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New Owners Are Responsible for Security Deposits

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From Project Sentinel

QUESTION: I live in an apartment building that was recently sold. I gave the new owners a 30-day notice and will be moving out at the end of the month. However, they informed me that the previous owner never transferred my security deposit to them and that they are not responsible for returning it when I move. They also implied that they will be asking existing tenants to put down a new deposit. Can they do these things?

ANSWER: When the owner of a rental property transfers that property to a new owner, he or she must either refund the deposits to the tenants--minus any lawful deductions for back rent owed and for any necessary cleaning and damages in excess of ordinary wear and tear that occurred prior to the conveyance of title--or transfer the deposits to the new owner, again, minus any lawful deductions.

If the previous owner failed to do these things, the new owner is responsible to the tenants for their deposits, as is the old owner. Therefore, when you move, you are entitled to any security deposit that should be refunded from either the old or new owners.

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In any event, the new owners cannot require tenants to give them a new deposit to cover any amounts that should have been transferred to them from the former owners. However, by giving a 30-day written notice they can, at their discretion, increase the amount of the deposit up to the legal limit, which is twice the monthly rent for an unfurnished unit and three times for a furnished unit.

Ways to Make Pools Useful for Kids, Adults

Q: I have a problem with a recent Rent Watch that concerned the use of swimming pools in an apartment complex. At this complex there were two pools and during the summer months, children were using both pools all day long and into the evening.

Many residents wanted one of the pools set aside for adults to swim laps, but the management said “nothing doing” because to do so would be a violation of fair housing regulations. The answer then quoted chapter and verse from Federal Fair Housing regulations that confirmed the manager’s statement.

I think this is outrageous. Can’t anything be done?

A: Several readers share your view about this situation. We’ve talked with our Fair Housing specialists who suggest that the property owner can designate one pool for lap swimming during limited hours and equip the lap pool with dividers to create swimming lanes during those specified hours.

The landlord should write (or rewrite) the pool rules to state that diving and roughhousing will not be permitted. Everyone, including children, would thus be allowed to use the pool, but only to do laps. Those who wish to engage in other activity can do so in the other pool. Even if there is but one pool in the complex, it could be set aside at specific hours for lap swimming. Or, each pool could contain a couple of lap lanes marked by dividers at all times.

Repairs Can Be Done When Tenant Not Home

Q: I have repair problems at my apartment from time to time. My problem is that I am a professional woman and am out of the apartment from about 8 a.m. to at least 6 p.m. The maintenance man’s hours are 8 to 5. I don’t really want anyone in the apartment when I’m not there, so as you can see, we have a scheduling problem.

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When I complain to the manager, she says she isn’t authorized to pay overtime, although she says she is willing to be present during repairs. Even so, I want to be there. Any suggestions?

A: Although many people are uncomfortable having strangers in their homes when they are not present, you will probably have to make some concessions to solve the problem. There is nothing in the Civil Code that requires the tenant to be present when repairs are being made. In fact, the owner has the right to perform necessary maintenance or repairs after giving you a 24-hour notice, whether you are there or not. The purpose of these inspections is to assure the owner that the property is in good condition.

You will need either to arrange your schedule so that you can be present or simply accept the fact that you won’t be present at the time of repairs. If you really want to be present, you could offer to pay the overtime for the repairs done after hours. If you can not be present, you may want to put away valuables or items that you prefer not to be seen. You might also consider purchasing renters’ insurance to cover any possible theft or damage to your property.

Both Parties Must Agree to Retroactive Changes

Q: My landlady sent me a 30-day notice changing the terms of my tenancy that states I will have to share the water bill with her and she wants me to pay for water used during the past six months. Am I responsible for charges that occurred prior to the effective date of the 30-day notice?

A: No. Changes to any rental agreement cannot be retroactive unless both parties agree. Also, if you have a lease, no changes of any kind can be made during the lease unless both parties agree to the change. However, a property owner can make changes with a proper 30-day Notice of Changes of Terms of Tenancy for month-to-month tenants, or at the end of a lease.

A general note on shared utility arrangements: State law requires property owners to disclose to all prospective tenants, before they move in, any arrangements where a tenant might end up paying for someone else’s gas or electricity use.

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This would occur, for example, where a single gas or electric meter serves more than one unit, or where a tenant’s gas or electric meter also measures gas or electricity that serves a common area--such as a laundry room or even a hallway light not under the tenant’s control.

If, however, you live in a rent control jurisdiction, the above may not apply. You should contact your local rent stabilization (rent control) board for clarification.

Tenant Is Liable for Excessive Damages

Q: I found serious damage to the wall-to-wall carpeting in one of my apartments after the tenants moved out. It was in great condition when this family moved in, but now there are stains that won’t come out and a number of tears. It must be replaced.

The carpet was two years old when they moved in two years ago. How much can I deduct from the security deposit?

A: You may deduct from your tenant’s deposit any amount necessary to cover damages in excess of normal wear and tear. You should determine the “normal” life expectancy of your carpet based on its quality and traffic. For example, if the normal life expectancy of the carpet is eight years and you need to replace it after only four years, you may charge the tenant 50% of the replacement cost. This 50% reflects the damage in excess of normal wear and tear.

For information on how to depreciate your carpeting, you may consult your insurance agent or your local apartment owners’ association. If your tenant challenges your deduction, you may try to resolve the dispute with help from your local housing mediation program; if all else fails, you may have to defend your deduction in small claims court.

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You can apply the same concept to the replacement of other items that have a finite life, such as appliances.

Paying Twice for Washer and Dryer?

Q: We are a group of students who recently rented a house close to the university. According to our rental agreement, we pay for all utilities, but after we moved in, we found that the washer and dryer in the garage were coin-operated.

Can the landlord do this when we are already paying for the water and the electricity?

A: Yes. Although it is unusual in a single-family house, it is not unprecedented to charge for the use of laundry appliances. The owner is providing the washer and dryer as a convenience, and such appliances are not considered as essential parts of a rental property.

If your rental agreement does not explicitly state that the owner will provide a washer and dryer as part of the rent, the coin-operated appliances do not violate any laws.

In situations like this, you can always negotiate with the owner as to whether these appliances can be supplied free of charge. Also, review your rental agreement to see if it makes mention of the washer and dryer. Your local mediation program may be of help.

Tenant’s Bad Record May Be Just History

Q: I’ve made a big mistake. I let a new tenant talk me into allowing her to sign a one-year lease and move into a vacant apartment before I did a credit check. Her credit check just came back and it’s bad; she also has a prior eviction. I don’t want her as a tenant, but how do I get her to move?

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A: If you truly don’t want to give this person an opportunity to prove herself as a worthy tenant, you may be able to end the tenancy by buying her out of the lease.

Otherwise, as long as she hasn’t violated any clauses of the lease and she did not lie on her application, she remains a tenant in good standing and can stay. If she did provide false information, you should consider contacting an attorney.

However, you may want to look at the situation from a more positive point of view. It might be a good idea for you to discuss her credit problems and previous eviction with her. As long as she pays the rent on time and her tenancy continues without problems, you may have found yourself a good tenant. Perhaps her past record is just that--in the past.

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This column is prepared by Project Sentinel, a rental housing mediation service in Sunnyvale, Calif. Questions may be sent to 582-B Dunholme Way, Sunnyvale, CA 94087, but they cannot be answered individually.

For housing discrimination questions, complaints or help, call the state Department of Fair Housing and Employment at (800) 233-3212 or the Fair Housing Council in your area:

Westside Los Angeles, (310) 477-9260.

San Fernando Valley, (818) 373-1185.

Pasadena, (818) 791-0211.

El Monte, (818) 579-6868.

Orange County, (714) 569-0828.

San Bernardino County, (909) 884-8056.

San Diego County, (619) 699-5888.

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