1. WE WILL COVER: EXPENSES TERMS & CONDITIONS ADVANTAGES DISADVANTAGES THE LEASE AGREEMENT Renting an Apartment You will soon be out on your own, possibly needing to find housing. Today’s lesson will help you understand the many factors that go into renting an apartment or house.

2. Renting Expenses  Monthly Rent  Security Deposit  First/Last Month’s Rent  Renter’s Insurance  Utilities  COST OF HOUSING SHOULD NOT BE MORE THAN 1/3 OF YOUR SALARY How much is rent for the scenario you chose? Can you afford to pay that per month? Will you need a roommate?

3. Renting Expenses  Monthly Rent  Security Deposit  First/Last Month’s Rent  Renter’s Insurance  Utilities  COST OF HOUSING SHOULD BE NO MORE THAN 1/3 YOUR SALARY What is a Security Deposit? Usually required to sign a lease. Covers anything beyond normal wear & tear on the unit. All or part is reimbursed depending on condition of unit when you leave.

4. Renting Expenses  Monthly Rent  Security Deposit  First/Last Month’s Rent  Renter’s Insurance  Utilities  COST OF HOUSING SHOULD BE NO MORE THAN 1/3 YOUR SALARY Some rental agreements will require first/last month’s rent. Do you have that much cash available?

5. Renting Expenses  Monthly Rent  Security Deposit  First/Last Month’s Rent  Renter’s Insurance  Utilities  COST OF HOUSING SHOULD BE NO MORE THAN 1/3 YOUR SALARY Do I need Renter’s Insurance? Some rental properties require you have it. Protects your property in the unit if there is any damage due to flooding/fire, etc. The average renter's insurance policy costs between $15 and $30 per month. Replacing all of your possessions or being liable for an accident on your premises will cost much more. Renter's insurance policies can cover everything from electronics to clothing to household appliances. Even a minimal number of items could add up to thousands of dollars' worth of merchandise, which can all be covered in a basic policy.

6. Renting Expenses  Monthly Rent  Security Deposit  First/Last Month’s Rent  Renter’s Insurance  Utilities  COST OF HOUSING SHOULD BE NO MORE THAN 1/3 YOUR SALARY How much are utilities? See the Monthly Budget on the next page of your packet.

7. Advantages Disadvantages Low move-in costs Fixed monthly expenses Easy to move Location choices Less maintenance & repair Fewer responsibilities May offer extra amenities (pool, fitness center) Typically less expensive then home ownership Other expenses may be included: electricity, water, sewer and/or garbage Subject to terms of the lease Rent may change with little notice Less privacy and transient neighbors Restrictions on noise level and/or pets Options to upgrade apartment are limited No tax deduction May lose rental if property is sold Advantages & Disadvantages of Renting

8. What is a Lease Agreement? A legal contract between the tenant (you) and the landlord (owner of the rental property) specifying the responsibilities and rights of both parties. Lease agreements identify the rent amount, security deposit amount and details on items such as: payment for utility bills, late payment penalties, length of lease and eviction terms. Read through the next 2 pages in your packet: “Terms & Conditions of a Rental Agreement”

9. The Rental Lease Agreement On the last pages of your packet, read through items 1-7 on the Lease Agreement. Can they bring Fido, their dog, along? It’s important that you read and understand lease agreements before you sign them Take the rest of the time today to read through the remainder of the lease agreement. (Exciting stuff, isn’t it?) Remember, never sign a binding contract unless you completely understand all the terms and conditions!