Sloping, Rickety Floor Gives Worried Renter that Sinking Feeling

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

This column on issues confronting renters and landlords is written by Counselor of Real Estate and Certified Property Manager Robert Griswold, host of Real Estate Today! with Robert Griswold (10 a.m. Saturdays on AM1130 - KSDO radio, or on the Internet at www.retodayradio.com), and by attorneys Steven R. Kellman, director of the Tenants' Legal Center, and Ted Smith, principal in a law firm representing landlords.

Q: We live in a prefabricated house and the floors have a sloping feeling
to them. We contacted the rental managers but they tell us the landlord
knows. I can't understand why the landlord would risk his investment. We
have spoke to several engineers who have actually crawled under the house
and they don't know how the house is still standing. Do we have any rights?
I'm afraid one morning we'll wake up to a hole in the floor where the
plywood has broken!

A: Griswold: You may want to contact the local government health and
safety, code compliance or building inspection department and request an
inspection. They can tell you whether the owner is in violation. Of course,
should an injury occur, the owner may be responsible, as you have placed
them on notice. To be sure there is no doubt about the notification, I
would suggest that you send another notification to the owner in writing.

Kellman: Your rental unit must be maintained in a habitable condition. This
means that the floor must be safe. You have done your job as a responsible
tenant by notifying the landlord about the problem.

The landlord has not been so responsible by allowing the condition to go
unrepaired. This creates a risk to your safety and you have the right to
have that dangerous condition corrected.

You can certainly contact your city or county building code compliance
authorities to inspect the problem. In this way, you will receive much
protection under the law.

Our colleague Ted Smith points out that you are still living there, but
that does not mean you are living safely. Do not be intimidated by the
landlord or by what the inspector might say. Many tenants keep silent when
they should be heard because of this kind of fear.

If you are forced to move due to the fault of the landlord, he or she may
be made to pay you for the move. If you have lived in substandard
conditions, you may be entitled to a refund of some or all the rent you
paid depending on your situation.

Smith: For rental purposes, prefabricated homes -- like their
conventionally constructed counterparts -- need only to have minimum
habitability. The most essential home services are all that need to be
provided by your landlord. You may fear a problem with the flooring, but I
note you continue to live there.

Let me give you a further word of caution. Pressuring the government
building inspector could backfire on you. If he orders the landlord to make
structural changes to the home, this might require you to vacate the
premises.

The landlord would have every right to ask you to move in order to comply
with the building inspection report. Try a conciliatory approach with your
landlord to see if the matter can be resolved amicably.

Time to say good buy

Q: I am a renter, but thinking seriously about buying a home. I have heard
that there are owners of rental homes who are willing to sell on a
lease-option basis and that this makes a lot of sense for both parties.
What do you think?

A: Smith: A lease with an option to buy is a contract that lies in that
gray and complex legal area between a straight sale and rental of the
property. It has aspects of both.

On the one hand, the lease portion creates a rental contract between the
parties. The option portion gives the tenant the right -- but not the
obligation -- to buy the property on certain terms and conditions. This
feature makes the lease option attractive to tenants who otherwise may not
be able to qualify for a loan.

For the owner, it's a decent alternative if the prospects for a straight
sale are not bright. Care must be taken in drafting the lease, with
particular attention paid to the option provisions.

Kellman: While Smith paints a somewhat rosy picture of lease options, he
fails to tell you of the thorns, which can easily hurt an unsuspecting
tenant. In many such contracts, the tenant pays an extra amount of "rent"
each month, which is supposed to go to the purchase price. A tenant may
dutifully pay this money and even put more money into the home hoping to
own it in a few years.

Unfortunately, many tenants never get past the hope. If the price of the
home has gone up well past the pre-agreed option price (i.e. you would get
a great deal), the landlord may look for an opportunity to cancel the
contract, leaving you empty-handed.

How can that happen? Easy. Remember that an option to buy is not automatic.
There must be a formal exercise of that option within the prescribed time.
Miss a deadline and the option is lost. Some contracts say that if the
tenant is in default on the lease, the option is lost. Default can be
declared for something as minor as a late payment of rent.

Some contracts say that the tenant must obtain a loan from a bank to
complete the sale. If you can't get the loan on time, the option is lost.

Put out at getting put out

Q: I rent by the month, and my landlord (of 10 years) called last night to
announce the sale of the property to a person who wants it as a personal
residence, and the party wants a 30-day escrow.

This forces me out with little time to find a suitable replacement. My
landlord said he wanted to "make it easy for me" and wanted to know my
terms before proceeding. I would like to demand more time (60 days if
possible) and since the landlord is selling the house anyway, a release
from that 60 days' rental fees.

If my request is rejected, I want to be prepared to respond from an
informed position. Is this legally realistic, and if not, what are my best
opportunities at stalling for more time and less payment obligation?

A: Smith: Despite your lengthy stay, your tenancy has always been just
month-to-month which is terminable by proper written 30-day notice. The
landlord has every right to sell the property and a 30-day escrow is a good
deal for him.

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.sdut@retodayradio.com

Copyright Union-Tribune Publishing Co.

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