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					                   Renting



PE RS ONAL FI NAN CIAL MANAGEME NT PR OGRAM
          Topics Include:
  • Renting versus Buying
  • The Housing Office
  • Type, Location, Cost
  • Negotiating the Deal
  • Rental Inspection
  • Renter’s Insurance
  • International Renting
RENTING                     2
          Renting vs. Buying
            Rent                             Buy
   • Move a lot                    • Ready for stability and sense
   • Unfamiliar with area            of community
   • Low on cash                   • Have cash for a larger initial
                                     investment
   • Can’t or won’t maintain
                                   • Provides a tax advantage
   • Prefer fixed expenses
                                   • Want your equity to grow
   • Don’t want to risk losing
     equity                        • Don’t mind being a landlord
   • Okay with not personalizing   • Don’t mind more variable
                                     expenses
   • Don’t need tax advantage of
     home ownership                • Like fix your own home
   • Don’t want to be a landlord   • Want to remodel and/or
                                     personalize


RENTING                                                               3
          The Base Housing Office
  • Required First Stop
    – Briefings, Counseling, Information, Listings,
      Programs
    – Basic Allowance for Housing (BAH)
       • www.dfas.mil
       • Based on pay grade, zip code, dependency status
       • Payable when authorized to live off base



RENTING                                                    4
          Factors to Consider
  • Needs versus Wants
    – Need to have vs. nice to have
    – Amenities
  • Type of Rental
    – Size, number of rooms and bathrooms
    – Closet space, basement, storage
    – Utilities, appliances, furnishings
    – Parking, yard
RENTING                                     5
          Location of Rental
  • Distance to work
  • School system
       – www.schoolmatters.com
  •   Safety of area
  •   City, suburb, country
  •   Availability of mass transit
  •   Proximity of childcare
  •   Proximity of services
       – Shopping, base facilities, libraries, police, fire, etc.

RENTING                                                             6
          What can you afford to rent?
  • Prepare, or update, your financial plan or budget
  • Review your credit history
    – www.annualcreditreport.com
  • Set your price range
    – Based on budget
    – Based on BAH amount
    – 30% of net income for housing costs
  • Save for deposits and any application fee
RENTING                                                 7
          A word on roommates:
 • Roommates rent together for social and/or
   financial reasons
 • Factors to Consider
    – Who pays for what
    – Noise, food, neatness, pets, smoking, visitors, etc.
    – Extended absences (deployments)
 • Legal Issues
    – See NLSO before you rent!

RENTING                                                      8
          Conduct Your Search
  •   The Internet
  •   Personal Contacts
  •   Local Newspapers/Magazines
  •   The Base Housing Office
  •   Bulletin Boards
  •   Real Estate Agents
  •   Rental Agents
  •   Apartment Complexes

RENTING                            9
          The Application Process
  • Bring all necessary paperwork
  • Be prepared to pay a fee
  • Be prepared to pay a security deposit




RENTING                                     10
          Negotiate the Deal
  • Renter’s incentives
  • Term of the lease
  • Improvements
  • Inspect the property
  • Use a move-in/move-out checklist
  • Take pictures
  • Review the lease (NLSO?)
  • Get everything in writing

RENTING                                11
          Renter’s Insurance
  It’s up to you!
  Minimal Coverage:
  • Personal Property
  • Liability coverage
  • Inventory




RENTING                        12
          Reduce Premium Costs
  • Shop around
  • Raise deductibles
  • Ask for non-smoker’s discount
  • Install fire alarm/extinguisher
  • Use same company as life and auto
   insurance

RENTING                                 13
          International Renting
  • Complicated
  • Non-routine items
  • Landlord/tenant responsibilities
  • Changing currency
  • Attend an Overseas Transfer Workshop at
   the FFSP

RENTING                                       14
          Summary
  • Identify “needs” and “wants”
  • Visit the Base Housing Office
  • Decide on type, location, and amenities
  • Calculate your budget and get your credit report
  • Use all your resources to search
  • Negotiate and keep everything in writing
  • Inspect the Property
  • Purchase Renter’s Insurance

RENTING                                                15

				
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posted:4/24/2013
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