DISCLAIMER: None of the posts or comments on this blog constitute legal advice, and we strongly recommend that you consult with a lawyer before taking any actions against landlords or other parties.

Friday, March 13, 2009

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?

Once You've Signed the Lease

Congratulations! You’ve signed on for your first apartment. Before you leave the office, don’t forget to have a copy made of all the documents for your own files. It’s important to have all contracts stored in a safe place for easy reference. I moved in to one apartment with the understanding that I would be allowed to have pets. My roommate and I filled out and signed a form specifying how many pets we planned to have and of what kind. After I got my cat, the property manager told me no pets allowed. Fortunately, they did not enforce that rule, but it was a relief to know that I had a copy of that contract in my files if the need ever arose.

Preparing for Move-In

Switching your Mail
When you’re getting ready to move, don’t forget to change your forwarding address. Don’t do this too soon before you move, or you’ll wind up missing packages, but don’t forget! Switching your forwarding address is very simple. Just go to usps.com and follow the appropriate instructions.

Starting your Utilities
Call your landlord or management company to find out what’s already turned on. Usually, if a utility is covered by the lease, you won’t have to worry about it. However, if it’s not, then you’ll need to make a few phone calls. Be sure to have your new address handy when you call.
  • Los Angeles Department of Water and Power (LADWP)
Phone: 1-800-342-5397
Website: www.ladwp.com
  • So Cal Gas Company
Phone: 1-800-427-2200
Automatic Bill Pay
With both LADWP and the SoCal Gas Co., you can set up automatic bill pay online, so you don’t have to even think about it. Be careful, though. Activating the auto-pay service can be a little tricky, particularly with LADWP. Be sure to confirm that you’ve actually gotten the service set up by calling them. I received a couple of menacing, red late notices and threats that my electricity would be shut down before I finally got it right.

Quick Reality Check

Remember, you aren't in University Housing anymore. There aren’t Residential Advisors, and there often isn’t nearly as high a level of service. I’ve known several students who got pissed at their landlords for things like not providing maid service, or not coming right away to unclog a stopped-up toilet. Unless there was a promise for maid service made in writing ahead of time, or that toilet is the only toilet in the apartment, don’t expect the landlords to be that hands-on. My general standard is: If the housing company is not infringing on my quality of life (i.e. I generally feel safe, am able to get my school work done, and they don't damage or destroy my stuff), then we’re all good. I'm okay plunging my own toilet.

The Big Day - Moving In

You've signed the lease, bought most of what you need to buy, and now, the time has come to make your move! Just a few things to remember before you load up the ol' U-haul:
  1. Unless you've made a special agreement with the landlord, don't expect to move in before your lease starts. Odds are, it's not gonna happen. This also means you won't be able to pick up your keys early. Often times, the last phase in the unit’s preparation is to change the locks. The landlord may very well not even have any keys to give you before move-in day.

  2. Call in advance - Before you make any long treks or drag your sofa all the way to your new place, be sure to call and make sure the unit’s ready. Even though the property manager should notify you if things aren’t ready, don’t rely on them. I know of one company that notified some of their tenants via text message that the unit wasn't ready... on the afternoon they were supposed to move in. Many other students didn’t find out until they arrived that their unit wasn’t prepared.

  3. Have a Backup Plan - No matter what they tell you, have a backup plan. Move-ins and Move-outs are the craziest time for a Student Housing company, and there is a lot of room for miscommunication. While the odds are good, if you call ahead, that the place will be all ready, there’s a possibility that something got overlooked (some repair team hasn’t had a chance to finish up, etc). If you don’t have friends or family nearby, look up some hotels in the area. You don't necessarily have to book a room, but know where the vacancies are. Also, while you may be able to keep your stuff in the unfinished apartment, call around ahead of time to make sure there are storage facilities with space, so you don’t get stuck with a pile of furniture and no place to put it. In fact, if possible, you may want to spread out your move in: You can come down with a small load, pick up the keys, etc, and then bring the U-Haul a few days later.

  4. Don't send someone else to pick up the keys - Landlords rarely will give out keys to people other than the tenant. If you can't pick up the keys yourself for whatever reason, be sure to talk with your landlord ahead of time to figure out a solution.

Subletting/Subleasing

Ah, subletting. The bane of many a landlord and tenant’s blood pressure. There are a wide variety of reasons that you may need to sublet -- from studying abroad, to going home for the summer, to moving out because of roommate troubles. However, subletting is one of those things that can easily go awry.

Example: Unbeknown to one company I know of, one of their tenants had been subletting a single room in a very expensive seven-bedroom apartment to a woman with a couple children. Unfortunately for the tenant, when the tenants’ lease expired and time came for everyone to move out, the woman decided she didn’t want to. After a stern talking to from the property manager, the woman grabbed her things and left... A few hours later, the maintenance staff inspecting the unit called to let the company know that the woman had returned, broken the garage door, and was sitting inside. Fortunately, after much cajoling, they finally convinced her it was time to go. If they hadn’t been able to, however, the tenant that sublet to them would likely have been responsible for the rent for the entire apartment ($7,000 a month) until the company could get the woman out and the new lease the place. So, with that said, here are a couple basic guidelines when subletting:
  1. Communicate with your Landlord/Management Company - Make sure they know and approve of the subletter you choose. Otherwise, you could find yourself in a whole mess of trouble. They may have official documents you need to fill out. They also may be able to run a credit check on your subleaser to make sure he/she has the resources to actually pay you.

  2. Use Common Sense - Meet your potential subleaser, interview them, make sure they get along with your roommates. This person will have full access to your home for an extended period of time. Make sure they’re not crazy.

Your Rights as a Tenant

Hopefully, you will not need to use the information in this post, but, sadly, many students have issues with their landlords. While many landlords are capable and caring, once the lease is signed, many other landlords feel they can drop the friendly facade and neglect their tenants. If you get stuck with such a landlord, what are your rights, and how do you enforce them? How do you determine if the landlord has violated those rights? Here are some things I've learned as a tenant, and I hope they prove helpful. Please keep in mind, though, this isn't legal advice, and you should consult a lawyer before taking any action against your landlord or other parties.

The key term here is habitability. If the unit isn't habitable, then the landlord is being negligent. Habitability issues can include broken water heaters, major bug problems, malfunctioning security and parking gates, insufficient exterior lighting, etc. If there is a significant decrease in habitability, and your landlord, once notified, is not taking care of the problem, you should seek out legal counsel. If things get bad enough, you may even be able to break the lease.

Rent Control
If you live in an older building near USC, it is probably subject to Rent Control. When most people think of Rent Control, they think of a law that keeps your rent from going up more than a certain percentage every year. However, the LA Housing Department also provides several other protections. If you're having a long-term issue, such as a broken security gate, you can call the LAHD at 1-866-557-RENT. They will send an inspector to your unit who can then write your landlord a citation. I have never personally filed a formal complaint. Unfortunately, I have heard some negatives about the LAHD, and that they can be very slow to respond. Still, it is worth a shot.

What to Do when the Landlord Just isn't Getting it Done
  1. Leave a paper trail- Don't simply communicate via phone. Send e-mails and save all correspondence. Write down issues you're having, along with dates and times, to the best of your ability.
  2. Call LA Housing Department - As mentioned earlier, if your building is subject to Rent Control, the LAHD can send an inspector to your unit. The inspector can then issue a citation. This should also give you a stronger case should you have to go to court.
  3. Do it Yourself and Deduct - Please note, this is very risky. I would STRONGLY recommend consulting a lawyer or the LAHD before doing this. If you need something taken care of right away, you can call a repair man yourself and deduct the cost from your rent. Be sure to notify your landlord well in advance, and save all receipts from the transaction. Often times, just giving your landlord written notice that you plan to hire someone will be enough to get them to fix it themselves.
Some Resources at your Disposal
  • USG Free Legal Counseling - Undergraduate Student Government provides free legal counseling to all USC students. If you are having major issues, you can go to STU 106 to sign up for a meeting with the lawyer. Some of my friends haven't found it particularly useful, but when I went to him with questions, I found the lawyer very helpful. For more info, you can also visit USG's website at usg.usc.edu.
  • LA Housing Department- They also can be very helpful (depending on which operator you talk to). This should be one of the first places you call to find out about your rights.
Phone: 1-866-577-RENT
Website: lahd.lacity.org/lahdinternet/