Of the estimated 211,154 residential units foreclosed on in California during 2009, roughly 77,145 were rental units, according to a new report focused on tenant rights.
The foreclosures resulted in the displacement of an estimated 208,795 tenants who were living in single-family homes, condos, and multi-family apartments, despite likely making on-time mortgage payments every month.
From 2008 to 2009, there was a 70 percent increase in the foreclosure rate of apartment buildings of five units or more – single-family foreclosures fell 3.1 percent year-to-year.
An overwhelming 85 percent of the foreclosed properties went back to banks and mortgage lenders in 2009, while private investors took the rest.
During the year, banks forfeited more than $776 million in rental income, focusing on booting tenants by hiring lawyers to litigate eviction cases and having real estate agents carry out cash-for-keys deals.
“Once the properties are vacated, they become prime targets for vandalism, further contributing to plunging property values, and creating legal liability for banks as the owners of blighted vacant property,” the Tenants Together report said.
“Furthermore, banks continue to tarnish their standing in local communities by maintaining their policies to evict rent- paying tenants.”
Fannie Mae and Freddie Mac have implemented post-foreclosure programs to assist renters, but many banks apparently continue to see tenants as obstacles to future profits.
Tenants Together is calling for better tenant protections, including making the “Protecting Tenants at Foreclosure Act” (PTFA) permanent, passing local “just cause for eviction” laws, providing tenant notification when a landlord receives a foreclosure filing, and boosting legal funding for tenants in foreclosure situations.
Currently, PTFA provides tenants with the right to a 90-day notice to vacate after foreclosure and requires new owners to allow tenants with leases to continue occupying properties until the end of the lease term, unless sold to a buyer who intends to occupy the property as their primary residence.
The owners of Barrington Plaza, an aging Los Angeles apartment complex with a record of life-threatening fires, said Monday that they plan to evict all tenants to make way for a sprinkler retrofit that will cost more than $300 million and take several years.
Landlord Douglas Emmett Inc. notified city officials that it will withdraw all 712 units in Barrington Plaza from the rental market under the Ellis Act. The state law allows landlords to remove tenants from rent-stabilized apartments if their building is removed from the rental market.
It is expected to be one of the largest mass evictions in the city in recent years, affecting 577 occupied units, some of which house tenants who have lived in the property for decades under rent controls that keep their monthly payments below market rate.
Residents were notified Monday of the planned closure.
Tenant rights advocate Larry Gross of the Coalition for Economic Survival said Douglas Emmett should have planned to temporarily relocate the tenants and allow them to return to their rent-controlled units when repairs are complete.
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“There are long-term tenants who are going to end up being displaced and will have to pay much higher rents” in the future, he said. “They won’t be able to find comparable housing in the neighborhood or even the city.”
The complex at Wilshire Boulevard and Barrington Avenue in L.A.’s Sawtelle neighborhood will be returned to the rental market when the upgrades are complete, the landlord said. No completion date has been set and there are no provisions for tenants to return to their units.
Current tenants may have as long as a year to move out and, in the case of elderly or disabled occupants, could receive more than $22,000 in financial assistance for relocation, the landlord said.
Relocation expense payments for tenants who have lived in the building for less than three years will be as much as $9,200 and may be used for such costs as first and last months’ rent in another apartment, security deposits and moving fees. The dollar amounts follow city eviction guidelines.
Due to high turnover, most tenants are currently paying market rate rent, the landlord said.
The three-tower complex was built in the early 1960s, which puts it in a group of 55 residential towers in Los Angeles that are exempt from laws requiring sprinklers that are triggered by fire. Sprinklers are mandated in most apartment buildings, but the city has maintained an exemption for high-rises built between 1943 and 1974. Among them are condominium buildings occupied by owners who have resisted the expense of adding sprinklers.
The lack of sprinklers at Barrington Plaza proved dangerous in 2013, when one of its three towers caught fire, displacing 125 residents. Fire erupted again in the same 25-story structure, known as Tower A, in 2020. A 19-year-old man died and 13 people were injured, including a 3-month-old baby and two firefighters. Eight floors in the building were red-tagged by city inspectors as unsafe to occupy and remain vacant.
Although city law does not require Barrington Plaza and other residential towers of its era to perform sprinkler retrofits, city officials did make approval of Barrington Plaza’s planned repairs from the 2020 fire contingent on upgrading the safety standards of all units.
“We understand the impact removing all Barrington Plaza rental units from the market will have on our tenants,” Douglas Emmett Chief Executive Jordan Kaplan said in a statement. “Unfortunately, this is the only way to comply with city directives to install fire sprinklers and other life safety improvements throughout the towers following the January 2020 fire.”
Barrington Plaza will have relocation specialists available at the property who can provide individualized tenant support and aid in locating, viewing and moving into new residences, the landlord said. There will also be a telephone hotline to answer tenant questions.
“Although almost 75% of our residents have been at Barrington Plaza for less than three years, we have some residents that have been here over 20 years, and we want to make sure that this process is as seamless as possible for them,” Kaplan said. “That is why we are going far beyond the Ellis Act requirements by providing individualized relocation support tailored to the specific circumstances of each tenant.”
Gross said the landlord should use other means to protect tenants’ housing at Barrington Plaza.
“That’s one of the largest complexes on the Westside,” he said. Its “rent-controlled units will be lost forever if they use the Ellis Act.”
Years ago, I discovered cockroaches in my Chicago apartment. I spent money on sprays, traps, and other pest control gadgets to rid my place of the disgusting rent-free tenants, but I was no match for them.
So I turned to my landlord for help. If he refused, I’d withhold rent or break my lease—I was justified, right?
Maybe. Maybe not. Rental laws and tenant rights vary from city to city, and it actually might not have been OK for me to up and leave—even if my landlord wasn’t getting the job done. (Thankfully, it didn’t come to that: He quickly hired an exterminator, and I lived out the remainder of my lease roach-free.)
But like I did, many tenants believe that you can simply deduct or skip rent for problems or repairs—which is just not true. And there are other myths about renting that are widely believed. Here are some of the most common ones—and the truth behind them.
1. You’ll never land an apartment with a bad credit score
Yes, bad credit can make things more challenging, especially in a competitive rental market. But it doesn’t automatically disqualify you as a rental candidate.
When you fill out an application for housing, you’ll undergo a credit and background check. But other factors—such as applying with a roommate, proof of pay stubs, or letters of recommendation from your previous landlords—may help seal the deal.
2. The longer you’ve lived somewhere, the greater the chances you’ll lose your security deposit
So you’ve lived in a place for only a year, and there’s no damage to speak of—you’ll probably get your security deposit back, right? But if you’ve lived there longer, you’re probably thinking you can kiss that deposit goodbye.
It isn’t always so cut and dried, says Megan Perkins Roldan, property manager at Chestnut Tower Apartments in Chicago.
“We definitely take into account the length of tenancy when assessing wear-and-tear damages and expect that longer-term residents will need more work from us at move-out,” Roldan says. “But it’s not necessarily [considered] damage.”
The best way to avoid charges is to leave the unit in the condition it was when you moved in, whenever that was. Do a deep clean, patch large holes, and repaint any custom-colored walls.
3. Your landlord can evict you for any reason
If you’re on a signed lease, a landlord typically can’t evict you for any reason. The landlord must show sufficient evidence that you’ve broken the lease agreement, and your eviction is justifiable. (If you’re renting month to month, however, the rules get a little fuzzy.)
What’s more: You shouldn’t come home to find the locks changed and your stuff out on the street. To evict a resident, landlords or property management companies must provide sufficient and specific written notice, according to Nolo, one of the largest online libraries of legal information for consumers.
If you fail to move or change your behavior after receiving the notice, the landlord has the legal right to proceed with a lawsuit to evict you.
4. A landlord is responsible for all repairs and maintenance
The responsibilities of the landlord or property manager vary depending on where you live and the terms of your lease. In general, your landlord is on the hook to handle such things as general maintenance, noise complaints, plumbing issues, and pest control.
But there are some things that simply aren’t your landlord’s problem—usually if it’s something caused by you.
“If the damage is due to the tenant’s negligence, the landlord might choose to address the repairs and withhold the cost of the repairs out of the tenant’s security deposit,” says Daniel L. Staley, associate broker at Staley Real Estate in Rhinebeck, NY.
And, if damages are severe enough, it could cost you more than your security deposit—we’re talking lawsuits.
5. You can deduct rent when you do your own repairs or maintenance
While it might seem easiest to just subtract the money you spent on repairs, this could get you into trouble down the road—especially if you haven’t discussed this arrangement with your landlord.
Leave the work to your landlord, and make sure to send him an itemized list of what needs to be done. That way, if the landlord refuses to do the repairs, you have ammo to take to a higher power.
Renters can call their local building inspectors “to inspect [the place] and force the landlord to make the repairs that are required by code,” says Alicia Bosben, broker property manager at the Realty Tree in Madison, WI.
6. Rental prices are set in stone
We won’t lie: You don’t typically have much bargaining power when it comes to how much you’ll pay—especially in a hot rental market. But each landlord is different, and you do have a few tricks up your sleeve.
First, consider a longer lease. Landlords don’t usually want to deal with turnover. If you can commit to being in for the long(er) haul, they might be more willing to negotiate the rental price and lease terms.
Second, consider your time frame. There are typically more rental vacancies in winter, so landlords might be more inclined to strike a deal at that time.
Finally, arm yourself with info to help your case: Know the vacancy rate and the going rate for similar units in the area, and bring recommendation letters from your current landlord to show you’re a good tenant.
7. Landlords can enter your place whenever they want
A landlord may need to enter your unit for a variety of reasons—to show your unit to prospective tenants, to check the fire alarms, or simply to do routine maintenance.
But legally, a landlord can’t enter your apartment whenever he wants. He must provide you with sufficient warning, generally 24 hours.
There are some exceptions, of course: If there’s an emergency—like fire or a sever water leak—landlords can enter without notice.
8. You’re flushing away money by renting
Sure, buying a home is a good investment. But there are a ton of reasons why renting isn’t a bad investment.
It might be better for you financially, you might like having someone on call for maintenance and repairs, or perhaps you simply want the flexibility to up and move whenever you want. Plus, renting can allow you time to save for a down payment on that house.
So the next time well-intentioned friends or family members try to tell you that renting is a bad move, tell them it’s a myth—and you can debunk it.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Breaking a lease won’t hurt your credit if all debts are paid. However, if you leave debts unpaid, breaking your lease early can cause your credit to take a hit.
Breaking a lease is relatively common and can happen for a number of reasons. Oftentimes, a new job can require you to move midway through a lease. Other times, personal issues arise that can force you to cut your lease short.
As a result, it’s rather common for tenants to leave leases early, and it doesn’t make you a bad or unreliable tenant if you must. However, landlords will still expect full payment for the entire lease term, even if you’re moving out months in advance.
If you do have to your break your lease, it’s crucial you’re not indebted to your landlord. When tenants owe landlords money, landlords will sometimes hire collection agencies to collect debts, introducing a whole new set of problems—one of which can be a hit to your credit score.
Maintaining a good credit score is important for a number of reasons. A good credit score can:
Give you more housing options
Help you qualify for low-interest credit cards
Save on insurance
Make you a stronger job candidate
Your credit score follows you around wherever you go. Therefore, when your score goes down, it can be a tremendous setback—and can take you years to reconcile.
As a result, protecting your credit is one of the most important things you can do—and breaking a lease shouldn’t have to jeopardize it . Keep reading as we explain how breaking a lease early can affect your credit and ways you can break a lease while protecting your credit.
Does breaking a lease early affect your credit?
Breaking a lease doesn’t directly show up on your credit report, but the consequences of breaking a lease, if you’re indebted to your landlord, can have compounding effects that sometimes result in a knock to your credit.
If you leave debts unpaid after breaking your lease, your landlord will likely use a collection agency to reclaim your debts. Your landlord probably won’t report the debt to a credit bureau, but the collection agency likely will.
If this happens, your credit will suffer, which can greatly affect you down the road.
Ways breaking your lease can hurt your credit
Like we said, breaking your lease doesn’t directly affect your credit, but the fallout often can. If you break a lease and don’t pay outstanding debts, your landlord may handle it in a couple different ways. A few possibilities include:
Your landlord may involve a collection agency: As we mentioned earlier, a landlord will sometimes bring in a debt collector if you don’t pay your remaining rent. If this occurs. the collection agency will likely report you to a credit bureau.
You may have trouble renting again: If your credit takes a hit, it will likely affect your ability to rent in the future. A 620 or higher is the usual score needed to rent an apartment. Most landlords run credit checks prior to renting to a tenant.
How to break a lease and protect your credit
The lesson here is that it’s best to proceed with caution when breaking your lease. Use our tips below to ensure you leave your lease with peace of mind.
Review the lease contract
Knowing your rights as a tenant is the first matter to address when breaking a lease—and the lease contract is the place to start. Sometimes, the contract will give you an easy out, like paying a small fee or allowing subletting. However, it’s pivotal you review the intricacies of the contract before beginning the process of breaking the lease, so as to be aware of your rights as a tenant.
Be transparent with your landlord
Having a one-on-one conversation with your landlord is a must if you plan on breaking your lease. If you’re transparent with your landlord about why you’re breaking the lease, they’ll most likely work with you to reach a solution that benefits everyone.
Keeping your landlord in the loop is a great way to create a line of communication and ensure they don’t take any negative action against you.
Look for a subletter
Subletting isn’t allowed in all lease contracts, but if it is, it can give you peace of mind in breaking your lease. Subletting, by definition, means finding someone else to take over the remainder of your lease. If you elect to sublet, it’s essential to check with your landlord first to ensure them you’re subletting to a reliable tenant.
Since your name will remain on the lease, you’ll ultimately be responsible for any issues with the subletter. As a result, it’s important to screen whoever is taking over the remainder of the lease.
Pay outstanding rent up-front
If you’re able, paying your outstanding rent balance at the time you break the lease is typically a foolproof way to ensure the landlord doesn’t take any negative action against you.
While there may be more intricacies within the lease agreement when it comes to breaking the lease, settling outstanding debts eliminates the possibility of the landlord bringing a collection agency into the picture. And in almost all cases, disputes over breaking a lease boil down to outstanding debts.
Situations when you can break a lease without repercussions
There are certain situations where tenants are protected by law when breaking a lease; therefore, it’s essential to know when you can break a lease without repercussions. The examples below vary from state to state and can require that some specific notifications are made to the owner of the property before exercising your right to break the lease. It is important to know your responsibilities under your state law before breaking your lease.
The unit is uninhabitable/doesn’t comply with housing codes: If you believe that your residency isn’t complying with health codes, look into state laws to confirm your suspicion. States have certain health codes that rental units have to adhere to. If your rental isn’t complying, you can terminate your lease without repercussion.
Tenant rights were violated: While some tenant rights differ from state to state, federal rights like anti-discrimination laws, privacy laws and the right to a habitable home protect tenants on the national level.
You’re active military: Tenants who are active duty military can break a lease without repercussions. The Servicemember’s Civil Relief Act allows military members to break leases due to their service.
Breach of quiet enjoyment was violated: The Covenant of Quiet Enjoyment guarantees that the tenant will get a peaceful environment. This is implied in lease agreements and, if violated, allows you to break a lease without repercussion.
The lease has a termination clause: Some leases include a termination clause that just involves paying a small fee. Make sure you review the lease contract before telling your landlord that you’re breaking the lease to see if a termination clause is included.
Frequently asked questions
Navigating the legalities of a lease contract can be difficult for tenants. As a result, other questions often arise when breaking a lease. Some common questions tend to be:
How long does a broken lease stay on your credit report?
The broken lease itself will not appear on your credit report, but any unpaid rent or other fees can stay on your credit report for up to seven years.
Does paying rent build credit?
Paying rent won’t build credit unless you report your payments to a credit bureau each month. In order to do this, you’ll need to sign up for a subscription service that reports rent payments for you. Your landlord will also need to sign up for the subscription in order to receive the payments through the service.
Keep in mind that it may be unlikely that your landlord will want to participate in this system, since they likely have their own system for collecting rent payments.
Rent-to-own, which involves renting a home with the intent to purchase it at the end of the lease contract, does not directly affect your credit either. Unlike mortgage payments, rent-to-own payments are not reported to credit bureaus.
Can you get debts from breaking a lease removed from your credit report?
In general, no. Unless the debt is truly inaccurate, it’ll remain on your report for seven years.
However, if you pay the debt after the judgment is already added to your credit report, you can work with the creditor to have the debt marked as “paid” instead of “open” on your report. This can improve creditworthiness and give you a better chance of receiving loans and renting in the future.
Leave your lease with peace of mind
When you break a lease, it’s best to leave no shadow of a doubt that your credit will be protected. Whether this means having a candid conversation with your landlord, paying your outstanding rent amount or finding a subletter, there are best practices you can put into action to avoid having to fix poor credit down the road.
Finding ways to fix your credit can be difficult, and often requires the help of a professional. Lexington Law’s credit repair services could help you get back on track. Get a free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
Eviction is not how anyone wants to end the tenant-landlord relationship. An eviction notice is the last thing you ever want to see at your door. If you are having issues with the landlord address them early and document everything. You must prove the issues to a judge. Avoid being taken advantage of by understanding the process and knowing your rights.
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Landlords and property owners have their fair share of problems: They have to manage, accommodate, repair, etc., their property. It’s a lot of responsibility, and with great responsibility comes great headache.
But it ain’t all roses for renters, either. We’ve got rent increases, security deposits, and unannounced, inescapable construction. Last Saturday, I woke up to the sound of drilling on the wall next to which I sleep. It was 7:30 in the ever-loving morning!
As a renter, there are a handful of important laws and considerations that many of us overlook. At least, I know I’ve overlooked them. So I figured they were worth sharing. Here are some money-related things to keep in mind if you are a renter.
If your landlord serves you an eviction notice, you may be able to fight it and stay in your apartment. Weâll tell you how to file an eviction countersuit.
The post How to File an Eviction Countersuit appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Everyone knows the basics of being a good renter, but there are some things that could set you apart from the rest. Hereâs how to not be a nightmare tenant.
The post 10 Things That Will Make You a Nightmare Tenant appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Just because you don’t own the unit you live in doesn’t mean you don’t have any rights. We’ll walk you through your basic rights as a tenant so you can protect yourself.
The post What Are My Rights as a Tenant? appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.