PERSONAL FINANCE UNIT 5 CHAPTER 21 THE RENTING

PERSONAL FINANCE UNIT 5 CHAPTER 21 THE RENTING PROCESS

RENTING A PLACE TO LIVE • Renting- the process of using another person’s property for a fee. • Landlord- The owner of the rental property • Renting is a great option for young people just starting on their own

ADVANTAGES TO RENTING • Mobility- Easy and fast to move when another job opportunity pops up somewhere else • Convenience- Better Locations and appliance conveniences • Minimum Responsibilities- No responsibility of home ownership. • Social Life- Opportunity to meet others and socialize informally • Lower Cost- Rent is usually lower than the cost of buying a house

DISADVANTAGES TO RENTING • Noise- Share common walls with neighbors • Lack of Privacy- Shared facilities and thin walls • Small Living Space- 500 -800 sq. ft of living space • Lack of Storage Space- Little to no storage face. May have to rent storage space if you own many things. • Scarcity of Parking- Extra cost for parking garages, may have to park on the street

RENTAL CONTRACTS • Rental Application- allow the landlord to verify your income, previous rental experience, credit score, and other criteria. • The purpose is to see if you are reliable enough to rent too and gives the option for the landlord to refuse to rent to you. • Can refuse to rent property due to: • Rental history • Employment Record • Credit Rating • Can’t Deny based on: • Race • Religion • Sex • National Origin • Marital Status

LEASES • Lease- Written agreement that allows a tenant to use property for a set period of time at a set rent payment • Lessor- The Landlord • Lessee- Person who will take possession of property (Tenant) • If you decide to move before the lease expires you are responsible for the remaining rent. • Rental Agreement- Written agreement that allows you to leave anytime as long as you give the required notice. • Also known as month-to-month agreements • But Rent can fluctuate from month to month as well

RENTAL INVENTORY • Expected to leave the property like you found it • Rental Inventory- Detailed list of current property conditions • Always do a rental inventory it protects you at the end of your rental agreement!!!!

EVICTION • Eviction- the legal process of removing a tenant from rental property • If you would like to learn about landlord and tenant obligations, read page 485 of your book.

LANDLORD AND TENANT HORROR STORIES • As a tenant, always be mindful of landlords that will try to take advantage of you. • But also be respectful of the property you are renting, this is someone’s livelihood and if the landlord treats you fairly, treat them fairly.