Safeguards to Protect the Credit-Screening Process
QUESTION: There are practically no vacancies in my area and I have been looking for an apartment for more than a month. I paid $25 application fees to several managers to check my credit record, but I was not selected to become a tenant. I suspect that in some cases the managers just pocketed my money. I cannot prove it, but how can I protect myself?
ANSWER: If you suspect a certain manager of not having performed the screening, ask her which reporting company she used and then verify with the company that the service was performed. All credit companies keep track of requests for information. If you discover that the manager defrauded you, inform the property owner and contact the district attorney’s office.
Any prudent manager or property owner will verify the credit report and tenant history of potential tenants before entrusting them with keys. A new law effective Jan. 1, 1997, Civil Code Section 1950.6, sets the limit a landlord can charge for an application screening fee to $30 per applicant. This amount may be adjusted annually in accordance with the Consumer Price Index; the fee is not considered part of the security deposit and can be nonrefundable.
Under this new law, a property owner or agent may collect an application fee only if there is a current vacancy or there will be one soon. Additionally, the law requires that the applicant receive a receipt for the fee explaining charges. The prospective tenant is also entitled to a copy of the consumer credit report, upon request.
If you paid the application fees after Jan. 1, 1997, when the law became effective, you may request a copy of your credit report and submit it to other property owners. Most landlords will accept a valid, legitimate copy from a respected credit reporting company, although some prefer to obtain their own.
As general information: If you have any doubts about your credit rating, it is a good idea to review your credit report before initiating an apartment search. If you detect any errors in the report, you should inform the credit reporting company in writing immediately; the companies are required to investigate complaints within 30 days. Each of the three major credit reporting companies will send you a copy of your own credit report on request; TRW will provide one free copy per year on request. When you start your search for a rental home, you could submit the free copy along with your application form.
Here are the phone numbers of the three major reporting agencies: Equifax, (800) 685-1111; TRW, (800) 392-1122; TransUnion, (800) 851-2674.
Property Manager Takes Landlord’s Deposits
Q: Because I was an inexperienced landlord, I hired a property manager to perform the usual “landlord” duties for my rental property. One of her tasks was to collect security deposits from new tenants. The manager has resigned and will not return the deposit money to me. One of my tenants is now moving and wants his deposit refunded. What should I do?
A: You need to account for the deposit as if you had originally received the money from your tenant. When your property manager received the deposits, she was acting as your agent. That is, she was representing you and you are ultimately responsible for settling deposit refunds as required by Civil Code 1950.5(f).
If a tenant moves out and you do not account for the deposit as prescribed by law, your tenant can pursue the refund in court and can ask the judge to fine you up to $600 over and above the deposit amount for “acting in bad faith.” You should keep the employer/employee issue separate from your landlord duties by settling your tenant’s deposit refund promptly.
If you feel that by not returning the deposit money, your former property manager has committed fraud, you should contact the local police agency for your area. Another option is for you to attempt recovery of the deposit monies through the appropriate courts. To prevent this problem in the future, we suggest you establish a well-defined business procedure to account for all money received by your employees.
Newly Disabled Has a Right to Accessible Place
Q: I am a tenant who recently became physically disabled, and as a result, my apartment is no longer accessible. I have lived here for seven years and do not want to move. I want to modify my unit to accommodate my disability, but my manager told me that any modifications must be acknowledged and accounted for at the beginning of my tenancy. Is this true?
A: No, your manager’s statements are not true. Under the Fair Housing Act of 1988, an owner or manager must make reasonable accommodations to allow a disabled person equal access to the premises. Even though your disability occurred after your tenancy began, the reasonable accommodations statute still applies.
However, the cost of modifications are the tenant’s responsibility. You can perform the work (if capable), contract with the owner or contact a local nonprofit agency that may be able to do the work at no cost. If the property owner does the work, you may try to devise a monthly payment plan.
This plan can be in the form of an addendum to the original rental agreement where installments to pay for the modifications are made in addition to the monthly rent until the total cost is paid in full. You can find out more about accessibility guidelines by contacting the Department of Housing and Urban Development (HUD). HUD’s phone numbers can be found in the government section of your phone book.
For additional information regarding your right to an accessible unit call (415) HOUSING in Northern California or (213) HOUSING in Southern California.
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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 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.
