Essential financial tips to effectively move out of the dorms.

Airman & Family Readiness CenterBuilding 1650

256-8668

R.S.V.PResearch, Save, Vacate, & Plan for My New

Space

WELCOME

Introductions Nature Expectations Agenda Timing

OBJECTIVES

BUDGETING Research Neighborhood Rental Process

TIPS TO PREPARE FIRST-TIME RENTERS

BUDGET, BUDGET, BUDGET Do your homework:

Know how much you can affordKnow where you want to liveUnderstand the lease termsUnderstand your rights as a renterhttp://

www.servicememberscivilreliefact.com/link/scra.php

GOVERNMENT HOUSING PROGRAMS

On-Base: Housing Office

Base housing now privatized

Off-Base: Automated Housing Referral Network

(AHRN)www.ahrn.com

THE RENTAL PROCESS

Determine price range Create a budget (see example) Spend about 25% of your take-home

pay on rent (Worksheet B) Additional expenses Conduct housing search (Worksheet A) Lease process Insurance Moving out

BUDGETING FOR HOUSING EXPENSES

Budget Elements (Worksheet G) Income Credit Rating Expenses (all) Deposits

WHY BUDGET? Payments of security deposits and other

expenses required to move out of the dorms DO NOT constitute valid requests for Air Force Aid Society assistance (aka “Falcon Loans”).

If you don’t have enough money saved up to cover your security deposit and related moving costs, your request to move out will be denied and your name will be moved to the bottom of the list.

DO YOU WANT THAT?!?

ADDITIONAL EXPENSES OVERVIEW

Rent/Mortgage Application Fee Security Deposit Electric/Gas Water/Sewage/Trash (some properties

include this in the rent) Cable TV Internet Renter’s Insurance Moving expenses Move-in expenses (furniture, kitchen, etc.) Short lease fees Lockout fees

CHOOSING A NEIGHBORHOOD

Consider the following: (Worksheet F) Crime rate, safety Location Commute time Neighbors Military community Access to the Metro Nearby stores, dry cleaners, shops and

gyms

EVALUATING A NEIGHBORHOOD

Traffic Children Word of mouth Interview neighbors Time of day Noise Visual aesthetics

WHERE DO I START? Who can move out of the dorm? Pick up a Request for Application

For/Authorization of BAH from Dorm Mgt.

Follow steps (1st Sgt., Housing, etc.) Return completed form to Dorm Mgt. You are now put on the waiting list Intended Marriage Instructions

THE APPLICATIONBefore showing up to sign the lease, find out what documents your new landlord will want to see, possibly your:

LES Bank statements Personal references

THE RENTING PROCESS

Security depositsWaiver programsPurposeRefund

Role of legal and housing office Property checklist (Worksheet E)

THE LEASE

Who pays for what? Really read your lease before you sign it. If you don't understand it, sit down with

someone who does. Make sure lease contains military

clause.

LEASE PROVISIONS Description of property Duration of lease Military clause (Worksheet D) Rent due Deposits Late charges Maintenance responsibilities Utilities included Parking Laundry facilities Use of common property Pet policies

INSURANCE

Your responsibility Personal property Personal injury Fire, theft Apartment security

Property responsibility Property Injury Fire Security

RENTER’S INSURANCE : WHY YOU CAN’T AFFORD

TO SKIP IT

Your landlord's insurance protects his stuff, not yours.

Your stuff is worth more than you think. It can happen to you. Renter’s insurance protects more than

just property. It's surprisingly affordable.

PETER BIELAGUS VIDEO

ALL POLICIES ARE NOT CREATED EQUAL

Renters insurance differs from company to company, so compare benefits before buying.

Some key features to look for: Replacement cost coverage Coverage for items in transit Flood protection Financial strength

HOT TIP: Consider bundling with your car insurance company for added savings!!

RENTER’S INSURANCE QUOTES

From USAA In Dorm, SAFB OFallon, IL $5,000 $4.00 $5.09 $10,000 $4.89 $6.11 $15,000 $5.44 $6.80 $20,000 $5.99 $7.48

As of 7/12, $250 deductible Worldwide coverage, if you get deployed and take

your laptop to Iraq, it is covered Figure your coverage based on everything you own,

without shopping on sale to replace Full replacement coverage, with $300,000 liability

and $5,000 medical payments per person Also covers earthquakes, with 10% deductible

YOUR HOUSING ALLOWANCE

Basic Allowance for Housing (BAH)Without/With Dependents (2013

rate)

E-2 – $789/$1053 E-3 – $789/$1053 E-4 – $789/$1053

Basic Allowance for Subsistence (BAS) Enlisted: $352.27 month

WHERE DOES YOUR MONEY GO?BAH + BAS $1,141

Rent ($765)

Electricity/Gas ($85)

Cable ($60)

Internet ($20)

Renter’s Insurance ($7)

Gas/Transportation ($50)

Food/Other $154

HOUSE VS. APARTMENT

House Advantages

Privacy Space Storage Parking

Disadvantages Absentee landlord Additional costs (utilities, yard) No protection under Fair Housing Laws

Furnished Apartments*

1 Bedroom $500-$1,000

2 Bedrooms $600-$1,500

*Scott AFB 2012 Newcomer’s Guide and Telephone Book

AVERAGE RENTAL PRICES

AVERAGE RENTAL PRICES

Unfurnished Apartments*

1 Bedroom $350-$900

2 Bedrooms $425-$1,000

3 Bedrooms $625-$1,250

*Scott AFB 2012 Newcomer’s Guide and Telephone Book

AVERAGE RENTAL PRICES

Houses*

1 Bedroom $450-$550

2 Bedrooms$525-$950

3 Bedrooms$725-$1,800

4 Bedrooms$900-$2,000

5 Bedrooms$1,000-$2,000

*Scott AFB 2012 Newcomer’s Guide and Telephone Book

REQUIRED FEES #1

Application Fee (credit and criminal)

$30-$40 (will not be refunded if denied)

Some complexes will not rent to you if you have anything in collections.

REQUIRED FEES #2

Security Deposit

Average $300, but many have military

special of $99.

Some complexes make you forfeit your

security deposit if you are approved but

don’t rent from them after making

application.

REQUIRED FEES #3

Occupancy Permit

$30 Per Apartment (one-time fee)

REQUIRED FEES #3 Utility Activation Fees

Required if low/no credit May be split and billed over several monthsAmount depends on credit & the rental

propertyCall the utility company with the address,

they should be able to provide a reasonable estimate of the deposit that will be required

NECESSARY EXPENSES #1

Utilities (electric & gas)

Estimates:

1 Bedroom $85 2 Bedrooms $100-$125 3 Bedrooms $150

NECESSARY EXPENSES #2

Water, Sewer and Trash

Estimates: (many complexes include these expenses, Example D does not)

1 Bedroom $46 2 Bedrooms $56 3 Bedrooms $66

OPTIONAL EXPENSES #1

Cable, Internet and Phone

Estimates:(based on services obtained)

$99 special for one year (not including taxes and fees—approx. $115)

These fees do heavily increase after one year Two local competitors in area If using satellite dishes, cannot be installed

permanently and will only work in some apartments

OPTIONAL EXPENSES #2

Pet Fees

Pet Deposit of $300, with $150

nonrefundable

Pet Rent of $20-$30 per pet, per month, 2

pet maximum, under 25 lbs. and some

breeds are excluded

Veterinary expenses

Food, toys and treats

ADDITIONAL CHARGES

Early Termination Charges (be sure military clause is in rental agreement).

Short Lease—additional fees of $50 per month can be charged for a 6-mo. lease.

Lockout fees—some will charge you a fee of $45 or more to unlock your apartment.

EXAMPLE A (SHILOH)

Example A-small, older complex (as of

5/11)

No pool or other amenities

Water, sewer & trash inc.

2 BR, 1B, no WD$590, 1000 sq. ft.

EXAMPLE B (BELLEVILLE)

Example B—large, older complex with

pool

Water, sewer & trash inc. (as of 5/11)

2 BR, 1B $719-$794; 720 sq

ft.

2 BR, 1B, WD hookup $810-$885; 920 sq.

ft.

3 BR, 1.5B $929-$989; 1,280

sq. ft.

4 BR, 2B $1,234; 2,220 sq.

ft.

EXAMPLE C (FAIRVIEW HEIGHTS)

Example C—(large, older complex with

pool), Water, sewer and trash included

(as of 5/10)

1 BR, 1 B $675; 735 sq. ft.

These are specials on 2 BRs

2 BR, B, WD $720; 950 sq. ft.

2 BR, 2B, WD $880; 1,165 sq. ft.

EXAMPLE D (O’FALLON)

Example D—new, luxury complex with pools,

movie theatre, business center, & fitness center

Water, sewer & trash not included ($46-$66)

8% discount for military (not inc.)

Will take ages 18 and up, most want 21 yr.

olds

1 BR, 1B $895-$950; 800-823 sq. ft.

2 BR, 1B, WD $1,025-$1,170; 1,042-1,165 sq. ft

3 BR, 1B, WD $1,280-$1,325; 1,330 sq. ft.

ADDITIONAL THINGS YOU NEED TO KNOW

Bills must be put in renter’s name on the day the lease is signed.

No credit is okay, better than bad credit. Most popular size of apartment is the 1BR, many

complexes don’t have any available. If two people sign the lease, and one leaves, the other is

responsible for all the rent. You may be able to recover from your former roommate, but the landlord still expects all the rent.

You are responsible for anything done to the apartment by one of your guests.

Use common courtesy about loud music, etc. Renting furniture will be very expensive. Do not rent

from rental agencies. Shop yard sales, Craigslist, thrift shop, Airman’s Attic, etc.

Two occupants per bedroom.

TRUE INCIDENTS FROM APARTMENT LANDLORDS Do not pour grease down your garbage

disposal. You will be responsible for repairs. Do not put aluminum foil in microwave. You

will be responsible for replacing the microwave. (Cost approx. $250)

Called emergency maintenance—“heat not working”—windows were left open.

Wore shorts and t-shirts in below 0 degree weather, and kept heat constantly running, for major utility bill of over $275.

Pet took chunk out of wall—repaired with toothpaste.

B.L.U.F. (BOTTOM LINE UP FRONT)

If you choose to move off base, do not make this decision lightly, consider:

Have your finances in order Setup a budget Have an emergency fund (3-6 months of

living expenses) Poor financial choices—can wreck your

career Can receive LOC Can receive LOR Can lose a stripe Potential discharge

WORKSHEETSA. Requirements for a New ApartmentB. Determining Your Affordable Rental

RangeC. Apartment Hunting WorksheetD. Military ClauseE. Apartment Pre-Move-In Damage ListF. Housing: Needs vs. WantsG. Budget FormH. Financial Wellness Assessment Tool