Laying Down Security-Deposit Law
QUESTION: I live in a rental house in Sherman Oaks. I’ve been told that there is a law that states that a landlord must keep a tenant’s security deposit in an interest-bearing account. This money must then be returned to the tenant when the lease is up, they tell me. Is it true?
ANSWER: The city of Los Angeles, which includes Sherman Oaks, has a law requiring owners of rent-controlled rental properties in the city to pay renters 5% simple interest on their security deposits. Renters must occupy their units for at least one year to qualify for any interest payments.
Although many do, landlords are not required to keep security deposit money in interest-bearing accounts. They also are not required to pay any interest to renters when leases are up unless the renters are moving out of their rentals at that time.
Since you live in a rental house, you probably are not covered by the rent control law or eligible for any interest payment. Single-family rental homes are exempt from the rent law unless there are two or more of them on a lot or they are rented out to tenants in at least two separate rental units in the same house. For example, most duplexes are covered by the law.
Duplexes, too, can be exempt from the law. For instance, they can be exempt if they are defined by the law as “new construction” (first certificate of occupancy issued after Oct. 1, 1978) or luxury rental units (certain rent levels as of Oct. 1, 1978).
Those who qualify for interest payments must be paid, or their rents credited, after five years in a rental unit or when they move out. Owners may opt to pay or credit their renters annually but are not required to do so.
To find out if your unit is covered by the rent control law, you may call the city’s rent stabilization division’s registration section at (213) 847-7490.
Steps to Take to Get Your Money Back
Q: I was a renter in the city of Inglewood for 15 years. I moved out of the apartment and have tried to get my security deposit refunded from the owner, but he refuses to accept my certified letter requesting the refund. What can I do?
A: Since you’re now at the point of sending the owner certified letters, I’ll assume that you already have tried, unsuccessfully, talking to the owner and mailing letters by first-class mail, which always should be the first steps you take in this type of a situation.
Now, stronger measures are needed. A Small Claims Court lawsuit is in order. You can file the suit and have the owner served by an L.A. County sheriff (which I always recommend--there’s just something special about having someone served legal papers by a guy with a gun) for about $40.
As you probably know, Small Claims Court is “the people’s court.” As a result, no attorneys are needed or allowed unless they are principals (plaintiffs or defendants) to the lawsuit.
Since the rental was located in Inglewood, that’s where you’ll have to file the lawsuit. For more information about Inglewood Small Claims Court, phone (310) 419-5125. The court is located at 1 Regent St. in Inglewood. For information about other L.A. County Municipal Courts, phone (213) 974-6111.
Apartments Must Be Kept Safe, Not Beautiful
Q: I have lived in a Los Angeles apartment for the last 13 years. The paint is very dingy and the carpeting is worn out. In fact, the new owners of the property patched a piece of gray carpet in front of my bedroom door to fix the dark brown carpet that is there (not a very attractive look). All of this is normal wear-and-tear “damage.”
As apartments become vacant, everything is replaced before they’re rented out again. The new tenants pay just a little more rent than I do but they get clean, new apartments.
How often, if ever, is a renter entitled to new carpet, drapes and painting because of wear and tear? Also, how do I best go about getting my apartment refurbished?
A: Landlords in the state of California are required to keep their apartments “safe” (patched carpet as opposed to new). They are not required to keep them attractive (new carpet as opposed to patched).
According to Trevor Grimm, general counsel to the Apartment Assn. of Greater Los Angeles:
“The apartment must be habitable. . . . This does not require that a landlord ensure that leased premises are in perfect, aesthetically pleasing condition, but it does mean that ‘bare living requirements’ must be maintained.”
Since you cannot compel the owners to replace the carpet, drapes or paint as long as they are “safe,” you should try to negotiate with them for improvements. For instance, many times landlords will allow tenants to paint their units themselves.
They usually will want to approve your choice of color. They also may want to approve your choice of workmen or require you to use their painters. Sometimes they will even share with you the expense of the work. As they say in real estate, “everything is negotiable.”
Do not do anything without the landlord’s permission, though, because your lease or rental agreement probably prohibits that and it could result in your eviction.
If all else fails, you may have to move out of the apartment to get a clean new one.
*
Postema is the editor of Apartment Age magazine, a publication of AAGLA, an apartment owners’ service group, and manager of public affairs for the California Apartment Law Information Foundation, which disseminates information about landlord/tenant law to renters and owners in the state. Mail your questions on any aspect of apartment living to AAGLA, 12012 Wilshire Blvd., Los Angeles, CA 90025.
