© Family Economics & Financial Education – November 2005 – Housing Unit – Securing a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Securing a Living space

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Introduction  Application forms  What is rent?  Types of rental agreements Lease agreements  Security deposits  Renter’s insurance

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Application form  Once a person finds and inspects a living space, they should complete an application form and secure a living space.  Application form is a document used to determine a person’s credit history, financial stability, and references  Before returning this form, a person should know: Is there an application fee and if so, how much is it? Will the fee be returned if the application is denied? Is the person required to rent the living space if the application is accepted?

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Renting  Rent is a payment made in exchange for occupying another’s land or property  Payments can be made to either a landlord or a property manager  Landlord is the person who owns the rental unit  Property manager is a person who works for the owner  Finds and screens tenants  Collects rent  Maintains and secures the property  Responds to tenants’ needs and complaints

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Types of Rental Agreements  Lease agreement- Written contract specifying the legal responsibilities of both the tenant and landlord Tenant-the renter, is the person who rents the property  No-lease agreement- Month to month agreement Not in writing Risky

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Types of Rental Agreements Continued  Written agreement- Short written agreement which is less formal and easier to understand than a lease  Rent month to month  Allows the renter to make changes to the lease  Oral agreement- Verbalized by the renter and the landlord/property manager  Risky

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Lease Agreements  A lease must identify the following before signing: Rent amount Payment procedure Late rent payment penalties  Sometimes tenants can be evicted. Eviction occurs when the tenant does not voluntarily move out after the landlord has given required notice to the tenant Security deposit amount  A security deposit is a one time fee paid in advance to moving into a living space to cover the costs of repairs or damages to the space beyond normal wear and tear. It usually is the amount of the first and last months rent.

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Lease agreements continued Length of the lease Number of people in the rental unit Names on the lease Payment responsibilities for all amenities  Amenities in a living space include water, garbage, electricity, heat, telephone and internet service, and television.

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Lease Agreements Continued Responsibility for repairs and maintenance Eviction procedures What happens when the lease ends What happens if the lease is broken early Furnishings available Pets Landlord’s access rights to the property Parking Moving-out procedures

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Lease Agreements Continued  Items to identify in lease agreements include: Hanging pictures on the walls Policy on overnight guests Subleasing  Subleasing is when the tenant allows someone else to move in and take over the rent payments Allowing the landlord to cancel the lease without notification

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Lease Agreements Continued Allowing the landlord to hold the tenant liable for the remaining lease balance if one day late with payment Allowing landlord permission to enter rental unit when tenant is not there Holding the tenant liable for repairs and maintenance

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Security Deposits  Security deposit is money paid in advance of moving into a living space to the landlord to be used for repairs or damage done beyond the expected normal wear and tear  Be sure to know the terms regarding the security deposit  Examine the living space and create a list of all existing damage Take pictures or use a video camera

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Security Deposits Continued  Steps to take to get a security deposit returned: Send a certified letter to landlord/property manager stating the desire to have deposit returned Send copies of all documents (rental agreement, copy of security deposit receipt, list of previously existing damage, and pictures) Take the individual to small claims court  Remember, having everything in writing is the best way to ensure the return of a security deposit

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman Renter’s Insurance  Renter’s insurance is not required of tenants, but recommended Renter’s insurance is used to protect the tenants’ personal belongings when renting from a landlord Can protect against theft, fire, or vandalism A person should ask themselves if they could afford to replace their belongings if a fire destroyed everything-If not, they should purchase renter’s insurance

1.9.5.G1 © Family Economics & Financial Education – December 2005 – Housing Unit – How to Secure a Living Space Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman The End!