Renting a Renting a ResidenceResidenceSection 6-5Section 6-5

Selecting a Rental UnitSelecting a Rental Unit

A person who rents is called a tenant.A person who rents is called a tenant. The person who rents the place to you is The person who rents the place to you is

called a landlord.called a landlord.

What to Look for Before What to Look for Before Renting an ApartmentRenting an Apartment

LocationLocation FinancesFinances BuildingBuilding Layout Layout

and and

FacilitiesFacilities

What to Look for Before What to Look for Before Renting an Apartment: Renting an Apartment: LocationLocation

Near school or workNear school or work Near shoppingNear shopping Near public transportationNear public transportation Near recreationNear recreation

What to Look for Before What to Look for Before Renting an Apartment: Renting an Apartment: FinancesFinances

Amount of monthly rentAmount of monthly rent Amount of security deposit Amount of security deposit

(often the same as one (often the same as one month’s rent)month’s rent)

Cost of utilities Cost of utilities (is anything (is anything included in your rent)included in your rent)

Length of leaseLength of lease

What to Look for Before What to Look for Before Renting an Apartment: Renting an Apartment: BuildingBuilding

Condition of building and Condition of building and groundsgrounds

Recreation on premisesRecreation on premises Parking facilitiesParking facilities Security systemSecurity system Condition of hallways, Condition of hallways,

stairs, and elevatorsstairs, and elevators Access to mailboxesAccess to mailboxes

What to Look for Before What to Look for Before Renting an Apartment: Renting an Apartment: Layout and FacilitiesLayout and Facilities

Size and condition of unitSize and condition of unit Type and controls of heating Type and controls of heating

and cooling unitsand cooling units Plumbing and water Plumbing and water

pressurepressure Type and condition of Type and condition of

appliancesappliances Condition of doors, locks, Condition of doors, locks,

windows, closets, and floorswindows, closets, and floors

Advantage of Renting: Advantage of Renting: MobilityMobility

You can talk with your landlord and possibly You can talk with your landlord and possibly leave within a matter of days if you need to leave within a matter of days if you need to relocate.relocate.

You may not be sure of where your job will You may not be sure of where your job will take you if you are just starting out, so you may take you if you are just starting out, so you may not want to settle into a house.not want to settle into a house.

You may want to hold off on a house until you You may want to hold off on a house until you figure out where life is going to take you.figure out where life is going to take you.

Advantage of Renting:Advantage of Renting:Low initial costsLow initial costs

Renting does not require thousands of Renting does not require thousands of dollars as a down payment like a house.dollars as a down payment like a house.

It also does not require costs like lawyer It also does not require costs like lawyer fees, home owner’s insurance, and fees, home owner’s insurance, and closing costs.closing costs.

Advantage of Renting:Advantage of Renting:Fewer responsibilitiesFewer responsibilities

If something breaks, you call the If something breaks, you call the landlord.landlord.

Landlord usually takes care of mowing Landlord usually takes care of mowing the lawn and shoveling snow.the lawn and shoveling snow.

Don’t have to worry about paying Don’t have to worry about paying property taxes or insurance.property taxes or insurance.

Disadvantage of Renting:Disadvantage of Renting:Few financial benefitsFew financial benefits

You are not eligible for some tax deductions.You are not eligible for some tax deductions. Subject to rent increases.Subject to rent increases. Homeowner’s pay can pay off their mortgage Homeowner’s pay can pay off their mortgage

and eliminate their housing cost. A tenant will and eliminate their housing cost. A tenant will always have a house payment.always have a house payment.

Homeowner’s can sell their house and make a Homeowner’s can sell their house and make a profit (and get the money back they put in), but profit (and get the money back they put in), but tenants will never get back the money they tenants will never get back the money they paid in rent.paid in rent.

Disadvantage of Renting:Disadvantage of Renting:Lifestyle RestrictionsLifestyle Restrictions

You may not be You may not be allowed to have pets, allowed to have pets, paint walls, or have paint walls, or have loud parties.loud parties.

Disadvantage of Renting:Disadvantage of Renting:Legal IssuesLegal Issues

Bound by a lease.Bound by a lease. Never sign a lease without reading it.Never sign a lease without reading it. Lease gives the landlord the right to take Lease gives the landlord the right to take

legal action if you do not pay your rent or if legal action if you do not pay your rent or if you damage the property.you damage the property.

What else affects the What else affects the cost of renting?cost of renting?

LocationLocation Some locations will cost more in rent than othersSome locations will cost more in rent than others

Living spaceLiving space Bigger places will probably cost moreBigger places will probably cost more

UtilitiesUtilities You may have to pay some or all of your own utility billsYou may have to pay some or all of your own utility bills

Security DepositsSecurity Deposits Money the landlord may keep to pay for damages you may have 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 caused in the rental. If there are no damages, he must give it back.back.

Renter’s InsuranceRenter’s Insurance Will cover the loss of personal property due to damage or theft.Will cover the loss of personal property due to damage or theft.

ReviewReview What are the things you look for when What are the things you look for when

renting an apartment?renting an apartment? What things affect the amount of rent you What things affect the amount of rent you

would pay for an apartment?would pay for an apartment? What type of apartment would best suit two What type of apartment would best suit two

friends who plan to become roommates?friends who plan to become roommates?