Before You Sign the Lease

Do the Proper Recon.

So, you’ve found that special place that makes your heart go pitter-pat. It’s cute, it’s clean, and you want it. But the landlord tells you things are leasing up quickly, and a lot of people are looking at this place. Oh no! Now your heart is racing. What if it fills up? You have to sign the lease today! Right this minute! SLOW DOWN TIGER!

Take a deep breath.

It’s exciting to sign the lease, and Leasing Agents are very good at turning up the heat to close the deal. I should know. The little scene I described above was my own experience when I discovered my first apartment. Just remember, while it’s important to find a place you love, it’s also important to have done the proper research first. Don’t sign right away with the first place you find, even if it seems perfect. Look around a little. Compare units, space, prices. Leasing Agents will always tell you the units are going fast, and it may be true, but this isn’t the kind of thing that should be an impulse buy. You also want to make sure you’ve done a sufficient background check on the company or landlord in order to avoid the bad ones.

The next section will give you some tips on things to watch out for. Once you’ve looked around, asked the questions you need to ask, talked it over with your roommates, and decided you like what you see, THEN it’s time to make a move.

What to Expect

First thing, you will likely be charged a non-refundable Holding Fee. This is usually a couple hundred dollars, and it guarantees that they will not sell your apartment to anyone else. A lot of times, this fee counts toward your deposit. However, if you decide not to take that apartment after all, you cannot get it back.

The landlord may also require that you have a guarantor, someone who agrees to cover your rent if you’re unable to. The landlord will need to run a credit check on either you or your guarantor. An Application Fee usually goes along with that. Most of the time, this fee is under $50 per person.

Last of all comes the deposit, which you usually put down when signing the lease. The deposit will be held until you move out. Once you leave, the landlord will return your deposit minus any damages you cause beyond normal wear and tear. There are several ways for the landlord to determine how much the deposit will be. A couple common ways are to charge the equivalent to either a month-and-a-half’s worth of rent, or first and last month’s (aka 2 months worth) rent. Keep in mind, the deposit does not count toward your rent in any way. It is not a fee or a payment. It is a way for the landlords to protect themselves, so they don't lose money if a renter does excessive damage to a unit.

Side Note: The tenant almost always has a right to the interest on his or her deposit. If you have a right to the interest, it is not legal for the landlord to withhold that from you, even if there is a clause that states so in the lease. To find out whether you qualify for interest, call the LA Department of Housing.

And last, but not least, before you sign the lease...

READ IT!!

In this age of downloads and software license agreements, we get used to skimming contracts and clicking “I Agree”. When I worked at the housing company, I saw many students come through, skim the lease, and sign it, and I’m here to tell you that that is a BAD IDEA. Even if it takes forever, even if the legal jargon makes you go cross-eyed, read the lease!!! And don’t just read it. Make sure you understand it. This is one document you should not, cannot skim. No matter what the landlord tells you, or what verbal agreements you make, the lease is your contract. It defines what happens should the apartment not be ready on time, what late fees there are, what the rules are. You cannot count on the Leasing Agent or anyone else to tell you. You must read it yourself.

Some Common Tricks and Ways to Avoid Them

No matter how smart you are, as a student, it’s very easy to get taken advantage of. The following are some common tricks to watch out for. Many of these aren’t legal, but it’s better to avoid them ahead of time than to get into a costly legal battle.

The Tricks

1. A “2 bedroom” unit without a living room. I have seen more than one landlord advertise a unit as a “two bedroom” and charge accordingly, when they have simply labeled the community space as a second bedroom.
2. Verbal promises with no intention of keeping them. When I moved in to one apartment, I was told that microwaves would be installed. Guess what? I lived there two years and never got that microwave. If you’re promised something, get it in writing.
3. Hidden Fees. Leasing agents will not always mention fees you’ll have to pay. For instance, I met two students who were looking to share a one bedroom. The leasing agent told them the rate for the unit was $1100 per month. It wasn’t until they drove 6 hours down from San Francisco the next week to sign the lease that she mentioned there was an additional 10% fee per month for two people to live in one bedroom. Some other common fees to expect are application fees and holding fees, which you can learn more about here.
4. Deceptive Pricing. Make sure you know the full price for the entire unit. Often, property managers will reel you in by posting the price one person will have to pay, assuming they have a certain number of roommates. While this isn’t anything dark or sinister, it can make comparisons more difficult. Be sure, when comparing rental prices, that you’re comparing apples to apples.
5. Bait and Switch. Often, the model apartment you will be shown is not the same as the apartment you are signing for. Even if they tell you it’s exactly the same, don’t take their word. I have seen several instances where people have signed the lease only to discover the apartment was grossly misrepresented.
6. Non-working Internet. Most student housing companies will tell you they have Internet. Don’t take their word. If they say they provide wireless, I’d strongly recommend bringing your laptop and checking it out. I looked at one apartment complex where the property manager claimed to provide Internet, and charged extra for it. When I pressed him further, he admitted that he alone had wireless, and shared with all 50 tenants in the building. A company I actually moved in with also promised Internet, however they didn’t get around to setting it up until about three months after I moved in.
7. Unit Not Ready on Move-In Day. Many companies, depending on the lease, are only required to prorate your rent for any extra days you can’t move in. This means that many companies are willing to gamble and have you sign a lease that starts before they can realistically get the unit ready. If it’s ready in time, then hey, they get more money. If not, they don’t really lose anything (at least as far as they see it). Try to find out how long a time period there is between the end of the last lease and the beginning of yours. Have they given themselves less that 24 hours (no joke, I've seen incidents where the old lease ended on the 31st of July, and the new lease began on the 1st of August), or do they have enough time to fix up the place and get it ready for you to move in by the time your lease starts?
8. Raise Prices After the Fact. Be sure to ask whether or not the price quoted will remain the price of the unit. At least one company that I spoke with on my housing search lured students in with the promise of low rates, with the intention of then raising the prices a few months later once construction was finished on the exterior of the building. Keep in mind that even if they say they won’t raise the price, that doesn’t mean the price won’t go up should you renew your lease the following year. It is common practice to raise prices when a tenant renews, though rent control may limit how much it can be raised, and you can often talk the landlord down.
9. Addendums. Despite a clause in the Lease specifying that it was the complete and total agreement, the company I worked for insisted that all tenants, before they could pick up their keys, would have to sign an addendum with additional clauses, many of which were not legal in and of themselves. If the lease has a clause that says it's the complete agreement, you shouldn’t have to sign any other addendums in order to pick up your keys. However, according to a lawyer I spoke with, if you do sign it willingly (and don’t argue against it so you can claim duress), that addendum will become binding.

How to Avoid Them

1. NEVER SIGN THE LEASE IF YOU HAVEN’T SEEN THE UNIT!!! I’ve said it once, and I’ll say it again. Accept no substitutions. See the unit you plan to move into with your own two eyes, and give it a good look-around. They can’t give you something you weren’t expecting if you’ve seen it for yourself.
2. Bring your laptop and try the Internet yourself. This may seem awkward, but a little awkwardness is a small price to pay to avoid potential long-term Internet issues.
3. Get it in Writing, but don’t get your hopes up. If they make you a promise, have them write it down and sign it. If they say you’ll have microwaves, write it down. If they say that they have told you all the fees, then write down the fees they’ve told you and have them sign it.
   
4. Ask yourself: Would I be willing to live here for this price as is, even if nothing else changes? Even if you do get something in writing, don’t get your hopes up. Unless you’re willing to take them to court, there’s a chance that what you see will be what you get.
   
5. Try to Find a Place that’s Under Rent Control. Not only does Rent Control limit how much they can raise your rent, it can also give you other protections. You can call the LA Housing Department for details.
6. Generally, stay away from units under construction. Often, companies will lease up units under renovation or construction before they’re completed. While this is common practice, be aware that you’re taking a gamble signing that lease. First off, if it’s not done now, there’s a distinct chance it won’t be done come move-in day. If you already live in the area, then that’s not a problem, but I have seen units take weeks and even months longer to be completed than they were supposed to, which meant the tenants had to stay at hotels or crash on friends’ couches for the first part of the semester. Secondly, you can’t see the unit ahead of time, which brings us back to the number one rule... Come on, Folks, say it with me: NEVER SIGN THE LEASE IF YOU HAVEN'T SEEN THE UNIT. Thirdly, as the first tenant after renovation, you will be the one to discover all the things the contractors didn’t do right, which will now have to be fixed (A.C.s installed improperly, doors and windows not finished, etc).
7. Talk to USG. Student Government is currently doing research on the different housing companies, and can give you an idea of who’s generally a straight shooter, and who’s on the shady side.
8. Talk to the Current Tenants. Come back at a time when the landlord isn’t there, so they feel free to give you an honest answer. See if anyone’s out and about. Most tenants will be happy to tell you all their trials and tribulations, and you can get a real idea for how the company treats its tenants. Some questions to ask:
   

• How do you like it here?
• Do the Internet and other amenities work properly?
• Any bug problems?