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Renting
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Did You Know?
• 1/3 of all people in the U.S. rent
• Who are these people?
– Majority are: singles, young couples, and senior
people
– Many have very mobile lifestyles.
• The most common rented dwellings are multifamily dwellings (duplexes, triplexes and
apartment buildings).
• Single family houses as well as condominiums
are also rented.
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Advantages of Renting:
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Its easier to move in and out.
Don’t have to pay a mortgage.
Less space to handle.
Maintenance is taken care of 24 hours
Tennis courts or pools are included
sometimes.
• Generally costs less than buying.
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Disadvantages of Renting:
• Noises.
• Neighbors are in close quarters.
• Weird, dirty, mean, loud,
neighbors.
• Parking spaces are small, can be
taken by others.
• Small space, not much storage
room.
• Can’t make changes to it.
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Disadvantages of Renting (cont.):
No tax benefit
No investment in or from property.
No equity in the building.
Rent payment can increase frequently.
Possibility of eviction.
Neighbors
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The Rental Process- Financial Aspects
• Terms to know:
– 1. Tenant- (lessee)- Person who rents a property
from the owner of that property.
– 2. Landlord-(lessor)- Owner of the property.
– 3. Application fee- fee when filling out application
(shows renter is serious); $25-100 depending on
the city.
– 4. Credit Check fee- fee paid to the landlord to
have your credit checked through a credit agency
(tells landlord if the renter is paying bills on time).
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The Rental Process- Financial Aspects- cont.
• 5. Security Deposit – Fee that covers costs of future
damage by renter (can be one or more month’s rent);
Usually returned if no damage.
• 6. Pet Deposit – Fee that covers any damage by a
pet.
• 7. Advance on Rent – Landlord requires one or more
month’s rent in addition to the security deposit.
• 8. Utilities- Water, sewer, gas, electricity, trash
collection; Landlords sometimes pay for all the above
mentioned or may require tenant to pay for all, plus
telephone and cable.
• 9. Renter’s Insurance – Insurance to cover the
renter’s belongings in the event of flood, fire, theft or
any other hazard; very inexpensive. (Get it!)
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Utilities
–Electricity
–Natural gas
–Water/Sewer
–Telephone
–Cable
–High speed internet
–Renter’s insurance
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Legal Aspects
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Lease
Assign
Sublet
Breach of Contract
Eviction
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Legal Terms:
• 1. Lease - Legal document signed by landlord
and tenant agreeing to rent housing for a
specific period of time, states rights and duties
of both parties.
• Typically one year.
• The most binding type of rental agreement.
• Do not sign a lease until you understand
everything in it! (Can get help from renter’s
association in your community or state).
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Assigning or Subletting a Lease:
• If you have signed a lease, but you wish to move
out early, you have the following 3 options:
– 1) Continue rent payments until lease expires.
– 2) Assign the lease.
– 3) Sublet the lease.
Reasons for leaving early???
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Assigning or Subletting a lease…
• To Assign :
– When the remainder of the lease is transferred to another
person.
– The original tenant is no longer responsible for rent or damages
• To Sublet :
– The lease, renter leases the property to someone else
– Renter leases the property to someone else.
– Renter is still responsible for all rent and damages.
– Short-term temporary agreement.
• Ex: college student leaving and subletting to another
student for the summer.
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When The Lease Is Violated:
1) Breach of contract– Legal phrase for failure to meet the terms of the contract or
lease.
– The most common type is non-payment of rent.
• Can a landlord be found guilty of a breech of
contract?
• YES! If there is a failure to provide water, heating, etc,
the contract has been violated.
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Eviction
• Legally removing a person from the property.
• Can only be started after tenant has failed to
meet the terms of the lease.
• Must provide a written legal notice of eviction
to the renter. Varies from state to state.
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