Financial & legal aspects of renting Objective 2.02

Bell Ringer 9/10 GET NOTEBOOKS Copy and Answer the following questions in your notebooks: Based on your own knowledge and experience, what are some benefits of renting (vs. buying) a house?

Bell Ringer 9/10 Copy and Answer the following questions in your notebooks: John is moving into a multi-family unit where he must first purchase a share in order to become part of the unit. What type of housing is he moving into? Sarah has purchased a single-family home that will be built in a factory and then installed on site in multiple modules. What type of housing options has she purchased?

Objective Analyze the financial and legal aspects of renting

Outline/Vocab (on your course outline sheet) A. Financial 1. Application/credit check Security deposit/rent advance 2. Insurance and utilities B. Legal 1. Lease 2. Sublet 3. Assign 4. Breach of contract 5. Eviction

RENTING Over 1/3 of the population in the U.S. rent their housing Majority of these people are: single, young married couples, and older people Many also have very mobile lifestyles

Activity! Look at Rental Activity Sheet… 15 min – look up terms 30 min- create ANIMATION 15 min- Present to the class! Textbooks 2.02 and 2.03: Homes & Interiors (pink) – CH 7 Housing Decisions (green) – CH 5

BEFORE MOVING IN… Renter’s checklist Renter’s application (& fee) Background check Security Deposit

BEFORE MOVING IN… Security Deposit - payment that insures the owner against financial loss caused by the renter Amount of the SD commonly includes one month's rent and may include an addt'l amount

BEFORE MOVING IN… Lease - a legal document spelling out the conditions under which the renter rents the property Agreement between the renter and landlord DO NOT SIGN A LEASE UNTIL YOU UNDERSTAND EACH STATEMENT

ASSIGN OR SUBLET A LEASE You have signed a lease but want to move out early, you have 3 options: 1. Continue rent payments until the lease expires 2. Assign the lease 3. Sublet the lease

ASSIGN Transferring the entire unexpired portion of the lease to someone else. You are no longer responsible for the lease. “A” = transfer ALL of the lease

SUBLET Transfer part interest in the property to someone else for a short period Both you and the other person are be held responsible to the landlord for all terms of the lease “S” = transfer SOME of the lease

BREACH OF CONTRACT Legal term for failure to meet all terms of a contract or agreement Sometimes ends in a lawsuit

EVICTION Legal procedure that forces a renter to leave the property before the rental agreement expires Almost all states require a warning be given to the renter before they are evicted

QUIZ 2.0 Quiz on Objective 2.0 is on FRIDAY 9/12 Let’s look at study guide

Rental Project Work efficiently- you have A LOT to do! DUE ON 9/22

Bell Ringer 9/11 Copy and Answer the following questions in your notebooks: 1. Why does a landlord charge the tenant an application fee? Pet fee? 2. Why does a landlord conduct a credit check? 3. What is an “advance on rent”?

Rental Formula Everyone will need a calculator… Do some questions together on the board. Copy in your notes!!! MAGIC NUMBER = 28% = 0.28

Rental Formula 1. #Hrs Worked x $ per Hr = Weekly income 2.Weekly income x 52 = Yearly income (salary) 3. Salary / 12 = Monthly income 4. Monthly income x .28 = Monthly RENT

Renting Calculations Worksheet Complete the worksheets and turn in at the end of the period for a grade! Be ready to share your answers with the class!

Rental Project Work efficiently- you have A LOT to do! DUE ON 22nd!!

Bell Ringer 2/12 Copy and Answer the following questions in your notebooks: Calculate the maximum rent for person who has a Salary of $25,000 per year. Review for Quiz (2.01 and 2.02)…

After Quiz… FIRST TEST on WEDNESDAY 9/17! Lets look at study guide…

After Quiz… http://www.hgtv.com/hgtv262/videos/index.html Watch and answer questions…

5 POINTS DEDUCTED FOR EVERY LATE DAY! Rental Project Work efficiently- you have A LOT to do! DUE ON 22nd!!! 5 POINTS DEDUCTED FOR EVERY LATE DAY!