1. Financial & legal aspects of renting
Objective 2.02

2. Bell Ringer 9/10
GET NOTEBOOKS Copy and Answer the following questions in your notebooks: Based on your own knowledge and experience, what are some benefits of renting (vs. buying) a house?

3. Bell Ringer 9/10
Copy and Answer the following questions in your notebooks: John is moving into a multi-family unit where he must first purchase a share in order to become part of the unit. What type of housing is he moving into? Sarah has purchased a single-family home that will be built in a factory and then installed on site in multiple modules. What type of housing options has she purchased?

4. Objective
Analyze the financial and legal aspects of renting

5. Outline/Vocab (on your course outline sheet)
A. Financial 1. Application/credit check Security deposit/rent advance 2. Insurance and utilities B. Legal 1. Lease 2. Sublet 3. Assign 4. Breach of contract 5. Eviction

6. RENTING Over 1/3 of the population in the U.S. rent their housing
Majority of these people are: single, young married couples, and older people
Many also have very mobile lifestyles

7. Activity! Look at Rental Activity Sheet… 15 min – look up terms
30 min- create ANIMATION
15 min- Present to the class!
Textbooks 2.02 and 2.03:
Homes & Interiors (pink) – CH 7
Housing Decisions (green) – CH 5

8. BEFORE MOVING IN… Renter’s checklist Renter’s application (& fee)
Background check
Security Deposit

9. BEFORE MOVING IN…
Security Deposit - payment that insures the owner against financial loss caused by the renter
Amount of the SD commonly includes one month's rent and may include an addt'l amount

10. BEFORE MOVING IN…
Lease - a legal document spelling out the conditions under which the renter rents the property
Agreement between the renter and landlord
DO NOT SIGN A LEASE UNTIL YOU UNDERSTAND EACH STATEMENT

11. ASSIGN OR SUBLET A LEASE
You have signed a lease but want to move out early, you have 3 options:
1. Continue rent payments until the lease expires
2. Assign the lease
3. Sublet the lease

12. ASSIGN
Transferring the entire unexpired portion of the lease to someone else.
You are no longer responsible for the lease.
“A” = transfer ALL of the lease

13. SUBLET
Transfer part interest in the property to someone else for a short period
Both you and the other person are be held responsible to the landlord for all terms of the lease
“S” = transfer SOME of the lease

14. BREACH OF CONTRACT
Legal term for failure to meet all terms of a contract or agreement
Sometimes ends in a lawsuit

15. EVICTION
Legal procedure that forces a renter to leave the property before the rental agreement expires
Almost all states require a warning be given to the renter before they are evicted

16. QUIZ 2.0 Quiz on Objective 2.0 is on FRIDAY 9/12
Let’s look at study guide

17. Rental Project
Work efficiently- you have A LOT to do!
DUE ON 9/22

18. Bell Ringer /11
Copy and Answer the following questions in your notebooks: 1. Why does a landlord charge the tenant an application fee? Pet fee? 2. Why does a landlord conduct a credit check? 3. What is an “advance on rent”?

19. Rental Formula Everyone will need a calculator…
Do some questions together on the board.
Copy in your notes!!!
MAGIC NUMBER = 28% = 0.28

20. Rental Formula 1. #Hrs Worked x $ per Hr = Weekly income
2.Weekly income x 52 = Yearly income (salary)
3. Salary / 12 = Monthly income
4. Monthly income x = Monthly RENT

21. Renting Calculations Worksheet
Complete the worksheets and turn in at the end of the period for a grade!
Be ready to share your answers with the class!

22. Rental Project
Work efficiently- you have A LOT to do!
DUE ON 22nd!!

23. Bell Ringer /12
Copy and Answer the following questions in your notebooks: Calculate the maximum rent for person who has a Salary of $25,000 per year. Review for Quiz (2.01 and 2.02)…

24. After Quiz…
FIRST TEST on WEDNESDAY 9/17! Lets look at study guide…

25. After Quiz…
Watch and answer questions…

26. 5 POINTS DEDUCTED FOR EVERY LATE DAY!
Rental Project
Work efficiently- you have A LOT to do!
DUE ON 22nd!!!
5 POINTS DEDUCTED FOR EVERY LATE DAY!