While each rental agreement is unique, the questions renters ask are often similar. Here are some of the most common questions answered.
Are utilities included in the lease agreement?
Typically, tenants pay for utilities. While some utility rates are fixed, many are dependent upon use. Having tenants pay for their own utilities gives them some control over their monthly expenses—by reducing their electricity and gas usage, for example, they can reduce their bills. In apartment complexes where there’s only one sewer or water hookup for the building, it is impossible to tell which tenants are using which utilities the most, so most landlords spread the cost among all units and include the cost in the monthly rent.
In addition to rent and utilities, are there other fees associated with renting?
Fees depend on local regulations and individual lease agreements. For residences, additional fees are mostly limited to the costs associated with processing a rental application and safeguarding the property against potential damage. Standard fees include an application fee, a security deposit, and a pet deposit (if pets are allowed).
The amount of these fees depends on how much time the application process takes and how much of a risk the tenant is perceived to be. Individual property owners may not take the time to verify income, run a credit check, complete a criminal background check, and call multiple former landlords, but property management companies often do. Also, property management companies usually require tenants to carry renters’ insurance.
If I have a co-signer, can I rent the apartment?
If you have insufficient income, no rental history, or poor credit history, landlords may ask for a guarantor or “co-signer” who would be responsible to pay your rent if you cannot. Thorough landlords verify prior tenancy and if we learn that a tenant was a nightmare to work with, we won’t rent to them, co-signer or not. Some tenants are not worth renting to at any price. When a tenant doesn’t appear to have quite enough income or their credit score is marginal, a co-signer is a good option. That co-signer is then legally obligated to meet the terms of the lease agreement if the tenant defaults.
What are red flags when it comes to renting a place?
If a rental has been on the market for more than a month, ask yourself (and others) why. In this market, decent rentals go quickly. Also, if a landlord is really pushy but not able to show you the inside of the property, that’s a huge red flag. There’s a scam where people pretend to be the landlord but make excuses about why they cannot show you the inside of the property, and then they take off with your deposit.
What’s the deal with rent control?
In California, all residential rentals are under some level of rent control. In Ukiah, we default to state regulations (we don’t have additional local rent control ordinances, thank goodness). The state limits rent increases to a maximum of the cost of living plus 5% per year—and a total maximum of 10% per year. The market also naturally limits rent increases—a landlord won’t usually be able to rent their place if they charge more than the going rate. On the flip side, a landlord knows the value of a good tenant and will sometimes offer a slight discount to get one.
When it comes to renting a home, almost everything is negotiable. If you want different terms, ask for them. The worst that can happen is the landlord will say no.
If you have questions about property management or real estate, please contact me at rselzer@selzerrealty.com or call (707) 462-4000. If you have an idea for a future column, share it with me and if I use it, I’ll send you a $25 gift certificate to Schat’s Bakery.