© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman How to Locate A Living Space

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Introduction Needs and Wants Determining Housing Costs Housing Options Locating a Living Space Reading an Ad for a Living Space Rental Search Checklist Completing an Application form

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Needs and Wants Space Location Amenities Parking Miscellaneous

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Space How many rooms are needed? Will there be roommates? Monthly charges are typically more affordable when people share the cost Size of the rooms (total square feet) Number of bathrooms Garage What is the size of the garage? Storage Space Yard

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Location Distance from work, schools, shopping, laundromat Consider the walking/biking distance from school or work Minimize transportation expenses Neighborhood Safety Quality of schools, streets, and homes Presence of police, fire, and emergency services Geographic location Urban vs. rural

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Amenities Amenities include utilities like heat, electricity, garbage, water, and other features like Internet and telephone service Heat- Examples include electric, gas, and radiant Different heating sources cost different amounts of money Power- Examples include solar, gas, electric, and wind Different power sources cost different amounts of money and have different affects on the environment Who is responsible for paying each bill? Landlord is the person who owns the rental unit Tenant, or renter, is the one who rents the property

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Parking Location/size Number of vehicles allowed (for self and guests) Permits needed

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Miscellaneous Washer and dryer Are hookups or machines provided? Dishwasher Are hookups or machines provided? Smoking Pets Fireplace Hot tub Snow removal and lawn maintenance

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Determining Housing Costs Important to choose a rental unit one can afford Create a spending plan Spending plan is a financial statement used to assist in money management and track income and expenses Based on this, determine what can be spent on rent and amenities Rent is the payment made in exchange for occupying another’s land or property, usually paid to landlord or property manager Property manager is a person who works for the owner to find/screen tenants, collect rent, maintain property, and respond to tenants’ needs

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Housing Costs continued General rule: Households should spend 30% or less of their net income on housing, not including amenities Things to keep in mind when determining costs: Determine maximum monthly amount (including amenities) you can afford and stay below that Compare the costs of living spaces One space may not include amenities in the rent, where another space will. Add in expected costs to compare the two

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Housing Costs continued Compare one time costs, like security deposits Security deposit is money paid in advance of moving in to be used for repairs beyond normal wear and tear

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Housing Options Houses-Single housing units usually surrounded by a yard, varying in size Apartments-Sets of rooms on one floor or a building used as separate residence spaces Studio apartments-Usually one room with separate space for kitchen and bathroom Mobile homes-Manufactured house that is capable of being moved

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Housing Options Continued Condominiums-Single apartment in a multiple housing structure, that can contain multiple stories, garages, and yards Duplexes-Two apartments, situated side-by-side Rooms-Private rooms located within another structure Residence halls-Usually located on college or university campuses and available for attending students

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Locating a Living Space Friends and family members- If in the area you wish to inhabit Newspaper Classifieds-Obtain these through newspapers as soon as possible for increased opportunities for the living space you want Bulletin boards-Homeowners and property managers post listings this way Internet-Great way to start searches from distant locations

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Locating a Living Space Continued Yellow pages- Search under “Apartment Rentals” and call apartment or property management offices Local Chamber of Commerce- Valuable resource when relocating Rental agencies/real estate agencies- Hold postings for rental spaces In front of living space- Owners often post a sign when spaces are available

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Reading an Advertisement For a living Space Abbreviations are often used in advertisements for living spaces BR-Bedroom BA-Bathroom W/D-Washer/Dryer (may be hookups or machines) DW-Dishwasher

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Reading an Advertisement Continued NS- No smoking NP- No pets (may be negotiable-you may pay more if you have pets) F/P-Fireplace AC- Air conditioner W/S/G-Water, Sewer, and Garbage

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Rental Search Checklist Helpful to take a checklist while walking through rental units Makes it easy to remember what was liked and disliked from place to place May be difficult if one is not able to take a walk through A person may be able to take a virtual tour and use the checklist

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Completing an Application Form If an individual locates a living space they would like to rent, they should complete an application form An application form is a document used to determine if a person’s credit history, financial stability, and references make them a worthy candidate All information on this form should be truthful, factual, and answered completely

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Application Form continued Before returning the application, a person should ask some questions: Is there an application fee? If there is a fee, how much is it? Will this fee be returned if the application is denied?

© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman G1 Conclusion Prioritize needs and wants Determine housing costs Locate a living space Get ready to move in!