Rent: A Cost Comparison
If you want to sign a lease for next year and avoid the pitfalls of early leasing (e.g., roommate preference change), here is some information about what you can expect to pay. On average, rentals within walking distance of Central Campus cost the following: Rooms = $560; Efficiencies/Studios = $640; 1bdrm = $725; 2 bdrm = $950; 3bdrm = $1450; 4bdrm+ = $1900 - $3100. Rentals located a 10-minute car or bus ride from campus average about 15% less than those closer to campus. Room-only rentals and efficiencies are less common further out from campus.

Many students report that the cost savings, coupled with the fact that many apartment complexes are newer and have more amenities, makes living outside downtown well worth the (free) bus ride. Other private housing options to consider off-campus are co-ops and Greek houses. The ICC Co-ops charge a monthly rate of $423 - $685/month for an 8-month lease with board (meals) and all utilities included. The fraternity and sorority houses also offer 8 month leases and include board with rent. It costs $600-$800/mo on average to live in a Fraternity and $650-750/mo on average to live in a Sorority, including board. (Note: membership dues are required as a part of fraternity or sorority membership, in addition to monthly rent.)

Things To Do Before Signing A Lease
1. READ IT COMPLETELY! Ask for clarification of lease clauses you don’t understand. Student Legal Services (763-9920) and the University’s Off-Campus Housing Program (763-4105) can assist in answering questions.

2. If the landlord promises to correct problems with the rental, make sure they are stated in writing on the lease or on a separate sheet of paper attached to the lease as an addendum and signed by you and your landlord.

3. Make sure the name, address and phone number of the owner of the property and/or management company is on the lease so you will always know who to contact.

4. Make sure your lease indicates which utilities are provided with the rental, which are at your expense to maintain, and which the landlord pays to maintain.

5. Know whether you have joint liability or single liability. Most leases require the tenants to be “jointly and severally obligated," which means that each tenant may be held responsible for the total amount of rent due for the unit, regardless of the number of roommates listed on the lease. For example, if a tenant moves out or fails to pay the rent, any one of the other tenants or any number of the other tenants on the lease may be held liable by the landlord for the missing and unpaid portion of the rent. The defaulting tenant, however, may remain liable to the other tenants for the unpaid rent. A single liability lease means that each tenant is only responsible for his or her individual part of the rent.

Considering Whether To Renew Your Lease
One drawback of the early search for fall housing in Ann Arbor is that it means current tenants must decide whether they want to renew their leases for the following year. This question may come from your landlord just after you have settled into your place and finished filling the blank spaces on your walls.

There’s a 5-14 day period in late August when many students are between leases and apartments are being “turned over" and prepared for new fall renters. If you decide not to renew your lease for your current apartment, you may find that you are scrambling to find a sofa at a friend’s place to sleep on and a place to store your things. On the other hand, a benefit of renewing your lease early is that you won’t have to be bothered with tours of your apartment by your landlord and prospective future tenants.

Ask your landlord how long you have to provide your answer. It may be further down the road than you realize. Use this time to consider your plans for next year, other places you might want to live where it’s quieter if you are ready to get serious about studying, and where you would stay during the time between the end of this lease and the start of the next one. Worst case scenario: you renew your lease and then you change your mind.

Assessing Utilities Costs
When a group of tenants rent a house, they typically pay all utility costs in addition to the rent, including phone and cable TV. Phone service costs depend on the service and equipment you choose. SBC provides basic service that costs $26/mo on average, but you will also need to choose a long-distance company. Talk to a knowledgeable friend or relative with experience selecting long-distance providers before making your choice.

DTE Energy can provide you with the average cost of electricity for a specific rental at your request ((800) 477-4747 or at my.dteenergy.com). It costs more to heat with electricity than with gas. The monthly electric bill can go up about $100/mo for heating during cold winter months and for air-conditioning during the heat of summer.

We suggest looking for a gas-heated rental unless you can find an electric-heated apartment or house with below-average rent or other features that are more important to you than the bill you will receive from DTE.

Note: DTE, through its affiliate companies Detroit Edison and MichCon, provides Electricity and Gas service to Ann Arbor.

What To Do When You Want Out Of Your Lease
Sometimes tenants who have just signed a lease experience what is referred to as “buyer's remorse.” The reasons reported range from deciding against living with the person/people who also signed the lease to deciding to study abroad. Whatever the reason, the lease is a legally binding document and is rarely cancelled without loss of money, energy, and time to the tenant and the landlord.

Before approaching your landlord about canceling your lease or ending it early (“breaking” sounds negative so try not to associate this term with your lease when you talk with your landlord), consider your options carefully.

First, what does your lease specify about lease cancellations? The U-M lease form, used by many landlords who rent to students, states that tenants may cancel the lease within 10 days after signing it but not within 30 days of the start of the lease. So, if you sign a lease for Fall 2005 on November 27th, you will have 10 days to change your mind. But if you wait until August to try to get out of your lease, you will probably have missed your window of opportunity.

Even if a clause is included in your lease which allows cancellation under certain conditions, it often is with a fixed cost. For example, the U-M lease provides the landlord the option of charging up to ½ of one month's rent as a cancellation fee. If a lease does not contain such a clause, the tenant has no guaranteed ability to get out of the lease once it is signed. Then his/her success depends on the ability to work out a mutually satisfactory arrangement directly with the landlord.

Three rules of thumb for approaching your landlord about getting out of your lease: 1) be honest about the reason(s) you want out; 2) don’t insult the property or the landlord; 3) offer to try to help replace yourself, such as by advertising through the Roommate Finder and Sublet Service under the Student Login on this Web site.