Using Screen-Casting to Teach the “Rent Vs. Own” Case Study

Abstract

With the growth of spreadsheet analysis of real estate decisions and a move toward project/case analysis for higher education, an opportunity has emerged to better leverage new screen-casting and video recording technologies to enhance traditional pedagogical approaches and improve student outcomes. With a goal of providing individual student submissions and an assessment method that doesn’t overburden real estate faculty, this paper describes an innovative project assignment that has been refined over many years and sections of real estate classes. The objective of this paper is to provide detailed instructions, examples, and encouragement for other faculty members to incorporate this approach into undergraduate and graduate real estate courses.

Keywords:

• Pedagogy
• Teaching
• Spreadsheet Analysis
• Flipped Classroom
• Real Estate
• Case Studies
• Microsoft Excel
• screen-casting

JEL Codes:

• C83 - Real Estate
• I21 - Education
• O33 - Technological Change: Choices and Consequences, Appropriate Technology, and Technical Change

1. Introduction

Professors of a real estate course usually ask students to describe their experiences with real estate and their expectations for the class. Most students respond that they want to own their own house one day and don’t want to waste money on rent. This response likely results from the common belief that owning one’s living space is a good investment and that paying rent is somehow bad. Most would answer in the negative to the leading rhetorical questions, “Does real estate always go up in value?” or “Is real estate always a good investment?” But, few would be equipped to conduct even a simple financial analysis of these questions. Views toward owning versus renting may have changed somewhat as a result of the recent financial crisis (Drew & Herbert, 2012; Herbert et al., 2013). Furthermore, an increasing body of academic work suggests consumers may be worse off by owning (Eli Beracha & Johnson, 2012; Wolf & Domian, 2013). Sharing these observations to help introduce a project may provide the spark necessary to provoke critical thinking and a deeper appreciation for a key real estate decision.

A typical subject in any introductory finance course is the decision of whether to lease or own capital in the form of equipment or real estate. Comparing the cash flows from several different scenarios helps students learn the concepts surrounding present value. The real estate rent versus own decision can be a fruitful laboratory in which to develop a memorable understanding of these principles. As the topics advance, the same basic concepts are applied to corporate decisions involving site planning, operational versus capital leases, and considerations of sale/leaseback opportunities. While these decisions are some of the most common real estate issues facing both consumers and business leaders, students rarely complete a real estate course of study with the skills and experience required to conduct a proper analysis.

The typical approach to delivering coursework on the rent versus own decision involves a series of lectures on the costs of ownership, financing approaches, costs of selling a prop-erty, income, and capital gains taxes, and computing the cash flow differences between the alternatives. A student is then instructed to conduct a net present value or IRR calculation and decide whether it makes sense to rent or own for various alternative holding periods. The assessment may come in the form of essay questions about the decisions process, Excel projects, or group presentations. These instructional and assessment methods may be improved by utilizing technologies and assessment approaches that make learning more interactive, personal, and memorable.

More than ten years ago, the author began experimenting with Excel projects that required each student to record a narrated video of themselves building real estate finance and investing spreadsheet models and submitting the recordings through the online course management system.¹ The students use a technique called screen-casting to record their voice, an image of their face, and their computer screen as they build a spreadsheet step-by-step and send a link to this result to the instructor via email or post to an online course management system. Since then, the approach has been refined and used in numerous sections of real estate courses including principles, investing, finance, and development. Improvements to the project assignment made over time include dealing with technology issues, developing fair grading rubrics, providing feedback, helping struggling students, and handling late/no submissions.

While no formal assessment comparison has been conducted, students report that the approach was one of the most helpful, memorable topics of their entire college experience. Despite many of them nearing graduation with degrees in finance, students often reported that the course was the first where they used Excel to a degree and level that they felt comfortable with it and could use on their own to answer other business questions after the course was completed (Zhang et al., 2013).

2. Literature Review

Screen-casting in education has gained popularity, offering educators a dynamic way to engage students. It involves recording and sharing video and audio presentations of computer screen activity. This versatile technology has multiple uses, including training, software demos, and product presentations. In this review, we explore how screen-casting benefits education, promoting active learning, interactivity, and problem-solving skills. We also examine how it frees up classroom time, enables hands-on projects, and creates a student-centered learning environment. By summarizing current literature, we provide a comprehensive overview of screen-casting’s transformative potential in teaching and learning the rent versus own decision process in a real estate course.

2.1. Learning Dynamics and Active Learning

Modern web-based video recording technology enhances communication between students and teachers by capturing not only written explanations but also tone of voice and nonverbal cues. This clarifies assignments and fosters better understanding (Thompson & Lee, 2012). As students seek interactive and efficient learning experiences, web applications for video recording and production cater to their needs. Such applications provide dynamic learning environments and flexible access to course materials, meeting students’ expectations (Mandernach & Taylor, 2011).

Video recording assignments support active learning by engaging students and requiring critical thinking. Students can demonstrate understanding and apply knowledge through recorded videos, fostering deeper learning (Garner, 2008; Lee et al., 2008; Traphagan et al., 2010). The audio-visual components of videos reinforce comprehension and memory, facilitating meaningful learning experiences (Prince, 2004). Video assignments align with characteristics of active learning, as students go beyond passive listening, develop skills, and engage in activities like discussion or programming (Charles & Eison, 1991). Students can reflect on their progress and understanding while showcasing problem-solving skills and thought processes through video submissions (Mandernach & Taylor, 2011; Mayer, 2001; Pang, 2009; Sugar et al., 2010). This comprehensive approach allows for better evaluation and promotes analytical competence in students’ data analysis and problem-solving abilities.

2.2. Screencasting and Its Benefits for Students

Screencasting is a valuable tool in education, benefiting both teachers and students. It allows for the creation of instructional videos, online courses, and multimedia presentations, enhancing engagement and accessibility (Peterson, 2007). Students can watch lectures and complete course materials at their own pace, freeing up class time for interactive activities and discussions (Valenza, 2012). Screencasting promotes active learning, critical thinking, and creativity, as students have the opportunity to showcase their understanding and demonstrate problem-solving skills in an interactive manner (Powell et al., 2015). It also creates a dynamic and engaging learning environment that encourages student participation and deeper comprehension (McGovern, 2010; Shelly et al., 2012).

With screen-casting, students can prepare assignments using multimedia presentations, fostering creativity and providing a platform to showcase their knowledge and skills (Valenza, 2012). The flexibility of completing assignments outside of class time allows for more diverse activities, such as guest speakers or real estate-related events, enriching the learning experience (Valenza, 2012). Furthermore, screen-casting enables students to document their problem-solving processes, aiding future reference and providing instructors with insights into students’ understanding and challenges (Klima, 2013; Powell et al., 2015). This supports a student-centered and supportive learning environment that encourages self-reflection and growth over time.

The market for screen-casting services and software is diverse and growing, with a wide range of products and services available to meet the needs of businesses and educators. The choice of product or service depends on the specific needs and requirements of the user, and the level of investment they are willing to make in the technology (Gerencer & Hayes, 2020).

Overall, screen-casting empowers students by providing them with dynamic learning opportunities, promoting active engagement, and enhancing their ability to reflect on their progress and understanding.

3. The Rent Vs. Own Project

Introductory real estate courses at the college level aim to provide students with practical knowledge and understanding of the rent versus own decision. To dispel misconceptions and encourage critical thinking, a practical case study approach can be employed. This case study explores the financial factors involved in renting or owning a home, such as property taxes, mortgage payments, maintenance costs, and property value appreciation. By engaging in this decision-making process, students develop a more informed and nuanced perspective on the rent versus own decision, enhancing their financial literacy.

Integrating this case study into the real estate curriculum offers students a comprehensive and experiential understanding of the field. It fosters critical thinking and the development of informed opinions, particularly relevant for soon-to-graduate upper-class students as they prepare for significant financial decisions in their personal lives. By connecting real estate and finance concepts, this approach equips students with a holistic understanding of the factors influencing the rent versus own decision, enabling them to make financially responsible choices.

To integrate the case study into the real estate curriculum, instructors employ creative techniques to engage students in the rent versus own discussion. For instance, an instructor may initiate the conversation by placing a bag of “money” on a table, prompting students to consider whether they should use it to buy a house or continue renting. Small piles of money representing monthly rent are placed on the other side of the room, encouraging students to contemplate whether renting is akin to” throwing money away.”

The instructor then introduces the concept of an investment, emphasizing that buying a home is a way to spend money to make money. They explain that while a home provides a place to live, it also offers tax benefits through mortgage payment deductions. As the various costs associated with owning a home, including property taxes, insurance, and maintenance, are discussed, the instructor highlights how loan costs can further add to the expenses.

To foster critical thinking and a comprehensive understanding, instructors guide students through the process of building a spreadsheet that analyzes the costs and benefits of owning a home. This exercise allows students to see the calculations, formulas, and the final analysis, such as the comparison of internal rates of return (IRR) for different holding period scenarios. The instructor facilitates discussions, encouraging students to evaluate the investment’s potential and make informed decisions.

The spreadsheet-building process reaches a culmination, leading to a class discussion on whether buying a house is a good investment. In this dialogue, students share their insights, recognizing that the decision depends on factors such as the individual’s expected rate of return and the length of time they plan to stay in the house. Numerous examples exist found in nearly every real estate text for teaching the rent vs. own case. A good example can be found in the Bruggeman-Fisher’s Real Estate Finance and Investment (Brueggeman & Fisher, 2022). The author has also provided an example developed collaboratively with students. This example is shown in Figures 1 and 2 and is available from the author upon request.

Figure 1. Example spreadsheet page 1.

Figure 2. Example spreadsheet page 2.

This comprehensive approach helps students appreciate the complexity of the rent versus own decision and its financial considerations. By actively engaging in the case study, students develop a more informed perspective and acquire the skills to make well-informed decisions regarding real estate investments.

3.1. Complexity versus Simplifying Assumptions

When analyzing the rent versus own decision, it is important to consider various factors that can impact financial returns, such as closing costs, income taxes, holding periods, and capital gains taxes. These complexities can significantly affect property ownership. In a three-to-five-year hold period, discussing the potential exclusion of capital gains taxes becomes crucial, as it can provide substantial tax benefits for homeownership. By incorporating these complex concepts, students gain a better understanding of real estate investment nuances and can make informed decisions.

Alternatively, to simplify the analysis, instructors can assume that students are not subject to capital gains taxes or have a home business. By focusing on core expenses like mortgage interest and property taxes, students can better comprehend and compare the costs of renting versus owning. This simplified approach allows students to understand the fundamental factors influencing the cost of homeownership and make more informed decisions.

Additionally, instructors may simplify the analysis by assuming a high down payment to exceed typical private mortgage insurance (PMI) requirements. It is essential to educate students about various loan options and emphasize that a 20% down payment is not always necessary. By discussing PMI costs, students gain awareness of associated expenses and how different down payments can impact mortgage requirements.

In summary, instructors can strike a balance between complexity and simplification when teaching the rent versus own analysis. Introducing students to more complex concepts helps them understand real estate investment nuances, while simplifying assumptions makes the analysis more accessible and provides a solid foundation for further learning.

3.2. Using Screen-Casting with the Project

At the beginning of the semester, students are given an assignment to participate in an online discussion that involves introducing themselves to their classmates. The assignment requires students to submit a video recording that includes a narration of the student stating their name, major, reasons for taking the real estate class, and any relevant experiences they (or their immediate family) have in real estate. In addition, students are asked to describe any hobbies or interests that might be of interest to their peers. While discussing this information, students are instructed to simultaneously type their responses into an Excel spreadsheet, which is recorded along with their narration to showcase their screen activity. Although not required, some students choose to turn on their webcams and display their face in a corner of the screen as they type.

This assignment serves as a valuable icebreaker for students in the real estate class, allowing them to get to know each other and establish a sense of community early on in the semester. By requiring students to introduce themselves via video, the assignment promotes active engagement and encourages students to think creatively about how to present themselves to their classmates. In addition, the use of an Excel spreadsheet to record the typing activity provides an additional layer of insight into each student’s thought process as they formulate their responses.

It is worth noting that students may be prone to procrastination when completing the project, and may encounter technical difficulties with their screen-casting software. To overcome these challenges, it is critical to have this earlier introductory assignment where students record themselves introducing themselves and typing into Excel while they narrate. This helps ensure that all students overcome technological hurdles before the first video recording project is due. It is also recommended that instructors use the same screen-casting system for the introductory assignment and any other video-recording projects. A wide range of screen-casting options are available for free online. For a recent review of options, see the link in the footnote². In the author’s experience, https://ScreenPal.com/ (formerly Screen-cast-o-matic) has performed very well over many years and students rarely have any issues.

An example video demonstrating the key elements of the rent versus own analysis can help students understand how to create their own videos effectively. It showcases data entry, formula creation, and result interpretation. The video also offers clear guidance on evaluating the final decision based on a specific target, such as the internal rate of return (IRR), over a 3-year horizon. Students can refer to the example video, pause, restart, and review it as needed to ensure they produce high-quality videos. This resource supports students facing technical difficulties or other challenges and improves the overall quality of their work.

Upon completing their spreadsheets and video recordings, students must upload them to a suitable location online. This can be achieved by using the university’s course management system or other resources such as email. However, it is recommended that the introduction assignment be posted to a discussion so that students may interact with each other. Because many course management systems can not accommodate large file uploads from students, students should post links to their videos stored online. If using https://ScreenPal.com/, students may use the QuickShare option at the end of their recording to automatically copy a link to their video, which may be pasted from their clipboard directly into the course management system. Students should be told to make sure their video has been completely uploaded before closing their browser or starting the next video segment. Students should also be encouraged to test all of their video links themselves and/or sending them to a friend to test. By resolving any technical issues related to the uploading process with this initial assignment, instructors can significantly reduce last-minute difficulties for students.

3.3. In-Class Workshop and Draft Feedback

Conducting an in-class workshop allows students to complete the rent versus own analysis with the instructor’s guidance, reinforcing their understanding of the process and applying it to new scenarios. During the assignment, students can ask questions and seek clarification, while the instructor provides additional resources and support as needed. Using a different set of assumptions challenges students to apply their knowledge to different situations, demonstrating their understanding of the material.

Submissions of drafts prior to the due date offer an opportunity for instructor feedback. Establishing clear guidelines and instructions for formatting and technical requirements, the instructor encourages students to submit drafts for review. This process allows time for feedback, revisions, and addressing errors or misconceptions early on. It promotes student engagement, reflection, and deeper learning while improving the quality of final submissions. Providing guidance and support builds student confidence and facilitates effective learning outcomes.

By combining the in-class workshop and draft feedback, instructors can facilitate a comprehensive and iterative learning process, enabling students to develop their skills and understanding of the rent versus own analysis.

4. Project Evaluation and Grading Rubric

An effective method of teaching students to analyze the decision of renting versus purchasing a home is by having them create an Excel spreadsheet using a screen-casting system. However, evaluating a large number of student video projects can be a time-consuming task, which calls for the need to invest time in creating a reliable and effective grading rubric. A well-designed rubric can also facilitate the use of an assistant in the grading process and reduce subjectivity in evaluation. Fortunately, modern course management systems offer built-in capabilities for assignment submission, grading, and rubrics, allowing instructors or grading assistants to assign scores on various grading categories, which are then combined to create the final grade for each student. An example rubric is provided in Table 1. Each rubric category provides specific details explaining why a particular score was assigned and may also offer feedback to the students. The grading categories must align with the assignment requirements and learning objectives to ensure that the submitted assignments are in a format that facilitates grading and that students learn the necessary material for the real estate class.

Table 1. Grading rubric for screen-casting project.

Category	Description	Point Value
Timeliness	Project submitted on or before the due date	5
	Project submitted within 1-2 days of the deadline	3
	Project submitted within 3-5 days of the deadline	1
	Project submitted more than 5 days after the deadline	0
Completeness	All required elements of the project included, in the correct format	5
	Minor components missing or incomplete	3
	Significant components missing or incomplete	1
	Major components missing or incomplete	0
Accuracy	All formulas and calculations applied correctly and reasonably, with valid analysis	5
	Minor errors in formulas or calculations, with some analysis	3
	Significant errors in formulas or calculations, with little analysis	1
	Major errors in formulas or calculations, with no analysis	0
Clarity	Clear and effective explanation of the thought process and reasoning behind the analysis	5
	Somewhat unclear or ineffective explanation of the thought process and reasoning behind the analysis	3
	Significant lack of clarity or effectiveness in the explanation of the thought process and reasoning behind the analysis	1
	Complete lack of clarity or effectiveness in the explanation of the thought process and reasoning behind the analysis	0
Technical proficiency	Demonstrated proficient technical skills in creating the Excel spreadsheet and recording the screen-casting video, with no significant technical errors	5
	Demonstrated some technical proficiency in creating the Excel spreadsheet and recording the screen-casting video, with minor technical errors	3
	Demonstrated limited technical proficiency in creating the Excel spreadsheet and recording the screen-casting video, with significant technical errors	1
	Demonstrated no technical proficiency in creating the Excel spreadsheet and recording the screen-casting video, with major technical errors	0
Creativity	Demonstrated high levels of creativity and originality in the approach to analyzing the decision of whether to rent or purchase a house, with innovative and effective methods of presentation	5
	Demonstrated moderate levels of creativity and originality in the approach to analyzing the decision of whether to rent or purchase a house, with some effective methods of presentation	3
	Demonstrated low levels of creativity and originality in the approach to analyzing the decision of whether to rent or purchase a house, with limited effective methods of presentation	1
	Demonstrated no creativity or originality in the approach to analyzing the decision of whether to rent or purchase a house, with no effective methods of presentation	0
Professionalism	The overall quality of the project is excellent, with a high level of neatness, organization, and attention to detail in both the Excel spreadsheet and screen-casting video, as well as appropriate grammar and spelling	5
	The overall quality of the project is good, with a moderate level of neatness, organization, and attention to detail in both the Excel spreadsheet and screen-casting video, as well as some minor errors in grammar and spelling	3
	The overall quality of the project is poor, with a low level of neat-ness, organization, and attention to detail in both the Excel spreadsheet and screen-casting video, as well as significant errors in grammar and spelling	1
	The overall quality of the project is unacceptable, with no neatness, organization, or attention to detail in both the Excel spreadsheet and screen-casting video, as well as major errors	0

The rubric includes multiple grading categories:

• Timeliness: Assessing whether students submit their assignments on time, with point deductions for late submissions within a specified range of days.

• Completeness: Evaluating if students include all required elements and meet specific requirements, such as providing video links and associated Excel files.

• Accuracy: Checking if students correctly apply formulas and calculations to analyze the rent versus own decision, emphasizing critical thinking and analytical skills.

• Clarity: Assessing if students explain their thought process and analysis reasoning clearly and effectively, using appropriate terminology and calculations.

• Technical Proficiency: Evaluating students’ proficiency in creating the Excel spreadsheet and recording the screen-casting video, highlighting technical skills and tool proficiency.

• Creativity: Assessing the creativity and originality of students’ approaches to the analysis and their innovative presentation methods.

• Professionalism: Examining the overall quality of the project, including the organization of the spreadsheet, the quality of the video, and the use of proper grammar and spelling.

By utilizing a well-designed rubric, instructors can efficiently evaluate student projects, provide feedback, and reduce subjectivity in the grading process. This approach promotes a fair and thorough assessment while ensuring students meet assignment requirements and learning objectives.

5. Conclusion

Overall, the assignment of students creating a video of themselves building a rent versus own spreadsheet from scratch using a different set of assumptions provides students with a hands-on opportunity to apply the concepts they have learned in class. It also allows the instructor to evaluate each student’s individual understanding of the material and assess their ability to apply the concepts to new situations.

Requiring students to record a video of themselves completing the rent vs. ownership analysis has several advantages. Firstly, it ensures that students are doing their own work and not simply copying or plagiarizing from another source. By recording a screen-cast and providing narration of each step in building the spreadsheet, the instructor can verify that the student actually completed the work and has a clear understanding of the analysis.

Secondly, this process helps to reinforce learning and understanding of the concepts covered in the course. By requiring students to record a video of themselves working through the analysis, they are forced to think through and articulate the steps they are taking and the reasoning behind their decisions. This process can help solidify their understanding of the concepts and ensure that they can apply them in future projects or their professional lives.

Thirdly, video recordings can be a valuable tool for the instructor to provide feedback and coaching to the students. By reviewing the videos, the instructor can identify areas where students may be struggling or making mistakes and provide specific feedback and guidance to help them improve their understanding and analysis. This process can be especially useful for students who may be struggling with the material or who have questions about specific aspects of the analysis.

Finally, requiring students to record a video of themselves completing the analysis can help to build a sense of accountability and responsibility among the students. By requiring them to take ownership of their work and present it in a clear and organized manner, students are more likely to take their work seriously and put in the effort required to produce a high-quality analysis. This can lead to a more engaged and motivated group of students who are more invested in their learning and development.³

Disclosure Statement

No potential conflict of interest was reported by the author.

Notes

1 This practical, hands-on case-study approach to teaching real estate decision-making was inspired by Dr. Joe Rabianski of Georgia State University who used similar, paper-based case studies to explore decisions such as the investment in a small apartment building.

2 Tom Gerencer and Julie Hayes. (2022).Best screencasting software for teachers 2022. https://www.hp.com/us-en/shop/tech-takes/best-screencasting-software-for-teachers

3 Links to sample video recordings, Excel templates, and presentations are available from the author upon request.