Housing

Housing: A roof over your head

Although it may make long-term sense to buy a house, you probably will need to save money and be settled in your job a few years before making a commitment to home ownership. So for purposes of this activity, you will be looking for a place to rent.

There are a variety of options that are available to you. You can rent a house or an apartment in a house. There are many apartment complexes that offer housing as well.

Your rent must be less than 30% of your "take home pay" (or net income). Your "take home pay" is automatically calculated for you in the Budget Spreadsheet after you input your income and taxes. To calculate how much of this you can use for rent, multiply the "take home pay" by 30%. For example, if your take home pay is $3100 per month you can spend up to $930 per month in rent. (Calculation: $3100 * 0.30 = $930)

Although we are not considering it in this budget activity, your security deposit is something to keep in mind. Most landlords require security deposit equal to one month's rent. That means if your rent is $800, you will be expected to pay $1600 before you move in. ($800 security deposit and $800 for the first month's rent.) If you keep your apartment in good shape and clean properly when you move out you should get most of that security deposit returned.

The other thing to keep in mind when renting is the length of the lease. If you sign a 12 month lease, you will be expected to pay for a full year of rent. That limits your ability to move before the lease is up. That could be a significant factor if you change jobs or have some other reason to move. It is possible to arrange for a shorter term lease but it may result in a higher per-month rent. (Remember, it costs the landlord money every time he/she has to re-advertise the apartment, clean it up, and take care of paperwork for a new tenant.)

//**Your task:**// 1) Use the rental housing finder websites to locate housing within 15 miles from your work (KoP unless you searched for a job elsewhere) and fill out the required information in the table below. Take at least two screen shots from the rental housing website you use to display what your apartment looks like as well evidence of its cost and size.

Apartment and rental housing finder websites:
 * Move.com
 * Rentals.com
 * ForRent.com
 * Apartments.com (This allows you to "browse" for rentals more than search a specific town or ZIP.)

2) Copy the following table (listed after step 3) to your section of the wiki and complete it.

3) After completing the table, add the cost of your rent into your Google Budget Spreadsheet.

2 bathroom 1008sqft ||  ||
 * Issue || <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Answers/responses: ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Maximum rent (take home pay * 30%) <span style="color: #ffffff; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">* ||  ||   ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Monthly rent for your apartment/house: || $1,200 ||  ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Location || King of Prussia, PA ||  ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Amenities (i.e. number of bedrooms, baths, and size in square feet) || 1 bedroom
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Selling features (What makes this a great apartment?) ||  ||   ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Possible downsides || no ||  ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Parking || yes ||  ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Included utilities || Water, Electric ,Heat ||  ||   ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Security deposit requirement || yes ||  ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Restrictions on pets? || None ||  ||
 * <span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: left;">Length of lease || 1 year ||

<span style="color: #000000; display: block; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 120%; text-align: center;">Next issue: Transportation