The Costs of Owning or Renting a Home
Case Studies (page 480)
What are the fixed costs?
What are the variable costs?
Determine how much the household will spend on housing in a year.
Who do you think would have to pay for repairs if the stove or another appliance were to break?
What are the fixed costs?
What are the variable costs?
Determine how much the household will spend on housing in a year.
Who do you think would have to pay for repairs if the stove or another appliance were to break?
Who would pay if the roof needed repairs?
What are the fixed costs?
What are the variable costs?
Determine how much the household will spend on housing in a year.
Does renting or owning appear to involve greater costs?
Which will likely leave you more money for other things,such as vacations or savings?
If you want to move, will it be easier if you rent or own? What factors may affect this? Justify your answer.
Will renting or owning require a greater initial investment? Justify your answer.
Refer to page 481 to identify the following costs.
Costs of renting
- Rent - for the use of the property
- Utilities - heat, water, electricity and parking (may be included in the rent)
- Extras - phone, cable, and Internet services
- Insurance - to protect belongings
Costs of owning
- Cash down payment and mortgage
- Property taxes
- Home insurance - to protect home and contents
- Condo fees - monthly fee to cover operating, maintenance, administrative, and improvement costs
- Utilities, maintenance and service fees
Refer to page 482 to identify Tenants' Rights and Responsibilities
Tenants' rights
- Must be safe and in good repair.
- Must have access to utilities: heat, hot and cold water, electricity, and fuel.
- A right to privacy - notice must be given prior to entry for repairs, or showing to prospective tenants.
- No notice needed in case of emergency.
- Rent can only be increased once a year and with 90 days written notice.
Tenants' responsibilities
- Pay rent on time
- Keep home reasonably clean
- Repair any damage you cause to the unit.
- If a lease is given, lease must be honoured and 60 days notice must be given if you don't intend to renew.
- Month-to-month rentals must give 60 days notice before moving out.
If a tenant doesn't uphold their responsibilities, the landlord can give a notice of termination stating the problem and asking the tenant to fix it or move out.
Homework: Pg. 484: #1-9, 11