Transcript Chapter 21
CHAPTER 21
Renting a Residence
Housing Alternatives
On-Campus Housing
Many college students prefer to live on campus.
Advantages to living on campus are:
Closeness
to classes and campus activities, access to
campus resources like libraries and health centers, and
a feeling of being a part of campus life.
Dormitories
On campus building that contains many small rooms
that are rented out to students.
Usually furnished with beds, dressers, and desks.
Some
may have their own bathrooms, while others
share a common one.
Most have a central lounge area and shared kitchen
and laundry facilities.
Meals at the college cafeteria may also be included
with the cost of the room.
The cost per term may be less than most other housing
alternatives.
Sororities and Fraternities
Many colleges have sororities (social organization of
female students who share a residence) and fraternities
(similar organization for male students) that provide oncampus housing.
Houses are usually large houses that can house 20 or
more people.
To live in one of these buildings, you have to become a
member in a process called pledging.
Cost is usually higher for these facilities, but you are living
with people with similar values and goals to your own.
Housing Cooperatives
Known as co-ops, where you get a room similar to
one in a dormitory at lower cost but with added
responsibilities.
Major Difference:
You
tend to share in cooking, cleaning and maintaining
the building in exchange for the lower cost.
Married Student Housing and
Off-Campus Housing
Some students are married when they go to college
and in these apartment-style facilities, there will be
amenities for families.
Some colleges (residential colleges) will not allow
freshmen and sophomores to live off campus. Other
colleges (commuter colleges) do not provide oncampus housing options.
Apartments
If you don’t attend college or if you choose to live off-campus, your
first residence away from home will likely be an apartment, a
separate living facility that exists among many other similar units. An
apartment complex is a large building or group of buildings that
contain many units.
Rent is the monthly charge you will pay to live in an apartment, and
it is based on the size and quality of apartment and facilities
provided.
A studio apartment (efficiency apartment) has one large room that
serves as the kitchen, living room, and bedroom. They have less
living space, but are less expensive.
A townhouse is a living space that has two or more levels.
Apartment facilities may include a laundry room, storage area,
swimming pool, tennis courts, and clubhouse. In addition, part or all
of the utilities may be included in the rent.
Duplexes and Multiplexes
A duplex is a building with two separate living
units.
Are usually the same with separate entrances.
Offer more space than apartments and more
privacy, and can include a garage, private laundry
facilities, and other things similar to a house.
A multiplex is a building or group of buildings.
Condominiums
A condominium is an individually owned unit in an
apartment-style complex with shared ownership of
common areas.
If you are renting a condo, you will have the same
responsibilities for upkeep as the owner.
Houses
Rental houses offer attractive features, however,
they are usually more expensive to rent.
You are paying for neighborhood living, often
garage space and more living area, privacy.
But you are likely to find many of the same
restrictions as with other rentals, like no pets
allowed.
Disadvantage = You will also have more
responsibilities like maintaining the lawn.
Living Arrangements
To share expenses, you may wish to have a roommate.
Choosing a roommate can be difficult. Just because you like
someone doesn’t mean that you can successfully live
together. You living habits may be very different. Some
questions to ask a potential roommate:
Do you smoke or drink?
Do you like a clean living area at all times, or are you easygoing
about your environment?
Do you have steady employment or another source of income to
ensure you can pay your share?
What are some of your goals?
What are you leisure activities?
Why type of transportation do you have?
Where to Live
The decision of where to live will depend largely on finances. For college
students who choose on-campus housing, many of the decisions will be
pre-determined. Think about the following:
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5.
Deposits and fees. A security deposit is a refundable amount paid in
advance to protect the owner against damage or nonpayment. If you take
care of the property, you should get it back when you move. Utility
companies may require you to make a deposit when you first open an
account.
Length of time you plan to live in the residence. If you sign a lease for six
months, you have made a commitment to remain for that length of time. You
may face penalties if you choose to move sooner.
Distance from work or school. Your proximity to work and school and access
to public transportation are important considerations.
Distance from services. You will need access to laundry facilities, shopping
areas, gas stations.
Repairs and maintenance. You may have the responsibilities to maintain the
property in minor ways.
What to Take
A furnished rental means that the basics are provided—
bed, dresser, sofa, chairs, lamps, dining table and chairs,
and essential appliances.
An unfurnished rental may or may not include basic kitchen
appliances. Usually the fewer the items furnished, the lower
the rent.
You can buy or rent furnishings. Compare purchase and
rental payments before you make a decision. A rent-to-own
option is where you rent furniture with an option to buy. At
the end of the rental period, you have the option to buy the
furniture at a reduced price. However, they can be more
expensive than making payments on furniture you purchase
outright with an installment plan.
Planning Your Move
Begin planning your move several months in advance. Some ways to
prepare:
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Have savings. Set aside savings to cover the security deposit, first
and last months’ rent, fees, and initial expenses.
Have income. Have a reliable source of income to pay rent, utility
bills, and shared expenses. Expect that your landlord will run a credit
report to verify your ability to pay the rent.
Have supplies. Gather what you need to live independently, such as
clothing, towels, sheets, pillows, small appliances and dishes.
Think ahead. Plan the move with our career goals in mind. If your
goal is to finish college, then your living plan should help you achieve
this goal.
Make reservations. Make arrangements for transporting furnishings.
Professional movers can be expensive and must be reserved in
advance.
A good way to organize your preparations is to make a household
needs inventory.
Group Financial Decisions
ALL roommates are responsible for meeting the
obligations to which they agree.
Group budgeting allows for the careful allocation
of expenses, so that each person pays his or her
share.
Moving Costs
These include the time and money spent in packing,
loading, transporting, unloading, and unpacking.
Professional movers charge according to the amount
you have to move, the distance traveled, and whether
or not they do the packing. You can save money by
doing your own packing.
You can save even more money by renting a truck or
trailer and using your own labor for loading, driving,
and unloading.
Installation Charges
When you move into a new residence, you will pay
some installation charges, such as for telephone,
Internet and cable services.
Bundling is combining services into one packet, and
you can find special offers and discount plans for
doing so.
You must also arrange to turn on electricity and
other utilities. Many utility companies may charge
new customers a refundable security deposit, and
others charge a non-fundable fee.
Advantages of Renting
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Mobility. Many people prefer to rent because of the
ease and speed with which they can move when a good
job opportunity comes along elsewhere.
Convenience. Many landlords provide a number of
conveniences for their tenants, like laundry and
recreational facilities.
Minimum responsibilities. Renting usually relieves you of
many of the responsibilities of home ownership, like repairs
and maintenance.
Social life. Apartments offer the opportunity to meet
others and socialize informally.
Lower cost. Apartment rent is usually lower than the cost
of buying a house. Sharing expenses with a roommate
lowers individual costs even more.
Disadvantages of Renting
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Noise. Residents usually share common walls with
neighbors above, below or beside them.
Lack of privacy. Because conversations and other
activities could be overheard through common walls,
tenants often feel a lack of privacy.
Small living space. The typical apartment is smaller
than most other housing choices.
Lack of storage space. The small size of apartments
also means little cabinet and closet space.
Scarcity of parking. Many rental properties do not
provide garages or off-street parking, especially in
cities.
Rental Contracts
Rental application—allows the landlord to verify
your income, previous rental experience, credit
rating, and so on.
Leases and Month-to-Month Agreements
A lease is a written agreement that allows a tenant to
use property for a set period of time at a set rent
payment.
The landlord is called the lessor, or person responsible
for the property.
The tenant is called the lessee, or person who will take
possession of the property.
You may sign a lease for six months, a year, or longer.
During that time, your rent remains constant.
If you decide to move before the lease expires, you are
still responsible for the remaining rent.
Leases and Month-to-Month Agreements
Before the lease expires, the landlord will inform you of any
rent increases. You can notify the landlord as specified in the
lease if you do not wish to stay beyond the lease period.
A rental agreement is a written agreement that allows you
to leave anytime as long as you give the required notice.
These are often called month-to-month agreements.
It doesn’t bind you to pay rent for a period of time longer
than a month, but this means the rent can be raised at any
time and you can be asked to leave at any time.
The ease of moving in and out is an advantage of renting
month to month. If your plans are uncertain and you need
flexibility, it can be a good option.
Both a lease and rental agreement will include provisions for
security deposits and their return, termination of rental, rent
payments, tenant and landlord responsibilities.
Rental Inventory
If you live in a rental property you are expected to leave it
as you found it.
To assure that you are not accused of breaking, damaging,
or taking furnishings, prepare an inventory of the premises
at the time you move in.
The rental inventory is a detailed list of current property
conditions. Noted are such things as broken windows, missing
screens, holes in the wall, stained carpet, and so on.
You and your landlord should tour the property together to
take the inventory so you both agree on its contents. When
you move out, you should once again take an inventory. The
comparison between the two should determine whether or
not you get your security deposit back.
Landlord Obligations
Housing laws in most states require that landlords provide a
dwelling that is habitable at all times. A dwelling is considered
habitable if:
The exterior is weatherproof and waterproof
Floors, walls, ceilings, stairs, and railings are in good repair
Elevators, halls, and stairwells meet fire and safety regulations. Smoke
detectors are required.
Adequate locks for all outside doors, working latches on windows, and
exits meet fire and safe regulations
Plumbing facilities comply with local and state sanitation laws and are in
good working order
Water supply provided is safe and adequate
Lighting, wiring, heating, air conditioning, and appliances are in good
condition and comply with building and safety codes
Buildings and grounds are clean and sanitary
Tenant Obligations
Read, understand, and abide by terms of rental contract
Pay the rent on or before the due date
Eviction is the legal process of removing a tenant from rental
property
Give at least 30-days’ notice of intent to move
Keep the premises in good, clean condition to prevent
unnecessary wear and tear or damage to unit
Use a rental unit only for purpose for which it is intended
Allow the landlord access to the unit to make repairs or
improvements
Obey the rules specified in the rental contract for the
residents or the rental community
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