1. Chapter 8: Preserving Your Credit Lesson 8-1: Identifying Financial Issues
Learning Goals:
Discuss living arrangements and financial issues with other members of your household.
Describe contractual rights and responsibilities for landlords and tenants.

2. Sharing Physical Space and Financial Resources
Shared Responsibilities occurs when two or more people each agree to bear a portion of an obligation.
Examples: Sharing the cost of rent, utilities, internet service, cable TV
Living Arrangements
Financial Issues

3. Living Arrangements
As you prepare for college or to move out on your own, you will likely share physical space and financial resources with one or more persons.
A roommate is a person with whom you share living space and responsibilities.
You should reach an agreement in several important areas with your roommate. You need to know your own living habits or your daily routine and the way you choose to live your life.
Do you smoke or drink? How do you feel about those who do?
Do you like a clean living area at all times or are you more easy going and casual?
Do you have a social life that will impose on your roommate?
Do you have a source of income, such as a job, to ensure that you can pay your share of the expenses?
How should the division of household chores be handled? (Cooking, cleaning, and maintenance).
What are your leisure activities?
Will you need to share transportation?
What are you future goals?

4. Financial Issues
When living with a roommate, you should work out the logistics of how rant, utilities, and other joint costs will be paid.
Logistics is the act of making a plan and carrying it out to ensure that an event takes place.
Each roommate has responsibility for his or her proportional share of the costs.
Tenants also typically share in the payment of deposits and fees. A security deposit is a refundable amount paid to cover possible damages to property caused by a tenant. There will be deposits for your utilities, internet and cable.
Group budgeting allows for the careful allocation of expenses so that each person pays his or her share.

5. Contractual Rights and Duties
A contract is a legally binding agreement that specifies the rights and duties of each party to the agreement.
To be legally binding, a contract requires consideration, which is something of value exchanged for something else of value.
Contracts may be either oral or written.
As a tenant renting property from a landlord, you will be entering into a rental agreement or contract. A contract between a tenant and landlord is know as a lease.

6. Tenant Rights and Responsibilities
Tenants have the right to possess and enjoy the rented property.
Can come and go as you please, have guests, and use the property as a residence.
Have the right to use common areas, such as hallways, lawns, swimming pools, meeting rooms, and other amenities provided on the property.
Tenants also have responsibilities
Use the property only for the purpose for which it was intended, take proper care of the property, and give the landlord access tot eh property as needed for repairs and maintenance.
Must obey the rules specified in the rental agreement and respect the rights of other tenants and neighbors.
Must pay rent on time.
May be evicted if you don’t pay rent on time. Eviction is the process of expelling a tenant from the rental property.
Usually have to give a 30-day notice when moving out.
Look at Lease agreement on page 253.

7. Landlord Rights and Responsibilities
Landlords or owners have the right to receive their monthly payments for rent in a timely manner.
They have the right to inspect the property, with proper notice, to make sure it is receiving proper care, and not abuse, from the tenant.
Landlords must provide safe, sanitary, and habitable living sites for tenants.
This includes keeping the roof, walls, doors, windows, and stairwells in good working order.
Elevators, halls, and stairwells must meet fire and safety regulations.
There must be adequate locks and latches, smoke alarms, and fire extinguishers for proper safety and security.
Plumbing, lighting, wiring, heating and air conditioning units, and appliances must be in good working order.
An owner may hire a property manager, or offsite manager, who is responsible for taking care of the property and communicating with tenants.

8. Assignment Answer question 1-20 on pg. 256.
Check your budget challenge – complete quiz for the week.