Introduction to Housing
Question 1: What factors should you consider when deciding on a home?
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Question 2: Should You Rent or Buy?
RENT
CHARACTERISTIC
BUY
Able to move from year to year
Security deposit required
Maintenance costs
Tax advantages
Costs less money in the short term
Costs less money in the long-term
Increases your net worth
Provides stability
Lifestyle may be restricted
Form of investment
Has a monthly payment
Pride of ownership
Utility Costs
Monthly payments that can change
Needs insurance
Has closing costs
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Question 3: What General Housing Options are Available?
1
House
2
Apartment/Condo
(p. 200)
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Mobile Home
Review Questions – Section 1
1. Take the What’s Your Financial IQ? survey on page 230. Circle your score.
Rent
Buy
2. Define these terms:
a. handyman’s special –
b. classifieds –
c. tenant –
d. landlord –
e. lease –
f. sublet –
g. security deposit –
h. renters insurance –
3. What tradeoffs would you be willing to make when it comes to housing?
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4. Why do you think apartment managers sometimes restrict renters from owning pets or having large parties? What
other restrictions might you face if you rent your residence?
5. Name at least three sources of housing information.
6. What four things should you consider when selecting an apartment? Which of the four is the most important to you
right now?
7. What would you do if you needed something repaired in your apartment but the landlord wouldn’t respond to your
requests to fix the problem?
8. What are the four steps to the rental process?
9. What are the costs of renting your residence?
10. How much is a typical security deposit?
11. How much of the security deposit will be refunded when you move from the apartment?
12. Write a short paragraph explaining the probable housing needs of a family that consists of two working adults and
three school-aged children. Decide whether this family should rent or buy and explain why you think so.
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13. Raji is currently paying $675 a month to rent a one-bedroom apartment. The cost of all utilities is included in the
rent. However, he is thinking about renting a house with his friend Jon. The monthly rent on the house is $900.
Utilities will be $300 a month. Raji and Jon have agreed to split all costs evenly. How much would the move save or
cost Raji each month and over the course of a year?
14. Your Uncle Manny’s company has transferred him to your area, and he and his wife, Karen, will be moving within the
next two months. Because Manny’s work requires fairly frequent moves, he and Karen are not interested in
purchasing a home at this time. Manny and Karen are both busy with their jobs, so they have little time to research
a place to live. You have offered to do some background work to get them started. Use the Internet to find three
rental properties for Manny and Karen that are about the same size. Prepare a chart that compares the prices,
location and features of each option.
Option A
Option B
Option C
House or Apartment?
Price
Location
No. of Bedrooms
No. of Bathrooms
Kitchen (Y/N)
Dining Room (Y/N)
Family Room (Y/N)
Garage/Parking Spot (Y/N)
Utilities included in rent
On-Site Recreation
Security
(guard, system, none)
Air Conditioning (Y/N)
Laundry Facilities
(in unit, building, none)
Other Features
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The Rental Application
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Lease Agreement
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Rights and Responsibilities
Rights
Responsibilities
Tenant
Landlord
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Protecting Your Security Deposit
1.
2.
3.
4.
5.
6.
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Review Questions – Section 2
1. Use the lease agreement on page 206 to answer each question.
a. How long does the lease run?
b. How much is the rent and on what day of the month is it due?
c. How much notice do you need to give before you move out?
d. Who pays for water, heat, electricity, and other utilities?
e. Can you have pets? If so, how many and what kinds?
f.
Is there a restriction on how many people can live in the apartment If so, what is the limit?
g. Can you make changes to the apartment? If so, what kinds?
h. Are there any restrictions on your activities? List them.
i.
What is the procedure for settling disputes with the landlord?
j.
After evaluating the lease, would you rent this apartment? Why or why not?
2. Which components of a lease are likely to be the most negotiable?
3. You are ready to move out on your own. For financial reasons, you would like to share your home with one or two
friends from our class. Locate an apartment, condo or house that meets the needs of your group.
a. Print the rental listing from the Internet or make a copy of the listing from the newspaper.
b. Go to the class website and complete the Rental Application for the property. (Note: each person in
your group must complete a separate application.)
c. Go to the class website and complete a roommate agreement.
d. Go to the class website and complete the It Costs How Much? Spreadsheet.
e. Turn in the rental listing, rental applications, roommate agreement and cost spreadsheet as a group.
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