Transcript Chapter 9. RENTING To buy or not to buy?…Finding a rental and negotiating a lease…Your rights as a tenant A.

Chapter 9. RENTING
To buy or not to buy?…Finding a rental and negotiating a
lease…Your rights as a tenant
A. Pros and Cons of Renting
1.
2.
3.
4.
5.
6.
7.
8.
CHAPTER 9
Flexibility
No Money Tied Up
Income Tax Implications
No Chance of Profit (or Risk of Loss)
Protection Against Inflation?
No Building of Equity
Maintenance and Renovation Costs
A Case History
Slide 1 of 5
B. Shopping For Rentals (See Personal Action Worksheet,
Text page 244)
C. The Lease and Its Key Clauses
1. Who pays what expenses?
2. Who is responsible for repairs?
3. Your right to “quiet enjoyment.”
4. Extra fees
5. Renewal Options
6. Sublease Privileges
7. Security Deposits
8. Improvements Made to the Premises
9. Amending a Lease
10. Tenant’s Insurance
CHAPTER 9
Slide 2 of 5
D. Month-to-month Tenancy
E. Combinations of Leasing and Buying
1. A Lease With an Option to Buy
2. A Lease With a Right of First Refusal
F. Laws Governing Rentals
1. Health and Safety
2. Rent Control
3. Condominium Conversion
G. Terminating a Lease
CHAPTER 9
Slide 3 of 5
TALKING POINTS…
Chapter Nine, Number One
You’re hunting for apartments, and you’ve found four ideal ones that are virtually
identical in location, condition, size, amenities and price - at $900 a month including
utilities. But the lease terms vary. Evaluate the pros and cons of these differences.
1. Apartment A offers only a one year lease with two one year renewals at
10% increases each renewal.
2. Apartment B offers only a two year lease with no renewal option.
3. Apartment C offers only a three year lease, with a three year renewal
option at a 20% increase.
4. Apartment D offers only a month-to-month tenancy.
CHAPTER 9
Slide 4 of 5
TALKING POINTS…
Chapter Nine, Number Two
You’ve moved into an apartment. How would you react, in word and deed,
to the following:
1. Your lease says no dogs allowed. You don’t want a dog, but you know that the
couple in the next apartment has one, and its frequent barking bothers you.
2. There’s nothing in the lease about cooking odors. The neighbor beneath you
cooks very exotic, very aromatic foods, and the smell is often overpowering.
3. The landlord has let the exterior of the building get very grubby looking. It
embarrasses you and the other tenants. Your options? A rent strike? To move out?
Talk to the landlord, who’s an ogre? Grin and bear it? What if enough other tenants
won’t go along with what you want to do?
4. You didn’t pay attention when you moved in, but now you realize that the whole
building (with six apartments) is served by one water heater and one furnace.
CHAPTER 9
Slide 5 of 5