Securing a Living space

Securing a Living space

Introduction p Application forms p What is rent? p Types of rental agreements n Lease agreements p Security deposits p Renter s insurance Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 2

Application form p Once a person finds and inspects a living space, they should complete an application form n Application form is a document used to determine a person s credit history, financial stability, and references p Before returning this form, a person should know: n Is there an application fee and if so, how much is it? n Will the fee be returned if the application is denied? n Is the person required to rent the living space if the application is accepted? Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 3

Renting p Rent is a payment made in exchange for occupying another s land or property p Payments can be made to either a landlord or a property manager by the tenant n Tenant-the renter, is the person who rents the property n Landlord is the person who owns the rental unit n Property manager is a person who works for the owner p Finds and screens tenants p Collects rent p Maintains and secures the property Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 4 p Responds to tenants needs and complaints

Types of Rental Agreements p Lease agreement- Written contract specifying the legal responsibilities of both the tenant and landlord p No-lease agreement- Month to month agreement n Not in writing n Risky Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 5

Types of Rental 1.9.5.G1 Agreements Continued p Written agreement- Short written agreement which is less formal and easier to understand than a lease Rent month to month Allows the renter to make changes to the lease p Oral agreement- Verbalized by the renter and the landlord/property manager Risky Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 6

Lease Agreements p A lease must identify the following before signing: n Rent amount n Payment procedure n Late rent payment penalties p Sometimes tenants can be evicted. Eviction occurs when the tenant does not voluntarily move out after the landlord has given required notice to the tenant n Security deposit amount p A security deposit is a one time fee paid in advance to moving into a living space to cover the costs of repairs or damages to the space beyond normal wear and tear Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 7

Lease agreements continued n Length of the lease n Number of people in the rental unit n Names on the lease n Payment responsibilities for all amenities p Amenities in a living space include water, garbage, electricity, heat, telephone and internet service, and television. Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 8

Lease Agreements Continued n Responsibility for repairs and maintenance n Eviction procedures n What happens when the lease ends n What happens if the lease is broken early n Furnishings available n Pets n Landlord s access rights to the property n Parking n Moving-out procedures Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 9

Lease Agreements 1.9.5.G1 Continued p Items to identify in lease agreements include: n Hanging pictures on the walls n Policy on overnight guests n Subleasing p Subleasing is when the tenant allows someone else to move in and take over the rent payments n Allowing the landlord to cancel the lease without notification Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 10

Lease Agreements Continued n Allowing the landlord to hold the tenant liable for the remaining lease balance if one day late with payment n Allowing landlord permission to enter rental unit when tenant is not there n Holding the tenant liable for repairs and maintenance Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 11

Security Deposits p Security deposit is money paid in advance of moving into a living space to the landlord to be used for repairs or damage done beyond the expected normal wear and tear n Be sure to know the terms regarding the security deposit p Examine the living space and create a list of all existing damage n Take pictures or use a video camera Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 12

Security Deposits Continued p Steps to take to get a security deposit returned: n Send a certified letter to landlord/property manager stating the desire to have deposit returned n Send copies of all documents (rental agreement, copy of security deposit receipt, list of previously existing damage, and pictures) n Take the individual to small claims court p Remember, having everything in writing is the best way to ensure the return of a security deposit Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 13

Renter s Insurance p Renter s insurance is not required of tenants, but recommended n Renter s insurance is used to protect the tenants personal belongings when renting from a landlord n Can protect against theft, fire, or vandalism n A person should ask themselves if they could afford to replace their belongings if a fire destroyed everything- If not, they should purchase renter s insurance Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 14

The End! Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Slide 15