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Renting

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					Housing
                 Housing
 Today’s Questions
   – What is a lease?
   – What are the pros/cons of renting/buying?
   – What should I consider when selecting an
     apartment?



  – Notes on page 6-1
The Early Show


 http://www.cbsnews.com/video/watch/?i
 d=5051102n
          Renting vs. Buying
 Renting Pros
  – Flexibility
  – No maintenance
  – Affordable
 Renting Cons
  – Neighbors
  – No equity
  – Limit on decorating
          Renting vs. Buying
 Buying Pros
  – Builds equity
  – Tax savings
  – Ownership
 Buying Cons
   – Expensive
     • Down Payment (10-20%)
     • Closing Costs ($1000-$4000)
     • Property Taxes (2-2.75% of home value)
  – Maintenance
      Choosing & Evaluating
          Apartments
What is a start up expense?
 Write down possible start-up expenses
  when renting an apartment
  – Security Deposit
  – 1st month’s rent
  – Utilities set-up
  – Furniture
Evaluating Lease Terms
   Parking Included
   Laundry on premises
   Rent/due date
   Length of lease
   Security deposit
   Utilities
   Ending lease/subletting
   Repairs & maintenance
   Landlord’s right to enter
   Restrictions
    (pets,parties)
Vocabulary to Know:
 Landlord (Lessor)
   – the person who owns the property that you
     rent
 Tenant (Lessee)
   – the person renting the apartment
 Lease
   – a document that commits the tenant to pay
     rent for a period of time, it describes the
     terms under which the property is rented
Vocabulary to Know:
 Sublet
   – allows the tenant to find another person to
     live in the apartment assuming the
     obligations of the lease


 Security Deposit
   – initial start-up expense that is paid to the
     landlord for any possible damage done to the
     apartment.
Apartment Lease Worksheet
 Complete worksheet on 6-4
  – Use the EXAMPLE lease on 6-5 – 6-9


 Read carefully…the answers are all there!


Turn in
when done
Conducting an Inspection
   Safety (lights)
   Security
   Fire Exit            Plumbing
   Neighbors – age &    Appliances
    attitude
                         Door Locks – changed?
   Parking
                         Windows
   Cleanliness
                         Drapes
   Painted Walls?
                         Storage
                         Furnishings
                         Privacy?
Renter’s Insurance
 For anyone renting or subletting a home or
  apartment
 Property owners or landlords are required to
  hold homeowners coverage
  – protects the structure of the house/apartment
    and the land
  – personal property inside the home only covered
    if the tenant has a rental insurance policy
Renter’s Insurance
 About $10 per month
 Insures valuables, personal property, and
  against lawsuits
 Liability coverage
  – Person injured in your home not due to a
    problem with structure…you can be sued!
  – Renter’s insurance protects you from litigation
    that results from someone visiting you at home
Renter’s Insurance Worksheet
 Complete 6-2
  – Using the Insurance Plan on 6-3
Searching for a Home
 Now you are going to start searching for a
  homes…
  – Turn to page 6-15
  – Read the directions

  – For #1 go to:
     • http://www.bankrate.com/
        – Calculators Tab
        – Mortgage
        – Mortgage Calculator (includes amortization schedule)

				
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posted:10/4/2012
language:English
pages:15