BELL RINGER 4/25
• What are the two most important things to you
when looking for a place to live?
• List as many costs as you can think of related to
renting an apartment.
HOUSING
A PLACE TO CALL HOME
OBJECTIVES:
•Discuss your different housing alternatives
•Describe how to find available apartments, narrow the list, and make a selection
•Discuss advantages/disadvantages to renting
RENTAL TERMS
• _____ - Individual renting a house or apartment
(a.k.a. lessee)
• _____ - Property owner who is renting out to
another individual (a.k.a. lessor)
• _____ - Money held by the landlord until the
tenant moves out. Covers the damages the tenant
might cause. Amount due is usually equal to 1
month rent*
• _____ - a legal contract giving the right for a tenant
to occupy a specific property. Lists certain
conditions tenant must abide by; cannot change
until the lease expires
• _____ - Landlord puts tenant out of the rental
property
YOUR HOUSING OPTIONS
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YOUR PARENTS HOME
DORM
APARTMENTS
SINGLE FAMILY HOMES
TOWNHOMES
CONOMINIUMS
MOBILE HOMES
WHERE TO FIND RENTALS
• FRIENDS
• NEWSPAPER ADS*
• POSTED SIGNS
• RENTAL AGENCIES
• INTERNET – rent.com, forrent.com,
apartments.com, apartmentguide.com
RENTING
ADVANTAGES
• Minimal Responsibility
▫ Damages fixed by ______.
• Mobility – tied down only
length of lease
• Typically lower cost
▫ No PITI
• Convenience:
▫ Laundry, weight room, pool
• Items provided:
▫ Some furnishings,
appliances, etc…
DISADVANTAGES
• Noise/Privacy – Shared_____
• ______ - May be additional
cost, limited & far
• Rules – Can’t make changes or
modifications to rooms/prop.
• No ownership – You are not
building any equity
▫ $$ paid gives no ownership
• Restrictions – No grills,
laundry on site, etc…
EVALUATING OPTIONS
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What is the monthly rent?
What does the rent include? Utilities, parking, etc…
Length of lease
Renewal terms? 12 months, month to month
What facilities? Laundry, pool, tennis courts
Pets allowed? If so, is there an extra charge
Security deposit requirements
ACTIVITY
• On your bell ringer sheet of paper
▫ Write down must have’s list for an apartment
▫ Write down ideal area (college, FL, CA, Chicago, etc…)
▫ Write down things you do not like (smoking, loud music)
Compare with your neighbors must have lists, to see if they are similar…
Would they make a good roommate?
We will be choosing roommates for our rental project, so remember
These things when deciding.
ITEMS COVERED UNDER A LEASE
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Amount of rent & _______ _______
Duration of rental period (6 mo/12 mo)
Due date ______ to pay monthly rent
Fines or charges for _____ or _______
Utilities such as ___,___,___, covered by rent
▫ IF ANY
• Pets/No Pets
• Modifications allowed – painting, remodeling
• ____ options – renting your apt to someone else
RESPONSIBILITIES
TENANT
LANDLORD
• Pay rent on time (per lease)
• Take care of apartment
▫ Follow _____ on lease
• Notify _____ landlord of
problems
• Notice of moving:
▫ 30 days is sufficient
▫ But landlord may require
more time
• Meet _____ standards and
codes
• Take care of and ____
problems w/in a reasonable
amount of ____
• Privacy to tenant – Notify
before _____
• Uphold all other portions of
the ____ as stated in that
agreement
• Provide a habitable
environment
ROOMMATE OR NO ROOMMATE??
• Split responsibilities such as:
▫ Cleaning, food, ______
• The more you know about the person, the ____
▫ Such as: Lifestyles/Interests – Try to align
• Best ____ are not always to best roommates
ROOMMATE OR NO ROOMMATE??
ADVANTAGES
DISADVANTAGES
• Cheaper:
▫ Why?
• Safety
• Companionship
• Clashing Habits
▫ Such as?
• Privacy
• Sharing items in
____ ____
Bell Ringer 4/26
• What factors affect the price of an apartment?
• Once you have rented an apartment, what are
some things you need to do?
ADDITIONAL COSTS TO RENTING
• Utilities: ____,____,____,____
• Furnishings: ____,____,____
• Budget – Monthly rent should equal __ week’s takehome pay
• ______ : Renter’s policy includes 3 coverages:
1. Personal Property – protects items you own
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Personal property floater: high value items
2. _____ - covers injuries other incur while in your
rental unit
3. _____ - costs related to not being able to use your
rental property
HOME OWNERSHIP
HOME OWNERSHIP TERMS
• _____ - Highest price the property will bring on
the market. Values are appraised by comparing
similar homes that have been sold recently
• _____ - A percent of the total cost of the house
paid up front. Most often required but
becoming less demanded*
• _____ - Expenses associated with transferring
ownership, includes title search, taxes owed, fees
for lawyers, inspectors and appraisers*
• _____ - Portion of the purchase price deposited
to show the offer is serious
TERMS CONT…
• _____ - A loan to purchase real estate that is
paid each month to repay the total amount
borrowed to buy the property. Included in that
amount is usually PITI
• ___ ___ ___ (ARM) – Interest rates change
based on the economy (typically 3/1,5/1,10/1)
• ___ ___ - Interest does not change during the
term of the loan
• _____ - An increase in value. Occurs in almost
all cases with home values
HOME OWNERSHIP OPTIONS
• Single family home – Occupied by one family
with no shared walls
• ______: Units in larger apartment styles
complexes, such as high rises. Walls shared,
tenants above and below. Units usually 1 floor.
• ______: One or both side walls shared, often no
one living above or below, private parking avail.
▫ A.K.A. row houses
• Common areas: Pool, game room, fitness center
WHERE TO LOOK FOR HOMES
• REALTOR AGENCIES
• NEWSPAPER
• MAGAZINES & PUBLICATIONS
• WORD OF MOUTH
• POSTED SIGNS
• INTERNET: realtor.com,____,____,____
HOME OWNERSHIP
ADVANTAGES
DISADVANTAGES
• ___ savings: the interest paid
on home loans and property
are tax deductible
▫ Renters cannot collect
• ___: Often no shared walls,
yard, private parking, etc…
• ___: Biggest advantage.
Homes generally appreciate
and with improvements can
soar in value
• ___ - Home owners pay for all
utilities such as trash, water,
etc. (costs that may be covered
by a landlord if renting)
• ___ - home owner’s are
responsible for all inside and
outside care (cleaning gutters,
cutting grass, shoveling snow,
etc…)
• Typically 30 year commitment
• Property taxes never go away
PROPERTY TAXES
FACTORS CAUSING APPRECIATION
• Time – Due to ____ and rising costs, almost all
items over time will ____.
• ____ - Upgrading a kitchen, bathroom, finishing a
basement, or adding a deck can add significant
value. (Different projects have a different ROI)
• Surrounding homes – Well maintained home &
those of high value will increase the value of homes
around them
• ____,____,____: In highly populated area,
convenient to shopping areas, in good school
districts, on a lake, etc.
ROI – Return on investment
WHAT DO THEY SAY TYPICALLY SELLS HOMES?
FACTORS CAUSING DEPRECIATION
• _____ - increase in crime, poverty, schools
worsen
• _____ - poorly maintained homes & those of
low value will decrease the value of the homes
around them
• LOCATION, LOCATION, LOCATION