Small Owner Suspects Tenants of Dealing Drugs

QUESTION: I own and manage a small apartment complex that had been a very peaceful place. Recently, I rented a unit to a couple, and right off, I knew I had made a mistake. From the outset they had lots of visitors late at night. One night, more than 20 individuals entered and left the apartment. My other tenants are beginning to complain, and one is leaving because of this. I’m sure the couple is dealing drugs, and I’m scared. What can I do?

ANSWER: The best defense against drugs is a cautious offense. Be very thorough in screening prospective tenants; you may use a reputable tenant-screening company. Learn to recognize signs of drug dealing and take firm, assertive action. Establish open lines of communications with the police and your law-abiding tenants. Have clear house rules and policies, and most important, enforce them. State in your rental agreement that illegal activity on the premises is strictly prohibited and may be cause for eviction. When tenants violate the terms of a lease, for example by conducting illegal activities on your premises, you can evict them by giving an unconditional three-day notice to move out, although this type of notice has some disadvantages. First, it is usually unrealistic to expect people to find a new place and move out in three days. Second, the burden of proving that the tenant is dealing drugs is on you. And third, you are required to give a reason for demanding that the tenants move out.

Instead, if the couple has a month-to-month rental agreement, you might consider giving these tenants a 30-day notice. With a 30-day notice, you do not have to give a reason, unless your property is under rent control. Make it clear to the tenants that if they don’t move out in 30 days, you will start an unlawful detainer action, which can seriously damage their credit rating and make it very difficult for them to rent anywhere else.

In addition, to make our rental premises unattractive to drug dealers, increase lighting (both wattage for brightness and number and location of fixtures), work with your local police to increase their presence by patrols (car and foot), and ask them to present a personal safety information session for tenants, which should establish rapport and show police presence. Also, you could start a neighborhood watch program at your complex. Ask your local police for assistance.

Manager Wants Tenants to Clear Decks, Patios

Q: I manage an apartment complex, and to present my property in the best possible light, I ask current tenants to remove furniture and other belongings from their patios or balconies. Many tenants say my requests are unreasonable and have refused to clear these areas even though I give them a 24-hour notice. What can I do?

A: If the areas were part of the property covered by the monthly rent during the original rental presentation, your request may interfere with their right to “quiet enjoyment” of their property. If the areas are used in compliance with the rental agreement, your tenants should not be required to clear them every time you have a prospective renter. Also, where are the tenants supposed to put outdoor furniture that they remove on your request?

However, if the patio/balcony areas are being used in a manner that is not in compliance with the rental agreement or local health and safety ordinances, you can request that they be cleaned.

Can Owner Raise Rent of Section 8 Tenants?

Q: I have a few tenants whose rent is subsidized under Section 8. I recently sent out a notice to all my tenants that effective the first of the year, I was going to increase the monthly rent and the security deposit by 10%. It’s been five years since the last increase, and I feel this to be fair. But two of the tenants, both under Section 8, said I couldn’t do this. Are they right?

A: Yes. The Housing Authority publishes limits on the amount of rent that may be charged for apartments of different sizes (e.g. studios, one-bedroom, two-bedroom, etc.) and how often increases may be given. Your Housing Assistance Payments Contract specifically states the monthly rent for a unit, and it cannot be changed without the express permission of the Housing Authority.

Increasing the security deposit for Section 8 tenants is prohibited. Under HUD rules, the amount of the security deposit is determined when the tenant moves in, and it cannot be changed during the tenancy, even if the rent changes.

Security Deposit Can Be Paid Over Time

Q: I would like to rent to a prospective tenant who has a Section 8 certificate, but cannot afford the security deposit. He seems to be a reliable young man who was laid off and has just found a new job. Do you have any suggestions?

A: If you want this new tenants, you don’t have to demand the full deposit at the onset of the tenancy. You may set up a payment plan in which a portion of the deposit is paid each month until it is fully paid. If you do this, be sure to write an agreement that includes payment amounts and due dates, and have the tenant sign it. Be sure the full deposit amount is not higher than the amount allowed by HUD as set forth is your contract with the Housing Authority.

This column is prepared by Operation Sentinel, a rental housing mediation service in Sunnyvale, Calif. Questions may be sent to 582-B Dunholme Way, Sunnyvale, Calif. 94305, but cannot be answered individually. For help in the Los Angeles area, call the Westside Fair Housing Council at (310) 477-9260.