With mortgages harder to get and financial uncertainty clouding the horizon the dream of home ownership is being replaced for some Americans with the desire to find a decent place to rent. After all, isn't renting supposed to be less of a hassle, not to mention cheaper than getting a mortgage to buy a home? Even if you do get the mortgage, who really owns the home, you or the bank holding the mortgage?
As a renter you have certain rights, which your landlord is required to share. There are however a number of other aspects of renting that should know that may not be included in a renters bill of rights or that your landlord necessarily wants you to know.
Fortunately, Smart Money magazine has compiled a list of things all renters should know before signing a lease. Here they are:
1. Find out if the building is in foreclosure or about to be sold. According to the National Low Income Housing Coalition, renters accounted for 40% of all families facing eviction from foreclosure in 2009. Landlords aren't always forthcoming about giving adequate notice about pending foreclosures. So last year Congress passed the Protecting Tenants at Foreclosure Act. It gives renters at least 90 days from the foreclosure sale to move out. Before the act was passed, you had to vacate in 30 days. The new law also lets tenants who signed a lease before the sale and pay a market value rent stay through the end of their lease provided the new owner doesn't want to live there.
2. You have the right to complain about such things as ceiling leaks and lack of hot water. Most states require landlords to keep the property in good repair, with home systems and appliances in working order, but they tend not to tell you that and gripe when you complain. Don't let that stop you or worry about reprisals. It's their job to make repairs on the buildings they own.
3. Did you know there's more to negotiate than the rent? In fact, the probability you'll get a break on rent is a lot lower this year than last. With rents going up, landlords have less incentive to lower prices. According to Rent.com, 31% of landlords lowered rent in 2010, versus 69% in 2009. That doesn't mean landlords aren't willing to negotiate on other areas such as security deposits or offer an upgrade to a better unit with nicer views, quieter neighbors, and a newer kitchen.
4. Speaking of quiet neighbors. If you have them, count your blessings. In the case of neighbors throwing late night parties or playing loud music, there isn't much your landlord can do. The best you can do is ask the other tenant to turn down the music. If that doesn't work you can report excessive noise problems to the police as well as your landlord so the situation is documented. If violations persist, the landlord may be able to initiate eviction proceedings.
5. What about those tenant rights? They vary from state to state with some states being tougher on landlords while others let them get away with just about anything. For example, Arkansas doesn't even require landlords to provide fit and habitable housing. In states that are friendly to renters such as California, New York, Illinois and New Jersey, renters can withhold rent if they have no hot water until it's fixed. They can also deduct the cost of fixing a problem if the renter pays to have it fixed. Landlords aren't necessarily any better informed about what they can and cannot do, so it's up to the tenant to figure it out. The U.S. Department of Housing and Urban Development maintains a database of tenants' rights by state, including groups that offer assistance with disputes.
6. Landlords aren't the only people renters may have problems with. Property managers have been the source of 5,297 complaints last year according to the Better Business Bureau. Inexperienced or incompetent property managers may not have a good system in place to handle repairs -- especially emergencies - or neglect to keep your security deposit in a safe place. So do your own due diligence. Check on the property management company responsible for keeping up the property. They Better Business Bureau will have a record if any complaints have been filed. Although the landlord is ultimately responsible for providing habitable housing, they hire management companies precisely so they don't have to deal with the day-to-day maintenance, repairs and tenant request.
7. What should you do if you find yourself with what's known as an "accidental landlord. This is someone who never really wanted to be a landlord, but came into possession of a property he or she couldn't sell. At first glance, this might seem like a good thing. Inexperienced landlords are more likely to not ask for enough rent. However, that could also mean a substantial rent increase upon renewal, or worse, living in a poorly-maintained home at greater risk of foreclosure. Again, it's up to you to ask questions about the landlord and the property's history. These questions include how long has the property been a rental? Why is the landlord renting it out? If the answers involve anything that reflects on the recession or the landlord's need to increase his cash flow, be cautious. Look for foreclosure and sale notifications on sites such as RealtyTrac, StreetEasy and Zillow.com.
8. If you smoke, you may find it hard to rent. The Fair Housing Act prohibits landlords from discriminating against a number of groups but they can still decline to rent to someone who smokes. Smokers still account for 20% of U.S. adults in most cities, according to the Centers for Disease Control and Prevention. Yet a search of New York City apartment listings on Craigslist turned up just six that allowed smoking while 700 prohibit it. Once a rental property is occupied by a smoker, it's tough to rent to non-smokers without a thorough, expensive cleaning that includes repainting the walls and professionally cleaning the carpets. Laws in several states require landlords to disclose smoking policies upfront, so if it's important for you to be able to light up indoors check the details before signing a lease. Policy violators could find themselves facing loss of their security deposit or eviction if their smoke gets into a non-smoker's domain. And if a chain-smoking neighbor is in violation, your landlord will be glad to take your complaints. It's one thing that will allow him to evict a tenant and then he can jack up the rent again.
9. Promises aren't worth much of anything unless they are part of a written contract. If a landlord promises to replace an old or broken appliance get it in writing. Don't just take their word for it. You can assume that the condition of the apartment you're viewing is about what it will be when you move in. So either get in writing that the landlord will make any repairs or keep looking.
10. Building or community homeowners' associations are not your friend. During the downturn, many associations have taken steps to limit owners' ability to rent out property, or require extensive screening before a lease can be signed. And owners who try to avoid or ignore the rule-changes end up making it difficult on tenants who suddenly find themselves faced with lengthy rental applications or fines for a litany of association rules they never knew they had to uphold. The extra layer of administration can also make it tough for tenants to get damage repaired, because they're dealing with the building and not just the landlord. So make sure you check the association rules before signing a lease.
