Optioning Cottage Before It Goes on Market
Question: I have lived in a rent-controlled cottage in Venice for the last 20 years. The landlady has not raised the rent much during that time even though we have volunteered to pay more. We pay about $250 per month for a unit that is worth around $850.
She is now ready to sell the rental, which is a duplex, and she had a broker come out to take a look at the property and evaluate it. Would it be legal under rent control for her to accept our offer to increase the rent to market rate with a one-year lease-option to buy instead of her putting the property on the market? If not, would such a plan work with a Realtor who lists the property?
Answer: There probably is a way to accomplish your goal, but not in the way you are approaching it. You cannot voluntarily raise the rent above the rent-controlled limit without permission from the city of Los Angeles’ Housing Department, Rent Stabilization Division. And receiving permission seems unlikely in this situation.
Nevertheless, you should be able to craft an agreement in which you make additional monthly payments which are, in effect, “option money” for the right to buy the property at a price previously negotiated between you and the owner or her representative.
If she goes along with your plan, the owner will doubtless be represented by a real estate agent or an attorney. You would be foolish not to hire at least one qualified representative to review the terms of any contractual agreement you ultimately enter into with the owner.
Because real estate and landlord-tenant laws already are fairly complex areas of the law, make sure that any professional you hire is not only a specialist in both areas--real estate and landlord-tenant law--but also is versed in rent-control regulations.
Landlord Can’t Assure Crime-Free Property
Q: I am a tenant in Los Angeles. Included with my lease is a document called “Obligations of a Resident.” The document has the seal of the Apartment Assn. of Greater Los Angeles printed on it and states what the normal and customary rules and regulations are for a tenant.
Is there a similar document listing the obligations of the landlord or property owner? If so, how can I get it?
The type of information I am looking for is in regard to a landlord’s being obliged to provide “safe” housing for tenants--an environment free from criminal activity and threats from other tenants--as well as facilities in good repair (free from roof leaks, vermin, etc.).
A: It is unrealistic to expect landlords to be able to guarantee your safety. Similarly, landlords generally cannot prevent criminal activity on their properties or protect you from other tenants’ threats.
If criminal activity occurs on a landlord’s property, he is wise to make you aware of the problems and to try to mitigate them through additional lighting or security measures. In some cases, he may be required to tell you about criminal activities. (Some attorneys advocate posting notices with the names of alleged abusive tenants.)
There is no way a landlord can guarantee a crime-free environment. Even the police can’t do that.
Threats from other tenants are another issue over which the landlord often has little control. Under rent control, a landlord can evict a problem tenant for only very specific reasons. One of those reasons is nuisance, which fits the threatening tenant scenario.
To prove nuisance under rent control, the landlord must provide witnesses to it, meaning that you would have to testify in court against the tenants who are threatening you. Often, tenants are fearful of testifying in court against nuisance tenants. Adding to that fear factor, L.A.’s rent-control law mandates that landlords list the names of complaining tenants on eviction notices.
On the question of a document requiring the owner to provide facilities in good repair, I have good news for you. California Civil Code Section 1941.1 describes a number of habitability requirements for residential rentals.
They include, in addition to roofs that don’t leak and vermin-free conditions, effective waterproofing, plumbing and gas facilities that work, hot and cold running water, heating facilities, electrical in good working order, adequate garbage receptacles and floors and stairways in good repair.
You can get a complete copy of the requirements at the library or online at https://www.leginfo.ca.gov/.
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Postema is the editor of Apartment Age magazine, a publication of AAGLA, an apartment owners’ service group. Mail your questions on any aspect of apartment living to AAGLA, 12012 Wilshire Blvd., Los Angeles, CA 90025.
