Quiz Study Guide: Buying vs. Renting-Housing

When renting, the landlord is responsible for property maintenance.

• True

• False

An advantage of renting is that you do not have the costs associated with owning a home such as property taxes.

• True

• False

An advantage of renting is you will not receive a federal tax deduction for your rent payments.

• True

• False

1. A(n) _________________ is a loan to purchase a home or property.

• lease

• mortgage

• rental agreement

• insurance policy

Renting may reduce the amount of income tax you pay, since monthly rent payments and property taxes are tax deductible.

• True

• False

As a homeowner, you can lose your home, and your investment in it, if you do not make timely mortgage payments.

• True

• False

A(n) _________________________is a legal document that protects you and the landlord by clearly stating the arrangement between the two of you for a property agreement.

• rental paperwork

• insurance policy

• mortgage

• lease

Which of the following would NOT be an example of a reoccurring expense when renting an apartment?

• Renter's insurance

• Utilities

• Mortgage

• Rent and Fees

A landlord is allowed to raise rent at any given time whenever he/she chooses without the consent of the renter.

• True

• False

A(n) _________________is money you give to the landlord when you sign the lease. The lease must state what it will be used for, and whether or not it is given back to the renter when he or she moves out.

• mortgage

• security deposit

• interest payment

• down payment