Presentation on theme: "Renting a Residence Section 6-5. Selecting a Rental Unit A person who rents is called a tenant. The person who rents the place to you is called a."— Presentation transcript:
Selecting a Rental Unit A person who rents is called a tenant. The person who rents the place to you is called a landlord.
What to Look for Before Renting an Apartment Location Finances Building Layout andFacilities
What to Look for Before Renting an Apartment: Location Near school or work Near shopping Near public transportation Near recreation
What to Look for Before Renting an Apartment: Finances Amount of monthly rent Amount of security deposit (often the same as one month’s rent) Cost of utilities (is anything included in your rent) Length of lease
What to Look for Before Renting an Apartment: Building Condition of building and grounds Recreation on premises Parking facilities Security system Condition of hallways, stairs, and elevators Access to mailboxes
What to Look for Before Renting an Apartment: Layout and Facilities Size and condition of unit Type and controls of heating and cooling units Plumbing and water pressure Type and condition of appliances Condition of doors, locks, windows, closets, and floors
Advantage of Renting: Mobility You can talk with your landlord and possibly leave within a matter of days if you need to relocate. You may not be sure of where your job will take you if you are just starting out, so you may not want to settle into a house. You may want to hold off on a house until you figure out where life is going to take you.
Advantage of Renting: Low initial costs Renting does not require thousands of dollars as a down payment like a house. It also does not require costs like lawyer fees, home owner’s insurance, and closing costs.
Advantage of Renting: Fewer responsibilities If something breaks, you call the landlord. Landlord usually takes care of mowing the lawn and shoveling snow. Don’t have to worry about paying property taxes or insurance.
Disadvantage of Renting: Few financial benefits You are not eligible for some tax deductions. Subject to rent increases. Homeowner’s pay can pay off their mortgage and eliminate their housing cost. A tenant will always have a house payment. Homeowner’s can sell their house and make a profit (and get the money back they put in), but tenants will never get back the money they paid in rent.
Disadvantage of Renting: Lifestyle Restrictions You may not be allowed to have pets, paint walls, or have loud parties.
Disadvantage of Renting: Legal Issues Bound by a lease. Never sign a lease without reading it. Lease gives the landlord the right to take legal action if you do not pay your rent or if you damage the property.
What else affects the cost of renting? Location Some locations will cost more in rent than others Living space Bigger places will probably cost more Utilities You may have to pay some or all of your own utility bills Security Deposits Money the landlord may keep to pay for damages you may have caused in the rental. If there are no damages, he must give it back. Renter’s Insurance Will cover the loss of personal property due to damage or theft.
Review What are the things you look for when renting an apartment? What things affect the amount of rent you would pay for an apartment? What type of apartment would best suit two friends who plan to become roommates?