Renter Laments: Landlord Removes Amenities

Renter Laments: Landlord Removes Amenities

Robert Griswold | Steven R. Kellman | Ted Smith
31-Jan-1999 Sunday

This column on issues confronting renters and landlords is written by Certified Property Manager Robert Griswold, host of Real Estate Today! (KOGO Radio, 1 p.m. Saturdays) and by attorneys Steven R. Kellman, director of the Tenants' Legal Center, and Ted Smith, principal in a law firm representing landlords.

Q: We rented a property a few years ago that featured a great weight room and gas barbecues. Recently, the weight room was turned into a storage room for the owner and the barbecues have been removed. To make matters worse, the owners have just sent out very large rent increases to all of the long-term tenants. This doesn't seem right. The manager apologizes but indicates that it is out of her hands. What can we do?

A: Kellman: It is not right, but it may be legal. Remember that landlords may change the terms of month-to-month tenancies on only 30 days notice. It is more difficult and may be a breach of contract to make such changes in the common amenities if there are fixed-term leases in the complex.

A few years ago, good tenants were scarcer and apartments needed incentives to fill vacancies. If you believe the weight room and the barbecues were put there because the landlord really cared about your quality of life, I heard of a bridge in Brooklyn you can buy, cheap.

The rental market has changed so dramatically that good tenants will rent virtually any apartment, without incentives. This has caused some landlords to take advantage of the situation by removing services and raising the rent as well. This is a double reduction for tenants since they now pay more and get less.

While some courts may provide certain relief for the removal of services or amenities, there is much in the law that favors the landlord's right to make these type of changes.

The better approach is to temper this profit opportunity with reason, common sense and compassion. The rental market will not always be this way.

Griswold: On the surface, your situation clearly seems to be one-sided. And while Steve has accurately portrayed the shift from a renters' market to a landlords' market, I believe that the proper way to analyze the equity of your situation is to look at the total value you receive for your rent
dollar vs. other rental communities.

You can do this by contacting other apartment communities in your area and evaluating the amenities and features of your community vs. the rent charged.

If your research shows that other communities offer more amenities at the same or lower rent, then you have two choices. First, you may be better off moving, but be sure to get a long-term lease. Alternatively, you could approach the owner with this information, which may open a reconsideration to reconsider the elimination of the barbecues and weight room.

Also, consider possible reasons behind the owners' actions. It can be very expensive to operate and maintain these particular amenities. While everyone wants weight rooms and barbecues when they move in, in reality they are used infrequently and often are abused by vandals. And there is
the potential for a serious safety hazard if a vandalized barbecue uses natural gas.

Q: As a landlord, it is my understanding that the tenant/landlord laws for the city of San Diego provide that no disabled person shall be evicted without 90-day notice. I know that there is nothing about this in the Americans with Disabilities Act, but I am certain that there is a local or state law to this effect. Am I right? Does this law also apply to other changes I may want to make in the rental agreement, like the amount of rent charged?

A: Kellman: I am not aware of any such local law that requires a 90-day notice to terminate the tenancy of a disabled person. The ADA (a federal set of laws) deals with giving disabled persons equal access and protection from discrimination regarding certain facilities such as rentals. It does not lengthen the procedures a state or city has set up for its eviction process.

If your rental agreement is for a month-to-month tenancy, it generally may be terminated or the rent increased on 30 days written notice.

After a court orders an eviction, it is the marshal who actually removes the tenant. In extreme situations, the court or the marshal may refuse to evict a critically ill tenant for fear of seriously threatening their medical condition. Such humanitarian acts are certainly commendable but not specifically authorized by law.

The obligation of protecting our disabled neighbors in landlord/tenant matters (i.e. extended eviction notices etc.) should be addressed by our city governments in the form of laws similar to those you mentioned.

Smith: There is no law in your city forcing a 90-day notice to vacate because you are disabled. Yours is probably a regular month-to-month tenancy -- a 30-day notice is all that is required.

The Americans with Disabilities Act and the federal Fair Housing Amendments do not extend this notice period for the disabled. While it may be true that the landlord cannot discriminate based on your disability, he is not required to give you extra time to vacate.

Prudent landlords treat all tenants with equal respect and dignity. It's not reasonable to ask that you be singled out for special treatment. Make sure you give the landlord no reason to make you move. Pay your rent on time and comply with all rules and regulations.

Q: Help! Due to my husband's job transfer, our house in Vista has been on the market for three months but we have had no offers. This is at least partially due to a construction defect lawsuit in which the homeowners association sued the developer and won.

Good for them, except that it's now a liability for us. Every real estate agent showing our house has asked about this lawsuit.

Now we feel compelled to rent the home. Several people have told us that we should have no trouble renting. However, I have seen three other homes for rent in our neighborhood in the newspaper for three weeks now.

Will my property lose value if prospective buyers know that it has been rented? Can I write off any part of the loss between rental income and my mortgage/homeowners expenses?

A: Griswold: No, I do not believe that your home will lose value by renting it as long as the property is properly maintained. The for-sale market is only going to get stronger.

Further, the mere fact that your home has been rented should not automatically lead to a lower sales price.

Obviously, the key is to get the right renter who will treat the home properly. Naturally, you will still have some wear and tear on your home that will need to be addressed before you list the property. Also, while some real estate agents may disagree, I firmly believe that it is much better to try to sell your property while it is occupied.

In general terms, you should report all of your annual rental income and deduct all of your operating expenses (homeowners' assessment, utilities, property management, insurance, taxes, etc.).

If you have a loss, you can deduct it (up to $25,000) if your annual adjusted gross income is less than $100,000. The $25,000 is phased out between $100,000 and $150,000.

Of course, you can still deduct the mortgage interest deduction just as you are doing now. This can provide big tax savings! Check with your tax adviser.

IF YOU'RE A TENANT OR LANDLORD, the authors stand ready to answer your questions in this column, although letters cannot be answered individually. Write them at: Rental Roundtable, Homes Section, San Diego Union-Tribune, P.O. Box 120191, San Diego, CA, 92112-0191. Or you may e-mail them at rgriswold.ret@retodayradio.com.

Back to 1999 Rental Roundtable Index

Robert Griswold and the Real Estate Today! radio show strongly support the intent and the letter of all federal and state fair housing laws. As a reminder to all owners and managers of real estate, note that all real estate advertised is subject to the Federal Fair Housing Act, which makes it illegal to advertise "any preference, limitation, discrimination because of race, color, national origin or ancestry, religion, sex, physical disability, or familial status, or intention to make any such preference, limitation or discrimination." Additional state and/or local fair housing laws may also apply. Be sure to inform all persons that all dwellings offered or advertised are on an equal opportunity basis.

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Revised and Updated - Wednesday, April 26, 2006

Robert S. Griswold, CRE, CPM, CCIM, PCAM, GRI, ARM
Griswold Corporate Center
Griswold Real Estate Management, Inc.
5703 Oberlin Drive, Suite 300
San Diego, CA 92121-1743
Phone: (858) 597-6100
Fax: (858) 597-6161
Email: rgriswold.ret@retodayradio.com