The home was stunning. An outdated Victorian in West Oakland, it had excessive ceilings, ample mild and many attraction. Citrus timber sagged below the burden of their bounty within the large yard, and a scorching tub steamed in a nook. The lease was inside our funds, and my associate and I excitedly weighed the professionals and cons of the home’s structure, the neighborhood and the proximity to public transit.
That’s till we noticed the safety deposit.
The owner needed $6,000, almost double the month-to-month lease. All informed, move-in prices would whole almost $10,000. We didn’t have that a lot saved up. So, we let the home go.
This safety deposit conundrum rose repeatedly. As our hunt for a house continued, we started to fret much less about what we might afford every month and extra about what we might pay upfront. It made me surprise: If two folks incomes dependable, full-time salaries couldn’t afford these sky-high safety deposits, what does that imply for individuals who are much less economically resourced? And the way are giant safety deposits impacting present residents of the traditionally low-income neighborhoods the place we had been trying — primarily in components of East and West Oakland?
As lease prices have exploded throughout the state, permitting landlords to cost a $6,000 safety deposit for a $3,000 place displays greed, not practicality. The price of repairs hasn’t risen on the identical exorbitant price as lease, nor, presumably, has the probability of damages. The end result might be devastating; for these experiencing homelessness or attempting to flee from home violence, excessive safety deposits might preserve them caught in unsafe conditions.
As a renter, there’s additionally the niggling worry that safety deposits gained’t be returned upon shifting out. I’ve heard tales from pals of their landlords withholding 1000’s for any variety of ridiculous issues — dusty baseboards or a flooring that was scratched earlier than they moved in. For individuals who are undocumented, don’t converse English as a primary language or are too busy to combat again, the drawn-out technique of attempting to recoup losses by way of small claims court docket is usually out of the query.
Enter AB12. In December, mere days earlier than I started my home hunt, Meeting Member Matt Haney, D-San Francisco, launched laws that may restrict safety deposits to no multiple month’s lease. This reforms a decades-old state threshold that allows landlords to cost tenants safety deposits that quantity to 2 months’ lease.
The concept for AB12, Haney informed me, got here when he met a janitor dwelling in a one-bedroom residence along with his spouse and two youngsters. Haney stated the janitor had the wage to maneuver someplace greater however lacked the financial savings for a big deposit.
“It’s not sufficient to make a sure amount of cash, it’s important to have accrued wealth,” Haney stated of modern-day safety deposits. “Only a few folks have $5,000 sitting within the financial institution, not to mention $10,000 that they’ll hand over and never want within the quick time period.”
Haney’s proposed answer has precedent. A dozen states have adopted comparable insurance policies, together with Alabama, Delaware, Massachusetts and New Mexico, to call a couple of. However in California, it could possibly be a tricky invoice to go. Whereas tenants have among the strongest protections within the nation, property house owners nonetheless wield vital affect in Sacramento.
To be truthful, among the issues concerning the invoice’s impression are legitimate. For small-property landlords particularly, who depend on a rental unit or two to pay their payments, the chance of damages is disturbing and will derail precious earnings. Subsequently, the California Condo Affiliation opposes the invoice.
“When tenants don’t fulfill their obligations, even the present caps on safety deposits don’t cowl the proprietor’s prices,” stated Debra Carlton, the affiliation’s govt vice chairman of presidency affairs and compliance. “It could actually take months to maneuver a tenant out who shouldn’t be paying or who’s creating issues for different tenants on the property. At present, California regulation limits what a property proprietor can see when reviewing a tenant’s credit score historical past or background, making it more durable to know if a brand new tenant can fulfill their obligations. A safety deposit supplies some stage of assurance on the subject of new tenants.”
There’ll all the time be examples of horrific conditions, the place tenants destroy an residence and a landlord can’t afford to repair it. We’re certain to listen to these within the coming months because the invoice progresses. However nothing within the invoice’s language alters the flexibility of landlords to recoup prices in such a scenario; if a tenant destroys an residence, they’re nonetheless liable for each single greenback, even past their safety deposit.
My associate and I did ultimately discover a place we love, with a safety deposit equal to at least one month’s lease. We didn’t have to barter it down: It was clear within the itemizing, and we signed the lease this week. However not everyone seems to be so fortunate. Our upfront move-in prices are nonetheless $6,600, and I’ve but to recoup my hefty safety deposit from the place I’m leaving. Whereas we’re privileged sufficient to afford this, there have been many instances in my life when it could have been unattainable.
California’s housing disaster calls for a number of fixes. We’d like extra housing — significantly extra inexpensive housing. However whereas we await that to be constructed, limiting exorbitant safety deposits is one option to help hundreds of thousands of Californians looking for a house.
Nuala Bishari is a San Francisco Chronicle columnist and editorial author. E mail: nuala.bishari@sfchronicle.com.