Renting Your First Place — slides
Financial Literacy Club
Money After High School · Lesson 5
Renting Your First Place
Leases, deposits, roommates, and renters insurance.
14-minute lesson · learnwithflc.org
Renting Your First Place · 1 / 20
Financial Literacy Club
Money After High School · Lesson 5
Renting Your First Place
Leases, deposits, roommates, and renters insurance.
14-minute lesson · learnwithflc.org
Today's goals
By the end of class, you'll be able to…
- Apply the 30% rent guideline and the 3×-rent income rule
- Estimate move-in costs
- Identify key lease terms and the purpose of renters insurance
Warm-up
Besides rent, what costs do you think come with moving into your first apartment?
Think, then write your answer.
The big idea
Renting Your First Place
Leases, deposits, roommates, and renters insurance.
Money After High School · Lesson 5
A common guideline: keep rent at or below 30% of your gross income. Many landlords also require income of about 3 times the rent.
Money After High School · Lesson 5
Moving in costs far more than the first month's rent. Expect a security deposit (often one month's rent), application fees, utility setup, and basic furniture.
Vocabulary
Lease
A legal contract covering rent, due dates, late fees, length, pets, guests, repairs, and what happens if you move out early. Read all of it before you sign.
Money After High School · Lesson 5
- Roommates: on many leases, each roommate can be responsible for the full rent if another doesn't pay.
- Inspection: photograph and note every scratch or stain on move-in day, and send a copy to the landlord.
- Renters insurance: your landlord's insurance covers the building, not your belongings. Renters insurance is usually inexpensive.
Money After High School · Lesson 5
Getting your deposit back (Texas)
In Texas, after you move out and give your landlord a forwarding address in writing, the landlord generally must return your deposit — minus any itemized deductions for damage — within 30 days. Other states have their own rules.
See it
Moving into a hypothetical $1,100-a-month apartment: first month's rent $1,100, security deposit $1,100, application fee $50, utility setup and deposits $150, renters insurance (first month) $15, basic furniture and supplies $500. Total: $2,915.
- First month's rent
- $1,100
- Security deposit
- $1,100
- Application fee
- $50
- Utility setup and deposits
- $150
- Renters insurance (first month)
- $15
- Basic furniture and supplies
- $500
- Total to move in
- $2,915
Real example
Can Tasha afford it?
Tasha earns $3,200 a month before taxes. She finds a $1,100 apartment.
- 30% guideline: 30% × $3,200 = $960. The rent is above that.
- 3× rule: the landlord wants $3,300 a month in income. She earns $3,200 — just short.
- Move-in costs: about $2,915 up front.
Tasha finds a roommate for a two-bedroom at $1,500 total — $750 each. Now her rent is about 23% of income, and her move-in costs are cut nearly in half.
Try it together
Try it: does the rent fit?
Enter a monthly take-home pay and a rent, then fill in the rest of a realistic budget.
Your numbers
After taxes — what actually reaches your account.
Results
Total spending
$1,750
67% of income
Remaining
$600
Not yet assigned
Savings rate
10%
$250 a month
- Spending $1,750
- Savings $250
- Remaining $600
| Category | Amount | Share of income |
|---|---|---|
| Housing | $750 | 29% |
| Transportation | $250 | 10% |
| Food | $400 | 15% |
| Entertainment | $150 | 6% |
| Other expenses | $200 | 8% |
| Savings | $250 | 10% |
Educational calculator, not financial advice. Results are hypothetical estimates based on the numbers you enter.
Activity · small groups · 12 min
Can We Afford It?
- Two roommates will split a $1,500-a-month apartment. Each earns $2,600 a month before taxes.
- Groups check each roommate's share against the 30%-of-gross guideline and the pair against a landlord's 3×-rent rule.
- Groups estimate move-in cash: first month's rent, a one-month security deposit, $50 application fee each, and $200 for moving.
- Groups list three things to check in the lease before signing.
Check for understanding · 1 of 3
A landlord requires monthly income of 3 times the rent. The rent is $900.
What monthly income do you need?
- A$1,800
- B$2,700
- C$900
- D$3,600
B. $2,700
3 × $900 = $2,700.
Check for understanding · 2 of 3
What's the best way to protect your security deposit on move-in day?
- APhotograph and document every existing problem, and send a copy to the landlord
- BTrust that the landlord remembers
- CFix everything yourself without telling anyone
- DSkip the inspection to save time
A. Photograph and document every existing problem, and send a copy to the landlord
Dated photos and a written list prove what damage was already there.
Check for understanding · 3 of 3
Your landlord's insurance covers your belongings if they're stolen.
- True
- False
False
The landlord's policy covers the building. Renters insurance covers your stuff.
Remember
Key takeaways
- Rent ≤ ~30% of gross income; landlords often want 3× rent.
- Move-in costs can be 2–3 months of rent.
- Read the whole lease.
- Document move-in condition with photos.
- Renters insurance protects your belongings.
Discuss
Talk it over
- What would you want in a roommate agreement before signing a lease together?
- Is the 30% rule realistic where you live? What would you do if it isn't?
Exit ticket
Why should you take photos when you move in?
Answer on your exit ticket before you leave.
Nice work today.
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learnwithflc.org/courses/money-after-high-school/renting
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