Written Rental Contract Is Always Best
Question: I am about to move in to a guest house in the Los Angeles area. I met with the landlord and his wife, and we discussed the necessary issues such as the monthly rent and utilities and the fact that I am responsible for the maintenance of the guest house.
No written contract of any kind was ever created or signed. That bothers me. What if maintenance becomes expensive or my well-being is jeopardized? Also, will the lack of a contract hinder my ability to get renter’s insurance?
Answer: Even though there is no written contract, under California law you still have a verbal month-to-month rental contract. Verbal contracts bother me too. The potential for misunderstanding or miscommunication is immense. Nevertheless, you can move out of the house with a 30-day notice if things get out of hand.
If you have not yet moved in to the house, ask the landlord about getting a written rental agreement, for your protection as well as his. It should spell out exactly what each of you is responsible for, which is difficult, at best, with a verbal agreement.
If the owner does not want a formal written contract, ask if he objects to your writing a letter that clarifies the points about which you are unclear. Also, I always recommend doing a pre-move-in walk-through, during which you note any problems with the unit that preexist your tenancy.
That way, when you move out, you both know exactly what was, and wasn’t, damaged by you. The determination of damages and disposition of the deposit, is usually the most contentious aspect of a tenancy.
As for the lack of a written rental agreement affecting your ability to get renters’ insurance, that should not be an issue.
According to Matthew Fuller, owner of Fuller Insurance Agency, “It shouldn’t matter. In fact, we don’t even ask. Our main concerns are how long you’ve lived there, the value of the property that you own and have you had any prior insurance claims.
“If you have a good, clean credit report and have had no prior claims, getting the insurance should be no problem.”
Increase Limits Only Apply to Rent Control
Q: We live in West L.A. and we are unsure of the legality of the rent increases we’ve recently received. We think that the owners are allowed only 3% to 4% rent increases, which these increases exceed. We also believe that if the owners did not raise rents during previous years, they are not allowed retroactive rent increases.
Are these assumptions correct? Also, does tearing up the old carpeting in front of the elevator and replacing it with tile constitute an improvement worthy of a rent increase?
Finally, can you give us the name and address of any agency that oversees landlords, tenants and the amount of legal rent increases?
A: Landlords under rent control in the city of Los Angeles are allowed annual general rental increases that are limited to 3%. No retroactive increases are allowed.
If your unit is not under rent control, the limits do not apply, and the rent is governed by the market.
Additional rent increases under rent control are allowed for capital improvements to property, which include new tile.
The agency responsible for rent control in the city of Los Angeles is the Rent Stabilization Division of the Housing Department. It is at 111 N. Hope St., DWP Building, 1st Floor, Los Angeles, CA 90012.
To find out if your particular unit is covered by the rent law, phone (213) 367-9136.
Wear and Tear and Cleaning Costs Differ
Q: I live in Redondo Beach and I need some clarification about my security deposit being used for cleaning costs that result from normal wear and tear, which I understand is illegal.
The rental agreement says that refurbishing costs will include, but not be limited to, general cleaning, carpet shampoo and blinds cleaning. Is this legal?
A: The rental agreement you sent says the “[s]ecurity deposit will be refunded to tenant subject to the following conditions,” then lists the things for which deposit money may be deducted and used. They include, among other things, general, carpet and blind cleaning.
Cleaning costs do not result from normal wear and tear. The two have nothing to do with each other.
Normal wear and tear deals with the average life expectancy of things and whether they wear out within those time frames, usually gradually, over time. Sudden damages usually indicate damages that exceed normal wear and tear. These are the ones for which you can be liable.
If the unit is clean when you move in and dirty when you move out, regardless of any wear and tear, you are responsible for reasonable cleaning costs.
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Postema is the editor of Apartment Age magazine, a publication of the Apartment Assn. of Greater Los Angeles, 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 California. Mail your questions on any aspect of apartment living to AAGLA, 12012 Wilshire Blvd., Los Angeles, CA 90025.
