1. Renting CMAGNO

2. Did You Know? 1/3 of all people in the U.S. rent Who are these people? – Majority are: singles, young couples, and senior people – Many have very mobile lifestyles. The most common rented dwellings are multi- family dwellings (duplexes, triplexes and apartment buildings). Single family houses as well as condominiums are also rented. CMAGNO

3. Advantages of Renting: Its easier to move in and out. Don’t have to pay a mortgage. Less space to handle. Maintenance is taken care of 24 hours Tennis courts or pools are included sometimes. Generally costs less than buying. CMAGNO

4. Disadvantages of Renting: Noises. Neighbors are in close quarters. Weird, dirty, mean, loud, neighbors. Parking spaces are small, can be taken by others. Small space, not much storage room. Can’t make changes to it. CMAGNO

5. Disadvantages of Renting (cont.): No tax benefit No investment in or from property. No equity in the building. Rent payment can increase frequently. Possibility of eviction. Neighbors CMAGNO

6. The Rental Process- Financial Aspects Terms to know: – 1. Tenant- (lessee)- Person who rents a property from the owner of that property. – 2. Landlord-(lessor)- Owner of the property. – 3. Application fee- fee when filling out application (shows renter is serious); $25-100 depending on the city. – 4. Credit Check fee- fee paid to the landlord to have your credit checked through a credit agency (tells landlord if the renter is paying bills on time). CMAGNO

7. The Rental Process- Financial Aspects- cont. 5. Security Deposit – Fee that covers costs of future damage by renter (can be one or more month’s rent); Usually returned if no damage. 6. Pet Deposit – Fee that covers any damage by a pet. 7. Advance on Rent – Landlord requires one or more month’s rent in addition to the security deposit. 8. Utilities- Water, sewer, gas, electricity, trash collection; Landlords sometimes pay for all the above mentioned or may require tenant to pay for all, plus telephone and cable. 9. Renter’s Insurance – Insurance to cover the renter’s belongings in the event of flood, fire, theft or any other hazard; very inexpensive. (Get it!) CMAGNO

8. Utilities – Electricity – Natural gas – Water/Sewer – Telephone – Cable – High speed internet – Renter’s insurance CMAGNO

9. Legal Aspects Lease Assign Sublet Breach of Contract Eviction CMAGNO

10. Legal Terms: 1. Lease - Legal document signed by landlord and tenant agreeing to rent housing for a specific period of time, states rights and duties of both parties. Typically one year. The most binding type of rental agreement. Do not sign a lease until you understand everything in it! (Can get help from renter’s association in your community or state). CMAGNO

11. Assigning or Subletting a Lease: If you have signed a lease, but you wish to move out early, you have the following 3 options: – 1) Continue rent payments until lease expires. – 2) Assign the lease. – 3) Sublet the lease. Reasons for leaving early??? CMAGNO

12. Assigning or Subletting a lease… To Assign : – When the remainder of the lease is transferred to another person. – The original tenant is no longer responsible for rent or damages To Sublet : – The lease, renter leases the property to someone else – Renter leases the property to someone else. – Renter is still responsible for all rent and damages. – Short-term temporary agreement. Ex: college student leaving and subletting to another student for the summer. CMAGNO

13. When The Lease Is Violated: 1) Breach of contract- – Legal phrase for failure to meet the terms of the contract or lease. – The most common type is non-payment of rent. Can a landlord be found guilty of a breech of contract? YES! If there is a failure to provide water, heating, etc, the contract has been violated. CMAGNO

14. Eviction Legally removing a person from the property. Can only be started after tenant has failed to meet the terms of the lease. Must provide a written legal notice of eviction to the renter. Varies from state to state. CMAGNO