YOU’RE OUTTA HERE!4.1 FINDING THE RIGHT

LIVING SPACE FOR YOU!

STANDARD 4.1Students will be able to understand factors associated with the cost of livingspace choices and furnishings.

LESSON GOALS I can define key terms associated with

renting an apartment. I can calculate the rent I can afford based

on my net pay (using the 30% rule) I can explain the main components of a

lease.

LESSON GOALS I can compare the costs and benefits of

renting. I can research an apartment that meets my

needs and wants.

Rent - an agreed sum paid at fixed intervals by a tenant to the landlord Tenant - one who has the occupation/ temporary possession of lands or tenements of another; specifically: one who rents or leases (as a house) from a landlord .

Terms to know when renting:

5

Landlord -the owner of property (as land, houses, or apartments) that is leased or rented to anotherLease - a contract by which one conveys real estate, equipment, or facilities for a specified term and for a specified rent.

Terms to know when renting:

6

Before you Rent:

7

Putting together a checklist of what you do and do not want in your living space will help you make an informed choice. Consider what you can afford: NOTE: You should never use more than 30% of your net pay on your monthly housing payment.

Before you rent

8

Practice calculating what you can afford to pay for rent: (no more than remember 30% of your net pay):

If your monthly net pay is $3,000(hint: $3,000*30%)=$900.00

Again, you should not spend more than 30% of your net pay.

Calculation check: Your Rent / 30% or $900/30%=$3,000

Before you rent: Your Turn

9

Practice calculating what you can afford to pay for rent: (no more than remember 30% of your net pay):

If your monthly net pay is $4,000Show work here:

Calculation check: Show work here:

Apartment Other Options

Condominium

Dorm

House

What can you rent?

10

RENTINGRenting:

• Is often the least expensive housing option• Offers a set monthly expense• Has minimal maintenance

responsibility• Provides the ability to relocate

relatively easily when your lease expires. 11

RENTING Renting• Requires a contract (lease) between the

Landlord and the Tenant (more later)• Offers amenities or desirable or useful

features or facilities of a building/complex • Examples include: washer/dryer, pool,

gym, playground)

• Has an opportunity cost … 12

If you want to move into your own apartment you must sit down and make a list of wants and needs, research what is available online, and then go look at potential locations.

LOCATION, LOCATION, LOCATION AND WHAT ELSE?

13

What is one of the most important things to consider in choosing the location where you will live?

Accessibility to work and schoolWhat other things would you consider?

List 4 here:

14

OTHER THINGS TO CONSIDER

What is one of the most important things to consider in choosing the location where you will live?

Accessibility to work and schoolWhat other things would you consider?

List 4 here:

15

OTHER THINGS TO CONSIDER

Talk with your neighbor and list 4 things

that you need to consider when selecting a

location!

ADVANTAGES OF RENTING

FlexibilityNo repair or property maintenance costsWide variety of amenitiesMore freedom to relocate

16

The landlord of your apartment has insurance, but it probably only covers the building where you live – not your belongings or your liability for accidents.

17

WHAT IS THE ADVANTAGE OF HAVING RENTERS INSURANCE?

If your possessions are stolen during a break-in or damaged by a fire or severe weather, a renters insurance policy will allow you to recover their value. If someone is injured during an accident in your home, renters insurance will help protect you in the case a liability lawsuit.

18

WHAT IS THE ADVANTAGE OF HAVING RENTERS INSURANCE?

READING A LEASEComponents of a standard lease:• Landlord information – identifies the

landlord and how to contact them.• Tenant names - include the names of

ALL roommates on the lease.• Apartment address – street address and

apartment number.  

19

READING A LEASE (Continued)

Components of a lease:• Rent - exact amount of payment

and how often it is paid (weekly, monthly, etc.)• Additional fees - for certain

services, such as replacing a key, allowing pets, carports, and late fees and so forth.

20

READING A LEASE (Continued)

Components of a lease:• Services that may be paid by the landlord

– including utilities.• Utilities that may be included:• Water• Heat• Electricity• Air conditioning• Cooking gas• Internet (or basic cable)

21

READING A LEASE (Continued)

What is the difference between a utility and an amenity?

22

READING A LEASE (Continued)Components of a lease• Security deposit (lst and last month’s rent)• Policies – such as pets or redecoration

(painting)• Lease start date and end date• Month-to-Month - Can give notice and leave before one-year without penalty• 12 Month Lease – Would not be able to leave before one year unless willing to forfeit security deposit (penalty for breaking lease)

23

READING A LEASE (Continued)Components of a lease• Landlord’s right of entry - conditions under

which a landlord can legally enter your apartment

• Requires everyone's signatures • Is legally binding…you can be

taken to court if you break the terms of the lease.

24

FIND A REAL APARTMENT…• Using http://www.apartments.com/ • Using the 08060 zip code, your apartment perfect fit:

•Complete the Project Grid by choosing 2 apartment complexes and writing the particulars for both a 1 and 2 bedroom apartment in that complex. Fill in the chart completely.• Which apartment would you prefer and why?