1.9.5.L1 Note taking guide Securing a Living Space Total Points Earned 29 Total Points Possible Percentage Application form - Name Date Class What do you need to know before returning the application form? 1. 3. Landlord - 2. Rent - Tenant - Property Manager - Lease Agreement - No-Lease Agreement - - OR - Written - Oral Agreement - List 10 things a lease must identify 1. 6. 2. 7. 3. 8. 4. 9. 5. 10. Eviction occurs when the tenant Amenities in a living space include does not voluntarily move out after water, garbage, electricity, heat, the landlord has given the television, telephone, and internet Security Deposit - Renters Insurance Subleasing is when the tenant allows someone else to move in and take over the rent payments What is the best way to ensure the return of a security deposit? Renter s Insurance can protect against,, or. Family Economics & Financial Education Revised March 2009 Housing Unit Securing A Living Space Page 7
1.9.5.A1 Worksheet Securing a Living Space Total Points Earned 17 Total Points Possible Percentage Name Date Class Directions: Answer the following questions based upon the Securing A Living Space PowerPoint presentation 1.9.5.G1. 1. What is rent? (1 point) 2. A property manager is a person who works for the owner. List five responsibilities of a property manager. (5 points) 3. Describe how a lease agreement is different from a no-lease agreement. (2 points) 4. Once a person has found a living space that meets their needs and budget, they should. the living space. (1 point) 5. An is a document used by landlords and property managers to determine if a person s credit history, financial stability, references, and other factors make them a worthy candidate for the rental unit. (1 point) 6. A security deposit is sometimes equal to and month s rent for the living space. (2 points) 7. Why is it important to know before signing the rental agreement the terms regarding the security deposit? (1 point) 8. List three steps that can be taken to try and obtain a security deposit that has yet to be returned. (3 points) 9. Having everything in is the best way to ensure your security deposit is returned. (1 point) Family Economics & Financial Education Revised March 2009 Housing Unit Securing A Living Space Page 8
1.9.5.A2 Worksheet Rental Application The undersigned hereby makes an application to rent unit # located at:. Anticipated move date of at a monthly rent of $ and security deposit of $. PLEASE TELL US ABOUT YOURSELF Full Name Home Phone ( ) Date of Birth Social Security # E-mail Address Other Phone ( ) Co-Applicant Name Co-Applicant Date of Birth Social Security # Names of Dependents Dependents Dates of Birth List All Pets PLEASE GIVE RESIDENTIAL HISTORY (LAST 3 YEARS) Current Address Apt # City State Zip Code Month/Year Moved In Rent $ Reasons for Leaving Owner/Agent Phone ( ) PLEASE PROVIDE YOUR CREDIT HISTORY Have you declared bankruptcy in the past 7 years? Yes No Have you ever been evicted from a rental residence? Yes No Have you had two or more late rental payments in the past year? Yes No Have you ever willfully or intentionally refused to pay rent when due? Yes No PLEASE PROVIDE YOUR EMPLOYMENT INFORMATION Your Status Full Time Part Time Student Unemployed Employer Dates Employed Employed as Supervisor Name Phone ( ) Salary $ per If employed by above less than 12 months, give name and phone of previous employer or school If you have other sources of income that you would like us to consider, please list income, source, and person (banker, employer, etc.) who we may contact for confirmation. You do not have to reveal alimony, child support, or spouse s annual income unless you want us to consider it in this application. Amount $ Source/Contact PLEASE LIST YOUR REFERENCES Family Economics & Financial Education Revised March 2009 Housing Unit Securing A Living Space Page 9
1.9.5.A2 Worksheet Rental Application continued Banking Accounts Name Account Type Account # Name Account Type Account # Personal Reference or Emergency Contact Name Address Phone ( ) Relationship Driver s License License # Vehicle Information Make/Model License Plate State Year State ADDITIONAL INFORMATION Please give any additional information that might help owner/management evaluate this application. Where may we reach you to discuss this application? Day Phone ( ) Night Phone ( ) I hereby apply to lease the above described premises for the term and upon the set conditions above set forth and agree that the rental is to be payable the first day of each month in advance. As an inducement to the owner of the property and to the agent to accept this application, I warrant that all statements above set forth are true; however, should any statement made above be a misrepresentation or not a true statement of facts, all of the deposit will be retained to offset the agent s cost, time, and effort in processing my application. I hereby deposit $ as earnest money to be refunded to me if this application is not accepted in 3 business banking days. Upon acceptance, this deposit shall be retained as part of the security deposit. When so approved and accepted, I agree to execute a lease for months before possession is given and to pay the balance of the security deposit prior to the move in date. If the application is not approved or accepted by the owner or agent, the deposit will be refunded, the applicant hereby waiving any claim for damages by reason of non-acceptance. I recognize that as a part of your procedure for processing my application, an investigative consumer report may be prepared whereby information is obtained through personal interviews with others with whom I may be acquainted. This inquiry includes information as to my character, general reputation, personal characteristics, and mode of living. The above information, to the best of my knowledge, is true and correct. Applicant Signature Date Family Economics & Financial Education Revised March 2009 Housing Unit Securing A Living Space Page 10
1.9.5 F1 Family Economics & Financial Education T here are many housing options to choose from, starting with the decision to rent or buy. Once the decision to rent has been made and the actual living space has been located, one is ready to secure the living space. Renting Rent is payment made in exchange for occupying another s land or property. Payments can be made to either a landlord, the person who owns the rental unit, or a property manager. A property manager is a person who works for the owner in regards to finding and screening tenants, collecting rent, maintaining and securing the property, and responding to tenants needs and complaints. Leases include a variety of information. Some information found on a lease can include: Names of the landlord and the tenant; Length of time of the rental; When rent is due; Late charges for overdue rent; Rules and regulations; Specifications for terminating the lease; Security deposit amount; Terms of subleasing. A security deposit is a one time fee that is paid in advance of moving into a living space to cover the cost of repairs or damages to the space that are beyond normal wear and tear. Subleasing is when a tenant rents out their living space to another person for part of the lease time. Types of Rental Agreements Rental agreements can come in a variety of forms. Lease agreement: This is a written contract specifying the legal responsibilities of both the tenant and landlord. A tenant, or the renter, is the one who rents the property. Leases have legal terms which can be very difficult to read and understand. Remember that it is important to understand everything on the lease and not to sign it until everything is understood. No-lease agreement: This is a month to month agreement. These agreements are not in writing. They offer flexibility but are risky in terms of rent increases and the possibility of being asked to move out at any time. Written Agreement: This agreement is usually in a short written format which is less formal and easier to understand than a lease. It allows individuals to rent month to month and changes may be made by the renter. Oral agreement: This is a verbalized agreement by the renter and landlord/ property manager. They are risky because they are not put in writing and no evidence of the terms agreed upon. Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Page 1
1.9.5.F1 Inspecting a Living Space Once a person has found a living space that meets their needs and budget, they should inspect the space. A living space inspection list can simplify this process. The inspection list should also address specific question about the living space. The following are examples of items that could be on an inspection list: What appliances or facilities are there and do they work? (Do the burners on the range work and does the toilet flush properly?) Are there safety features in the living space? (Fire alarm, smoke detector, safety features like dead bolts) Is there sufficient space for furniture, belongings, and adequate closet space? Are there enough electrical outlets for appliances and electronics? Are there enough electrical outlets for appliances and electronics? What type of heat is present and who is responsible for paying it? Are pets allowed? Where is the trash to be put and when is it collected? What other services are included in the living space? Application Process Information provided on an application form should be truthful and factual. Giving false information is punishable by law. After a person has walked through the actual living space or viewed it online through a virtual tour and determined that it is safe, habitable and has passed their inspection list, they should obtain and complete an application if they wish to rent the space. An application form is a document used by landlords and property managers to determine if a person s credit history, financial stability, references, and other factors make them a worthy candidate for the rental unit. Information provided on this form should be truthful and factual. Giving false information is punishable by law and would not benefit the individual trying to secure a living space. Before returning the application form to the landlord or property manager, a person should ask some questions to protect themselves. These include, but are not limited to: What is the policy regarding application fees? (Is there an application fee and if so, how much is it and will it be returned if the application is denied?) If your application form is accepted, are you required to rent the space? How long do you have to wait to be notified of the application acceptance? What is the policy regarding security deposits? (Will the security deposit be returned if the unit is left in a similar condition prior to move-in?) Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Page 2
1.9.5.F1 Security Deposits Damage List It is important to thoroughly examine the space to be rented with the landlord or property manager and in writing, compile a list all of existing damage. This list may include these items: Dents or marks on walls Holes in window screens Carpet stains Damaged or loose doors Appliance nicks and scratches The renter and landlord should sign the damage list and each keep a copy. After moving out, the list should be used by both to determine if any further damage, beyond normal wear and tear, has occurred. A security deposit, as already mentioned, is money paid in advance to moving into a living space to the landlord or the property manager to be used for repairs or damage done to the space beyond the normal wear and tear expected. The amount of money is sometimes equal to the first and last month rent of the living space. Payment of the security deposit is typically required upon signing the rental agreement. Before signing the rental agreement, be sure to know the terms regarding the security deposit. It is important to find out if the security deposit is refundable or not. These terms should be in writing and the renter should have a copy on file. It is also important to request receipts from the landlord or property manager showing that the security deposit has been paid as well as rental payments and to file these in a safe place as proof of payment. The amount of a security deposit is sometimes equal to the first and last month rent of the living space. In the event that a person has followed all precautions and no damage has occurred to the space and their security deposit is not returned (and the lease states that the security deposit will be returned under such conditions), there are some steps that the tenant can take to try and obtain the security deposit. These steps include: Sending a certified letter to the landlord or property manager stating the desire to have the security deposit returned. Sending copies of all the previously mentioned documents (rental agreement, a copy of the security deposit receipt, list of previously existing damage, and pictures if available) In some cases, take the individual/landlord to small claims court Remember, having everything in writing is the best way to ensure that your security deposit is returned. Family Economics & Financial Education November 2005 Housing Unit Securing a Living Space Page 3