Oughta Be A Law, #2,384

Landlords are really smelling blood in the water, aren't they? Checking out what's on Craigslist for under 600 a month, I notice that the latest development seems to be charging a "move in" or "rental prep" fee. Kinda like NYC used to have "key money" aka a bribe to the super to move into an apartment. (Of course they were rent-controlled...not to mention, in fucking New York.)

920 SE Nehalem St. #3
Move-In Costs: All payments must be paid with money order or cashier’s check
Screening Fee: $40.00 per applicant (non-refundable) Cash is okay for this payment only.
Move-In Fee: $100.00 (non-refundable)
Security Deposit: $400.00 minimum (refundable)
Rent: $565.00
http://portland.craigslist.org/mlt/apa/660800079.html

4847 SE 67th Ave
Rent: $575 per month
$45 Application fee for each person 18 and over
$300 Security Deposit (OAC), $150 Rental Prep Fee
http://portland.craigslist.org/mlt/apa/658954503.html

Nice double-dip: Charge the previous tenant's deposit for money to get the place ready for the next person, then charge the next person for the same thing.

UPDATE: And yet...is it not the fact that the "inferior classes" stopped buying houses and went back to clogging up the rental market what's giving the landlords/owners every reason to ask top-dollar? You know, that supply and demand mumbo-jumbo? Well then, maybe we're in for a treat - seems the realtor-voodoo-dolls have finally started to work and prices have begun to turn. So if you're with the rentin' & waitin' crowd, don't sign too long a lease!

http://portlandrealestateoutsider..../portland-home-prices-continue-falling.html

Comments

[Dave J.]

I notice both of those are through property management companies. Wonder if people are seeing this pop up as well with individual property owners who are renting out a house they own.

[random landlord]

These fees make up for those years (late 90s, early 00s) that we had to offer incentives such as $100-$250 off your first month's rent to get people to even think about calling us. Also, in response to Dave J's comment above: Although I work for a property management company, I also work with individual owners that need help renting out houses. I have been suggesting that they charge a move-in fee of $100 to offset their cost of hiring me to rent out their house, as I usually charge $200.

[renter]

Last year my husband and I applied for an apartment, paid our "credit screening" fees. The landlord offered us the apartment (we expected we'd get it -- we have a good record). I later checked our credit reports and found that no one had requested any info. I still don't know if the landlord went through some other system, but I wondered if he just pocketed the money and trusted that we'd be good tenants.

The other gimmick that's becoming big: charge premium rates for parking spaces. That means that neighborhoods around apartment complexes are terrible for on-street parking, while their lots have open spaces.

In defense of landlords, I've always received my full cleaning deposit back because I leave my apartments really clean. (And I have a well-trained pet.)

[Fred Stewart]

I will not fault a landlord for taking advantage of the market. Landlords have to make sure they are getting the most out of their investment possible.

However, I do feel it is governments job to make sure all residents of Portland are treated fairly. Rent Stabilization is needed SOON. There has to be a formula that will support the right of a landlord to realize a profit and protect renters from being pushed out of their homes simply because their incomes have not increased as fast as the average monthly rents in the neighborhood they live in.

Keep in mind, the rental market was pretty lame for nearly 10 years and many landlords are just making up for lost time. There are also many landlords that bought properties using closed in adjustable rate loans and are dealing with payments that are escalating due to the terms of their agreement with their lender. In many cases, these rent increases are just passed through to the renters to cover the increase.

Lastly, landlords should have to pay a transfer fee to the city every time they increase rents on an occupied property. This fee should equal no less than 3 months of the increase. Rental increase of $100 per month would equal a $300 fee to the city. These fees would be used to help develop more options for low income housing in Portland.

[Fred Stewart]

I just do not like it when Landlords are given access to credit information. I do not mind if there is a licensed property management company involved or a Real Estate Broker as their conduct is managed by the state of Oregon. I feel there should be an alternative that will allow the landlord to obtain the information they need and protect the renter from harm. Having to expose ones personal credit information to a stranger that has no over sight by state or federal government just scars the hell out of me.

Plus it is not common for landlords to collect a fee for obtaining credit information and then using the fee for beer money (just joking) at the very least the city of Portland should make sure if a fee for credit reports is collected that a credit check is performed.

[random landlord]

Fred Stewart, I'm not sure about the transfer fee you propose above. Wouldn't it be easier (and smarter, financially) for me to just give a tenant a 30-day no-cause notice of eviction and THEN raise the rent for the new tenant by $100 in order to avoid paying $300 to the city? I'm all for figuring out new ideas for affordable housing--don't get me wrong. But if I--a mere cog in the housing machine--can figure out a way around your proposed transfer fee, then imagine what the people that actually make money at this could come up with.
I'm definitely on board with your credit access thing, though. If it makes you feel any better, there are a ton of new rules recently about what I do with your personal information. For example, I can no longer plug your social security number into Yardi (the software we use for forms and acctg). We also have a dedicated employee at corporate that has to train us to shred stuff. No more old rental applications in the recycling bin and such.

[Fred Stewart]

Random Landlord, posting a 30 day notice would not escape the fee. The cap is seated with the renter so the only way you could realize the increase with your 30 day notice plan is to find a new renter.

The goal of this measure is to keep renters from being pushed out of homes for the simple quest of profit. Placing a 10% cap on how much a renters monthly payment can increase per year is not going to encumber a landlord from making a reasonable return on thier investment.

While out knocking on doors, I have come across a few people that have seen their rents increase 20% just this year. One person has seen their rent increase from $1250 per month to $1695. Keep in mind this renter has only occupied this unit for 7 months. There has to be balance and the city should regulate that balance to protect the landlord and the renter.