Housing costs for renters and owners

0:00- [Instructor] What we're gonna do in this video is compare the different types of housing costs depending on your situation. So we have one situation where you are just renting an apartment or a home. There's another situation where you own the house and there is no homeowner's association.

0:18That's what HOA is. That's the association that sometimes takes care of some shared costs and you have to pay a fee or dues to them. There's a situation where you do own and there is either a homeowner's association or a condo owner's association, and then there's a land lease situation.

0:37You might say, "What's that?" Well, that might be say in a mobile park where you own the actual building, but (laughing) you still have to lease the land or rent the land from someone else. So if you are renting, you clearly pay the rent. If you own, you are paying the mortgage.

1:00If you own in a homeowner's association or a condo owner's association, you still pay the mortgage. And if you have a say mobile home, you are going to pay the mortgage for the actual structure. Now, in the mobile home situation, you would still pay rent for the land, the lot rent.

1:22We don't include it there for the renting situation because when you rent a house, you are essentially renting everything. So this situation, at least of the ones we're looking at where you're looking at only renting the land is in a mobile park. Now, property tax on the dwelling, any of the situations where you own the structure of some kind, you are going to be paying property tax on it.

1:47If you're renting it, the landlord pays it. Same thing on the land. You pay the property tax on the land if you own the land. If you don't own the land, the owner of the land pays the property tax. In the renting situation, it's the landlord. In the mobile park situation, it's the park owner.

2:08Now, who's going to pay for insurance. And especially when we talk about building or master insurance. This would be the landlord if you are renting. This is you if you own the building and there is no HOA. And it's the association, let's say you live in a big condominium or you're in townhouses where there's shared walls and maybe there's shared clubhouses and things like that, you would pay dues.

2:37And if something were to happen, the association is the one that would, well, first of all, they would be the ones to take on the insurance, and then they would file for the coverage, et cetera. Interior insurance, this could be a little bit different depending on the situation.

2:53In almost all cases, you are on the hook for it. In some scenarios, if you're renting say a furnished condo, or apartment, or certain things came with the apartment, and it might be some of the appliances maybe came with the apartment, it could sometimes be the landlord.

3:13Now, major repairs, like the roof or the heating, ventilation, air conditioning, if you're renting, it's almost always going to be the landlord. If you own it, without an HOA or a COA, it's going to be you. In a lot of cases, if there is an HOA or COA, it's going to be the association.

3:31Once again, they're gonna pay for it outta dues. And once again, if you own the structure, that AC, that heating equipment is yours, so you have to pay for the repairs. Interior maintenance, if it's yours, you pay for it. If you're renting it from someone else, they are paying for it.

3:48Landscaping, snow, trash. Once again, if it's you are renting it, it's the landlord. If you're renting the land, and this is mostly related to the land, it's oftentimes the park owner. And if there's no HOA or COA, there's no one else to do it, it's going to be you, and you own the place.

4:06And if there is an HOA or COA, and this is gonna be pretty typical with condominiums, or townhouses, or some type of shared development, you might have or you're likely to have the association pay for it. And you could see something similar when there's common amenities.

4:20Common amenities, you're not going to, you're not going to pay for it if you are renting. Now, if you're renting a condominium, your landlord might be paying to the association, which will then take care of these types of costs. Similar for the park owners. Utilities is interesting.

4:38It's usually you when you rent, but sometimes, and you have to pay attention or ask the right questions, some utilities might be covered by your landlord. In all of the other situations, you are likely covering it. Sometimes there are shared meters in a condominium-type situation.

4:57So some of that could be shared by the HOA or the COA. Monthly dues, once again, you to the association, you to the park, those apply in those shared situations. And then special assessments, this might be, let's say you live in a condominium with 10 units. They decide they have to replace the roof of the entire condominium.

5:19Well, then the HOA might go to everyone or the COA might go to everyone and say, "Oh, you know what? This is going to cost us $100,000. We have to divide that by 10. Everyone, we are levying a $10,000 special assessment." So that's most likely going to happen in the HOA, COA scenario.

5:38If you own that place outright, you would have to pay for the whole thing. So hopefully that gives you an overview. This is something to pay attention to. Look forward on your leases, make sure it's somewhat standard or consistent with what we're seeing here, or at least if it's not, you know it.