College Plans

1. Now that you have spent some time educating yourself about the basics of leasing an apartment, write 3 questions that you would be sure to ask the landlord prior to signing a lease.

• Is there anything that does not come with the apartment (such as a shower rod or router) that would need to be purchased individually?
• Can the apartment be customized, and are pets allowed?
• Will there be an Automatic Lease Renewal, and what is my Out Clause?

2. If a group of your friends approached you about entering a lease with them, what advice would you give them? What questions would you have of them?

Advice:

• Get to know the neighbors and make sure this is a place we would enjoy living in.
• Document what you are bringing so that we don’t have duplicate items.
• If you plan on having a large number of people over, tell me and any other roommates.

Questions:

• What do you intend to bring to the apartment?
• Is your credit good, or would you need a guarantor?
• How much of the expenses will you be covering?

3. Review the sample lease below and answer the following questions.

If this lease were presented to you (please assume that it completely filed in); what questions would you have?

• What are the House Rules, which are listed on a separate addendum?
• Am I allowed to have a guarantor?
• What does constitute reasonable wear and tear? What types of altercations can be made, if any, without prior consent?

If you move before the end of the lease; how much money will you owe?

• You will owe all rent due, either until another approved resident is living at the residence or that time period expires, whichever is shorter.

How do you end the lease?

• If one a month-to-month tenancy, you can terminate a lease by providing a written notice at least 30 days prior to the date of termination.

When is rent due?

• It is due on the chosen day of each month. The first month’s rent is received when the lease is signed.

What is a security deposit, and what does it cover?

• It is money held in trust to prevent the owner from selling the residence to another person during the agreed time period, while the resident verifies the suitability of the housing. It is returned to the resident after he or she has vacated the premises. Costs such as unpaid rent and damages are subtracted from this deposit before it is returned.

Are pets allowed? If so; what steps must you take in order to keep a pet?

• No pets are allowed without prior written consent. Certain requirements must be met at the owner’s discretion. If permission to have a pet is granted, the resident must pay an additional deposit and monthly rent, as well as sign a Pet Agreement form. The resident must also carry insurance that covers any damages and/or liabilities caused by such pets.

List 3 behaviors that can result in the owner terminating the lease.

• The residence is partial or completely destroyed to the point that usage of the residence is seriously impaired
• Resident creates activity and noise at the residence that disturbs the peace and quiet of a neighbor
• House Rules (listed separately) are broken

Does the owners insurance cover your personal items? What steps might you take to insure your items?

• The owner does not have insurance that covers personal property. The resident is advised to obtain his or her own insurance policy to cover any personal items.

Introducing the Credit Card

Exercise 3

1) What does APR stand for?

• Annual percentage rate

• Some credit cards have no fees at all.

• When you withdraw money from an ATM.

• $96

• $50

• False

• Both A and B