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. (it would
be great if you could bring in a lawyer who handles this type of dispute. )
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? Underline what you are not familiar with and circle new
vocabulary 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) are you going to rearrange the tables? Long lines
do not facilitate group discussions
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? Examples: change the wall
color, change a light fixture or curtains
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.
Send it via snail mail with receipt return for verification or hand
deliver. 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

NOTES:
This is a lot to cover with student participation. You might need to break this into 2 days so that
the kids can get into the discussion. Remember your objective is to get them to be active
learners not passive listeners.

-Remember - tenants do not get to pick the contract, the owner does and the lease always
favors the owner
- you might want to review what makes a good tenant

You could give them a contact sheet for all the offices you mention that they can contact.
Place for legal help or finding a lawyer who might come in to talk:
https://clsphila.org/get-help/landlord-tenant-private-housing