The Goods : The Young and the Renting : Fledgling apartment seekers can make it out of the nest despite brief credit histories.
When Rafael Carcamo, 20, and a friend first interviewed for a vacant apartment, Carcamo wore “ripped jeans with holes the size of Grand Canyon.”
“The owner was really hesitant about giving me information,” Carcamo says. “I said, ‘I don’t think she’s going to rent it to us,’ and I was right.”
Although they were also rejected for lack of credit history, Carcamo decided to spiff up his appearance.
“My grandparents basically told me what to do,” he says. “Dress normal, not outrageous.”
The shift helped the Los Angeles Valley College sophomore rent his first apartment.
Soon, thousands of spring graduates of Carcamo’s generation will leave the family nest.
But for most, finding an apartment won’t be easy.
“It’s very difficult to get your first apartment,” says Mark Dolan, owner and president of Dolan & Knight Property Management of Pasadena, which oversees about 1,200 units.
“Every landlord is looking for, number one, stability and ability to pay that rent. Most of these people do not have substantial credit history. A lot are leaving home for first time.
“The biggest thing that turns me off is when they come through the door and can’t pay,” he says. “Maybe they go to school part time and work part time. Their income is $750 a month and rent is $400. They beg for that apartment. But when you sit down and do the math, there’s no way they can make that rent.”
To overcome a lack of a credit or employment history, says Michael Lambert, president of de Miranda Management of Torrance, the applicants’ “biggest asset is themselves, just as when they’d go interview for a job.”
Applicants without credit should have their parents co-sign the lease, suggests Lambert, whose firm manages nearly 3,000 apartment units from Glendale to the South Bay.
Don’t lie on the rental application, advises Debbie Rodriguez, executive director of the Fair Housing Opportunities Center in Hollywood, an advocacy group for tenants and prospective renters. “The landlord will find out,” she says.
Rodriguez also says fledgling renters can establish at least a little credit by getting any low-limit credit card.
Refusing to rent to a single adult because he or she hasn’t established credit or is too young may be illegal discrimination if the same landlord rents to married people without credit. It is also illegal to discriminate on the basis of race, color, religion, sex, ancestry, national origin, or physical or mental handicap. A renter who suspects discrimination may contact a legal aid society, local government agencies, the Department of Consumer Affairs in Sacramento or local fair housing organizations such as the Fair Housing Opportunities Center.
Traditional ways to locate an apartment are through newspaper want ads, free magazine guides, telephone services, bulletin boards or word of mouth.
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The initial charge for a new apartment is often steep, almost always requiring that the tenant ante up more than one month’s rent. Applicants should know that landlords can charge no more than three times the first month’s rent to move into an unfurnished apartment, or four times for a furnished unit.
But because of the sluggish economy, bargain hunters may find landlords willing to settle for one month’s rent plus a security deposit of a month’s rent or less.
“There’s a high vacancy factor of about 12% in the city of Los Angeles,” says Charles Isham, executive vice president of the Apartment Assn. of Greater Los Angeles. “Rents have declined approximately 15% from 1990.”
Other factors in apartment hunting include choosing a neighborhood and, for many young people, choosing a roommate to share expenses.
John Lamb, senior staff counsel for the state Department of Consumer Affairs, advises prospective tenants looking in an unfamiliar neighborhood to check it out at different hours.
“See if it’s noisy, or if there are problems like drug dealing going on,” he says. “As a prospective tenant, one of things I would do is go to that area at night and cruise around.”
Before you commit to a roommate, it’s wise to get to know the person as well as possible and to discuss in detail what conduct you’re comfortable with.
When you share, you are still responsible for all of the rent. “Under California law, if you make your share of the payment and he doesn’t, both of you can be evicted and both of your credit reports can be impacted,” Isham says. If only one person signs the lease, that person is responsible for making sure the entire rent gets paid each month.
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After choosing an apartment, the most problems arise over security deposits, according to the Department of Consumer Affairs.
“Some people do the thing on a handshake, and (later) there’s a dispute on the amount of the deposit,” Lamb says.
“The most common arguments arise when the landlord deducts from the deposit (when the tenant moves out). The landlord says there is a spot on carpet. The tenant says it was there when I moved in. Or there are arguments about what is ordinary wear and tear.”
To avoid disputes, the renter and landlord should inspect the apartment together before the tenant moves in, checking the condition of appliances, electricity, lighting, plumbing and other items. Each should sign a checklist and keep a copy.
When the rental application is accepted and the move-in cost agreed upon, it is best for the tenant and landlord to sign a lease. “The disadvantage of month-to-month agreements is that the landlord can raise the rent during the tenancy or tell the tenant to move out at end of the rental term,” Lamb says.
But long-term leases also pose problems. The tenant is responsible for the rent for the full term of the lease and if you must move, you usually cannot sublet unless the landlord approves.
“The landlord can’t be unreasonable, but he doesn’t have to approve everyone,” Lamb says. Also, if you do sublet, you may be liable if your substitute doesn’t pay the rent.
OK, you’re in. Priority No. 1: Pay the rent on time. A court-ordered eviction stays on your record for seven years and is just cause for other owners to deny a rental application.
Where to Find Help in Finding a Home
Here are some sources of help for apartment seekers:
* The California Department of Consumer Affairs: Provides free booklet “California Tenants: Your Rights and Responsibilities.” Send stamped, self-addressed, 7-by-10-inch envelope to California Tenants, P.O. Box 310, Sacramento, Calif. 95802.
* Apartment and Rental Guide magazines: Primarily provide information on larger apartment buildings. Free in supermarkets, newsstands or racks.
* Fair Housing Opportunities Center: A private, nonprofit organization that receives public funds to help tenants and prospective tenants fight discrimination. Free. (213) 464-1141.
* Roommate Finders: Matches up roommates using 13 criteria. $69 for people looking for an apartment; $99 for those living on the property. (310) 273-5949.
A Checklist for Your Apartment
Quantity CONDITION CONDITION UPON Item (If applicable) ON ARRIVAL DEPARTURE* KITCHEN Cupboards Floor Covering Walls and Ceiling Counter Surfaces Stove and Oven, Range Hood (broiler pans, grills, etc.) Refrigerator (ice trays, butter dish, etc.) Sink and Garbage Disposal Tables and Chairs Windows (draperies, screens, etc.) Doors, incuding hardware Light Fixtures LIVING ROOM Floor Covering Walls and Ceiling Tables and Chairs Sofa Windows (draperies, screens, etc.) Doors, including hardware Light Fixtures BATHROOM Floor Covering Walls and Ceiling Shower and Tub (walls, door, tracks) Toilet Plumbing Fixtures Windows (draperies, screens, etc.) Doors, including hardware Light Fixtures Sink Vanity, Medicine Cabinet BEDROOM Floor Covering Walls and Ceiling Closet, including doors and tracks Desk(s) and Chairs Dresser(s) Bed(s) (frame, mattress- check both sides for stains-pads, boxspring Windows (draperies, screens, etc.) Doors, including hardware Light Fixtures HALLWAYS OR OTHER AREAS Floor Covering Walls and Ceiling Closets, including doors and tracks Light Fixtures Air Conditioner(s) Filter Heater Filter Patio Deck, Yard (planted areas, Other (please specify)
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Sources: State of California Department of Consumer Affairs and U.C. Davis, Student Housing Office
*Note deterioration beyond reasonable use and wear for which tenant is alleged to be responsible.
