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Suzanne Moran

Social Science - Economics semester


Budgeting and Budget Decisions Unit
Evaluating Leases Lesson
4/3/17

Overview/Rationale: This lesson falls within a unit on budgeting and major budget decisions.
Recent lessons have covered what jobs might be realistic for their career paths after college,
categories of expense, calculating net income, dividing a budget by percent, calculating a
monthly budget, and basics of mortgages. They have learned to use job search websites, like
indeed.com, and navigate housing listings through sites like zillow.com. This lesson is designed
to help students better understand housing rentals, leases, and tenant protections. As housing
is a major component of a persons budget, students should be well-informed about housing in
order to make good financial decisions

Enduring Understandings: Students will understand that leases contain the rights and
responsibilities of both tenant and landlord when a property is rented. They will understand that
detailed and specific leases provide clear expectations. Both landlord and tenant have recourse
when a lease is broken; students will know how to address a landlord-tenant dispute.

Goals/Objectives: Students will be able to


Understand a lease and the rights and responsibilities of tenants and landlords.
Evaluate a landlord-tenant dispute and determine an appropriate course of
action.
Analyze a lease and discern landlord and tenant protections.
Evaluate leases to measure favorability for both tenant and landlord.

Standards:

Materials: Projector, Screen, student copies of three leases, whiteboard and markers, student
notebooks, pens/pencils

I. Procedure:
A. Do Now: (5-7 mins)
1. Project tenant-landlord dispute scenarios. Choose one of the
scenarios below and describe how it might be resolved. (See
appendix for question and scenarios) (Students complete in notebooks).
2. Discuss: Ask for student volunteers.
a) Which did you choose (cold call)
b) How might your approach the landlord about a dog you didnt
know was banned?
c) How would you feel if scenario D happened? What would you do?
What can you do?
d) Make sure you ask for a few examples (cold call) and ask
follow-up questions)
3. Use A as an example: If the ceiling fan falls in for no reason, nothing is
an immediate danger, and you dont know what to do, check your lease.
Determine who is responsible for what. Written leases sometimes state
who is responsible for different kinds of repairs. For example, a tenant
who is renting a house, rather than an apartment, may have a lease
which states that all minor repairs are the responsibility of the tenant and
all major repairs are the responsibility of the landlord. Sometimes
landlords want to hire their own people, no matter how small the job.
Other times they will want you to locate and connect with the repair
company while they pay they bill. It will depend on your lease agreement.
4. Take other examples, close. Emphasize importance of reading and
understanding lease agreements before signing.
B. In our recent lessons, we have been discussing budgeting and how to construct a
budget. We have discussed some of the major decisions a person has to make
when budgeting. Ask: What expense takes up the largest part of a budget?
Housing.
C. Ask: Who here plans on living in their own apartment or house within the
next few years? It is likely that your first place away from your parents and
outside of a school will be rented.
D. Today well be discussing how to approach the decision of renting and some
important things to look for when getting your first place. We will be focusing on
how to understand a lease and your rights as a tenant. Housing is a large
expense, it is important to be informed on your choice.
E. First: What are some things you need to know to help you choose a place?
(write on board. Students should take these as notes #4) (3 mins)
1. Location, Price, utilities covered, overall condition, appliances available,
roommate situation, reputation of landlord/management company. Month
to month/year, when is rent due, pets, repairs. These can affect your
costs and your overall experience in your new home.
2. What are some additional costs of getting your own place? Also:
security deposits, moving expenses, renters insurance (you might need to
explain this), furniture, homewares, etc.
F. When you have figured out your budget and found a place you want to rent, the
next step is to review and sign the lease. Ask: What is a lease? (5 mins)
1. Cover what students have not answered: A lease is a written
agreement. It is a contract between a landlord, the person who owns
the property, and the tenant, the person who is renting the property.
(Write on board, students copy)Other vocabulary used for these
roles: renter - rentee
2. A lease describes the rights and responsibilities of the tenant and
the landlord. (write on board, students copy)
G. Its important to have this written agreement so that each party knows his or her
rights are protected and concerns are addressed. (3 mins)
1. Imagine you are a renter. What are some of your concerns? write
answers on the board. Possible answers: wants to live in a safe, clean
place; wants to be treated fairly; wants to know that repairs will be made.
2. What do you think are the landlords concerns? write on board.
Possible answers: wants to get paid on time; wants apartment to stay in
good shape; wants to make money. Wants a responsible tenant - no loud
parties, not a disturbance to other renters
H. Important to review lease like any legal document.
I. Give all students copies of first lease.
J. Project lease example 1 and refer to first lease.
1. Different leases spell out different rules. As youll see, its meant to protect
both the tenant and landlord by stating the rights and responsibilities of
each party.
2. Discuss: What is unfamiliar? What are you not sure about? U to
discuss with class. (4 mins)
K. Leases are easier to understand if you think about it it terms of who
benefits with each little piece. The rights and responsibilities of each party
becomes more clear.
L. Divide room in half. Left will be pretending to be tenant. Right will be landlord.
Hand out leases 2 and 3.
M. Locate at least three rights or responsibilities (for your role) in each lease.
(8 mins)
N. Then determine which lease you would choose. Which is more beneficial to
your role? Explain using features selected. Write on separate piece of paper?
O. Discuss: Which lease did you choose? Why? How was your role best
protected? Would you sign this lease as a tenant? (Questions below to
stimulate discussion) (8 mins)
1. Lease #2: If you were to fall down a wet flight of stairs and break
your leg while in the apartment building, could you hold the landlord
legally responsible for your medical bills?
a) * have to prove gross and willful*
2. Lease #2: If you break any provision of the lease, what recourse
does the landlord have?
a) *any violation could result in eviction. It is important to check
lease.
b) ** IN PA The landlord can evict a tenant for any one of three
reasons: 1) The term (usually one month or one year) for which
the property was rented is over 2) The tenant is behind in the rent;
or 3) The tenant has breached (broken) some clause of the lease.
3. Lease #2: If the landlord changes (or waives) any provision in the
lease, how are the other provisions affected?
a) *nothing else changes, landlord is far more powerful than tenant.
b) ** IN PA The landlord is permitted to make rules and regulations
after the lease goes into effect; however, these rules and
regulations may deal only with the health of the tenants and the
safety of the premises. BUT sometimes written leases contain a
clause explaining how changes in the lease are to be made. Such
a clause may state that any changes must be in writing and signed
by both the landlord and the tenant. In year-to-year leases, there
is often a clause that states changes can be made after giving one
month's notice. The lease should be read carefully to see if it
contains any clause that states how your lease may be changed
or modified.
4. Lease #3: What must you do if you want to alter the apartment in
any way? Say you wanted to put in a shelf or paint the walls, what
would you have to do?
a) *owners prior written consent.
5. Lease #3: Under what circumstances may the landlord withhold your
security deposit? When must they return it? *in payment of rent, for
damages.
a) *within two weeks of vacating apt, itemized list of damages and
cost, return rest.
b) **About security deposits IN PA To get the security deposit
returned, the tenant must give the landlord a forwarding address
before moving. The landlord must then, within thirty (30) days from
the date the tenant moves out, 1) return the security deposit or 2)
send the tenant a list of damages the tenant caused in the
apartment, the cost of the repairs, plus any extra money left over
from the security deposit. If the landlord does not return the
security deposit or does not provide the written list of damages
within thirty (30) days, the tenant can sue the landlord for double
the security deposit by going to a District Justice's office and filing
a complaint against the landlord.
c) After the second anniversary of the lease the tenant is entitled to
receive on a yearly basis interest on all funds over $100 deposited
by the landlord in an interest-bearing account. The landlord is
entitled to receive as administrative expenses a sum equivalent to
one per cent annum upon the security deposit.
d) The law states that any landlord who fails to provide a written list
within thirty (30) days shall give up all rights to keep any part or
the money held as a security deposit. The tenant can choose one
of two remedies. 1) sue to recover the amount of the security
deposit. The landlord cannot raise any defense or counterclaim for
damages to the property. 2) sue for double the amount of the
security deposit If the tenant chooses this remedy, the landlord
may counterclaim for damages to the property, up to the amount
of the security deposit.
6. Lease #3: You rent the apartment with a friend, and you both sign
the rental agreement. Then, you decide to move out but do not notify
the landlord. At a later date, your former roommate defaults on the
rent. Can the landlord hold you legally responsible?
a) ** There is a clause that states: the undersigned Resident(s)
whether or not in actual possession of the premises, are jointly
and severally liable for all obligations under this rental agreement.
P. Ask: What happens when leases arent honored?
1. What happens when the tenant breaks lease? Security deposit
forfeited, eviction, required to cover repairs, tenant voluntarily moves,
possible renegotiation of lease if landlord willing.
2. What happens when the landlord doesnt live up to their end? What
are your choices? (Write on board)
a) First always try to work it out with landlord
b) If the problem is that the landlord is somehow trying to change the
terms of your lease, you can contact the city or find legal
representation. But a much more common problem is when a
landlord doesnt maintain or repair a property. As a tenant, you
should first consider the nature of the problem. If the problem
makes the property unsafe or uninhabitable, the landlord is legally
required to fix it. In philadelphia, contact Office of Licenses and
Inspections. This document outlines basic landlord-tenant
requirements in the city of phl (Project on screen)
http://www.phila.gov/li/Documents/partnersinhousing.pdf
c) Whats the first thing you should do if you notice a problem?
tell the landlord. Put this in writing. As a renter, this is your
responsibility.
d) If they havent responded and the problem is serious and affects
your health or safety, hire someone to make the repairs and
deduct the expense from your next months rent. (Its always a
good idea to get an official opinion on whats unsafe. DONT do
this for minor repairs, only for serious problems.) Before you do
this, warn your landlord in writing and allow them time to respond.
e) Contact licensing and inspections.
f) Contact your local tenants rights organization.
g) In some states, you have a right to stop paying rent until the
problem is fixed. PA is one of those states. Pennsylvania law
allows a tenant to make necessary repairs and deduct the cost of
the repairs from the rent under certain circumstances. Check the
tenant landlord handbook under repairs.
http://tenant.net/Other_Areas/Penn/harris/pa-toc.html
II. Closure
A. Students revisit their scenario. What would they do now? Reflect and share.

Accommodations: Variety of activity, written and oral instructions, group and independent work,
Assessment/Evaluation: Student reevaluations of scenarios, ongoing budget project.
Personal Reflection/Notes: To be completed after teaching lesson

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