Condo Renter Merits Relocation Fee If Asked to Move
QUESTION: I have been renting a condominium in San Pedro since March. I have a month-to-month rental agreement. The rental agreement calls for a 30-day written notice by either the owner or renter to terminate the occupancy of the unit.
The problem is that I have just been asked verbally to move by the end of the month. The owner made no mention of any relocation money.
I read in your recent Times column that tenants are entitled to $2,000 relocation money if asked to move by the landlord. (The owner is selling and the new owner wants to move in.)
Here are my problems and questions. Do I have to move based upon the verbal notice? Do I get any relocation money? If yes, how much do I get? Do I get any more because my fiance lives with me and is on the rental agreement?
ANSWER: Unless your condo is new construction or luxury housing, as defined by L.A.’s rent ordinance, it is likely covered by the rent law and entitles you to relocation money. First, let’s review the exemptions.
New construction is defined as anything for which a “first certificate of occupancy” was issued after October 31, 1978. Luxury housing is defined as housing that rented for the following monthly rent levels, regardless of current rent levels, as of May 31, 1978: 0-bedrooms, $320; 1-bedroom, $420; 2-bedrooms, $588; 3-bedrooms, $756, or 4 or more bedrooms, $823.
The unit or building may also be exempted because it was substantially renovated, however, assuming it isn’t, and you are covered by the rent law, you are entitled to relocation money in the amount of $2,000. (You don’t get anything extra for the fiance.)
As far as when you may have to move, state law requires a 30-day written notice, just as it is written into your rental agreement.
What Would Manager’s Rent Be If He Quits?
Q: I have managed a nine-unit apartment building in Mar Vista for 11 years. When I moved in, the rent was $250 a month. New tenants moving in now pay $675. My rent has remained at $175 a month for the past 11 years. My question is this: If I give up managing this unit, what will my rent be? The apartment has been under rent control all these years. Had I moved in and not managed 11 years ago, my rent would be $450. Will that be my rent or will it be $650 or some other amount?
A: It sounds like your rent will be about $450 a month. Here’s the formula according to Los Angeles Rent Stabilization Director Barbara Zeidman. Because you moved in as the manager, if you quit the job and stay, the rent will be the “base rent” amount plus all of the annual adjustments allowed to it since 1978.
In other words, $250 plus 7% per year through June 30, 1985. After that the annual increases varied at the following rates: 4% from July 1, 1985 to June 30, 1986; 5% from July 1, 1986 to June 30, 1987; 4% from July 1, 1987 to June 30, 1988; 4% from July 1, 1988 to June 30, 1989, and 5% from July 1, 1989 to June 30, 1990.
Assuming a 7% rent increase in 1985 and 5% in 1990, with no other rent adjustments allowed, our calculators say the rent would be $469.79 a month.
No Interest Is Paid on Deposits in Long Beach
Q: In 1985 the deposit for our one-bedroom apartment in Long Beach was $560. When we recently moved, we got a check for $560 within two weeks as required by state law. Here’s my question. Since the money was literally “on deposit,” aren’t we entitled to interest on it?
A: There is no requirement for apartment owners to pay interest on security deposits in Long Beach. Very few California cities require interest payments on such deposits.
And while it may seem unfair that you get no interest on your money, remember that the annual interest on a $560 deposit would likely be paid at about a 5.75% rate, yielding $32.20.
The bookkeeping costs required to administer the records and payments of such systems have been estimated at a minimum of $35 a unit that turns over. That includes reporting of any interest payments over $10 to the IRS and Franchise Tax Board.
Rent Reduction Due If Amenity Removed
Q: Recently, the owner of our Mid-Wilshire apartment building installed security gates and increased our rents. That’s fine, however, two years ago he eliminated the swimming pool here but did not lower the rents. Shouldn’t he have lowered the rents when he removed that amenity? If yes, is the reduction retroactive to the date of the removal of the pool?
A: While Los Angeles’ rent law does require rent reductions for diminished services, there is no specific dollar amount of reduction for swimming pools.
Jim Fleck, the house planning and economic analyst for the city of Los Angeles’ Rent Stabilization Division, recommends that you and your fellow renters attempt to work out a solution with the owner.
If he refuses to negotiate, file a complaint with the city. If it can’t work out a rent reduction compromise with the owner, it may prosecute him in court.
