Chapter 29 – Housing and the Consumer

Vocabulary Mortgage – a loan from a bank or other financial institution Term – length of the loan Fixed-Rate Mortgages – interest rate remains the same throughout the term of the loan Adjustable-Rate Mortgages – interest rate can change over time Foreclosure – extended period of time not paying the loan Tenant – renter of rental property Landlord – owner of rental property Lease – rental agreement

The Summer Rental A college student moves to a resort town to work for the summer. After searching the classified ads in the local newspaper, she finds an apartment for rent. She phones the landlord and after seeing the apartment tells him she will rent it for three months. After a month, she moves to a cheaper apartment down the street. The landlord demands rent for the two remaining months, but the young woman claims she does not owe any money because the lease was not in writing.

Rentals Lease Application – form that the landlord uses to determine whether you qualify for the rental property Month-to-Month Lease – renting for 30 days at a time, must give 30 days notice to leave rental property, and landlord must give 30 days notice to raise rent Tenancy at Will – tenants who remain in an apartment after their lease has expired are usually considered to be there at will – typically not much protection for either renters or owners Tenancy for Years – lease for a fixed period of time – prevents the landlord from raising the rent or evicting the tenant during the term of the lease

The Unsavory Visitors Mr. and Mrs. Larkin were excited about the birth of their first child. On the day they returned home with the new baby, the Larkins’ friends gathered at their apartment to greet them. The Larkins did not notice that two of their friends had some marijuana, which they took into the back bedroom and smoked. However, their landlord, who was also present for the occasion, did notice. A week later, the Larkins received a notice that they were being evicted for allowing drug use in their apartment.

Security Deposits Amount of money (usually one month’s rent, sometimes more) that is held by the landlord to ensure that the tenant takes care of the apartment/house and abides by the terms of the lease If there is damage to the apartment/house, the landlord uses the security deposit to repair the damages Renters should inspect the apartment/house before moving in and make note of any imperfections and then again as they move out to compare the lists Security deposits are typically the subject of disputes

The Dormitory Rape One Saturday night, Audrey was asleep in her college dormitory room. Her roommate was away for the weekend. There was a guard at the front door to the dormitory, and all the students were supposed to use that door to enter and leave the building after dark. Earlier in the evening, someone had gone out a side door and failed to shit it securely, but not guard every checked it that night. Audrey was awakened after midnight by a strange man in her room, who then raped and beat her. Although she later notified they police, they never found the man.