may be terminated in 30 days by either tenant or landlord Sublet – allows leasee to rent apartment to another person; responsibility for property lies with the original tenant Term Lease – good for specific period of time, then expires Objective 8 Words You Should Know

Identify Conditions To Check In Leases cont. Rent – How much is it? How is it to be paid? Watch for clauses which state the landlord can raise rent if taxes go up. Rent – How much is it? How is it to be paid? Watch for clauses which state the landlord can raise rent if taxes go up. Renewal – Check for how renewal or nonrenewal notice is to be given; determine if this is a term or periodic lease Renewal – Check for how renewal or nonrenewal notice is to be given; determine if this is a term or periodic lease Sublet – Check to see if a new tenant must be approved by landlord Sublet – Check to see if a new tenant must be approved by landlord Security Deposit – May be one month’s or two months’ rent; may be returned within 30 days after tenant leaves if landlord’s provisions have been met; this should be confused with rent paid in advance Security Deposit – May be one month’s or two months’ rent; may be returned within 30 days after tenant leaves if landlord’s provisions have been met; this should be confused with rent paid in advance Objective 8 The four major conditions that should be explained in leases are:

Identify Conditions To Check In Leases cont. Address and specific residence number Address and specific residence number Amount of security deposit required and the conditions for its return Amount of security deposit required and the conditions for its return Amount of rent to be paid; where and when it should be paid; if a lease/purchase, what percent applies toward purchase. Amount of rent to be paid; where and when it should be paid; if a lease/purchase, what percent applies toward purchase. Clause stating that final inspection of the premises will be made in the tenant’s presence Clause stating that final inspection of the premises will be made in the tenant’s presence Objective 8 CHECK FOR THE FOLLOWING INFORMATION:

Identify Conditions To Check In Leases cont. Date of occupation and period of time for which lease is effective Date of occupation and period of time for which lease is effective Description of premises Description of premises House rules for tenants House rules for tenants Provision for changing lease Provision for changing lease Responsibility for utility costs Responsibility for utility costs Responsibility for maintenance and decorating Responsibility for maintenance and decorating Objective 8

Identify Conditions To Check In Leases cont. Responsibility for maintenance and decorating Responsibility for maintenance and decorating Right of landlord to inspect premises; an entry clause allowing the landlord to enter the apartment for specific reasons with notice or in an emergency Right of landlord to inspect premises; an entry clause allowing the landlord to enter the apartment for specific reasons with notice or in an emergency Rules for keeping pets Rules for keeping pets Signature of tenant and landlord; question anything that is not understood. Signature of tenant and landlord; question anything that is not understood. Objective 8

Zachariah Champagne Developed by: Zachariah Champagne Tishomingo High School