Presentation on theme: "CHAPTER 21 Renting a Residence. Housing Alternatives On-Campus Housing Many college students prefer to live on campus. Advantages to living on campus."— Presentation transcript:
CHAPTER 21 Renting a Residence
Housing Alternatives On-Campus Housing Many college students prefer to live on campus. Advantages to living on campus are: Closeness to classes and campus activities, access to campus resources like libraries and health centers, and a feeling of being a part of campus life.
Dormitories On campus building that contains many small rooms that are rented out to students. Usually furnished with beds, dressers, and desks. Some may have their own bathrooms, while others share a common one. Most have a central lounge area and shared kitchen and laundry facilities. Meals at the college cafeteria may also be included with the cost of the room. The cost per term may be less than most other housing alternatives.
Sororities and Fraternities Many colleges have sororities (social organization of female students who share a residence) and fraternities (similar organization for male students)that provide on-campus housing. Houses are usually large houses that can house 20 or more people. To live in one of these buildings, you have to become a member in a process called pledging. The cost is usually higher for these facilities, but you are living with people with similar values and goals to your own.
Housing Cooperatives Known as co-ops, where you get a room similar to one in a dormitory at lower cost but with added responsibilities. You tend to share in cooking, cleaning and maintaining the building in exchange for the lower cost.
Married Student Housing and Off-Campus Housing Some students are married when they go to college and in these apartment-style facilities, there will be amenities for families. Some colleges (residential colleges) will not allow freshmen and sophomores to live off campus. Other colleges (commuter colleges) do not provide on- campus housing options.
Apartments If you dont attend college or if you choose to live off-campus, your first residence away from home will likely be an apartment, a separate living facility that exists among many other similar units. An apartment complex is a large building or group of buildings that contain many units. Rent is the monthly charge you will pay to live in an apartment, and it is based on the size and quality of apartment and facilities provided. A studio apartment (efficiency apartment) has one large room that serves as the kitchen, living room, and bedroom. They have less living space, but are less expensive. A townhouse is a living space that has two or more levels. Apartment facilities may include a laundry room, storage area, swimming pool, tennis courts, and clubhouse. In addition, part or all of the utilities may be included in the rent.
Duplexes and Multiplexes A duplex is a building with two separate living units. They are usually the same with separate entrances. They offer more space than apartments and more privacy, and can include a garage, private laundry facilities, and other things similar to a house. A multiplex is a building or group of buildings.
Condominiums A condominium is an individually owned unit in an apartment-style complex with shared ownership of common areas. If you are renting a condo, you will have the same responsibilities for upkeep as the owner.
Houses Rental houses offer attractive features, however, they are usually more expensive to rent. You are paying for neighborhood living, often garage space and more living area, privacy. But you are likely to find many of the same restrictions as with other rentals, like no pets allowed. You will also have more responsibilities like maintaining the lawn.
Living Arrangements To share expenses, you may wish to have a roommate. Choosing a roommate can be difficult. Just because you like someone doesnt mean that you can successfully live together. You living habits may be very different. Some questions to ask a potential roommate: Do you smoke or drink? Do you like a clean living area at all times, or are you easygoing about your environment? Do you have steady employment or another source of income to ensure you can pay your share? What are some of your goals? What are you leisure activities? Why type of transportation do you have?
Where to Live The decision of where to live will depend largely on finances. For college students who choose on-campus housing, many of the decisions will be pre-determined. Think about the following: 1. Deposits and fees. A security deposit is a refundable amount paid in advance to protect the owner against damage or nonpayment. If you take care of the property, you should get it back when you move. Utility companies may require you to make a deposit when you first open an account. 2. Length of time you plan to live in the residence. If you sign a lease for six months, you have made a commitment to remain for that length of time. You may face penalties if you choose to move sooner. 3. Distance from work or school. Your proximity to work and school and access to public transportation are important considerations. 4. Distance from services. You will need access to laundry facilities, shopping areas, gas stations. 5. Repairs and maintenance. You may have the responsibilities to maintain the property in minor ways.
What to Take A furnished rental means that the basics are provided bed, dresser, sofa, chairs, lamps, dining table and chairs, and essential appliances. An unfurnished rental may or may not include basic kitchen appliances. Usually the fewer the items furnished, the lower the rent. You can buy or rent furnishings. Compare purchase and rental payments before you make a decision. A rent-to-own option is where you rent furniture with an option to buy. At the end of the rental period, you have the option to buy the furniture at a reduced price. However, they can be more expensive than making payments on furniture you purchase outright with an installment plan.
Planning Your Move Begin planning your move several months in advance. Some ways to prepare: 1. Have savings. Set aside savings to cover the security deposit, first and last months rent, fees, and initial expenses. 2. Have income. Have a reliable source of income to pay rent, utility bills, and shared expenses. Expect that your landlord will run a credit report to verify your ability to pay the rent. 3. Have supplies. Gather what you need to live independently, such as clothing, towels, sheets, pillows, small appliances and dishes. 4. Think ahead. Plan the move with our career goals in mind. If your goal is to finish college, then your living plan should help you achieve this goal. 5. Make reservations. Make arrangements for transporting furnishings. Professional movers can be expensive and must be reserved in advance. A good way to organize your preparations is to make a household needs inventory.
Group Financial Decisions All roommates are responsible for meeting the obligations to which they agree. Group budgeting allows for the careful allocation of expenses, so that each person pays his or her share.
Moving Costs These include the time and money spent in packing, loading, transporting, unloading, and unpacking. Professional movers charge according to the amount you have to move, the distance traveled, and whether or not they do the packing. You can save money by doing your own packing. You can save even more money by renting a truck or trailer and using your own labor for loading, driving, and unloading.
Installation Charges When you move into a new residence, you will pay some installation charges, such as for telephone, Internet and cable services. Bundling is combining services into one packet, and you can find special offers and discount plans for doing so. You must also arrange to turn on electricity and other utilities. Many utility companies may charge new customers a refundable security deposit, and others charge a non-fundable fee.
Advantages of Renting 1. Mobility. Many people prefer to rent because of the ease and speed with which they can move when a good job opportunity comes along elsewhere. 2. Convenience. Many landlords provide a number of conveniences for their tenants, like laundry and recreational facilities. 3. Minimum responsibilities. Renting usually relieves you of many of the responsibilities of home ownership, like repairs and maintenance. 4. Social life. Apartments offer the opportunity to meet others and socialize informally. 5. Lower cost. Apartment rent is usually lower than the cost of buying a house. Sharing expenses with a roommate lowers individual costs even more.
Disadvantages of Renting 1. Noise. Residents usually share common walls with neighbors above, below or beside them. 2. Lack of privacy. Because conversations and other activities could be overheard through common walls, tenants often feel a lack of privacy. 3. Small living space. The typical apartment is smaller than most other housing choices. 4. Lack of storage space. The small size of apartments also means little cabinet and closet space. 5. Scarcity of parking. Many rental properties do not provide garages or off-street parking, especially in cities.
Rental Contracts Rental applicationallows the landlord to verify your income, previous rental experience, credit rating, and so on.
Leases and Month-to-Month Agreements A lease is a written agreement that allows a tenant to use property for a set period of time at a set rent payment. The landlord is called the lessor, or person responsible for the property. The tenant is called the lessee, or person who will take possession of the property. You may sign a lease for six months, a year, or longer. During that time, your rent remains constant. If you decide to move before the lease expires, you are still responsible for the remaining rent.
Leases and Month-to-Month Agreements Before the lease expires, the landlord will inform you of any rent increases. You can notify the landlord as specified in the lease if you do not wish to stay beyond the lease period. A rental agreement is a written agreement that allows you to leave anytime as long as you give the required notice. These are often called month-to-month agreements. It doesnt bind you to pay rent for a period of time longer than a month, but this means the rent can be raised at any time and you can be asked to leave at any time. The ease of moving in and out is an advantage of renting month to month. If your plans are uncertain and you need flexibility, it can be a good option. Both a lease and rental agreement will include provisions for security deposits and their return, termination of rental, rent payments, tenant and landlord responsibilities.
Rental Inventory If you live in a rental property you are expected to leave it as you found it. To assure that you are not accused of breaking, damaging, or taking furnishings, prepare an inventory of the premises at the time you move in. The rental inventory is a detailed list of current property conditions. Noted are such things as broken windows, missing screens, holes in the wall, stained carpet, and so on. You and your landlord should tour the property together to take the inventory so you both agree on its contents. When you move out, you should once again take an inventory. The comparison between the two should determine whether or not you get your security deposit back.
Landlord Obligations Housing laws in most states require that landlords provide a dwelling that is habitable at all times. A dwelling is considered habitable if: The exterior is weatherproof and waterproof Floors, walls, ceilings, stairs, and railings are in good repair Elevators, halls, and stairwells meet fire and safety regulations. Smoke detectors are required. Adequate locks for all outside doors, working latches on windows, and exits meet fire and safe regulations Plumbing facilities comply with local and state sanitation laws and are in good working order Water supply provided is safe and adequate Lighting, wiring, heating, air conditioning, and appliances are in good condition and comply with building and safety codes Buildings and grounds are clean and sanitary
Tenant Obligations Read, understand, and abide by terms of rental contract Pay the rent on or before the due date Eviction is the legal process of removing a tenant from rental property Give at least 30-days notice of intent to move Keep the premises in good, clean condition to prevent unnecessary wear and tear or damage to unit Use a rental unit only for purpose for which it is intended Allow the landlord access to the unit to make repairs or improvements Obey the rules specified in the rental contract for the residents or the rental community