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Renting A Home:
Comparing Rental Units

Objectives for this Lesson:

* Include in partcipant's packet.

Resources for this Lesson:
Key Points For Educator: What to Say For Learner:
Slide #1: Renting A Home
Comparing Rental Units Introduce yourself Participant Introductions
Slide #2: Objectives:
  • Determine How To Find A Rental Unit
  • Discuss Important Aspects to Compare in Rental Units
  • Explain the Rental Application Process
 Explain: By the end of this session you will be able to determine how to find a rental unit, discuss important aspects to compare in rental units and explain the rental application process.

Finding the right place to rent can be time consuming. However, if you take the time to compare your options, you may save money, and the best option to meet your needs.

Question: When you are ready to look for places available to rent, where do you suggest starting?

Instructor Note: Refer to Slide #3 for discussion suggestions and ideas. 		Discussion: Participants share ideas of where to start when looking for available places to rent.
Slide #3: Finding A Rental Unit
Where to Begin
  • Friends
  • Newspaper Ads
  • Real Estate Brokers
  • Property Management Companies
  • Internet
  • Desirable Neighborhoods
 Explain: The best place to begin your search is with friends and family, especially if they live or have lived in a rental unit. They can tell you how well the management answers service calls and takes care of the property, among other things.

Second, newspapers often have maps that make it easier to find the areas where rental properties are located. Newspaper ads will give you an idea of rental rates for different types and sizes of apartments and houses in various locations.

Landlords often list available rental housing with real estate brokers. Call brokers in the area in which you want to live to find out what is available.

Some rental communities are managed by companies that specialize in rental housing. Check with local property management companies for rental listings.

If you have access to the Internet, you can search the Web for rental units. This is especially helpful if you are relocating to a distant area. Some Web sites will display a photograph of the unit along with key information, such as the rental location, price range, type of unit, pet policy and any special property features.

Finally, you also can drive around desirable neighborhoods and look for rental units that appeal to you.
Slide #4: Comparing Rental Units
  • Appearance of Neighborhood
  • Price Range
  • Accessibility
 Explain: Once you have a few possibilities, narrow your list of options by comparing the appearance of the neighborhood, the price range, and the accessibility to work, friends, relatives, shopping centers, schools, churches and recreation. With these three considerations you can eliminate some that do not meet your needs.
Slide #5: Comparing Rental Units
  • Compare at least three units
  • Keep records of each unit
  • Photograph key features
  • View several units or the one listed for rent
 Explain: From your narrowed list of options, you should compare at least three rental units before making a decision. As you view different places, it is important to keep a record of the units you look at. Several days later it will be difficult to remember which had the appliances you liked and which one had the great closets. This information is important for comparison of costs and features.
Activity: Use this Comparing Rental Property Work Sheet to record the information about each unit.

Explain: If you have a digital camera, you may want to photograph key features for your records. Also, when visiting an apartment complex, ask to see several units, or if possible, ask to see the actual apartment that is listed for rent.

 Activity: Distribute the Comparing Rental Property Work Sheet.
Slide #6: Comparing Rental Units
Is there enough space?
  • Does the apartment allow everyone to do what they want and need?
  • Are there enough bedrooms and bathrooms?
  • Can everyone get up, get ready, and get off to the day's activities without running over one another?
Explain: As you look at each unit, ask yourself if there is enough space.

Instructor Note: Highlight the questions listed on Slide #6.
Slide #7: Comparing Rental Units
Is there enough space?
  • Will your furniture and other belongings fit into the unit?
  • Can you get your furniture through the doors and up the stairs?
  • Mentally decorate the unit. How will your things fit?
  • Does the unit look like you and your family?
 Explain: Take a tape measure to record important dimensions.

Instructor Note: Highlight the questions listed on Slide #7.
Question: What other things might you consider when evaluating the space of each unit?

Instructor Note: Suggestions and ideas for discussion include:
  • Kitchen cabinet space for appliances and preparation of foods
  • Parking spaces
  • Outdoor space (porch, patio, balcony, etc.)
 Participant discussion.
Slide #8: Comparing Rental Units
Property Maintenance
  • Leaks (including inside cabinetry)
  • Water damage stains
  • Presence of roaches or ants
  • Mold or mildew
  • Broken fixtures
  • Peeling paint
  • Operation of appliances, water faucets, toilets and electric switches.
  • Smoke detectors
  • Carbon monoxide detectors
  • Fire sprinklers
  • Fire escapes
  • Lighted exits
  • Emergency lighting
  • Security systems
  • Deadbolt locks
 Explain: As you look at each unit, it also is very important to carefully examine the maintenance of the property. A poorly maintained and unattractive building is not likely to improve.

Look for signs of problems in the unit. Check for leaks (including inside cabinetry), water damage stains, presence of roaches or ants, mold or mildew and broken fixtures. For instance, peeling paint may be caused by excess moisture, which might indicate a mold problem.

As you walk through a unit, check the operation of appliances, water faucets, toilets and electric switches. Living units and the buildings should be equipped with smoke detectors and sometimes carbon monoxide detectors, fire sprinklers, fire escapes and lighted exits, emergency lighting, security systems and deadbolt locks. Test smoke and carbon monoxide detectors to make sure they work.
Question: What other things might you look for when examining the property maintenance?

Instructor Note: Suggestions and ideas for discussion include:
  • Clear walkways/sidewalks
  • Safe parking areas
  • Distances from parking area to apartment
  • Window locks
  • Air Conditioners/Heaters
 Participant discussion.
Slide #9: Comparing Rental Units
  • Initial Expenses
    • Down payment
    • Utility connections
  • Monthly Expenses
    • Rent payment
    • Utility bills
 Explain: Not only do you want to compare the features and maintenance of each unit, you also want to consider the initial and monthly expenses for each place. Some rental units require a larger down payment than others. Also, you will need to consider the cost of utility connections, such as fees for turning on the electricity or phone lines.

Using the budget you created, compare the expenses associated with each unit with the amount you are willing to spend.

For each unit, you should check with the utility companies for seasonal operating costs. It may be more expensive to heat an apartment with a gas heater or live in an apartment will all electrical appliances. Also, some apartments may include water and trash, while others will require you to pay all utilities. This can make a difference in your selection. Compare the costs to see which unit is the most energy efficient. Actual houses will be different from apartments.
Slide #10: Comparing Rental Units
  • General environment
  • Neighbors
  • First impression
  • Crime Statistics
 Explain: In addition to recording information about size and maintenance, take notes about the quality of the general environment. You might not feel comfortable where there are shift workers or late night parties.

Make additional notes, such as your first impression and the appearance of the neighborhood. If the first impression is not good, you may not want to consider the apartment. You can contact the local police or sheriff's department to check on crime statistics in the area.
Slide #11: Comparing Rental Units
Question for Current Tenants
  • Does the landlord/manager see that repairs are promptly and professionally made?
  • Can you easily hear people in adjacent apartments?
  • Are there other noises such as clanking pipes?
  • Are there problems with the behavior of neighbors/children?
  • Are there problems (tractor trailer rigs, RVs, overcrowding) with parking?
  • Are there any security concerns?
  • Are there problems with pets?
 Explain: You may want to ask current tenants about how well they think the property is managed. Some possible questions include:

Instructor Note: Highlight the questions listed on Slide #11.
Question: What other questions might you ask current tenants?

Explain: You can also check with the local Better Business Bureau to learn if there is a record of complaints about a real estate rental company or an individual landlord. If there is a record, it will show what effort, if any, was made to settle complaints. 		Participant discussion.
Slide #12: Rental Application Process
Rental Application

Be sure the document the landlord gives you is an application form, not a lease.

  • Gives a landlord information to use when making a decision about renting to you.
  • Signing the form gives the landlord your consent to a credit and background check.
Explain: Once you find a desirable apartment, you will need to complete an application.

The rental application process will be similar whether you are renting an apartment or a single family unit.

Be sure the document the landlord gives you is an application form, not a lease. You should not agree to sign a lease until you are sure the apartment and the terms of the lease are right for you.

Activity: This is a sample of what you can expect to complete in the rental application process.

Explain: A residential rental application gives a landlord information to use when making a decision about renting to you. There is no standard application form so the amount and type of information will vary from landlord to landlord. Generally, the form asks for basic information including your previous rental and employment history, your credit standing, who will reside in the rental unit and when you want to move in.

Signing the form gives the landlord your consent to a credit and background check. Your signature usually verifies that the provided information is true and correct.

Activity: Distribute the Rental Application Sample
Slide #13: Rental Application Process
Application Fee
  • Paid to the landlord to cover the cost of expenses related to processing an application.
  • A landlord is entitled to keep the application fee whether or not you are approved for a lease.
  • No set limit on how much of an application fee can be charged or set any conditions for refunding the fee.
 Explain: In addition to the application, some rental units charge an application fee. Refer to Page 2 on the sample, listed as #2 in the Application Agreement section. This fee is paid to the landlord to cover the cost of a credit check or other actual expenses related to processing your application.

A landlord is entitled to keep the application fee whether or not you are approved for a lease.

New Mexico law does not set a limit on how much of an application fee can be charged or set any conditions for refunding the fee. If the fee is significantly more than $25 or $35 ask for an explanation of exactly what expenses are involved and the cost of each item.

Slide #14: Rental Application Process
Rental Application Process

Rental Deposit
Form must clearly state the deposit will be fully refunded if you are not approved or the unit is not ready on the desired date.

  • Decision making time limit
  • Refund time limit
 Explain: Some landlords ask that you make a deposit on the unit with your rental application. Refer to the same section in the sample, listed as #3.

If you make a deposit with the application, make sure the form clearly states that it will be fully refunded if you are not approved or the unit is not ready on the desired date. The application form should include a time limit such as 30 days or two weeks, for making a decision about renting to you. Also, the form should state a clear time limit such as three business days, by which the refund will be made.

Transition Statement: During the application process there is one important right you should also be familiar with. That is your right to fair housing.
Slide #15: Fair Housing Act
Rental Application Process

Rental Deposit
Form must clearly state the deposit will be fully refunded if you are not approved or the unit is not ready on the desired date.

  • Illegal to discriminate in the rental of a dwelling based on race, color, national origin, religion, sex, family status and handicap or disability.
  • Prohibits a landlord from refusing reasonable modifications to your rental unit or common use areas at your expense, if necessary for a disabled person in the household.
  • A landlord cannot refuse to make reasonable accommodations in rules, policies, practices or services if necessary for the disabled person to use the housing.
 Explain: The Fair Housing Act is a federal law that makes it illegal to discriminate in the rental of a dwelling based on race, color, national origin, religion, sex, family status and handicap or disability. Family status includes families with children under the age of 18 living with parents or legal guardians, pregnant women and people securing custody of children under the age of 18.

The law prohibits a landlord from refusing reasonable modifications to your rental unit or common use areas at your expense, if necessary for a disabled person in the household. The landlord may permit some changes if you agree to restore the property to its original condition when you move. Also, a landlord cannot refuse to make reasonable accommodations in rules, policies, practices or services if necessary for the disabled person to use the housing.
Slide #16: Fair Housing Act
Office of Fair Housing and Equal Opportunity Department of Housing and Urban Development Room 5204 451 Seventh St. SW Washington, DC 20410-2000 1-800-669-9777 Explain: For more information about Fair Housing you can contact the Office of Fair Housing and Equal Opportunity.
Slide #17: Summary
  • Determined How To Find A Rental Unit
  • Discussed Important Aspects to Compare in Rental Units
  • Explained the Rental Application Process
 Explain: Once you have completed the application process, and have been accepted by a rental company, you will have to complete and sign a rental contract. The next lesson in this section, "Rental Contracts" will help you in this step of renting a home.

Lesson Summary: Congratulations! You have completed "Comparing Rental Units" in this Renting A Home series of classes.

Today we have determined how to find a rental unit, discussed important aspects to compare in rental units and explained the rental application process.
Question: Are there any questions? Participant questions.

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