For Rent : Hunting an Apartment? A Guide to Help You Direct Your Search

Mopeds . . . Cable TV . . . Trips to Hawaii. These may sound like prizes on “Let’s Make a Deal” but they are actually incentives from landlords hoping to make a deal with new tenants.

The recession has brought some relief for the more than 1.5 million renters in Los Angeles County. Greater competition from house rentals and a down job market have combined to create higher vacancy rates and a leveling of rents in many communities.

“There’s a drastic change from in the past,” said Frank Montana, manager of housing services at UCLA. “Whether it’s negotiating a lease or smaller deposits, landlords are more willing to work with potential tenants.”

Although the market has softened, it may not be time for renter euphoria. The city still has more than 150,000 households paying half their income for rent, according to Gary Squier, general manager for the Los Angeles Department of Housing, Preservation and Production. “Maybe the silver lining in this recession is that rents are becoming more reflective of rational market value rather than speculative value fueled by expectations of inflation.”

In fact, average asking rents in all areas of the city except the Westside have dropped this year, with the declines ranging from 3.3% in the Harbor area and 7.8% in Hollywood/Wilshire to 10.8% in the Northeast region. According to the Rent Stabilization office, the average citywide vacancy rate is 6.6%, up from 5.8% last year. In the San Fernando Valley, where 30% of the city’s apartments are concentrated, vacancy is highest at 7.5%.

In this new environment, tenants enjoy the upper hand. But they still face the daunting task of choosing among a multitude of diverse neighborhoods and selecting from an array of apartment buildings. Then there’s the challenge of keeping up with new laws and information on subjects ranging from tenant rights to rent increases.

From how to choose a community to negotiating a lease, here is a guide to renting in Los Angeles.

Choosing a Neighborhood

With so many areas to choose from, where do we start and what shapes our decision on where to look? One of the major factors is minimizing commute time to work or school.

“L.A. is so big and has so many urban realms,” said Prof. Curtis Roseman, chairman of the geography department at USC. “Whether it’s the Valley, Westside, South Bay, Inland Empire or Pasadena, the realm you choose depends on the location of your job or school. Most people choose the realm first and then get down to factors like price, schools and freeway access.”

Further, newcomers to the Los Angeles area bring with them certain positive and negative biases that influence the community they choose. Experts agree that the biggest negative bias is concern over smog.

“I had one man call the Air Quality Management District for statistics before he’d look at anything,” said Candy Caulton, relocation director for Century 21 Realty in Torrance.

Besides good air quality, renters want to locate near people like themselves.

“You end up with a coastal ridge of young people, attracted by other singles and the beach,” said Dowell Myers, associate professor at USC’s Lusk Center for Real Estate Development and author of “Analysis With Local Census Data.”

In fact, more than half of Los Angeles County renters are under 34 years old and half of the apartments turn over each year. “With the exception of small pockets of retirement communities, apartments have young age profiles,” said Myers. “There’s a constant replacement by the same type of people. Apartment neighborhoods never get older.”

In choosing a neighborhood, many newcomers to Los Angeles rely on advice from friends and people at work. But the picture is often less than complete. “People moving into the area typically get biased information from relatives and colleagues,” said Sandy Shulik, manager of PHH Destination Services, a relocation chain. “For instance, they’ll say the commute is 20 minutes when it really takes an hour.”

Finding an Apartment

While renters often make their first choice with relatively little information, the decision often has long-term implications. “The sector where you plunk down initially does influence where you end up,” Roseman added. “The longer you stay in one of these areas, the more attached you become.”

After choosing a neighborhood, renters can look to a variety of sources for information on available apartments. There are newspaper classified sections and in this market, numerous “for rent” signs up in front of buildings.

In addition, many colleges and universities have housing offices open to the public. For example, at UCLA’s Community Housing Office, there’s a public “share board” for people seeking roommates as well as sublet listings, ads for rental houses and neighborhood profiles.

“Our rental rate survey by ZIP code might be a good place to start,” suggested UCLA’s Montana. “People can select certain areas and there’s a map that’s helpful to someone new to the area.” The monthly survey is available to the public and includes areas within a 15-mile radius from UCLA, from Granada Hills in the north to Westchester in the south.

Newcomers to the area can also use one of the county’s 18 licensed prepaid rental listing services. Licensed real estate brokers can also sell apartment lists. But before signing a contract or paying for lists, consumer advocates strongly advise checking with the Department of Real Estate to make sure the business is licensed.

California real estate law requires these services to provide a minimum of three current rentals within five days after signing a contract. Apartment hunters who come up empty-handed are entitled to request a refund, less $25, within 10 days after the end of the contract.

What to Look for

With a list of possible units in hand, renters can begin apartment hunting. Experts first recommend a check of the building’s exterior. Is the building in good condition and are the grounds well-maintained? Is lighting ample for walkways, door and parking? Inside, renters should check locks and confirm the presence of smoke detectors and a sprinkler system.

The apartment’s location in the building is also important. While it’s nice to be away from traffic, a back unit near the parking area can drive you crazy with the din of car alarms and engines starting.

“The garbage collection was at 7 a.m. on Saturday mornings in the alley behind my apartment,” said Richard Wohl, an attorney with Morrison & Foerster who relocated from Washington. “Every weekend I was jarred awake by the noise.”

Before deciding on an apartment, it’s a good idea to inspect items like appliances, paint, fixtures, air conditioning, plumbing and faucets. See how long the hot water takes to come on, for instance. Ask the landlord about house policies concerning areas like laundry and pool use.

Presenting Yourself as the Best Tenant

Once you zero in on the right apartment, it’s time to contact the landlord. “It’s almost like applying for a job or college,” Wohl said. “You have to convince the manager or landlord that you’re the right person--financially stable, neat and not disruptive.”

As in a job interview, dress and conduct are important factors. “If a person is prepared upfront with references from previous apartments and can demonstrate that he or she can pay the price--all that paints a positive picture for the landlord,” said UCLA’s Montana.

Being able to pay the price is key for most landlords. Although ratios vary, many look for an applicant’s monthly income to be at least three times the rent.

“We call previous landlords to see if the applicant honored the lease, was a courteous tenant and left the apartment in good condition,” said Kay Livesley, a Westside apartment manager. Livesley also weighs credit history in evaluating prospective tenants. “I personally look at people’s overall credit history. If someone has a great credit record, I trust their judgment.”

Landlords frequently obtain credit information as well as records of prior eviction proceedings from tenant screening services. As of Jan. 1, these screening services are no longer able to report unlawful detainer actions or eviction actions, unless the landlord wins.

“It’s especially common in Southern California to have landlords subscribe to services that go through court records,” says John Lamb, senior staff counsel at the Department of Consumer Affairs. “Reporting of this information was pretty indiscriminate. A tenant may have had a good defense.”

Recognizing Discrimination

While landlords can turn down an applicant because of financial standing, under federal, state and city law, they can not discriminate based on race, religion, sex, national origin, physical disability, familial, marital or student status.

“Most complaints are based on race, followed very closely by families with kids,” stated Stephanie Knapik, executive director of the Westside Fair Housing Council, which investigates charges of housing discrimination.

Knapik advises renters to drive through neighborhoods they like, taking down the numbers and making appointments. But she cautions people to be suspicious if the terms change in any way from what was explained on the phone; for example, if the deposit is higher or the parking space is no longer available.

Landlords have the right to know if you have children. But watch out for policies prohibiting kids from using recreational facilities like pools and requests for extra security deposits, Knapik added.

Lease Terms, Security Deposits

After finding an apartment, one of the biggest decisions renters face is whether to sign a short- or long-term lease. A month-to-month rental agreement offers the flexibility to move out on 30 days’ notice, but doesn’t protect the tenant against rent increases. Lease periods vary by building. Some offer six-month, one-year or multi-year options and others offer all four.

“If your circumstances are up in the air, don’t sign a long lease,” Livesley advised. “Instead, find a building that’s right for you.”

Besides the lease term, renters need to be aware of the law regarding security deposits. Since October, 1990, landlords in the city of Los Angeles are required to pay tenants 5% interest on their security deposits.

Out of more than 10,000 landlord/tenant calls fielded by the Department of Consumer Affairs last year, more than one-third dealt with security deposit problems. Although the full security deposit should be refunded within 14 days if there was no damage beyond normal wear and tear, some landlords try to use the deposit for painting and routine cleaning.

“We recommend that the tenant and landlord go through the apartment before the tenancy begins and complete and sign a checklist,” Lamb said. “This can be important if there is a later dispute.” If your landlord doesn’t refund the deposit, Lamb advises sending a written request and trying to work things out. If this fails, tenants can sue in small claims court.

Negotiating a Lease or Rental Agreement

Once you’ve narrowed down your choices to a few acceptable places, it pays to negotiate the rent and security deposit.

“The apartment price is like the opening bid or the car dealer sticker price,” Montana said. “Even if you get $25 off your monthly rent, that’s a $300 annual saving just for asking.” According to Montana, let the landlord know if you saw other apartments that were cheaper and more suited to your budget. Then make your offer.

Another negotiable area is the security deposit. Security deposits are usually one month’s rent or sometimes two month’s, with one month applicable to the rent for the last month of the lease. Montana suggests asking the landlord if he or she is willing to allow you to pay the deposit in several installments with the first three months’ rent. “It certainly doesn’t hurt to ask,” added Montana. “That person doesn’t want to see you walk out the door.”