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Rents Are Dropping, Can I Renegotiate?

Rents Are Dropping, Can I Renegotiate?

Rents Are Dropping, Can I Renegotiate?

Rents are dropping.

I signed a lease on 3-1-09 for $1425/month, but rents have dropped in my building and area. Same unit on the top floor rented for $1300, I am on the 2nd of 3 floors. How should I negotiate? Write a letter now or wait until lease renewal on 3-1-10, when it goes month to month? I love the building and I am a great tenant. Help!

Rents are dropping. Should tenants rejoice? Hardly. I think that would be akin to celebrating when Capital One lowers your interest rate from 29.9% to 27.9%. Whoopeee! I talk to many tenants who are searching for apartments. Anecdotally, I just don’t perceive that rents are going down that much, more vacancies for sure, but the rents still seem to be sky high.

I do, however, know that some landlords are willing to lower their rents, especially for good tenants.

Technically you are bound by the contracted rate until the lease expires, however you and the landlord can agree to modify the lease at any time. If you live in a rent controlled apartment in San Francisco, I don’t see why there is any reason to wait. The rent will be fixed anyway, with increases according to the allowable annual rate. Beginning March 1, 2010, the allowable increase is 0.1%.

When you begin to negotiate with your landlord you should understand that there may be a time in the future when he will want to increase your rent back up to the contracted rate, i.e. $1,425.00 per month. The Rent Board’s policy, when considering tenant petitions alleging illegal rent increases in these cases, is to inquire if the decrease was based on the tenant’s hardship or a change in the market.

If the Board decides that the landlord decreased the rent because you were having a hard time, in the future they will allow the landlord to increase the rate based on the original contract. If the Board decides that the landlord decreased the rent solely based on the softer market, they will find that he can only increase the rent based on the rate you negotiated.

Landlords who are aware of this policy, even if they want to negotiate a decrease, may want to depict the decrease as one based on hardship. They are usually very reluctant to attribute the decrease to market conditions.

It sounds like you are in a good position to negotiate. The top floor just rented for $1,300.00 per month, so you can justify your request using the pure logic of mathematics. The market has been established at $1,300.00. If you move and the landlord tries to rent your unit for $1,425.00 and it stays vacant for just one month until he gets a tenant, it will take him more than 10 months to amortize the cost of the vacancy. You already know that he can’t rent it for $1,425.00 anyway. The math is powerful.

Assuming you agree on a new price, it will be tougher to get the landlord to acknowledge that the decrease is based on the market. The best way to do this is to write it in the lease modification document. The next best way is to make sure that all of your negotiations are in writing. You can prove at a later date that you never asked for a favor, and that you based your request on the market rate. Everything should be in writing anyway.

Good luck and let us know how it goes.

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Are Broken Elevators Against The Law?

Are Broken Elevators Against The Law?

Are Broken Elevators Against The Law?

The elevator at my building has been out of order for more than a month, and we have no indication that repairs will take place anytime soon. This situation has made life miserable for people on the upper floors, who must lug laundry and groceries up to six flights. And I have to believe that older people living in the building are, for the most part, stuck in their apartments.

Surely the landlord is violating safety laws by failing to make the necessary repairs!?

Evidently the folks at The San Francisco Appeal have been receiving quite a few questions about elevators since they began their coverage of some of the ongoing CitiApartments atrocities in Tales of the Citi. Last July they asked Who’s Responsible For Elevator Inspection? and in August reported about a CitiApartments building in Six Floors With No Elevator.

In her article about the Lembis and CitiApartments, “War of Values” in this month’s San Francisco Magazine, Danelle Morton quotes an email sent to Supervisor Aaron Peskin, “Our situation is dire at 808 Leavenworth, with many senior and disabled renters on the upper floors…. CitiApartments has had the elevators shut down for three days and will have the water off tomorrow. I’m fearful many senior and disabled renters will die without food, medication, and water. Many tenants are afraid to complain for fear of reprisals. I’m afraid people will die if we don’t get some intervention. Please tell us how to proceed.”

Of course the landlord is violating safety laws by failing to repair the elevator!

Section 713 of the San Francisco Housing Code states: “In all R-1 and R-2 Occupancies, with building heights exceeding 50 feet, which are required to have an operable elevator per the Fire Code, said buildings shall have at least one operating elevator for the residential occupants’ use. Housing Code §1002(b) declares that a building is substandard if lacks elevator service as required by section 713.

So, as I have outlined for other habitability conditions in other columns, if you live in a building that is required to have an elevator, the elevator is broken and the landlord fails to repair the elevator call a San Francisco Housing Inspector to file a complaint and schedule an inspection.

Given the severity of these complaints, I also suggest that you call the San Francisco City Attorney after the inspector issues a notice of violation.

With evidence of your complaints, you can either sue the landlord or you can file a petition at the Rent Board to reduce your rent due to a decrease in services.

I get very angry when I hear about vulnerable people trapped in the upper floors of a building because the landlord will not repair the elevator. This is a quintessential public nuisance and those charged with the duty of public safety should react swiftly and harshly.

It remains a mystery to me that reckless endangerment on this level isn’t criminally prosecuted.

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What Rules Govern Master Tenants?

What Rules Govern Master Tenants?

What Rules Govern Master Tenants?

If you’re a sub-tenant/not on the lease, what are your rights? Can the master tenant kick you out, or raise the rent, at his/her discretion?

Some master tenants just can’t resist throwing their weight around. The really bad ones think they own the unit. They can be as oppressive as the worst landlords. “It’s my way or the highway, Chucko!”

The worst master tenant doesn’t even live with you. He tells you that his stuff in the closet means he’s a roommate and he can drop in whenever he wants. He charges the subtenants $1,000 per month per room. Because the total, rent controlled, rent is only $400.00 per month, he can rent a really cool loft in Los Angeles while he works on his screenplay…until your landlord finds out.

Imagine the brouhaha when the landlord finds out he’s losing, say, $2,600.00 per month or $31,400.00 per year. You can bet that everybody’s going to get the boot. Not to mention that master tenants who pull this shit are the stuff of urban legend to the landlord class. They screw up rent control for the rest of us. But I digress…

Your rights in San Francisco with regard to a master tenant can be found in the Rent Board Rules and Regulations § 6.15C. A master tenant may be able to evict you without one of the just causes in the Rent Ordinance only if, “prior to commencement of the tenancy, the Master Tenant informs the tenant in writing that the tenancy is not subject to the just cause provisions of Section 37.9.” Section 37.9(a) lists the just causes, like nonpayment of rent, nuisance, etc.

Usually a master tenant will include that language in a sublease. If you were not informed

in writing that you could be evicted at will, the master tenant cannot just throw you out. Even if a master tenant can evict without cause he must provide you with a 30-day notice or a 60-day notice if you have lived in the premises for more than one year.

Master tenants don’t raise rent, landlords do. One of the more controversial provisions of Rules and Regulations 6.15C(3)(a) provides that a master tenant cannot charge a subtenant more than his proportional share of the rent, with differential calculations including services provided by the master tenant, room size comparison, etc. Arguably, if the master tenant increased your rent without a corresponding increase from the landlord, he may be in violation of the Rules and Regs.

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Sue For Security Deposit Or SOL?

Sue For Security Deposit Or SOL?

Sue For Security Deposit Or SOL?

I need to sue my former landlord, who I believe held my deposit on an old apartment in bad faith.

I paid $950 for standard security plus a pet deposit on 7/7/07. I was forced to move out on 9/30/07 by my roommate at the time, and had given the landlord more than 30 days notice. However, the landlord refused to return my deposit on the many occasions that I demanded it, with no explanation. I have even attempted to contact the main management company with no luck.

I believe it is a 2-year statute of limitations, but from what date is this calculated? I have several different dates in mind – my move-out date, the 21-day period in which they are required by law to refund, or when I sent the first official demand letter (10/28/07). This has been an incredible hassle and I really want to get my money back – is it still possible?

I get very pissed off when landlords steal tenants’ security deposits. But thinking about statutes of limitation is a total righteous indignation buzz kill. Your question is still a good one because it illustrates that you can’t just sit on your rights because you may lose them.

You mention that your roommate forced you to move out. If the roommate continued to live in the unit, then the landlord had no obligation to return your portion of the security deposit because, as far as he was concerned, the unit was still governed by the existing lease. The landlord does not have to refund the security deposit until the lease is extinguished when everybody moves out. If this is the case, your beef is with your former roommate, not the landlord. There are other possible scenarios that we don’t have space to cover and you should seek specific advice.

Security deposits in California are governed by Civil Code §1950.5. The statute of limitations begins to run when the claim “accrues.” In security deposit cases, the claim accrues on the 22nd day after you move out because the landlord has 21 days to refund.

There is a two-year statute of limitation on claims for the breach of an oral contract. If you do not have a lease or written agreement with your roommate or landlord, your claim may already be going down the drain. Speak to a lawyer immediately and/or file it!

Generally, one has three years to sue for a liability created by statute which could include security deposit actions since they are governed by specific statute like Civil Code §1950.5. It is unlikely that a court would find that this can apply to an oral lease because any action on the lease would be barred after two years. On the other hand, the statute of limitation for a written lease is four years.

Civil Code §1950.5 provides for statutory damages of twice the amount that a landlord wrongfully withholds. In other words if your landlord or roommate kept your dough without any reason you could sue for $950.00 plus $1,900.00 for a total of $2,850.00. It is likely that you would lose the right to collect those damages, but not the original amount, if you had a written lease and you sued the landlord after the three-year limitation for a statutory claim. After four years you’re SOL.

If you are a San Francisco tenant there are two websites that you should bookmark forever in your browser: the San Francisco Rent Board and the San Francisco Tenants Union. There are many other great tenants’ services and resources out there, but between the Rent Board and the TU, you can cover just about everything. The Rent Board site is a treasure trove of general and San Francisco specific information. The Tenants Union site is also very complete, but the best thing about them is they will counsel you about the specific facts of your case and light a fire under your ass to do something about it.

Call the Tenant Lawyers now for a free consultation.
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Wet, Cold, And Moldy

Wet, Cold, And Moldy

Wet, Cold, And Moldy

Wet cold and moldy.

I live in the Panhandle area in a 6-unit building. My apartment building has some serious temperature and mold issues.

Our common entryway has a broken skylight that leaks every time it rains. The first floor rug is now discolored and smells of mold. The landlord insists he’s “done as best he can” to fix the leak.

All of the units’ bedroom closets have huge mold problems on the walls. The landlord’s best response is to just to keep bleaching the walls. Other areas of each apartment have mold the landlords only “solutions” are to cover the areas over with paint or tile.

The building’s steam heat works inconsistently. The timer doesn’t seem to be working correctly. The windows don’t seal properly or have chunks of wood missing from the base. When tenants complain of the cold, the landlord’s only response to this is to apply cheap foam weather stripping (that’s since fallen off) to the windows.

For what we pay, we shouldn’t have heat or mold issues. So my question is, besides putting our own money into the building, can we as tenants do anything to turn our building around and into shape?

Dear Wet, Cold and Moldy in the Panhandle,

As I write this, the first big storm of the season has begun. It’s time for you and your fellow tenants to get proactive. I get the sense that everyone in the building is fed up and that you might be able to work together as a team. That’s great. Remember, there is safety in numbers.

The landlord says he’s “done as best as he can.” What is he–a four-year-old at a Berkeley T-Ball tournament? Shall we give him a trophy just for showing up? This is the type of landlord I like to call a Cheese Ball, a cheap buffoon who thinks he can own an apartment building, take all the tax deductions, collect the outrageous rent and not spend a dime to maintain it. Oh, he’ll bitch and moan about rent control and whine about all the labor he’s expended, but you must understand that this Cheese Ball wouldn’t maintain his property if he could charge $10,000.00 a month per unit and he would never pay a professional to fix anything. I can go on and on, but maybe I should answer your questions.

The landlord is breaching the implied warranty of habitability in your lease. The landlord has the duty, even if it is not in the lease, to provide you with a “habitable” unit. California Civil Code §1941.1provides a long list of characteristics of a unit that make it “untenantable” or uninhabitable.

Roof leaks and the problems caused by them, i.e. mold, cracked paint, and of course, water dripping inside are usually clear and substantial breaches. (Civil Code §1941.1[a]) The problems you describe indicate a more general roof problem than just the skylight. While mold and mildew occur frequently in bathrooms without roof leaks, the closets are a tip-off to me.

As a former housepainter, I know that you cannot just paint over mold and mildew; it grows through the paint. And even if you kill the mold, it will return if the roof has not been adequately repaired.

Windows that rattle and leak air and, as you indicated in the unpublished part of your letter, sills that are rotted off are also violations of Civil Code 1941.1(a). Cheap foam insulation doesn’t count as repair.

Finally inadequate heat is a violation of Civil Code 1941.1(d). San Francisco Housing Code §701(c) also requires that a permanent heating source be provided that is capable of maintaining a temperature of at least 68 degrees Fahrenheit in all habitable rooms, excluding bathrooms and hallways. The Housing Code specifically requires this level of heat to be provided 13 hours a day, from 5 AM to 11 AM and also from 3 PM to 10 PM. See Rent Board Topic No. 257.

All right, now you know that it’s likely the landlord violated the law. What do you do about it? Normally I would suggest you write your landlord a letter outlining all of the problems and asked him to fix them in a short period of time, preferably not before the next ice age. BTW, if you haven’t already done so, begin to communicate with the landlord only in writing. Even if he can’t read, he will understand that your relationship has changed.

But in this case, Mr. Cheese Ball has already been notified. He’s done his best. Make a list of everything that seems questionable, call a housing inspector from the SF Department of Building Inspection and arrange a time for the inspector to visit all six units and all the common areas. Show the inspector everything. If the roof is accessible, cajole them to go up there or refer to another inspector who will. Also check to see if the building has complaints or violation from the past.

The DBI will issue a notice of violation (NOV) for the various issues and require the landlord to repair them in thirty days. You now have good evidence to use when you file a petition at the Rent Board to reduce your rent due to a substantial decrease housing services or suing the landlord in superior court for breach of the warranty of habitability.

You and all of your fellow tenants at the building should join the San Francisco Tenants Union. They can provide more specific counseling based on the facts of your situation.

Remember, you pay your rent in exchange for the landlord providing a service, nothing more or less. If he gets pissed off because you make him do his job, it’s his problem. Don’t let him make it yours. Good luck.

Call the Tenant Lawyers now for a free consultation.
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