Youth Life Youth Future Youth Money! TUTOR WORKBOOK Flatting and Renting
CONTENTS Flatting and renting... 4 Investigating the Financials of Flatting!... 4 Aims... 4 Principles... 4 Task Overview... 5 Where to live and what it will cost... 5 Furnishing The Flat... 6 Getting The Right Services (power, phone) etc... 6 Revised budget... 6 Questions to ponder!... 6 More Discussion points for successful flatting... 7 Scripture References Addendum... 8 Mini Money (cash samples)... 9 Appendix Useful Scripture References... 10 Appendix - Residential Tenancy Agreement... 11 Appendix - Flat/house - sharing agreement... 12 Appendix - Bond Lodgement form... 13 Appendix - Imagining your future flat... 14 Appendix - Automatic Payment Authority... 15 What flatting is really like (Joke)... 16 End of workbook... 17 Page 2 Of 17 Flatting and Renting CBNZ 2014
Learning how to manage money is an awesome skill to have. It can really help people to prevent money problems. Youth Life Youth Future, Youth Money is a fun, interactive programme where you ll help students to discover some really useful tools to keep control of their money tools that they can pass on to friends and family as well! Knowing how to manage their money may also help them to fulfil goals for their future. CBNZ (Christian Budgeting New Zealand Inc) developed this special programme with funding from the Ministry of Social Development. Launched in October 2012 it was reviewed and reprinted in May 2014. Your programme is presented by Christian Assist Trust. CBNZ supports and equips budget advisors across the country with members from Auckland to Invercargill. Established in 2004 and later incorporated, it is a Not For Profit organisation. For more information about CBNZ please email sarah@cbnz.org.nz or phone 03 342 7569. CBNZ Inc, c/o PO Box 33285, Incorporated Society No. 1945533. Charities Commission Registration No. CC22291 Page 3 Of 17 Flatting and Renting CBNZ 2014
Money! Flatting and renting Investigating the Financials of Flatting! Aims To look at the initial setup costs of flatting. To look at items needed to move into a flat. To look at some legal issues around flatting. Principles Look before you leap. An old saying that fools rush in where angels fear to tread. Be wise and get a clear understanding of what you are getting into. Tools Flashcards - House pictures Budget form (student workbook) Tenancy form Bond lodgment form Flat Sharing form Bank Account Automatic payment form Property inspection form Discussion Questions Power-point summary Play Money / mini money Calculators Workbook for personal recording of results Page 4 Of 17 Flatting and Renting CBNZ 2014
Task Overview There are a few ways the tutor can run this session depending on what situation the course participants are in. Option 1 - setting up a brand new flat with other flat mates. Option 2 - a single person joining an existing flat. Option 3 - a single person leaving a flat and being replaced. Option 4 - breaking up a whole flat (i.e. every ones leaves at the same time) and moving into new ones. Option 5 - going boarding. In this exercise, we will look at Option 1 Task 1 Where to live and what it will cost 1. For this exercise, set course participants into groups of 4. Each group will become "flatmates" who are going to go flatting together. Using your student work book, decide if they are single people, couples, or both. Write their names into the workbook, e.g. 4 single people or 2 single people and a couple. 2. Have each group discuss and agree where they want to live, and why. There is a selection of points each group may want to consider for this - near work or study, transportation options, stand alone house or block of flats etc. 3. Now to the "Flat Rental Costs" page in the Student Workbook. Get each participant to complete the section on "Flat Setup Costs". The example on the Student Workbook page includes a house rental of $440pw for a 4 bedroom house. Get the students to use a different figure which is appropriate for your city. 4. Get students to calculate all costs in the "Flat Setup Costs" section on this page in the Student Workbook for their suggested costs. Check each groups calculations are correct at this point! 5. Now to the services for your flat. Give each student some amounts to set up the "services" in their new flat. Include phone and power with a bond payable. You may want to use the example figures given in the student worksheet. 6. Get each student to calculate "My Total Costs" at the bottom of the page. Check each groups calculations are correct at this point! 7. Get each person to calculate how much they would need to borrow from Work and Income via a Special Needs Grant or other lender to cover shortfalls in their bond/rent in advance and letting fee etc. 8. Give each group $250 in 'mini money' as an example of having some of their own cash to contribute. Have the group ask the tutor for extra cash to secure the flat and its services (i.e. they Page 5 Of 17 Flatting and Renting CBNZ 2014
borrow the money). The tutor can give each group the amount required to pay for the above. Let them hold onto the cash briefly then give the cash back as if the tutor was now the landlord...... remind them... it has now become a debt!!! Task 2 Furnishing The Flat 1. Have each group develop a list of things they will need to furnish their flat. Use the pages of room information (bedroom, kitchen, lounge) or the page "Setting up your flat - getting the things you need!" in the Student Workbook. It will help develop a basic list to build on. Each person can put in amounts for either new or second hand items - let each person choose for themselves. Getting The Right Services (power, phone) etc 2. Have each group develop a list of' services' they will need in their flat. Use the page "Working out the costs of services we will need" in the student workbook. Each group must include rent and power on the sheet. Now put a name(s) beside each entry as the person who will be responsible (legally responsible) for the item. You can use more than one name. Revised budget 3. Get each person to complete a new budget showing the new costs (items for the flat and services they will need to pay for). More paperwork to complete the whole flatting experience 4. Get each person to complete the following items. Residential tenancy agreement including property inspection report. Bond lodgment form. Renting or house sharing agreement. Automatic Payment (AP) bank authority for each item to be paid including rent. Questions to ponder! What is an advantage of putting items (e.g. rent) in different names. What is a disadvantage of putting items (e.g. power)in one name. What is the difference between renting and boarding. When is the initial property inspection done and how often after that. What about having pets - what is acceptable? Where can I find accommodation advertised. What is a flat "kitty" and what could it pay for. Should we have a cooking roster e.g. we all cook 1 evening per week. Should we buy our own food or shop together. What could be included in our cleaning roster. Why might I not get all my bond refunded. Do I need to get my carpets commercially cleaned when we leave the flat. Page 6 Of 17 Flatting and Renting CBNZ 2014
More Discussion points for successful flatting a) Rent Is one person going to pay the rent or is each person going to pay separately to the landlord? What happens if a person can't pay? Will a person pay extra if they get a bigger room? Or a parking spot? b) Bills Whose name will be on the bills? How will you pay for the bills? Will each flattie pay separately or will the person whose name is on the bill pay? Do other flatmates have items that will use a lot of power, such as a waterbed, or a full-on sound system? Will they pay extra for this? What phone services will you have? How will you organise the paying of any tolls? c) Household duties and chores How often will different areas be cleaned? Who will be doing the cleaning? d) Lease Who will be responsible for property damage? How will bond be organised? What about getting other flatmates? Do all flatmates agree and have a say in who is chosen or does one person make the decision? e) Guests Are overnight guests allowed? How long can each guest stay? Where will guests stay? f) Activities Will you have quiet time? Will parties be allowed? How big can they be? Will there be limits on loud the music is played? Will there be limits on how long someone can be on the phone? Discussion Points Of Why Some Reasons Flats Fall Apart? people don't pay their share of costs. lack of money. one person does all the chores. no one cleans. landlord sells the property. people stop paying bills e.g. phone and it gets cut off. people get partners who become "live in" with the flatmates agreement. peoples interests/lives change and they need to move. friends stop being friends. Page 7 Of 17 Flatting and Renting CBNZ 2014
Where To Go For Help if we need it Local Citizens Advice Bureau (WWW.CAB.ORG.NZ) Local community law office. Ministry of Business, innovation and employment - Tenancy Services. Tenancy Services - dispute resolution Services provide Mediation services and Tenancy Tribunal. You can also refer to The Residential Tenancies Act 1986 and its amendments. Scripture References Addendum Proverbs 24:27 Comment Put your outdoor work in order and get your fields ready; after that, build your house. This speaks of priorities - not neglect. Focus on your work, not just decorating your home. Keep your priorities straight!!! Some have followed the basic idea for their priorities as God, Family, Work, Other. Matthew 7:24-25 Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. 25 The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. Comment Wisdom is not only hearing, but doing! Luke 14:28-30 Comment Suppose one of you wants to build a tower. Won t you first sit down and estimate the cost to see if you have enough money to complete it? 29 For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, This person began to build and wasn t able to finish. While this speaks to the cost of being a disciple of Christ, it follows in the actual housing part of life such as flatting. Be intentional - work out the costs, don't go blindly into things as you may become the topic of unwanted discussion. Even worse, you could get thrown out on the street! Page 8 Of 17 Flatting and Renting CBNZ 2014
Mini Money (cash samples) Page 9 Of 17 Flatting and Renting CBNZ 2014
Appendix Useful Scripture References Proverbs 24:27 Comment Put your outdoor work in order and get your fields ready; after that, build your house. This speaks of priorities - not neglect. Focus on your work, not just decorating your home. Keep your priorities straight! Some have followed the basic idea for their priorities as God, Family, Work, Other. Matthew 7:24 Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. 25 The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. Comment Wisdom is not only hearing, but doing! Luke 14:28-30 Comment Suppose one of you wants to build a tower. Won t you first sit down and estimate the cost to see if you have enough money to complete it? 29 For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, This person began to build and wasn t able to finish. While this speaks to the cost of being a disciple of Christ, it follows in the actual housing part of life such as flatting. Be intentional - work out the costs, don't go blindly into things as your may become the topic of unwanted discussion. Even worse, you could get thrown out on the street!
Appendix - Residential Tenancy Agreement Landlord details Name(s) This section must be filled in Physical address for service Phone: (Wk) (Hm) (Mobile) Other contact address(es) Additional address for service (This may be an email, PO Box, facsimile number) Tenant details Name(s) Identification Drivers licence Passport Other Write ID Number: This section must be filled in. It is important to give good contact details. Physical address for service Phone (Wk) (Hm) (Mobile) Other contact address(es) Additional address for service (This may be an email, PO Box, facsimile number) Is any tenant under the age of 18? YES / NO (Cross one out) Tenancy details Address of tenancy Body Corporate rules attached if premises are Unit Title premises Y / N/A (Strike out one option) Rent per week Bond amount $ Rent to be paid at Or into Bank Account No. Account name. Branch To be paid in advance, weekly/fortnightly (Strike out one option) Bank The landlord and tenant agree that 1. The tenancy shall commence on the day of 20 2. Strike out one option: This is a periodic tenancy and may be ended by either party giving notice as required under the Residential Tenancies Act 1986 OR This tenancy is for a fixed term, ending on the day of 20 NB: Fixed-term tenancies automatically become periodic upon expiry of the fixed-term unless either party gives the other written notice of their Intention not to continue with the tenancy. That notice must be given no more than 90 days, and no less than 21 days, before the end of the fixedterm. If the landlord grants the tenant a right to renew the fixed-term, they should state this below under Number 4. The tenant may exercise this right by informing the landlord in writing no less than 21 days before the end of the fixed-term. 3. Strike out the bold section below if it is not applicable The tenant shall not assign or sublet the tenancy without the landlord's written consent. 4. Insert other terms of this tenancy (eg. pets, number of tenants, reimbursement of recovery costs, right of renewal if tenancy is a fixed-term) If necessary, please continue on a separate sheet and attach it to this agreement and ensure that all parties have signed and dated it. Signatures Do not sign this agreement unless you understand and agree with everything in it The landlord and tenant sign here to show that they agree to all the terms and conditions in the tenancy agreement and that each party has read the notes on the back page of this agreement. Signed by Signed by LANDLORD TENANT TENANT Date signed TENANT TENANT Date signed Page 11 Of 17 Flatting and Renting CBNZ 2014
Appendix - Flat/house - sharing agreement Flat/house sharing agreements between tenants and other flatmates are not covered under the Residential Tenancies Act 1986. Tenants and other flatmates will, however, find it useful to have a written agreement. The following is a sample of what could be included in an agreement. This agreement is between the Tenant (named on the rental agreement or 'lead' tenant) & each Flatmate. Head tenant details Flatmate details Name: Address for service: (other than the flat) Phone: Email: Address of rental property Street: City: Name: Address for service: (other than the flat) Phone: Email: Suburb: Postcode: The flatmate and the head tenant agree to share premises on the following terms: 1. This agreement starts on the / / and will continue on a weekly / fortnightly basis. 2. The rent is $...per week / fortnight and is to be paid weekly / fortnightly in advance by the flatmate to the head tenant / landlord. 3. A bond of $...is payable to the head tenant. A written receipt will be given to the flatmate. 4. The flatmate cannot assign the right to live in the flat. 5. If the head tenant receives notice from the landlord, the head tenant will give a copy of the notice to the flatmate immediately. 6. This agreement can be terminated by 14 days notice given by either party in writing. 7. The flatmate shall not keep any pets on the premises without the head tenant s written permission. 8. The flatmate must pay.. percent of the cost of food, electricity, gas, water and telephone rental each week or as the bills are received or an agreed figure set at $... per week. 9. The flatmate must pay any telephone toll charges incurred by the flatmate when asked to by the head tenant. 10. The flatmate must not remove any chattels or fixtures from the premises that do not belong to the flatmate. 11. At the end of this agreement, the head tenant will return the bond to the flatmate immediately. The head tenant can deduct from the bond any cost which is outstanding and is the responsibility of the flatmate or that may become due e.g. repairs, cleaning bedroom carpets, agreed ongoing costs e.g. for fixed term contract services such as Sky TV, broadband etc. 12. In the event of any dispute, the parties agree that the dispute will be determined by the Disputes Tribunal. Signature Signed by: Head Tenant Signed by: Flatmate Date signed: / / Date signed: / / Page 12 Of 17 Flatting and Renting CBNZ 2014
Appendix - Bond Lodgement form Page 13 Of 17 Flatting and Renting CBNZ 2014
Appendix - Imagining your future flat Page 14 Of 17 Flatting and Renting CBNZ 2014
Appendix - Automatic Payment Authority Page 15 Of 17 Flatting and Renting CBNZ 2014
What flatting is really like (Joke) Page 16 Of 17 Flatting and Renting CBNZ 2014
Session Notes End of workbook Page 17 Of 17 Flatting and Renting CBNZ 2014