Rising Rent Puts Final Payment in Doubt

QUESTION: My husband and I live in Diamond Bar in an apartment rented by my father-in-law, who died recently. We want to move but the apartment owner says we owe the December rent because we must give him 30 days’ notice of our intention to move, which I understand to be state law.

When my father-in-law moved in, he paid first and last month’s rent and a $100 security deposit. The rent then was $250 a month. Now it’s $470. My question is, what is the last month’s rent? Is it $250 or $470?

ANSWER: State law clearly requires a 30-day written notice of your intention to move, which is seldom misunderstood. At the other end of the spectrum, the amount of the last month’s rent is one of the most misinterpreted provisions of landlord/tenant agreements.

If you have a written contract, the job of computing the last month’s rent is simplified, but still not always clear.

If you have such an agreement, and the agreement says that your father-in-law’s last month’s rent deposit represents “the entire last month’s rent,” then that’s probably what it is, $250.

If, on the other hand, it says that the last month’s rent deposit is a deposit toward the last month’s rent, then the last month’s rent is probably $470.

If your contract is not as specific about the last month’s rent as the above two examples, then the last month’s rent is computed by determining the “intention” of the parties, which can be difficult, particularly if it’s been several years.

If the owner wants you to pay the full $470 for the last month’s rent, and the contract isn’t specific, it may make sense to make a counteroffer.

For example, “I think my father-in-law said the entire last month’s rent was paid. How about if we split the difference and make it $360?”

If you and the landlord can’t agree on the amount of the last month’s rent, and you go to small claims court, the judge will decide the issue. While he may rule that it’s $250 because the contract is unclear (unclear contracts are often held against their drafters, the landlord in this instance); he may also rule that it’s $470.

For instance, if the landlord can demonstrate that all of his new agreements specify that last month’s rent deposits are merely deposits toward the last month’s rent, and all of his tenants who have recently moved have paid him the prevailing rents when they moved, then he may get the full $470.

As always, a negotiated settlement between you and the landlord is best. Try for that.

Rent-Cut Unlikely During Improvement

Q: I live in Los Angeles and I have a problem I hope you can help me with. For the past year that I have lived here, there have been extensive water shut-offs while the owner has had the building re-piped.

I have requested a $500 rent credit for all of the inconvenience, but the management company refuses to even discuss the matter. It is my understanding that they could have re-plumbed in different ways and reduced the water shut-offs but it would have cost more money to do it that way.

Since they saved money on the plumbing, isn’t it fair that I save a little on the rent? Do I have a point here or am I all wet?

A: You have a point, but you may need a towel when we are through. If you are unable to negotiate any kind of agreement with the owner, you could sue him in small claims court for damages resulting from “lack of habitability.”

The owner is obligated by state law to provide you with a “habitable” dwelling, which includes hot and cold running water. However, it also seems reasonable that he should not be penalized for replacing the water pipes.

According to Trevor A. Grimm, general counsel to the Apartment Assn. of Greater Los Angeles, here’s your point:

“Since the law allows judges to reduce rents in habitability cases by the value of deficient housing services, why doesn’t the lack of services during repair time entitle tenants to similar deductions?”

Grimm said that under habitability law fault plays no role in the rent-reduction decision. Generally, in court no service equals reduced rent.

Thus, he said, rent reduction seems mandatory when there is a lack of service, but the amount of any rent reduction is completely discretionary with the court. But it’s not that simple.

If, for example, you fail to pay the whole rent, withholding some of it for the lacking service, you could get a notice to pay the rent or move out. Then, assuming you don’t pay the rent and take it to court, you risk a judge finding that the lack of service was “de minimus” (too small for legal consequences). That could lead to eviction.

Without more facts (rent amount, length and number of times the water was shut off, etc.) it is difficult to comment on whether any rent credit may be due, let alone whether $500 is the right amount.

Grimm said, “If you divided your monthly rent by 720 (the average number of hours in a month), then multiplied that amount by the number of hours your water was shut off, you will probably get little value, leading to a possible “de minimus” court holding, especially in light of the fact that the owner was upgrading the building.”

Free Booklet Gives Answers to Questions on Rent Issues

Do you have questions about the rent stabilization (control) ordinance in the City of Los Angeles?

Whether you’re a landlord or a tenant, the answer to your question can probably be found in a free, 34-page pamphlet published by the Rent Stabilization Division of the city Department of Housing Preservation and Production.

The pamphlet has an index that lists most issues. Among the topics covered are annual rent increase, additional tenant, cockroaches, condo conversion, damage to property, eviction, last month’s rent, loud music, plumbing problems and smoke detectors.

For a copy of the pamphlet, write to Real Estate Editor, Los Angeles, Times Mirror Square, Los Angeles, CA 90053. Please allow three to four weeks for delivery.