Landlord Right on Lease Default

QUESTION: I live in Calabasas now, but this letter concerns an apartment in an almost-new apartment building in Sherman Oaks that I never moved into. Mid-March of this year, I signed a one-year lease for the Sherman Oaks apartment to commence on April 1, 1991. Exactly one week before the lease was to commence. I was informed by my company that I would be relocated out of the county.

I notified the manager and leasing agent of my situation as soon as I became aware of it. The owner did return my security deposit money but withheld the first month’s rent. I was told that if the apartment was rented prior to May 1, 1991, that I would receive a pro-rata refund of any money due me.

As I expected, April came and went and they told me that the apartment did not rent in April. Therefore, they kept the one-month’s rent. Here’s my question. At this point, is there anything that I can do to get the rest of my money refunded?

ANSWER: Most lease agreements contain language like the following, “In the event the Tenants breach the Lease and abandon the property before the end of the term, or if Tenants’ right of possession is terminated by Owner because of a breach of the Lease, Owner may recover the amounts set out in Paragraph 1951.2 of the Civil Code. . . .”

Civil Code Section 1951.2 runs about 4 1/2 pages in the Civil Code book. However, subsection (a), part (4), says you are liable for, “Any other amount necessary to compensate the owner for all the detriment proximately caused by the lessee’s failure to perform his obligations under the lease or which in the ordinary course of things would be likely to result therefrom.” That pretty well sums it up.

It means that an irate landlord could sue you for the costs of re-advertising the vacancy, any needed credit checks run in the course of re-renting it, and for unpaid rent until the unit is re-rented, among other things. Few landlords sue for such expenses. A lawsuit by you is probably not a wise move.

If you can demonstrate that the owners didn’t make “good faith” efforts to re-rent the vacant unit, you do not have a case. Most new rental projects heavily advertise their vacancies, particularly in the San Fernando Valley, which has a very high, 10%-15%, vacancy rate.

(Take heart about one thing: Given a written one-year lease, the owner had the right to sue you for any rent lost until actual re-rental.)

Landlord Must Give 24-Hr. Notice to Enter

Q: I own a rental home located more than 300 miles from my residence in Leucadia (north San Diego County). I would like to inspect the premises a couple of times a year just to make sure everything is all right.

Since I am new to the business of landlording, I’m unaware of the technique that I should use to inspect the property without making the tenants feel uneasy and coming across as a nosy landlord. What can I do?

A: That’s a tough one. It is always difficult to avoid looking like a meddler when you inspect a rental unit, but we’ll give it a try. You don’t say in your letter whether or not your rental home is located in the state of California, however. I will assume that it is. (If your property is located out of state, the law may vary.)

The legal answer to your question about this state law (Civil Code Section 1954) appears in the May issue of Apartment Age magazine. According to Kevin Riley, legal assistant, city attorney’s office, Los Angeles, “With 24-hour written advance notice to the tenant, you have the right to make legal entry to inspect smoke detectors, utilities, fixtures, and to check for pest infestations.”

Utilizing the above “excuses” to enter will get you in the door. The tricky part, as you’ve indicated in your letter, is to avoid looking like a busybody.

You should try to give the tenants advance notice of your visit by phone, before the formal, written notice to enter. Let them know that you are going to be in town next week making your semi-annual tests of the smoke detectors and so forth. Ask them to note any problems they are having with the house so that you can get them taken care of right away.

This phone call will set the tone for the inspection and give you an idea of how the tenants view it. It also gives them plenty of time to get the house clean and otherwise get ready for your visit.

Often, if tenants have enough notice of your visit and time to fix little problems in the house they will do so. That helps give you and them the opportunity to get your relationship off on the right foot.

Other reasons for which you can enter a dwelling, all require at least 24-hour notices of your intent to enter, include the following.

1--To make necessary or agreed repairs, decorations, alterations or improvements.

2--Supply necessary or agreed services.

3--Exhibit the dwelling to prospective or actual purchasers, mortgagees, prospective tenants, workmen or contractors.

4--Pursuant to court order.

Notice of Intent to Enter forms are available from most stationary stores or from your local apartment association. In your area that’s the San Diego Apartment Assn., phone 297-1000.

The law also allows you to enter a premises, without notice, in an “emergency.” Exercise extreme discretion whenever entering in an emergency. If you’re not absolutely convinced it’s a true emergency requiring your entry, don’t enter.

Interest on Deposit Law Not Retroactive

Q: I live in Canoga Park and, even though you’ve written about it several times in Apartment Life, I’m still unclear about Los Angeles’ new law that requires apartment owners to pay interest to tenants on their security deposits.

I have lived in my apartment since March, 1985. Since the interest is payable every five years, am I now entitled to a payment, or is the interest available five years after the law passed, in November, 1990? Also, does the law affect Canoga Park?

A: Canoga Park is a part of the city of Los Angeles. As such, the rent-controlled apartments there are covered by the interest on deposits law. (Units not covered by the rent law are not affected by the interest law.)

Assuming the law affects you, it is not retroactive, so you are not due for an interest payment until 1995, unless the owner opts to pay you annually, which the law allows; or, unless you move out more than 12 months after November, 1990. The interest is paid at the rate of 5% per year, simple interest.