HOME-AWAY-FROM-HOME 
With high school behind you, and the future in front of you, it becomes all too clear that the time has come to leave the nest. After years of living with other people, living by their rules, you are more than ready to make a move.
Yet this big step raises many more questions than ever before: Can you really afford to live on your own? Should you find a roommate to share some of the costs? What if your living situation doesn’t work out— where will you go then? This final chapter will help you sort out many of those questions and a few you haven’t thought of yet. So before you start packing, read a little further to prepare yourself for this journey.
What Are The Choices?
Once again, there are so many choices and decisions with this new adventure! Part of deciding where to live will depend on what the rest of your plans are: are you going away to college, attending a local college, or working at a full-time job? Some people stay at home during their undergraduate studies to save money, so when they move out for the first time, they have already graduated. Either way, you will want to carefully consider your options.
If college is part of your plan, then a dorm is a possibility. Depending on the school, it may be possible to have a room to yourself, but if not, you will probably have at least one roommate. At some point in your college life, you may consider a fraternity or sorority house.
Renting an apartment is an obvious choice, whether you are in college or not. Sometimes people will pool their resources and rent a house. You could also rent a room from someone who is supplementing their income by renting out rooms.
The pros and cons of each of these options are fairly similar:
Pros: Your first real taste of independence is fun, exciting, and exhilarating. No one is telling you what time to be home or making you clean up after yourself. You are free to come and go and not make your bed or clean a toilet for weeks, or longer. If you have a roommate, and that is working out, you can have a great time and share all the expenses. Although an apartment complex, landlord, fraternity or sorority house will have some rules, they probably still won’t be quite as restrictive as at home.
Cons: With no one cleaning up after you or your roommate, no one stocking the fridge, and with your money spent on things besides laundry, you may find yourself in a filthy apartment, with an empty fridge, and a huge pile of dirty laundry. If you have a roommate and it’s not a good match, it can be a pretty miserable experience. (We’ll talk more about roommates later in the chapter.) Your money seems to go faster than you thought it would, too. Who knew that a package of sliced cheese costs over $4?
Other people may not share your sleep, study, or housekeeping habits, which means you feel like you are constantly yelling at everybody, “Quit making so much noise! I’m trying to study!”
Bottom line, there is definitely a right time to move out and a situation that will suit you perfectly. You just need to see which option is the best fit for your personal and financial situation.
How Much Rent Can I Afford?
The financial aspect of your situation is a primary consideration. Is someone helping you with rent or will you be paying it on your own? Do you work part-time or full-time? Are you going to school or, for some other reason, limited to how many hours you can work?
Let’s assume a worst-case scenario, which is probably the closest to reality for most people. No one is helping you with your rent, and you have to choose where to live based on how much income you have. We will also make these assumptions: you are working about 30 hours a week making $10 an hour and taking about 15 units at college. You own a car that is paid for, since it’s been in the family about 20 years. It’s not too pretty, but it is fairly reliable and can get you to work and home on the weekends. You are considering a dorm or sharing an apartment with someone near school to avoid parking hassles on campus.
Using the same budget tool we looked at in the Your First Job chapter, let’s compare our
options for living by yourself or with a roommate.
At $10 an hour, for 30 hours a week, your gross pay would be $300, and your net income could be about $250, or $1,000 a month. Do you see how having a roomate could benefit you?
* Having a roommate would reduce expenses enough to allow for extra money to be allocated in these areas.
Roommates — Are They Really Worth The Trouble?
As you can see, there is a lot more financial flexibility if you have a roommate. When someone else is paying half the rent, utilities, phone, and groceries, you have many choices available. You can contribute more to your savings account, give more to a church or charity, start saving for Christmas and periodic expenses like car repairs, and be able to buy some clothes every once in a while.
But, while all that sounds great, have you considered all the pros and cons of having a roommate? We’ve just mentioned the biggest advantage: saving money, and that is a big incentive. With one or two roommates, you can cut your expenses by 1/2, or 2/3, or even more! If you are able to afford $300 for rent, that might not get you a very nice apartment, but if you have a roommate and are sharing a $600 apartment, you could probably get a larger place in a more desirable area.
Having a roommate can also be a nice transition from being surrounded by family all the time to having more independence. You still have someone to hang out with, laugh at your corny jokes, and run out to Taco Bell at midnight with you. And, if you are lucky, this roommate will share lots of fun and adventure with you in your first home-away-from-home. Sounds pretty good so far, doesn’t it? Up to this point, we’ve covered some of the advantages, but what about the disadvantages? Unfortunately, there are several, and they may or may not outweigh the advantages.
The biggest drawback to a roommate is that they can be extremely unreliable and irresponsible, and can not only cost you a lot of sleepless nights, but money as well.
Let’s assume you are a very responsible person, and you decide to get an apartment with your best friend since the sixth grade, Carey. You always thought that Carey was the perfect person: funny, popular, outgoing, the real life and soul of the party. You never paid much attention to her tardiness, and if she forgot her wallet once in a while, you just loaned her the money. It seemed like she usually paid you back.
Now that Carey is your roommate, and you both have equal responsibility to pay the rent every month, it’s not so cute when she’s too tired from staying out late to go to work the next day. She’s almost always short on rent day, and you are a nervous wreck wondering if she’ll come through in time. You have an agreement that she will also pay for half the groceries, but she is much better at eating them than paying for them. As time goes on, your old best friend starts to become your new worst enemy, as she becomes more irresponsible, and the tension mounts between the two of you.
This scenario is far too common with roommates, and much worse things can happen. If Carey’s partying habits cause her to miss too much work and get fired, who will pay the other half of the rent, especially if she won’t leave and you can’t get another roommate?
Whenever possible, choose a roommate that you know well and that has similar moral and ethical values as you do. Sit down ahead of time and write out an agreement between the two of you: who pays for what and when and what the consequences are if the agreement is not kept. Even though it may seem silly at the time, taking the time to do this in the beginning could save you hundreds, or even thousands, of dollars later on and avoid unnecessary misunderstandings.
A Sample Roommate Agreement is included on the following page. You may choose to copy and use it, or you may want to do an Internet search for “roommate agreement,” and see if you find one that better suits your needs.
Roommate Agreement: details which expenses will be shared and the consequences for default on the agreement.
TABLE 13 – SAMPLE ROOMMATE AGREEMENT
We, ___________________________ and ___________________________ enter into this agreement
on the ____________ day of ___________, 20_______. We both agree to pay half of the following:
Paid To: Due Date: Initials
Rent _____ _____ _____ _____
Security Deposit _____ _____ _____ _____
Utilities _____ _____ _____ _____
Phone/Internet _____ _____ _____ _____
Other: ____________ _____ _____ _____ _____
Other: ____________ _____ _____ _____ _____
In addition (check only the appropriate lines),
_____ Food will be bought together and the costs split in half, or
_____ Each person will buy their own food
_____ Toiletries will be bought together and the costs split in half, or
_____ Each person will buy their own toiletries
_____ Household supplies will be bought together and the costs split in half, or
_____ Each person will buy their own household supplies
In the event that either of us default on this agreement, we both agree the the defaulting party
is responsible for any charges, fees, or damages.
Signature Signature
Printed Name Printed Name
Can Someone Refuse To Rent To Me?
The answer to that question is both yes and no. Although there are legal reasons why your application may be denied, there are also illegal reasons that some unscrupulous landlords may use to refuse you. Let’s look at both scenarios.
When you fill out an application to rent a house or apartment, you are usually giving the landlord permission to run your credit report. If you have not yet had an opportunity to establish credit in your name, the landlord could either deny your application due to a lack of positive credit, or he could require a co-signer who has more established credit. If the landlord checks your references and finds that you have lied about anything on your application, that would be an allowable reason to refuse to rent to you.
Another legitimate problem could be a lack of income. The landlord may have a certain income criteria for their property and, if you fall short of that, you would not qualify. For example, if the criteria is that your income must be at least triple the rent, and you do not make that much, that would be an allowable reason to deny your application.
And finally, if it is discovered that you were kicked out of another rental property for failure to pay rent or because you were a problem tenant, your application could be denied for those reasons.
Now, with all that being said, there are also less obvious reasons that your application could be denied, and they may not be lawful. These fall under the heading of Fair Housing laws, which are federal and state laws that protect renters from being discriminated against. Federal laws make it illegal to discriminate against any potential renter due to:
• Race • Disability • Color
• Sex • Age • Religion
• Ancestry • National Origin • Family Status
There are also state laws that add to the federal laws and offer even more protection against discrimination. These additional laws vary by state.
How do you know if you have been a victim of discrimination? If there are no other logical, legal reasons why you were turned down, or if you were not even allowed to complete an application after they met with you or talked to you on the phone, there may be a problem. If you think you have been a victim of discrimination, call the U.S Department of Housing and Urban Development (HUD) at 1-800-669-9777 to report the incident.
Should I Sign A Lease?
A lease is a formal agreement that protects both you and the landlord. It should keep your rent at a fixed rate during the duration of the lease, and it ensures that you are obligated to pay the rent for the entire duration of the lease.
From your perspective, it is very appealing that they can’t raise your rent for that period of time, often six or 12 months. As long as you pay your rent, and don’t cause any problems, you should have a place to live at a steady rent for the whole time. From their perspective, they are guaranteed income for the period of the lease.
But here is where it gets sticky. Let’s go back to the situation with Carey. If the two of you are renting an apartment by the month, you are not in a long-term lease. So you can give a 30 day notice, and leave at the end of that month, not owing any more money. But if you both signed a lease, then even if you move out, you are legally obligated to pay what’s owed for the remainder of the lease. The landlord would most likely sue both of you, and even though you thought you were only obligated to pay half the rent, the judge won’t see it that way. If Carey is not working and you are, the court generally seeks money from where it has the best chance of collecting it, and in this case, it’s you.
What Is Included In The Lease Or Rental Agreement?
It should cover the basic terms of your tenancy, including the amount of rent and payment terms, such as due dates, payment methods, late fees, grace periods and penalties and the period of time covered by the agreement.
It may also spell out the responsibilities of both the landlord and tenant, such as who pays for utilities, maintenance and repairs. Also look for policies regarding pets, inspections, parking, restrictions on guests, and the rules that pertain to how many people are allowed to live in the space. The subject of security deposits is usually covered here as well. It should clarify when the deposit will be returned and the conditions for a full or partial refund as well as the conditions of any nonrefundable deposits.
Finally, the lease or rental agreement should specify the conditions and procedures to end or break the agreement, including how much advance notice is required to vacate the property.
Why Do They Want A Security Deposit?
Most rental situations require a security deposit of some type. It may be several hundred dollars, or it may be equal to one month of rent. The purpose of this deposit is to ensure that if you leave the place in a filthy mess, or have broken the stove or windows or anything else, that they have collected money from you in advance to pay for the repairs.
Many landlords require the full amount of the security deposit to be paid before you will be allowed to move in. However, sometimes it is possible to negotiate and make payments on the security deposit. If you are not able to come up with the full amount before you move in, ask if they are willing to make other arrangements.
When you move out, the landlord will check to see what condition the property is in. If anything is damaged or broken that was in good shape when you moved in, the expense to repair it will be subtracted from your security deposit.
However, what if there is a new manager of the apartment complex, and he notices that there is a cracked window in the bedroom and several stains on the carpet? You insist that they were there when you moved in, but he doesn’t believe you. This is when the move-in checklist comes in very handy. It would be proof that you are telling the truth.
In addition to a security deposit, many landlords will require a payment for the first and last month’s rent when you move in. This provides them with extra insurance in case you move out suddenly, and still owe rent for prior months.
Is The Move-In Checklist Really Important?
In a word, the answer is YES! The purpose of a move-in checklist is to protect both you and the landlord in the event that anything is broken, damaged, or soiled after you move out.
From your perspective, you want to fill out this checklist to record anything that is already wrong with the property before you move in. For example, there may be a stain on the carpet or linoleum, the toilet leaks, or there is a crack in the window. You want to make sure the problem is documented — that these conditions were present when you took possession — so that you are not charged for them when you leave.
From the landlord’s perspective, they want to prove that they gave you the property in good condition. With this document in place, you attested that everything was fine when you moved in, so you will be responsible for anything that is broken, overly dirty or destroyed when you leave.
Most landlords will provide this checklist when you move in, and may walk through the property with you. If not, provide your own checklist, and do your own inspection. Consider taking pictures if there is anything that you would want to prove was a problem when you first moved in. If your camera date stamps the pictures, that is even better.
Whether you do the inspection alone or with the landlord, make sure that both you and the landlord have a copy of this form when you are finished. Ask how you can amend it if you should discover something after you move in that was not apparent in the walk-through.
Furnishing My New Place
As you begin to collect items to furnish your new place, just remember two things: “college dorm” is a style all its own, and shabby chic is very in. In other words, it is very
common for people to have a rather eclectic mix of furnishings and décor items in their new home. Many people like this variety and budget-conscious approach to filling their new space!
So where do you get all the furniture, dishes, lamps, and cleaning supplies you will need? The most universal approach is to beg and borrow, but not steal, from anyone who has been on their own for at least a few years. Your parents, grandparents, aunts and uncles, cousins, friends, and neighbors may have a few things they are not using, and could be persuaded to part with.
What do you need to live on your own? One easy way to decide that is to look around you now: what do you see? A bed, lamp, dresser, nightstand, alarm clock, and telephone are probably just a few of the things you’ll see and need. If you have an apartment to furnish, you will need a sofa or chairs to sit on, perhaps a television and something to stand it on, as well as a table and chairs for your meals. You will probably take a computer with you, so a desk would also come in handy. Do you think you might need to iron at some point? Then don’t forget the iron and ironing board, as well.
If you will have a roommate, check with him or her to see what he or she is bringing. You probably won’t need two irons and ironing boards, so that might be one less thing you need to buy if your roommate already has one.
Some of the best bargains for furnishing your first place can be found at thrift stores, yard sales, flea markets, online, or in newspaper classified ads. Shopping from these sources can be fun and save you lots of money.
Make sure you have at least the essentials covered. Whatever you can’t beg or borrow you may need to purchase; if not right away, perhaps some time in the future.
TABLE 14 – SAMPLE MOVE-IN CHECKLIST
Walls, Ceilings, and Floors
Yes No Comments
______ ______ Carpet is free of stains, tears, holes _________________________________________________
______ ______ Flooring is free of stains, tears, holes ________________________________________________
______ ______ Walls are free of stains, holes, or cracks _____________________________________________
______ ______ Ceilings are free of stains, holes, or cracks ___________________________________________
______ ______ The roof does not leak ____________________________________________________________
Windows and Doors
______ ______ All windows open easily __________________________________________________________
______ ______ Windows are free of cracks or chips ________________________________________________
______ ______ All exterior doors open and close well ______________________________________________
______ ______ All interior doors open and close well ______________________________________________
______ ______ All exterior doors lock well ________________________________________________________
______ ______ All windows have screens _________________________________________________________
______ ______ Sliding glass doors operate and lock well ___________________________________________
Bathroom and Kitchen
______ ______ Countertops are free of stains, chips, cracks _________________________________________
______ ______ Appliances are in good working order ______________________________________________
______ ______ Appliances are free of dents, scratches or stains _____________________________________
______ ______ All cabinets have doors and knobs _________________________________________________
______ ______ All cabinets open and close well ___________________________________________________
______ ______ Hot/cold water in sinks and shower work well_______________________________________
______ ______ Sinks and shower drain well _______________________________________________________
______ ______ Toilet is free of cracks, stains, or chips _______________________________________________
______ ______ Toilet fl ushes well _________________________________________________________________
Electrical
______ ______ Electrical outlets work well ________________________________________________________
______ ______ Switches and fixtures work well ____________________________________________________
Miscellaneous
______ ______ Water heater is in good working order _____________________________________________
______ ______ Both heating and air conditioning work well ________________________________________
______ ______ Property is free of insects or rodents _______________________________________________
Additional Comments___________________________________________________
Tenant Landlord Date
TABLE 15 – SAMPLE APARTMENT INVENTORY
Kitchen
Pots / pans Cookie sheet / bake ware _____ Cutting board
Dishes / bowls Toaster _____ Table and chairs
Glasses / mugs Storage containers _____ Can opener
Silverware Knives / scissors _____ Microwave
Potholders Dish towels _____ Ice cube trays
Spices Measuring cups / spoons _____ Spatulas
Salt / pepper shakers Paper towels / napkins _____ Chip clips
Bathroom
Toilet paper Shampoo / soap _____ Shower caddy
Bath towels Hand towels _____ Wash cloths
Razor / shaving supplies Dental Care _____ Personal items
Cosmetics Hair dryer _____ Curling iron
Living Room
Television Computer / accessories _____ Printer / paper
Stereo / CD player Desk _____ Bookshelf
_____ Sofa / chairs Desk chair _____ VCR / DVD player
Bedroom
Bed Nightstand _____ Hangers
Bedding / pillows Dresser _____ Shoe rack
Alarm clock Lamp _____ Mirror
Miscellaneous
Cleaning supplies Extension cord _____ Power strip
First aid kit Flash light _____ Cards / games
Broom / mop / vacuum Lamp _____ Telephone
Hamper Ironing board / iron _____ Detergent
Do I Need Renter’s Insurance?
When you rent a dorm room or apartment from an individual or company, it is expected that they will carry insurance on the structure, or dwelling, that they own. Their mortgage lender will require this insurance, and it only makes sense for them to have insurance to protect such a big investment. However, in the case of a fire or theft, it probably won’t do you a lot of good, because that insurance won’t cover your belongings.
Let’s say you are moving out of a foster home or your grandparents’ home where you have lived for many years. Most likely, your foster parents or grandparents carry a homeowners’ policy, which covers the house in case of fire, theft, and a multitude of other perils. It also covers the property inside the home, including furniture, clothing, television sets, dishes, and the list goes on. In addition, there may be a liability portion of the policy that protects them in case someone gets hurt at the house and sues them for damages.
When people own their house and live in it, they qualify for a homeowner’s policy. If they own a home and rent it out, they carry a dwelling policy, which only covers the structure, not the contents.
It is up to the renter to carry his or her own renter’s insurance to cover personal belongings in case of fire, theft, or vandalism. People don’t expect to have a fire destroy their home, or a thief to come in and steal their property, but it happens all the time.
You may be thinking that you probably don’t need renter’s insurance, since you don’t own a lot yet. Although it may be true that you don’t own a tremendous amount yet, would you be able to replace what you do have if it was lost or stolen? Insurance is designed to give us peace of mind, so that if the unthinkable happens it does not have to ruin us financially.
As you accumulate more “stuff,” you may start to feel more of a need to protect your investments by insuring your property. Insurance prices will vary greatly based on where you live and if that area has historically had a high number of claims. In other words, if there have been a lot of claims for theft in your area, the price for insurance will be higher.
Another consideration in determining the price of insurance is how high of a deductible you choose. The deductible is the amount you have to pay up front before the insurance will pay on a claim. Most deductibles are either $250, $500, or $1,000. If you choose the higher deductible, your monthly or annual premium will be lower, but you would need to come up with that amount before the insurance will pay anything if you have a claim.
Finally, the amount of coverage you choose will also determine the premium. When you first purchase renter’s insurance, you may choose the lowest amount of coverage, often around $10,000. As time goes on, you may increase that to $20,000 or $30,000. You would make this choice based on how much it would cost to replace the contents in your home: your furniture, computer, clothes, and everything else.
Renter’s insurance can be as low as $100 per year to over $500, depending on the above factors and others.
There is a lot to consider when deciding if you need renter’s insurance. It is best to get the advice of a trustworthy insurance professional to make a wise choice.
Do I Have To Give Notice When I Move Out?
The easiest answer to that is: yes! It is customary to give a 30-day notice when you plan to vacate a rental property, but your lease or rental agreement could dictate an even longer time frame. The purpose of this notice is to give the landlord time to find another tenant to take your place after you leave. Be sure to give the notice in writing, date it, and sign it. Keep a copy for yourself.
If you are renting on a month-to-month basis, you usually agree to give a 30-day notice as part of the rental agreement. If you move out during that time, you are still obligated to pay that last month’s rent, unless the last month’s rent was collected when you moved in. If you signed a lease for six or 12 months, you are legally obligated for the entire term of the lease, even if you want to move out half way through the lease. Unless the landlord finds someone else to move in, and releases you from the lease, you will be held responsible. This is why a long-term lease may not be the best choice the first time you move out, especially if you are moving in with new roommates and do not have a history with them.
What Makes A Landlord Happy?
The two most important things you can do to forge a good relationship with your landlord are to pay the rent on time every month and not cause any problems. These are the hallmarks of a good tenant.
Being a good tenant does several things: it demonstrates your character and responsibility, and it starts to establish your reputation as someone who can be trusted. Even though your on-time rent payments may not be reflected on your credit report, the person or company you make the payments to is in a good position to be a future character reference for you. Since most rental applications will require you to provide the names and phone numbers of your previous landlords, that may prove to be very important some day!
If you did a good job of determining how much rent you could comfortably pay, and you have gotten in the habit of building up a savings account, you should be able to pay your rent on time each month. Even if there is a change in your job, like a lay-off or a reduction in your hours, as long as you have money saved for an emergency, you can continue to pay all your bills while you look for ways to increase your income.
On the other hand, if your income is reduced, and you do not have a financial cushion, you may need to speak to your landlord and explain your situation. Perhaps at that point you could take in a roommate or get a second job. If you have developed a good relationship with the landlord up to this point, he or she may be more likely to work with you.
Although paying the rent on time is a critical element to being a good tenant, it is still only half the equation. Landlords also want someone who takes good care of the property, such as taking out their garbage when it is full to avoid rodent and insect problems. The inside and outside of the property should be kept clean and tidy, and free of smells. Tenants and their guests should park in the designated spaces.
A good tenant does not cause problems, such as having late-night arguments or parties that are loud and disruptive to the neighbors. If the police are ever called to your place, do not be surprised if a move-out notice quickly follows. Once you develop a bad reputation, it will be difficult to rent again in the future. Don’t become a bad tenant! Determine to be the type of person who anyone would be thrilled to have as a tenant.
When you do move out, be sure to leave the place in as good a condition as possible. Fill any holes in the walls with spackle, or even toothpaste, which many college students find to work wonders! Clean the rooms, including vacuuming and scrubbing the oven and floors. Ask the landlord what you need to do to get back your full security deposit, which will generally include leaving the property in decent condition.Take the move-in checklist with you to the final walk-through with the landlord, and show how good everything looks. Make sure to leave your forwarding address so that the remainder of your deposit check can be sent to you.Then you will be ready to move on to your second home-away-from-home!
CONCLUSION
In the preceding pages, we have discussed many new concepts.
We have looked at opening your first checking account, getting your first job, buying your first car, obtaining your first credit card, and moving away from home for the first time. The principles and ideas introduced here will help you get a firm footing as you set out on your new adventure. We hope that you will apply these principles and, after seeing positive results, that you will pass this site onto another young person who is entering this phase for the first time. May you be most successful wherever you go, and in whatever endeavors you choose to pursue!