7 slimy landlord tactics

Yes, many of the stories are true. Repair ripoffs, outrageous fees, security deposit scams . . . these are some of the ugly tricks that landlords pull on tenants.

About 10 years ago, a large Manhattan real estate firm bought an apartment building that contained a few rent-controlled units. Deregulated, those units would be worth perhaps five to seven times more on the open market -- if the developer could nudge the remaining tenants down the road, that is.

One of them, a senile older woman who had been living there for decades, refused to leave. The law was on her side: In New York City, tenants can't be evicted from rent-controlled apartments if they have lived there continuously since at least July 1971. What happened next comes from a source at the real estate firm who chooses to remain anonymous.

Soon after the purchase, the woman fell ill. While bedded up in the hospital, the company moved all of her possessions into another apartment set up to look just like her previous one, except that it was more than a dozen blocks away.

"This woman wasn't completely aware of her surroundings," says the source. She also had no family, so the company paid her nurse to keep up the ruse and even moved her old doorman into the new building for a few weeks to greet her. "The fact that she saw some familiar faces was enough to carry her for a few weeks." (The company eventually sold her original apartment as a co-op for a hefty price tag.)

Squeezing the most out of properties

Most property owners don't have the guile or the resources to pull off such a stunt. Still, overly opportunistic landlords are a sad fact of life. No matter if the housing market is torrid or soft, they are always looking for ways -- some downright slimy -- to squeeze the most out of their properties. Your best defense: A few ounces of prevention and some knowledge of the law.

Of all the nasty maneuvers, threat of eviction is the scariest. But many of those threats don't have teeth. Generally speaking, yearly leaseholders are safer than those who rent month to month. In most states, landlords must prove that tenants with annual leases have violated their agreements before they can evict. Monthly tenants, on the other hand, can be booted without cause with a 30-day notice in most states, barring a few exceptions such as discrimination. Residents of rent-regulated apartments have a right to automatic lease renewal (unless, perhaps, they don't have all their faculties).


Repair runaround

Most tactics don't involve such blatant strong-arming. Take repair requests. A landlord could add a clause in your lease stating that you must pay to fix that leaky sink, busted refrigerator or recalcitrant space heater. That's a crock. In fact, the law deems such clauses "unenforceable," and it's the landlord's job to foot the bill.

The best recourse: Put all repair requests in writing (in case you end up in court), and be sure to record the date and time of each. If your landlord doesn't follow up after a few phone calls, hire a repair person and forward a copy of the bill. Refusing to pay part -- or all -- of next month's rent until the problem is fixed works, too.

Your apartment may not have taken a beating, but your security deposit might. Call them "creative deductions"--$100 for chipped paint, $200 for ripped carpeting and so on. The big problem: By the time you get your dented deposit back, you've already moved out, so what can you prove? Head this hassle off before you move in by doing a walk-through with your landlord, checking off any imperfections and taking pictures.

Put the findings in writing and make your landlord sign the document. Then, a week before you move out, do the same thing again. If you end up in small-claims court, you'll be well armed.

Roommate rights

Landlords also may try to whack you extra for taking on a roommate or an extended house guest -- even though federal housing statutes prohibit landlords from raising rents on tenants who do so. There are limits, of course, so you can't pile in your whole extended family. What's typical is two individuals per bedroom, plus one. So, up to three people (including children) can reside in your one-bedroom apartment before the landlord can jack up the rent or issue an eviction notice.

If your landlord really gives you the creeps, consider buying renter's insurance. The cost is minimal (maybe $10 to $30 a month) compared with what you might lose in repair costs and lawyers' fees. (Read more about renter's insurance, here.)

Really fed up with your landlord? Extract your own pound of flesh by knowing the law. Example: Tenants in Chicago can collect twice the amount of their security deposits if they can prove that landlords stick rent checks and security deposits in the same bank account, says attorney Aaron Krolik. (Most banks can help you track down this information.) If that doesn't work, Chicago renters can double their pleasure if their landlords blank on paying the stipulated interest on security deposits, currently 1.7% a year.

These niggling technicalities are slimy in their own right -- and just the sort of thing that clogs up the courts. Then again, they asked for it.

7 slimy landlord tactics

Repair rip-offs: Your landlord may try to charge for fixing that leaky sink, busted refrigerator or recalcitrant space heater. That's a crock. Under most state laws, renters are entitled to reside in a safe, habitable dwelling on the landlord's dime. That means landlords must fork over for repairs and broken locks -- and do it in a reasonable time frame.
Dented security deposits: Your apartment may not have taken a beating, but your security deposit might. Call them "creative deductions"--$100 for chipped paint, $200 for ripped carpeting and so on. The big problem: By the time you get your dented deposit back, you've already moved out.
Roommate charges: In expensive cities like New York and San Francisco, taking on a roommate is a quick (if crowded) way to slash living expenses. Your landlord knows this and may try to charge you for the extra bodies, which can be illegal depending on the number of roommates you take in.
Usurious late fees: Landlords can make a pretty penny on late payments. State laws are squishy on what constitutes a "reasonable" fee, and there are plenty of property owners who will charge stiff penalties. Reasonable fees start at $5 a day and head up to 6% of a month's rent. Worst-case scenario: an eviction notice.
Illegal spaces: Converting garages, basements or recreation rooms into apartments is a no-no without proper zoning approval. So is living there. If the authorities find out, you'll soon be looking for new digs.
Key money: When rents aren't set by the laws of supply and demand, as is the case with rent-controlled or rent-stabilized apartments, black markets spring up. To skirt the rent cap, slimy landlords will accept extra fees --called "key money" -- from prospective tenants looking for an edge.
Threat of eviction: Landlords can find plenty of excuses to evict you, from lease technicalities to the occasional late payment. This one has a nasty ring to it, but in many cases, no teeth.