Chapter 1: Finding a Place to Live

A. Where to Look
B. Credit Checks and Screening Fees
C. Tenant Screening Services
D. Application Fees
E. Reservation Deposit

A. Where to Look

It's a good idea to look at many places before you choose one, even if you like the first one you see. Once you have located a unit that you think will be appropriate, take your time to thoroughly consider everything about the rental unit. Does the landlord seem to be fair and reasonable? Are you confident that she will keep the place in good repair? What do the neighbors and other tenants say about the reliability of the landlord? Use this time to establish a relationship with your landlord.

Newspapers
The classified ads in local and on campus newspapers are the most common means of finding a place to live. The Sunday paper usually carries more ads than the dailies. Good places are rented quickly though, and it is a good idea to pick up the paper at a newspaper office as soon as it comes off the press. You will then be one of the first to contact the landlord.

Bulletin Boards
School and store bulletin boards are also a frequently used source for apartments and houses. People that already have a place may also advertise for a roommate. Landlords also use electronic bulletin boards.

College Housing Offices
Most colleges have housing offices with listings of apartments and houses for rent around campus.

Signs
Many landlords will not advertise, but will place signs in their windows or lawns instead. Biking, walking or driving is the best way to locate these rentals. Limit yourself to areas where you are seriously considering living, since this is very time consuming.

Property Management Firms
These firms manage property for owners who may or may not live in the area. Some are large and handle multiple properties, while others handle single-family homes and smaller complexes. If you respond to an ad for a rental, and it is already rented, ask if you are calling a property management firm and if they have any other vacancies.

Rental Listing Agencies
These are agencies which get lists of available rentals and charge the renter a fee of between $40 and $60 for the use of the list. Ask questions to determine whether the agency will provide any refund if you do not find a rental within a certain time period or if the results on the list do not match the housing you asked for in your contract. Some agencies will not refund anything if you are not satisfied.

Note: These agencies are not regulated. While some are legitimate, others may simply get information form other sources (i.e .newspapers) which may not be accurate or up to date. OSPIRG recommends that you check the record of any agency through a group like the Better Business Bureau and that you verify the source of the ad before paying the fee.

Word of Mouth
Many dwellings may rent before they are even advertised. Mention to your friends and colleagues that you are looking for a place to live. They may be able to alert you to upcoming vacancies. They may also be able to tell you if a landlord is responsible and fair.

B. Credit Checks and Screening Fees

A landlord who charges a screening fee is required to give a written notice to the applicant explaining the fee. This notice must be given prior to acceptance of the fee, but the notice does not have to give the name and address of the screening service or credit reporting agency until and unless the applicant is denied based on a credit or screening report. The screening fee notice must also explain the applicant's right to dispute the accuracy of information retained.

Many landlords will check your credit history to see if you have paid your bills on time.

Tip: Tenants should get a copy of their own credit report to verify that everything included is accurate before they apply for housing. (See Appendix C)

Credit bureaus collect information about you from various sources. Such information may stay on file for up to 10 years and may include:

your name, current and former addresses, Social Security Number, birthdate, current and former employers, type of job, income, spouse information,and whether you rent or own your home;
dates that you opened your credit accounts, or took out a loan, and the terms of the accounts;
attempts to get credit, car loans, insurance, mortgages, etc.;
account balances, past due amounts, how often you pay late;
your biggest loan ever received and any limits on your credit card accounts;
bankruptcies, lawsuits, court judgments, liens, or repos- sessions.

If you are refused housing because of information on the credit report, you may obtain a free copy of your report within 30 days by requesting it in writing from the credit bureau. You may then submit a personal letter of explanation, or your story, to your file. If the landlord charged an initial screening fee, he should have already provided the name and address of the credit bureau under the Federal Fair Credit Reporting Act.

C. Tenant Screening Services

Some landlords use a tenant screening service to help them select tenants. These services not only have access to your credit history, but may also be linked to a data base that can access the courts records of evictions, divorces and small claims activities.

To save money, you should ask landlords if they have screening criteria for applicants. Be sure that you can pass the criteria before paying an application or screening fee.

Warning: A landlord who doesn't screen may accept a person with poor credit, but may also have a lower standard of care for their properties.

If you know that you won't meet the criteria, ask if the landlord will consider your explanations. Many landlords will adjust their criteria for an honest explanation. The landlord may, however, charge an additional deposit for the added risk.

Tenants should be honest and fill out all applications completely, neatly and accurately. Landlords can reject an application that is incomplete, inaccurate or falsified. They may also end a rental agreement after the tenant moves in if they find that the tenant gave any false information.

If a tenant is rejected because of a credit report, the landlord's only obligation is to tell the tenant the name and address of the agency.

Note: It is legal to reject a tenant simply because the tenant has been evicted in the past.

D. Application Fees

A landlord may charge a fee to cover the cost of processing the application, including running a background or credit check on potential tenants. (90.295)

The landlord may not charge a screening fee unless he gives a written notice of:

what information will be obtained;
the charge for the process;
the applicant's right to dispute the information obtained;
the name and address of the screening service or credit bureau.

An application fee cannot be charged if there is not a rental unit currently available. A fee or deposit cannot be charged to put you on a waiting list.

Application fees should be no more than the average, actual costs for screening. If, for any reason, the landlord does not perform the screening, he must refund the fee within a reasonable time.

Penalty: The tenant may sue in small claims court for the amount of the fee, plus $100 penalty and court costs if the landlord does not provide the applicant with a screening disclosure.

E. Reservation Deposit

If the landlord approves an application and an agreement to rent is reached, the landlord may require a deposit to ensure that the applicant will sign a rental agreement and move into the unit. (90.297(2))

The landlord must either refund the deposit when the tenant moves in, or apply it to the security deposit or first month's rent. The landlord must give the applicant a written statement of the terms of the agreement regarding the deposit, as well as how the deposit will be refunded or retained.

Penalty: If the rental agreement is not signed because of the applicant, the landlord may retain the deposit.

If the rental agreement is not signed because of the landlord, he has 4 days to refund the deposit by making it available at the landlord's place of business, or by mailing it first class. Failure to do so entitles the tenant to the amount of the deposit plus $100.

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