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How Leases Trap College Students

By Frugaling 5 Comments

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How Leases Trap Students

I live in a nice apartment. The bathroom is large, kitchen is brand new, ceilings are high, and my roommate and I have held many parties. When something goes wrong, the maintenance promptly fixes things – often the same day. It’s been a refreshing experience, but it’s come with a price and harbinger for higher education in general.

When I first entered graduate school, rent was about $400 with Internet and cable (not including utilities). I lived in Soviet-themed (unintentionally) barracks the university built in a flood zone. The entire area had flooded repeatedly (including many of the buildings). They weren’t necessarily up to “code,” but they were utilitarian and met my needs.

After two years of living, they decided it was time to tear them down and build up new buildings. I couldn’t blame the university. Unfortunately, there was a catch: private construction and land management companies would now control the buildings. Flirting with private and public lands (as I go to a public university), the university sold the building rights to the company. Now, my apartments are owned by a private company and the public land is leased to them.

While the apartments were brand-spanking new, it came with a flashy price: $550 per month with a roommate. I found a great one, and we’ve been living here ever since. From around $400 to $550 was a tremendous leap. But I justified it because it would keep me “on campus,” on the free bus route, and rentals are regularly expensive in the city. The old price didn’t really exist in the city, as it was university subsidized. Additionally, it would limit my moving expenses, as I would carry my stuff across the block.

Then something strange happened last year. Half way into my lease, a brochure was placed in my door frame. It said, “Take advantage of a great opportunity to renew your lease…at a discounted rate!” That first sentence sent off alarm bells in my head; I thought, “here comes a sales pitch.”

If my roommate and I renewed early, we’d receive this so-called discounted rate, but it was made worse by a bold-faced exclamation, “The first 100 residents that renew will get a discounted renewal rate!”

Both of us eyed the brochure and looked at the rate. At first I thought we’d actually be saving money because the table outlined “annual savings.” More closely, we realized they would be charging us $10 more. Despite all the rhetoric about savings, we’d be paying $120 more a year, each. Then, the company had combined it with a time-sensitive offer. They had clearly read some awful business books that encourage these tactics at the expense of consumer hatred.

The kicker was a third element: information about how expensive and difficult it is to move. As a skeptical reader I wondered why they were including information about “truck rental,” “utility transfers and deposits,” and “application fees.” Simply put, they wanted to psychologically implant loss potentials by using classic business techniques. The company wanted to reduce the likelihood of a move.

Despite my hate for the technique, it was true. Because we were graduate students, on tight schedules, and fearful of awful landlords (the city is full of them), we accepted the $240 total increase.

A year passed without much concern. Yesterday, I came home to an updated brochure. It was entirely the same except for the amount owed and leasing year. All the same rhetoric was used: “annual savings,” “the first 100 residents,” and information about moving expenses.

Another increase stared back at me: $480 per year per person. I was stunned. Over two years, the private land management company hiked the price $600 for leases annually. And horrifically, it’s even worse for new leases. Now, my roommate and I have a major decision to make.

This story is about more than one rental company’s tactics. Rather, this article is about the wicked decline of public institutions. What used to be highly subsidized, affordable housing for graduate students, quickly declined to a gentrified area (all the families and international students left). The university no longer needs to manage the land and they receive leasing payments, but they have little control of the land management’s prices and sales tactics.

By understanding these tactics and the privatization of public university property among rising student loan debt is a recipe for resentment. Raising prices $600 per year for each person becomes a formidable sum. Think about how $600 each year over the course of a five-year graduate school career equates to $3000 in extra housing costs, which are often at 6.8% interest with federal aid. That adds up, as do the future payments.

While people could move out, year round schedules and limited savings become a trap for many students. With strict budgets that limit freedom to afford truck rentals, rent cleaning products, and pay for utility transfers, we are a vulnerable population. Many are restricted by these methods.

The privatization of public property might be an omen for continued demises in higher education. By pushing towards a business model, students will bear the brunt of these horrid policies.

We’re at a tremendous precipice in academia. As we play limbo with students lives, I cannot help but wonder when we’ll find the bottom because we’re walking straight towards it.

Filed Under: Save Money, Social Justice Tagged With: academia, apartments, campus, college, housing, leases, Students, university

My Bike Ride Disaster: Wet, Dirty, And Full Of Road Spittle

By Frugaling 11 Comments

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Bike ride through the city
Photo: Dustin Gaffke/Flickr

My first fall in fall

This summer I purchased my first bike in years. It quickly became an enjoyable habit. My body became stronger and I can now bike about an hour before getting really tired (backpack and all). It’s forced me to think about climate change and my impact on society; thankful too, because I’m individually reducing carbon emissions. But I’m also open to the elements like never before, and that comes with serious risks.

It was drizzling today, and the roads were riddled with puddles and rivers. If I still had a car, I wouldn’t have thought much of it. I would’ve been isolated from the elements. Cars are protective bubbles and creature comforts. My commute into work would’ve been simple and relatively safe. Instead, I took the first fall on my bike.

Every time I hop on my bike I realize all of the variables that are working against me: my brakes might not work, a car may hit me or otherwise cause me to lose control, a tire may pop, etc. Unfortunately, I wasn’t considering the most obvious possibility this morning: pedestrians.

As I made my way to campus, I took note of my increasingly moist bum. I reached back to check, and found a nice patty of road spittle. Yes, this wasn’t one of my favorite bike rides. Nonetheless, I had no other option at this point and needed to get into work on time. My legs peddled onward.

I crossed the river and was nearly there. The light was green and I began to turn right, when a group of pedestrians crossed illegally. My brakes squealed, as I squeezed to prevent hitting one of them. Then, the bike lost traction and I completely slid off and down. My entire right side was covered in dirt and rain and ominous road schmutz.

People called out, “Are you okay?” Despite the immediate feeling of road rash, I hadn’t hit my head or broken anything. Someone picked up my coffee mug, and handed it to me. I fixed my helmet, put my mug away, and biked another 300 feet into work.

My foreign, happy reaction

But despite this inconvenience, anger, and wetness, I’m curiously happy. Even I question that feeling, “How could I be happy after a group of pedestrians caused me to slip and fall? How could I be happy sitting in wet clothing?”

Well, I’ll tell you!

When I first bought my bike, I wondered how long it would be before I was craving a car. But that feeling never came. Aside from stealing a ride with friends here and there, I haven’t driven more than a handful of times since mid-summer. Each month, I’ve been able to save an extra $300 dollars per month by not having a car (loan, gas, insurance, repairs, maintenance, etc.). Selling the car and pocketing the savings led to a reversal in my net worth, too. I’m finally in the black! And from a future standpoint, each time I take a bike or bus, I am contributing to a different carbon economy.

Dealing with winter

The seasons are changing. And now that I no longer have a car, I feel it like never before. My clothes are soaked and my body is ice cold from the spill. Work feels a bit more uncomfortable with the growing bruise engulfing my right side.

The weather will worsen. Winter in the Midwest is a horrific tragedy of gray and cold. Biking consistently through that will not be possible. While there are some buses that run through the area, the timing of interchanges may lead to severe delays and time lost. It will be a major time to question transportation and work-life balance.

No matter what happens, I’ll be sure to update you on my choices and how they affect my budget. For my bikers out there, be safe and ride on! And, read this awesome article about bike safety from Grist.org!

Filed Under: Save Money Tagged With: Bicycle, bike, Biking, campus, debt, net worth, Ride, Road, savings, school, transportation, Work

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