Renting A Home

1
Renting A Home Decisions Before Renting
2
Objectives

• Define Advantages and Disadvantages of Renting
• Discuss Concerns With Roommates
• Determine How Much You Can Afford for Rent
• Decide What You Want in the Home You Are Renting

3
Advantages of Renting

• Low initial and predictable monthly costs
• Limited maintenance
• Mobility and flexibility
• Recreation facilities

4
Disadvantages of Renting

• Limited control of policy
• Financial disadvantages
• Monthly rent can be more expensive than a
  mortgage payment.
• Rent may increase at the end of the rental
  agreement period.
• Renting does not build equity.
• Rent is not tax deductible.

5
Questions to Consider

• Who will live in the rental unit?
• What can I afford to pay for the rental unit?
• What do I want included in the rental unit?

6
Questions to Discuss with Roommates

• Legal issues of the rental contract
• What name(s) will be on the lease?
• What happens if a roommate does not pay his/her
  share of the rent?
• Who is legally liable for rent if a roommate
  moves out?

7
Questions to Discuss with Roommates

• Utilities and accounts
• What services (telephone, cable TV, etc.) will
  you want?
• In whose name will the services be provided?
• How will costs be shared?

8
Questions to Discuss with Roommates

• Household expenses
• Food?
• Toiletries?
• Laundry?
• Cleaning Supplies?

9
Questions to Discuss with Roommates

• Lifestyle issues
• What are the waking and sleeping patterns?
• What are the study and entertainment patterns?
• What are the cleanliness standards?
• Who will do which household chores?
• Who will be allowed to sleep over?

10
What Can You Afford?

• Rental Budget
• Monthly Rent
• Utilities
• Furniture and Appliances
• Transportation

11
What Do You Want?

• ABCD Priority System
• A Must have.
• B Make an apartment more desirable than
  another in the same price range, but are not
  essential.
• C Might be considered frills. These items may
  only be available in rental units that are beyond
  your price range.
• D Unacceptable items.
• Not Applicable Items that do not apply.

12
Summary

• Defined Advantages and Disadvantages of Renting
• Discussed Concerns With Roommates
• Determined How Much You Can Afford for Rent
• Decided What You Want in the Home You Are Renting