1. Renting a Place to Live The Rental Agreement

2. What You Will Learn How to describe some of the common covenants found in a lease How to describe some of the common covenants found in a lease Costs associated with renting Costs associated with renting Laws associated with renting Laws associated with renting What to look for in an apartment What to look for in an apartment

3. My First Place How do I get my first apartment? How do I get my first apartment? What can I expect? What can I expect? What about parties? What about parties? Can you paint? Can you paint? What if my friends cause damage? What if my friends cause damage? What if I pay my rent late? What if I pay my rent late? Who pays utilities? Who pays utilities? How much can I afford? How much can I afford?

4. Tenancy If you rent real property, such as an apartment or house, you are a tenant. If you rent real property, such as an apartment or house, you are a tenant. If you own real property and rent it to someone else, you are a landlord. If you own real property and rent it to someone else, you are a landlord. The contract between a tenant and a landlord is called a lease. The contract between a tenant and a landlord is called a lease. In a lease, the tenant is known as the lessee, and the landlord is the lessor In a lease, the tenant is known as the lessee, and the landlord is the lessor

5. What to Look for in Selecting an Apartment Location Near school, work Near church, mosque, synagogue Near shopping Near public transportation Near recreation: parks, museums

6. What to Look for in Selecting an Apartment Finances Amount of monthly rent Amount of security deposit Cost of utilities Length of lease

7. What to Look for in Selecting an Apartment Building Condition of building and grounds Parking facilities Recreation on premises Security system Condition of hallways, stairs, and elevators Access to mailboxes

8. What to Look for in Selecting an Apartment Layout and Facilities Size and condition of unit Type and controls of heating and cooling systems Plumbing and water pressure Type and condition of appliances Condition of doors, locks, windows, closets, and floors

9. Wants versus Needs Decide on your must haves or needs and then make a list of wants Decide on your must haves or needs and then make a list of wants What are some wants from the previous list? What are some wants from the previous list? What are some needs from the previous list? What are some needs from the previous list? How can you tell the difference? How can you tell the difference?

10. Cost of the Apartment You should spend no more than 25-30% of take-home wages on rent You should spend no more than 25-30% of take-home wages on rent Problem 1: Problem 1: You make $7.80 per hour and work 35 hours per week; what is your maximum rent? You make $7.80 per hour and work 35 hours per week; what is your maximum rent? You make $9.50 per hour and work 38 hours per week; what is your maximum rent? You make $9.50 per hour and work 38 hours per week; what is your maximum rent? You earn $31,950 in annual salary; what is your maximum rent? You earn $31,950 in annual salary; what is your maximum rent?

11. Security Deposit Landlords often require you to pay a security deposit and the last month’s rent at the beginning of a tenancy in order to secure the payment of rent or repairs for damages to the property.

12. Additional Costs Deposits: Deposits: Deposit on apartment; usually first month’s rent; possibly first and last month’s rent Deposit on apartment; usually first month’s rent; possibly first and last month’s rent Electricity Electricity Water Water Cable/Internet Cable/Internet Trash collection Trash collection

13. Problem You have found a great 1 bedroom with water and trash collection included for $425 per month. You have found a great 1 bedroom with water and trash collection included for $425 per month. You must pay electricity and decided to purchase cable/internet. You must pay electricity and decided to purchase cable/internet. You must pay the first month’s rent plus a deposit to the landlord equal to first month’s rent, $150 deposit to KU, and $125 deposit to Time Warner. What is the cost to move in? You must pay the first month’s rent plus a deposit to the landlord equal to first month’s rent, $150 deposit to KU, and $125 deposit to Time Warner. What is the cost to move in?

14. The Lease Agreement A written agreement between a lessor and a lessee is called a lease. The lease creates the landlord-tenant relationship. It provides the tenant with exclusive possession and control of the real property of the landlord.

15. Terms in a Lease The terms of a lease, known as covenants, set forth the rights and duties of the landlord and tenant. The terms of a lease, known as covenants, set forth the rights and duties of the landlord and tenant. Common terms, or covenants, found in a lease include Security deposit Security deposit Decoration and repairs Decoration and repairs Assignment and subletting Assignment and subletting Option to renew or to purchase Option to renew or to purchase

16. Do Not Sign Until Inspection Visit the apartment before signing Visit the apartment before signing Don’t just visit a model Don’t just visit a model Perform a complete walkthrough Perform a complete walkthrough Check Check Appliances Appliances Cracks in walls Cracks in walls Faucets Faucets Measure doors to make sure furniture will fit Measure doors to make sure furniture will fit

17. Inspection Check Check Existing damage; make note on lease Existing damage; make note on lease Heat/ AC Heat/ AC Smells Smells Noises Noises Talk to neighbors Talk to neighbors Check hot water tank Check hot water tank Check light fixtures, bolt locks, condition of outside doors, lawn and landscaping Check light fixtures, bolt locks, condition of outside doors, lawn and landscaping

18. Decoration and Repairs The landlord has no obligation to decorate the premises, unless the lease says so or it is required by statute or local ordinance. The landlord has no obligation to decorate the premises, unless the lease says so or it is required by statute or local ordinance. However, the landlord must make any repairs necessary to keep the premises fit for living. This includes repairs such as fixing a leaky roof or a broken furnace. However, the landlord must make any repairs necessary to keep the premises fit for living. This includes repairs such as fixing a leaky roof or a broken furnace.

19. Option to Renew or to Purchase The option to renew the lease gives renters the right to a new lease, under the same terms, for an additional period. The option to renew the lease gives renters the right to a new lease, under the same terms, for an additional period. The option to purchase the property is an agreement by the lessor to sell the property to the lessee for a stated price. The option to purchase the property is an agreement by the lessor to sell the property to the lessee for a stated price.

20. Renter’s Insurance Does your parent’s homeowners policy cover your items in your apartment/dorm? Does your parent’s homeowners policy cover your items in your apartment/dorm? First thing after signing lease, purchase renter’s insurance First thing after signing lease, purchase renter’s insurance All major insurance companies All major insurance companies Very affordable: $10-20 per month Very affordable: $10-20 per month Only covers your belongings Only covers your belongings

21. Renter’s Insurance Photograph the apartment showing: Photograph the apartment showing: Furniture Furniture Clothes Clothes Electronics Electronics Computer Computer etc etc

22. Moving In; FINALLY Before you move in; take note of your daily routine at home Before you move in; take note of your daily routine at home Take notes on items used daily such as Take notes on items used daily such as Toothpaste, toothbrush, toilet paper, towels/washcloths, paper towels, thooth brush holder, soap/holder, toaster, silverware, shower curtain, hangers, iron/board, washing machine/dryer and detergents, dish washing supplies, cleaning supplies, etc… Toothpaste, toothbrush, toilet paper, towels/washcloths, paper towels, thooth brush holder, soap/holder, toaster, silverware, shower curtain, hangers, iron/board, washing machine/dryer and detergents, dish washing supplies, cleaning supplies, etc…