Big decisions · Module 1 of 4
Renting your first place
How much rent you can afford, deposits, leases, splitting rent fairly, and renter’s insurance.
Key terms in Renting your first place
- Lease
A lease is a written contract between a property owner and a tenant that sets out the terms for living in a rental unit. It is legally binding and enforceable in court. A lease usually states the rent, the length of the tenancy, and each side's responsibilities. Rules about what a lease may include, and how it can be ended, depend on state and local law.
- Security deposit
A security deposit is a refundable sum a tenant pays at the start of a tenancy to protect the owner against unpaid rent or damage. When the tenant moves out, the owner may subtract documented amounts owed under the lease and must return the rest. Limits on the amount, the timeline for returning it, and whether interest is owed are set by state and local law.
- Renters insurance
Renters insurance is a policy that covers a tenant's personal belongings inside a rented home and does not cover the building structure itself. Many policies also include personal liability coverage, which can respond if a visitor is injured or the tenant accidentally damages someone else's property. The building owner's own policy is a separate arrangement.
Source: National Association of Insurance Commissioners, Glossary of Insurance Terms
Every term on Lever is in the money glossary.
About this module
Renting your first place is part of Big decisions, one of 15 subjects in Lever. It’s a short run of 7 lessons, about 18 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Big decisions
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2
The number you can move
Negotiating your salary and big purchases, leasing versus buying, and the questions to ask first.
7 lessons -
3
Buying a home
Mortgages, pre-approval, home equity, and fixed versus adjustable rates.
7 lessons -
4
What a home really costs
Closing costs, mortgage insurance and all the costs of owning that never show up on the listing.
5 lessons
Try this module
It’s part of Big decisions. Lever will bring it to you when you’re ready, or you can go straight there.