financial & legal aspects of renting objective 2.02
TRANSCRIPT
FINANCIAL & LEGAL ASPECTS OF RENTING
Objective 2.02
Bell Ringer9/10GET NOTEBOOKSCopy and Answer the following questions in your notebooks:
Based on your own knowledge and experience, what are some benefits of renting (vs. buying) a house?
Bell Ringer9/10 Copy and Answer the following questions in your notebooks:
John is moving into a multi-family unit where he must first purchase a share in order to become part of the unit. What type of housing is he moving into?
Sarah has purchased a single-family home that will be built in a factory and then installed on site in multiple modules. What type of housing options has she purchased?
Objective
Analyze the financial and legal aspects of renting
Outline/Vocab (on your course outline sheet)
A. Financial
1. Application/credit check
Security deposit/rent advance
2. Insurance and utilities
B. Legal
1. Lease
2. Sublet
3. Assign
4. Breach of contract
5. Eviction
Over 1/3 of the population in the U.S. rent their housing
Majority of these people are: single, young married couples, and older people
Many also have very mobile lifestyles
RENTING
Look at Rental Activity Sheet… 15 min – look up terms 30 min- create ANIMATION 15 min- Present to the class!
Textbooks 2.02 and 2.03: Homes & Interiors (pink) – CH 7 Housing Decisions (green) – CH 5
Activity!
Renter’s checklist Renter’s application (& fee) Background check Security Deposit
BEFORE MOVING IN…
Security Deposit - payment that insures the owner against financial loss caused by the renter
Amount of the SD commonly includes one month's rent and may include an addt'l amount
BEFORE MOVING IN…
BEFORE MOVING IN…
Lease - a legal document spelling out the conditions under which the renter rents the property Agreement between the renter and landlord
DO NOT SIGN A LEASE UNTIL YOU UNDERSTAND EACH STATEMENT
You have signed a lease but want to move out early, you have 3 options:
1. Continue rent payments until the lease expires
2. Assign the lease3. Sublet the lease
ASSIGN OR SUBLET A LEASE
Transferring the entire unexpired portion of the lease to someone else.
You are no longer responsible for the lease.
“A” = transfer ALL of the lease
ASSIGN
Transfer part interest in the property to someone else for a short period
Both you and the other person are be held responsible to the landlord for all terms of the lease
“S” = transfer SOME of the lease
SUBLET
Legal term for failure to meet all terms of a contract or agreement
Sometimes ends in a lawsuit
BREACH OF CONTRACT
Legal procedure that forces a renter to leave the property before the rental agreement expires
Almost all states require a warning be given to the renter before they are evicted
EVICTION
Quiz on Objective 2.0 is on FRIDAY 9/12
Let’s look at study guide
QUIZ 2.0
Work efficiently- you have A LOT to do!
DUE ON 9/22
Rental Project
Bell Ringer 9/11Copy and Answer the following questions in your notebooks:
1. Why does a landlord charge the tenant an application fee? Pet fee?
2. Why does a landlord conduct a credit check?
3. What is an “advance on rent”?
Everyone will need a calculator…
Do some questions together on the board.
Copy in your notes!!!
MAGIC NUMBER = 28% = 0.28
Rental Formula
1. #Hrs Worked x $ per Hr = Weekly income
2.Weekly income x 52 = Yearly income (salary)
3. Salary / 12 = Monthly income
4. Monthly income x .28 = Monthly RENT
Rental Formula
Complete the worksheets and turn in at the end of the period for a grade!
Be ready to share your answers with the class!
Renting Calculations Worksheet
Work efficiently- you have A LOT to do!
DUE ON 22nd!!
Rental Project
Bell Ringer 2/12Copy and Answer the following questions in your notebooks:
Calculate the maximum rent for person who has a Salary of $25,000 per year.
Review for Quiz (2.01 and 2.02)…
After Quiz…
FIRST TEST on WEDNESDAY 9/17!
Lets look at study guide…
After Quiz…
http://www.hgtv.com/hgtv262/videos/index.html
Watch and answer questions…
Work efficiently- you have A LOT to do!
DUE ON 22nd!!!
5 POINTS DEDUCTED FOR EVERY LATE DAY!
Rental Project