Introduction

It goes almost without saying that choosing a place to live is an extremely important decision. A good apartment or house should provide more than shelter, warmth, and a place to lay your head; it should be a true home. Yet many people make bad choices -- spending too much money; picking the wrong location, landlord, or neighbors; or settling on a place that's too small, dreary, noisy, unsafe, or in bad shape. Sure, if you're in a tight rental market, such as those in New York City, San Francisco, or Chicago, you can have an especially difficult time finding a good place to live at a reasonable price, but it's still possible to find decent housing.

Finding a good place to live is rarely a lucky accident. Whether rental housing is plentiful or scarce, there are specific steps you can take to find an apartment or house that meets your needs and budget. Most important, you need to take your time. One of the worst -- and most costly -- mistakes you can make is to sign a lease or put down a hefty deposit at the end of a long, frustrating day of apartment-hunting, only to realize later that the place is completely unsuitable. Even if it means staying with friends for a few weeks, finding a short-term rental or house-sitting arrangement, or (horrors) moving back in with your parents temporarily, it may be well worth it.

Whether you're looking for your first or tenth rental, living by yourself or with others, this chapter shows you how to find a good place to live within your price range, by:

• setting clear priorities before you start looking for a place to rent
• using a variety of resources to tap into available rentals, and
• beating the competition by pulling together the information landlords want to see -- good references and credit information -- before you visit prospective rentals.

This chapter also explains your legal rights and responsibilities regarding the rental application process, credit reports, credit-check fees, and holding deposits.

If you're moving from one rental to another, be sure you understand all the legal and practical rules for ending a tenancy, getting your deposit returned, and moving out. See Chapters 15 and 16 for details.

Setting Your Rental Priorities

While most people start their housing search with some general idea of how much they can afford to pay, where they want to live, and how big a place they need, that doesn't guarantee good results. The best way to find an excellent rental home is to set specific guidelines in advance, being realistic, of course, both as to your budget and what's available for rent.

Here's our approach to finding a house or apartment you can afford and will enjoy living in:

Step 1: Firmly establish your priorities -- such as maximum rent, desired location, and number of bedrooms -- before you start looking. The list of Rental Priorities, below, will help you do this.

If you're renting with one or more other people, review the Rental Priorities list together and make sure you agree on the basics. Always consider each person's strong likes and dislikes when you're choosing a rental. For example, you might care most about a modern kitchen and a sunny deck or patio. If so, you'll surely be miserable if you allow your spouse or partner to talk you into renting an older apartment with its original 1940s kitchen because it has a great view (but no deck).

Step 2: Once you've set your priorities, you'll want to see how prospective rental units measure up. To make this simple, we've prepared a Rental Priorities Worksheet, shown below. There's space for you to write down your mandatory ("must have") priorities, as well as secondary ("it would be nice, but aren't crucial") priorities and your absolute "no ways." Try to limit your mandatory priorities to those features your rental unit must have, such as "less than $750 a month rent," "two or more bedrooms," and "near the bus line to work." Take time developing your list of "no ways." Avoiding things you hate -- for example, a high-crime area or noisy neighborhood -- may be just as important as finding a place that meets all your mandatory priorities.

A tear-out copy of the Rental Priorities Worksheet is in Appendix 2.

Step 3: Once you complete the priorities section of the worksheet, make several copies for use when looking at apartments or rental houses.

Step 4: Complete a worksheet for each rental unit you're seriously considering, as follows:

• Enter the address, contact person, phone number, rent, deposit, term (month-to-month or year lease), and other key information on the top of the form.
• As you walk around the rental unit and talk with the landlord or manager, indicate the pluses and minuses and the mandatory and secondary priorities (as well as "no ways") that apply.
• Make notes next to a particular feature that can be changed to meet your needs -- for example, "rent is high, but space is fine for an extra roommate."
• Jot down additional features in the section for other Comments, such as "neighbors seem very friendly" or "tiny
• yard for kids to play, but great park is just a block away."

Step 5: If at all possible (but it may not be, especially in tight rental markets), insist that any apartment or house meets at least your most important priorities.

[Rental Priorities Worksheet] omitted for online sample chapter.

How to Find an Apartment or House for Rent

You've just done an important part of the job of finding a place to live by creating your list of rental Priorities. Now you need a plan to find a place that matches it as closely as possible. Focus on your time and financial constraints and consider how they will influence your search. For example, the housing search of a well-paid single person with money in the bank who wants to move to a bigger apartment sometime in the next six months should differ tremendously from that of a graduate student on a limited budget with a small child who only has a few weeks to find a place before school starts.

What type of search will work best for you will also depend on a number of factors, most importantly where you want to live and whether you want a lease for a year or more or prefer a month-to-month rental agreement. In some cities, classified ads are your best resource. In others, you may want to work with a real estate broker or homefinders' agency. In all areas, it always makes sense to assertively and creatively use your own personal contacts and networks. Of course, the tighter the rental market you face, the more important it will be to pursue as many search options as possible. Here's a rundown of your choices.

Personal Contacts

If you know people who live or work near where you want to live, ask them for leads. Using personal contacts as housing scouts can be quite effective, because when people plan to move, friends, neighbors, and business associates almost always know about it before a for-rent sign goes up. Prepare a brief description of exactly what you want (your rental priorities). Send this to friends, coworkers, and fairly close acquaintances, including local businesspeople with whom you have a friendly relationship -- doctors, shopkeepers, lawyers, and insurance brokers are all good bets. If your company has an employee grapevine (possibly part of your internal email system), get the word out this way. Let as many people know of your housing search as possible. You never know who may come through with the perfect apartment -- it might be the woman with the flower stand down the block or your dental hygienist.

See the sample Apartment-Hunting Note, below, for a good way to describe your housing needs and priorities.

[Sample Apartment-Hunting Note] omitted for online sample chapter.

Pound the Pavement

In addition to enlisting the help of friends, you can do much looking on your own. In some neighborhoods, landlords simply post "Apartment For Rent" signs in front of the building or in one of the windows. Others put notices on neighborhood bulletin boards, such as the local laundromat or coffee shop.

Many tenants find great apartments or houses to rent by posting their own "Apartment Wanted" signs (sometimes offering a finder's fee) in local stores or businesses, such as a dance studio, a health club, or even an auto repair shop. You might also consider buying a classified ad in the daily paper or putting a notice in the newsletter of a community organization. Some enterprising tenants go so far as to track down the owners of houses that have been for sale for a long time, hoping to work out a rental arrangement.

If you want to live in a particular apartment building or complex, but there's no sign listed, stop by anyway and talk to the manager or doorman. (A generous tip might just do the job!) Also, try to talk with some of the other tenants. You might just get a good lead on someone who's planning to move soon. Spend a lot of time walking around the neighborhood you want to live in -- this will give you a chance to meet local people who may know about available rentals before they're advertised.

Looking for a pet-friendly rental? Go to a local park or veterinarian's office and talk to people with animals. They may have some good leads.

Classified Ads

Many landlords advertise their rental units in the newspaper real estate classified ads. The largest section usually runs in the sunday paper. The classifieds are usually organized by city or neighborhood and include basic information such as rent, location, number of bedrooms and baths, and any special features such as a fireplace or view.

Get early editions of papers (for example, sunday papers are available late Friday night in some areas) and start calling as soon as possible to get a jump on the competition. Better yet, go online. many papers post their classifieds before the information hits the streets.

Classified ads run by landlords should never mention sex, race, religion, disability, or age (unless the rental is really legally sanctioned senior citizens housing). Chapter 5 discusses the topic of discriminatory advertising.

Apartment-Finding Services

Many landlords list their rental property with a home-finders' service that provides a centralized listing of rental units for a particular geographic area. This can be a very efficient way to find listings, especially in big cities. Rather than call landlords one by one in response to classified ads, you can zero in on listings that meet your particular specifications. And apartment-finding services usually provide a lot more detail on rental units than classified ads.

Prices of apartment-finding services vary, but typically you'll pay a flat fee, such as $50 to $100 for a one-month membership. In some cases, you may need to actually visit the company's office to check out listings, but many services will fax or email you daily updates of available rental units or provide you information over the phone.

Check newspaper ads or look in the Yellow Pages under "Apartment Finding and Rental Service." Many of the larger agencies have online sites.

Many homefinding services do a good job of helping people to find a place to rent, but some are sloppy and a few are actually crooked. For example, to get prospective tenants to fork over a hefty fee, several homefinding services have been caught running ads about imaginary apartments in good locations at low rents. When the new customers ask to see the unit, the answer is "So sorry, we just rented that apartment, but here's another one you will really like" (it just so happens to be a crummy place at a higher rent). Other problems include companies that sell outdated rental lists (most or all of the apartments have already been rented), or that have lists no different from what you could find in the newspaper.

So do a little investigating first. Talk with other home-seekers or check with the better business bureau before you pay anyone a substantial sum to help you find a home. If you feel an apartment locator service has seriously misrepresented its service, ask for your money back and file a complaint with the consumer fraud division of your local district attorney's office.

Before you sign up with an apartment-finding service, be sure it's reputable and worth the money. The Apartment-Finding Service Checklist shown below is one good way to organize and collect the information you need.

A tear-out copy of the Apartment-Finding Service Checklist is in Appendix 2.

Online Finding Services

Type "apartment finding service" into your Web browser and you'll get a chunky list of websites that do more than simply list available rentals. Like their apartment-finding counterparts on the street, these sites attempt to match the unit with the renter and may offer roommate-finding services as well. Many sites go beyond this basic service, offering information and links covering renters' insurance, moving companies, moving tips, change of address procedures, and even dating services. Often there's no charge to renters looking for a unit, but a modest fee in the $10 to $20 range to participate in the roommate service. If you're looking in a large metropolitan area, your chances of finding appropriate possibilities are going to be much greater than if you're in suburbia or the hinterlands.

The following sites are some of the many that offer national listings. When you do your search, of course, these sites may have changed or new ones may have cropped up. If there are local online services that cover the area you're looking in, be sure to check these out, since they may offer more choices and give more specific information.

• www.craigslist.org. This advertising-free website has become enormously popular in the dozens of cities it serves. It's free to both landlords and tenants. If your city is covered, begin your search there -- in some cities, it's the only place landlords bother to list their vacancies.
• www.rentnet.com. This site is clearly organized and full of good advice. It includes many helpful calculators, checklists, legal articles (from Nolo), and a roommate service. A handy calculator lets you know how much more (or less) you would need to earn to make "the same" amount of money in your new location.
• www.apartments.com. Here's a flashy site with video previews and lots of links to moving services and "settling in" services (such as banks and insurance companies). To obtain free contact information about a roommate match, you'll have to register. Curiously, the roommate matching criteria allow both parties to specify age and gender -- risky bits of advertising, as a reading of Chapter 5, Discrimination, will show you. Several other sites with roommate services include these criteria as well.
• www.apartmentguide.com. This site is loaded with ads and resources, some of which are a bit far-fetched (selling your car? need a date?), but it does include a helpful link to a website for military tenants. A roommate-matching service is included.
• www.rentals.com. A clear and straightforward listing service, no roommate matching.
• www.apartmentsearch.com. This site caters to several metropolitan areas only. In addition, for roommates only, try www.roommateaccess.com.

[Apartment-Finding Service Checklist] omitted for online sample chapter.

Renting with pets? Check out www.rentwithpets.com, a website hosted by the humane society of the United states. They provide helpful information on how to put your best paw forward, with tips on moving with your pet, introducing your pet to a potential landlord (complete with letters of reference and even a pet resume), and settling your pet into your new home.

Real Estate Brokers

Some local real estate offices, especially in large cities, also handle rental properties, often exclusively for a property owner. If you're moving into a new area, especially someplace like New York City, or have limited time to apartment-hunt, real estate brokers can be very useful. A good broker should do lots of leg work for you. The more prepared you are (by setting priorities as we discuss above), the more helpful a broker can be.

As with apartment-finding services, choose your broker carefully:

• Get full information about all fees, which can be quite hefty. In New York City, for example, real estate brokers often charge either a fee that is tied to the rent (for example, 15% of the first year's rent) or a flat fee of $1,000 or more for a rental. Sometimes the property owner covers the real estate broker's fee, but typically the tenant pays.

Avoid brokers who try to pressure you into paying their fee before you sign a lease or rental agreement. Don't pay until the deal is final.

• Ask about the type and exclusivity of the broker's listings. Why pay a hefty fee if you can find the same place through a newspaper ad, or for a lower price through an apartment-finding service? And don't waste your time with a broker whose properties don't meet your needs as to neighborhood, type of unit, or budget.
• Choose a broker with lots of experience and a good reputation. The best way to do this is through recommendations from people who have used the particular broker in the last few years and whose judgment you trust. Interview a few brokers and ask a lot of questions about their services, how long they've been in business, and their knowledge of the area. Be sure to check if any complaints are on file with a local consumer agency or Better Business Bureau.

Management Companies

Property management companies often contract with landlords to rent units and manage all aspects of the rental property. In many areas, a handful of management companies control a significant number of rental properties. You can find the names of the bigger companies just by driving around and looking at signs posted outside apartment buildings. Or, check the phone book Yellow Pages under "Real Estate Management."

You can usually approach management companies directly. When choosing a property management company, follow our advice on real estate brokers (discussed above).

Beat the competition by getting on a waiting list. If you want to rent in a particular big complex and you have a little time, you may be able to prequalify and get on a waiting list for the next available rental unit. To convince the landlord to screen you now (and to allay his fears that he would be wasting his time because you'll probably end up living elsewhere before he has a vacancy), assure him that you are in no hurry and are not considering other properties.

University, Alumni, and Corporate Housing Offices

College housing offices can be an excellent source of rentals, especially services geared to faculty members. If you want a short-term rental, you can often find places that never appear in the newspaper -- for example, the home of a professor who's going on sabbatical for six months. If you're not affiliated with a university, try to find someone who is. The same holds true for housing offices available to employees of local corporations. And don't forget to check out your college alumni association. It may also provide information on rentals in the area (or you can contact fellow alumni for leads).

Apartment Rental Guides or Magazines

Depending on where you're looking, publications such as For Rent Magazine, available at supermarkets and online, may provide useful information on local rentals, including photographs of the building and rental units.

Visiting Prospective Rentals

Everyone needs a home-hunting strategy -- whether you make an appointment to see an apartment by yourself or attend an open house with dozens of others. Here are some basic tips:

Take your time. If you're looking at lots of apartments, schedule your appointments liberally, so that you give yourself enough time to see one place and move on to the next. You don't want to give prospective landlords or managers a bad impression by showing up late. Consider taking some time off from work so you can visit rentals as soon as they come on the market.

Be prepared. Come equipped with your own handy-dandy apartment-hunter's kit. Include a street map, notebook, pen or pencil, pocket calculator, tape measure (to make sure the living room is big enough for your carpet), graph paper, and camera. (You may want to take pictures if it's okay with the landlord.) Most important, bring your list of Rental Priorities and complete the Worksheet as discussed above. Don't forget your checkbook. (You may fall in love with a place and need to leave a holding deposit while the landlord checks out your credit history and references. Holding deposits are covered below.)

Impress the landlord by showing up with everything you need to fill out a rental application, including references and credit information. (See "Rental Applications and Credit Reports," for more on these issues.)

Be on your best "good tenant" behavior. Clearly understand that while you're looking at a rental unit, the landlord or manager will be looking at and evaluating you. This means showing up on time, dressing neatly, and presenting yourself as being both conscientious and agreeable. (This also means keeping your love of drums to yourself.) Realize that landlords live in fear of overly demanding and fussy tenants who will give them constant headaches by ceaselessly complaining about trivial things. So while we recommend checking out the rental unit's condition (see below) and making sure significant defects are being remedied, it's usually a mistake to ask for a long list of upgrades and repairs before you're even offered the place. Better to save your requests until the landlord makes you an offer. But make sure you do your essential negotiating before you sign a lease or rental agreement.

Look around carefully for tell-tale signs of problems in the rental unit and building. While you don't want to come across as a nit-picking housing inspector with white gloves, do keep your eyes open. Don't broadcast your concerns (subtlety is a strong point here), but try to check as many of the following things as possible:

• Look for obvious damage, such as loose steps, torn carpet, or shaky handrails.
• Check for dirt, mildew, and signs of insects or rodents. (But try to overlook the sloppiness of a current tenant. Piles of dishes in the sink and mounds of clothes on the floor are only temporary.)
• Flush the toilet and run water in the shower and sinks. Check the water temperature and pressure.
• Make sure the windows and doors are in good shape, open and close easily, and have secure locks.
• Walk around the building, checking out any elevators and common areas such as stairs, laundry rooms, and lobbies, as well as the parking area, garage, and yard. Again, check for general cleanliness and repair. Good lighting is especially important in common areas.
• Ask about building and neighborhood security, especially if you have concerns about the area. If there have been criminal incidents on the property, find out what kind and when, and what steps have been taken to provide reasonable safety to tenants and guests. If you learn later that the answers were not accurate, you may have grounds for getting out of your lease or rental agreement. Chapter 14 gives more information on your rights to a safe place to live.

At this point, you're just trying to get a general sense of the place. Ask yourself: Does this feel safe and comfortable? Clean and in good repair? If you decide you want the rental unit, and before you actually sign a lease or rental agreement, you will want to do a more detailed inventory of the condition of the rental unit, completing the Landlord-Tenant Checklist we recommend in Chapter 6. (You want your landlord to acknowledge any existing defects so he or she can't blame you later for causing them.)

If there are some minor problems, or improvements you want -- for example, a new coat of paint in the living room -- you may be able to negotiate with the landlord on this before you move in. (Chapter 2 shows how.) Major problems, such as lack of heat, may be the landlord's legal responsibility to fix. (For details on housing standards and landlords' responsibility to provide habitable housing, see Chapter 8.) Also, see Chapter 2 for information on disclosures landlords must tell prospective tenants, such as the presence of lead-based paint in the rental unit.

Think of creative ways to use space. You may need to compromise on the number and type of rooms in exchange for a great location or lower rent. Use your imagination or check out home design books and magazines for ideas on how to make the most of your living space. For example, you might be able to carve out a study at the end of an extra-large living room, using bookcases or screens to divide the space. Rolling carts with butcher block tops can add instant space to a kitchen with limited counters.

Find out about other tenants and the landlord and manager. Your prospective landlord will probably check you out pretty thoroughly (asking for references and getting a credit report); turnaround is not only fair play, but is also a good way to find out what it's like to live in your landlord's building. Visit the building after work and ask residents, especially the person whose unit you're considering, about pluses and minuses of living in the building. Inquire about security and noise in the building or neighborhood and if there are any problems regarding repairs and basic services such as heat and hot water. See if you can get a sense of the landlord's personality and style of operating. An excellent indicator of whether you can expect smooth sailing is to find out how often there are vacancies in the building and, in particular, how often your prospective landlord has had to evict tenants. A low rate of turnovers and evictions suggests that tenants like living there and that the landlord has chosen considerate, law-abiding renters who will be good neighbors.

Walk around the neighborhood. If you're not familiar with the area, check out restaurants, shops, local businesses and schools, and bus, subway, and train stops.

Checking Out the Neighbors

Not surprisingly, many tenants are as concerned about who their potential neighbors will be (and what kind of background they have) as they are about the physical aspects of the prospective rental. Anyone who has lived in close proximity to others, be they down the hall, on the other side of the wall, or over the fence, knows that a law-abiding, considerate neighbor is every bit as important as a view, a new coat of paint, or a parking spot.

If you visited the rental and had a chance to talk with other residents, you may already have a rough impression of your prospective neighbors. But depending on your situation, you may want to learn more. In particular, if you're a single female or have young children, you may want reassurance that the tenant next door doesn't have a dangerous criminal background. How much information can you expect to learn from your landlord and from law enforcement? In general, here's what you can expect.

First, there is no law requiring your landlord to investigate the criminal history of his tenants. Of course, many landlords do inquire or run background checks, and most will decline to rent to those with violent criminal backgrounds. But if you ask and are told, "I have no idea," you have no legal basis to press your landlord for more. And even if the landlord does know about a tenant's unsavory past, there is no law requiring him to disclose it to you (though the landlord may be held liable if you are later injured by this tenant, as the Example below illustrates).

Example: Nancy and her teenage daughter rented an apartment from Lester. When Nancy applied for the apartment, she told Lester that she was not home in the afternoon and that her daughter would be on her own until Nancy came home from work. Nancy was concerned for her daughter's safety and asked Lester if any of the other tenants had criminal histories or had done anything to suggest that they would act inappropriately with children.

Lester told Nancy she had nothing to worry about from the neighbors. In fact, however, Lester knew that a downstairs tenant had a conviction, albeit an old one, for child molestation. Tragically, this neighbor molested Nancy's daughter. Nancy sued the offender and Lester, on the grounds that he knew about and failed to disclose a dangerous condition -- namely, the presence of a known molester. Lester's insurance company settled the case in Nancy's favor for a large sum.

Although you cannot count on your landlord for a full answer to your questions, you may be able look online for help. Every state has a version of "Megan's Law," a federal law passed in 1996 and named after a young girl who was killed by a convicted child molester who lived in her neighborhood. The original law charged the FBI with keeping a nationwide database of persons convicted of sexual offenses against minors and violent sexual offenses against anyone (42 U.S. Code §§ 14701 and following). The state versions typically require certain convicted sexual offenders to register with local law enforcement officials, who keep a database on their whereabouts.

If you are concerned about whether prospective neighbors are registered sex offenders, you can search for their names on your state's database. Of course, it's unlikely that you'll know the full names of all the residents of a large apartment complex. Even when you do have that information, keep in mind that a database search may not give you accurate information. In many states, the databases are not current, or have mistaken information, which may result in both false positives (typical when dealing with common names) and false negatives.

Rental Applications and Credit Reports

Once you find a place you like, you're part, but not all, of the way home. First, you will probably be asked to fill out a rental application. Landlords use rental applications to screen potential tenants and select those who are likely to pay the rent on time, keep the rental in good condition, and not cause problems. Conscientious landlords will insist on checking your references and credit history before signing a lease or rental agreement. You should be happy they do so. you'll probably have fewer problems with other tenants in the building if the landlord is strict about screening. Who wants to move into a great building where one tenant is dealing drugs, holding midnight rehearsals for her rock band, or otherwise causing trouble that the landlord could have averted by proper screening?

Rental Applications

On a written rental application, you must provide information on your employment, income, credit history (including any bankruptcies), and rental housing history (including evictions), as well as any criminal convictions. If you are self-employed, the landlord may require the last few years' tax returns and other documentation of income. It's legal to ask for your Social Security, driver's license number, or other identifying information (such as a Taxpayer's Identification Number). Landlords may also ask for proof of an applicant's right to be in the U.S. under U.S. immigration laws. Under federal fair housing laws, landlords who ask for such immigration information must ask all tenants, not just those whom they suspect may be in the country illegally. It is, however, illegal to discriminate on the basis of national origin. (See Chapter 5.)

A sample rental application is shown below, so that you can get an idea of the information you will need. It may be a good idea to complete this rental application and take it with you when you see a potential rental unit. This type of information is sure to impress a landlord.

Most careful landlords will make a few calls to confirm that the information you've supplied on the Rental Application is correct. Prior landlords, credit sources, and employers will normally request permission from you before they'll talk to a prospective landlord. Along with the application, you'll want to give your landlord a Consent to Background and Reference Check, which supplies this permission. This consent form carefully limits the information that sources are authorized to give to that pertaining only to your qualifications as a tenant. In other words, you aren't giving the landlord carte blanche to inquire about extraneous matters, such as "Where is this fellow from?" or "Do you think there is a boyfriend in the picture?" While such irrelevant questions are often illegal (because they're discriminatory), they're annoying even if they're not. Hopefully, the wording on the form will remind (or instruct) both the reference and the inquiring landlord that only tenant-related questions should be asked.

The landlord can make copies and mail or fax them to the sources he wishes to speak with. A sample Consent to Background and Reference Check is shown below; note how the applicant has filled in her own information but left blank the lines for the prospective landlord's name, the date, and her signature.

[Consent to Background and Reference Check] omitted for online sample chapter.

A tear-out copy of the rental application and the Consent to Background and Reference Check are in Appendix 2.

Fill out applications only when you're truly interested. Don't waste your time (or money, if the landlord charges a credit-check fee) filling out a rental application unless you really want a place. If you are interested, but still want to keep your options open, go ahead and fill out an application. Don't worry that this will lock you into taking a place -- only signing a lease or rental agreement does so.

Landlord References

Landlords usually want references from your current and previous landlords, and details on your rental history. In talking with your past landlord or manager, prospective landlords will ask the following types of questions:

• Did you pay rent on time?
• Were you considerate of neighbors (no loud parties; you cleaned up after your dog)?
• Did you make any unreasonable demands or complaints?
• Did you take good care of the rental property?
• In general, were you a good (ideally, great) tenant?

If you are leaving a current rental because the neighbors, the landlord, or the manager was awful, prepare your defense in advance -- by mounting a preemptive offense. Explain the difficulty and offer evidence to bolster your version, such as a letter from other dissatisfied tenants, police reports chronicling disturbances at the property, a list of the times the former landlord was haled before the local rent board for violations, or, if problems rose to the point of litigation, a copy of a court judgment in your favor. No matter how righteous your position, however, be advised that it won't count for much unless you can show that, aside from your use of legal tenant remedies such as rent withholding, you always paid the rent on time, left voluntarily, and left a clean and undamaged apartment or house.

[Rental Application] omitted for online sample chapter.

Extra-picky landlords may actually want to visit your current rental to see how it looks. If your place usually looks like a cyclone just hit it, either clean up or forget it.

Employer References

Conscientious landlords will usually want to speak with your current employer to verify your income and length of employment and to get a better sense of your character -- for example, to see if you're a responsible person.

Before talking with a prospective landlord, your employer may require your written permission. Use the Consent to Background and Reference Check, explained above.

Character References

Some landlords also want character references from people (nonrelatives) who know you well. Below is an example of the type of letter that will help you beat the competition.

Alert references. Make sure that all of your references know to expect a call from a potential landlord. Even better, get written references first. And obviously, only give out the names of people who know you well and who have positive things to say about you -- anticipate the crafty landlord who asks for four references and calls only the fourth one on the list.

Complete all rental applications truthfully. Prospective landlords will be able to verify much of the information you give by ordering a credit report. Nothing will hurt your chances of getting a place more than lying.

The Importance of Your Credit History

Many landlords find it essential to check a prospective tenant's credit history with at least one credit reporting agency to see how responsible you are at managing money and whether you will be a reliable tenant who pays rent on time. This credit check can be the most important part of the rental application process.

A landlord can find out your credit history over the past seven years, including whether you have ever been:

• late or delinquent in paying rent or bills, including student or car loans
• convicted of a crime or, in many states, even arrested
• evicted, or
• involved in another type of lawsuit, such as a personal injury claim.

A credit report will also state whether you have filed for bankruptcy in the past ten years.

If a landlord does not rent to you because of negative information in your credit report, or charges you a higher rent because of such information, he is legally required (under the federal Fair Credit Reporting Act, 15 U.S. Code §§ 1681 and following) to give you the name and address of the agency that reported the negative information. Landlords must tell you that you have a right to obtain a free copy of your file from the agency that reported the negative information. You must request it within 60 days of being rejected by the landlord. Landlords must also tell you that the credit reporting agency did not make the rejection decision and cannot explain it, and that if you dispute the information in the report, you can provide a consumer statement setting forth your position.

[Sample Character Reference] omitted for online sample chapter.

Credit-Check Fees

It is legal for a prospective landlord to charge you a fee for the cost of the credit report itself and the landlord's time and trouble. Some states regulate the exact amount of the fee by statute; others require landlords to charge reasonably. Any credit-check fee should be reasonably related to the cost of the credit check -- $20 or $30 is common. If you think you're being charged too high a fee, call your city or district attorney's office for advice.

Be sure you understand the purpose of any fee you are charged and whether or not it is any kind of guarantee that you will get the rental unit. Don't confuse the fee with a holding deposit, which is normally a separate charge.

Watch out for fraudulent credit-check fees. Some landlords have been known to take credit-check fees from several prospective tenants and never run the credit checks, pocketing the money instead. You can easily find out if this has happened to you by contacting a credit reporting agency as soon as you've been rejected by a landlord. As discussed above, you're entitled to a free copy of your credit report if a landlord rejects you because of information in it, which should indicate who's requested your report recently. It is illegal for a landlord to charge a credit-check fee and not use it for the stated purpose. Problems can also develop if the landlord takes a long time to check a tenant's credit and the tenant, not knowing whether the rental will be approved, rents another place. To avoid these and other possible areas of dispute, it is wise to sign a brief agreement with a landlord, clarifying the purpose of any up-front fee and whether or not it will be refunded if you don't get the place. (See the discussion of holding deposits below.) If you have any problems, contact your city or district attorney's office or a tenants' rights group for advice.

Check Your Credit Rating and Clean Up Your File

Because your credit report is so important, you should always check it before you start your housing search. This will give you the opportunity to correct or clear up any mistakes, such as out-of-date or just plain wrong information. It's all too common for credit bureaus to confuse names, addresses, Social Security numbers, or employers. Especially if you have a common name (say John Brown), chances are good you'll find information in your credit file on other John Browns, or even John Brownes or Jon Browns. Obviously, you don't want this incorrect information given to prospective landlords, especially if the person you're being confused with is in worse financial shape than you are.

The three largest credit bureaus, with offices throughout the United states, are Experian (formerly TRW), Equifax, and Trans Union. As mentioned above, you are entitled to a free copy of your report when you are denied credit (including a place to live) because of information in your credit report. You can also get a free copy once very 12 months. Go to www.annualcreditreport.com to place your request.

Once you get your report, if you find errors, check your files at the other two agencies. You have the right to insist that the credit bureau verify anything that's wrong, inaccurate, or out of date. Information that can't be verified must be removed.

If the credit reporting agency fails to remove inaccurate or outdated information, lists a debt you refused to pay because of a legitimate dispute with the creditor, or reports a bogus lawsuit against you that was abandoned, you have the right to place a 100-word statement in your file, giving your version of the situation. Do so immediately.

If the credit bureau fails to cooperate, and the information is really wrong, contact the creditor that reported the information for help in getting it out. If that doesn't work, you have several options:

• Contact the Federal trade Commission (FTC) for advice. Check the government section of your phone book or call the national office at 202-326-2222.
• Threaten to sue the credit reporting agency in small claims court. (Chapter 19 discusses small claims suits.)
• Complain to your Congressional representative, who might be able to put pressure on the FTC to fix your problem.

Bring copies of your recent credit report with you when you apply for a rental. If you're submitting multiple applications, the credit check fees will mount up. Most landlords insist on running the check themselves, because they're afraid that applicants will doctor their reports, but you may be able to persuade some to accept yours. (In Wisconsin, a landlord cannot charge you for a report if, before the landlord asks you for the fee, you offer a report that's less than 30 days old from a consumer reporting agency. (Wis. Adm. Code ATCP 134.05(4)(b).)

How to Deal With Problems in Your Credit Report

If your credit file shows negative but accurate information, or you have no credit history because you're a first-time renter and have never borrowed money or used a credit card, there are steps you can take to look better to prospective landlords:

• Get a creditworthy person to cosign the lease or rental agreement. (See Chapter 2 for details on cosigners.)
• Pay a large deposit, or offer to prepay rent for several months. (Chapter 4 discusses security deposits and state limits.)
• Show proof of steps you've taken to improve bad credit -- for example, your enrollment in a debt counseling group, your recent history of making and paying for purchases on credit and maintaining a checking or savings account.
• Get more positive references from friends, colleagues, employers, and previous landlords.

For more information on obtaining your credit file, getting out of debt, and rebuilding your credit, see Solve Your Money Troubles: Get Debt Collectors Off Your Back & Regain Financial Freedom, and Credit Repair, both by Robin Leonard and John Lamb (Nolo).

How Landlords Reject Tenants

Federal and state antidiscrimination laws limit what landlords can say and do in the tenant selection process. (See Chapter 5.) Basically, a landlord is legally free to choose among prospective tenants as long as all tenants are evaluated more or less equally. For example, a landlord can probably refuse to rent to a smoker, as long as this no-smoking policy applies to all tenants.

Permissible Reasons for Rejecting Tenants

A landlord is entitled to reject you for any of the following reasons:

• poor credit history, which leads the landlord to believe that you will be unable to pay rent
• income that the landlord reasonably regards as insufficient to pay the rent
• negative references from previous landlords indicating problems -- such as property damage or consistent late rent payments
• previous eviction lawsuits
• convictions for criminal offenses, unless the conviction was for past drug use (see Chapter 5 for a discussion of illegal discrimination on the basis of disability)
• current illegal behavior, such as dealing drugs
• your inability to meet terms of the lease or rental agreement -- for example, if you want to keep a pet and the landlord's policy is no pets
• more people than the landlord wants to live in the unit -- assuming that the limit on the number of tenants is clearly tied to health and safety or legitimate business needs (Chapter 5 discusses occupancy limits)
• untruthful responses on the rental application.

What Landlords Must Tell You

You are entitled to certain information from a landlord who turns you down based on information in your credit report, even if other factors also played a role in the rejection. Known as an "adverse action report," the landlord must tell you the name and address of the agency that supplied the report, as well as that:

• you may request a copy of your report from the agency that reported the negative information, by asking within the next 60 days (or one year after receiving your last free annual credit report)
• the agency didn't make the decision not to rent to you and cannot explain the reason for the rejection, and
• you can dispute the accuracy of the information in the report and attach your own consumer statement (Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003, 15 U.S.Code §§ 1681 and following).

Landlords must also supply an adverse action report when they rent to applicants but do so with negative or onerous qualifications, such as demanding a higher rent, larger security deposit, or a cosigner. If the landlord rejects you or demands tougher terms based on information the landlord developed or learned independent of the credit report or a background screening report, the landlord need not give you the adverse action report.

Illegal Discrimination

Antidiscrimination laws specify clearly illegal reasons to refuse to rent to a tenant. The federal Fair Housing Acts (42 U.S. Code §§ 3601-3619) prohibit discrimination on the basis of race, color, religion, national origin, gender, familial status (children), or physical or mental disability (including alcoholism and past drug addiction). Many states and cities also prohibit discrimination based on marital status or sexual orientation. (Chapter 5 discusses illegal discrimination and how to file a complaint with a fair housing agency.)

Also, landlords risk violating the law if they screen certain categories of applicants more stringently than others -- for example, requiring credit reports or a higher income level only from racial minorities.

Finder's Fees and Holding Deposits

Almost every landlord requires tenants to give a substantial security deposit. The laws concerning how much can be charged and when deposits must be returned are discussed in Chapters 4 and 16. Here we discuss some other fees and deposits that are occasionally required.

Finder's Fees

Real estate brokers and apartment-finding services may legitimately charge a fee for their services. And there's nothing wrong with a landlord charging you for the actual cost of performing a credit check.

[Receipt and Holding Deposit Agreement] omitted for online sample chapter.

Less legitimate, however, is the practice of some landlords, especially in cities with a tight rental market, of collecting "finder's fees" just for renting the place to a tenant. Unlike brokers or services, which actually do some work for their money, a finder's fee charged by a landlord just for the privilege of being offered a rental is nothing short of a rip-off. You should suspect this ploy if you're told to pay a finder's fee directly to the landlord or management company to get a particular unit. You should also be suspicious if you're directed to pay a finder's fee to an apartment locator "service" set up by the landlord as a front to collect the fee (as opposed to really being in the business of locating apartments).

What can you do about this blatant nonsense? If the rental is a good one and the fee something you can afford without too much pain, perhaps it's in your best interests to shut up and pay up. However, if you want to challenge this "pay me for nothing" fee, consider the following avenues.

Read your state's security deposit statutes and the cases that have interpreted them. (The citations are found in "State Security Deposit Rules" in Appendix 1; Chapter 20 explains how to find cases that explain statutes.) If your state prohibits nonrefundable security deposits (security deposits are explained at length in Chapter 4), look for a case where the judge ruled that the term "security deposit" includes a finder's fee. Since the fee is kept by the landlord, a landlord who collects a finder's fee violates the statute. This theory was used successfully by a group of tenants in California. ( People v. Sangiacomo, 129 Cal.App.3d 364 (1982).)

Sue in small claims court. You might argue that you're being forced to pay for a nonexistent service -- in legalese, it's a case of fraud. You could also point out that it's a matter of bait-and-switch: Charging a finder's fee is the same as charging a higher rent for the first month, which your landlord probably has not made clear in ads for the unit. (Chapter 19 gives advice on using small claims court.)

Contact your city attorney or district attorney's office (consumer fraud unit) for advice, or your local rent control board. Especially in areas with rent control, finder's fees may be illegal by statute or court decision.

Holding Deposits

Sometimes, if you make a deal with a landlord but don't actually sign a lease or rental agreement, she will want some type of cash deposit, then and there, to hold the rental unit. This might happen when the landlord wants time to do a credit check or call your references. Or it can happen if you need to borrow money (or wait for a paycheck) to come up with enough to cover the rent and security deposit. For example, a landlord might ask for $500 cash to hold the place for you until you bring your first month's rent and any deposits you agreed on, pending the results of a credit check.

If you give a landlord a holding deposit and later decide not to take the place, there is a good chance you won't get most or all of your deposit back. So be sure you really want the place before making this kind of deposit. The laws of most states are unclear as to what portion of a holding deposit a landlord can keep if a would-be tenant changes his mind about renting the property or doesn't come up with the remaining rent and deposit money, or if your credit doesn't check out to the landlord's satisfaction. And even if the law does limit the landlord to keeping a "reasonable" amount (often based on how long the unit was kept off the market), you may have to go to small claims court to force the landlord to actually return your money.

In California, for example, the basic rule is that a landlord can keep an amount that bears a "reasonable" relation to the landlord's costs -- for example, for more advertising and for prorated rent during the time the property was held vacant. A California landlord who keeps a larger amount may be sued for breach of contract. A few states, such as Washington, require landlords to provide a receipt for any holding deposit and a written statement of the conditions under which the fee or deposit is refundable. (Wash. Rev. Code Ann. § 59.18.253.)

Most states, however, do not have specific laws on holding deposits. So, whatever you and a landlord agree on, such as your right to get half of the holding deposit back if you decide not to take the place within a certain number of days, be sure to write your agreement down. Include:

• the amount of the deposit
• the dates the landlord will hold the rental property vacant
• the conditions for returning the deposit or applying it to the security deposit.

Also, be sure you and the landlord understand what is to happen to the deposit when you take the place. Usually, it will be applied to the first month's rent. To make this clear, have the landlord give you a receipt for the deposit and have her write on the receipt what is to happen to the deposit when you come back with the rent.

A sample Receipt and Holding Deposit Agreement that you might want to adapt to your own situation is shown above.

Appendix 2 includes a tear-out copy of the Receipt and Holding Deposit Agreement.

Choosing Roommates

The greatest place in the world won't make up for an obnoxious, inconsiderate, or financially irresponsible roommate. Whoever you live with, make sure you're compatible, particularly with respect to issues such as neatness and privacy needs.

Whether you're filling out an application with an agency that matches roommates, or responding to a "Roommate Wanted" notice on a campus bulletin board, be honest and try to make sure you're getting clear answers from prospective roommates. It might sound excessive, but checking references is usually a good idea. (If you don't think so, rent the movie Single White Female some night.) Talk to former landlords and other roommates, following our advice above on how landlords screen tenants.

Before you move in with roommates, it's always a good idea to make a written agreement of important issues, including rent, cleaning, food sharing, and overnight guests. No, this isn't overkill -- after all, you routinely sign an agreement with the landlord, whom you won't see a fraction as often as a roommate. Roommate referral services often have form agreements, or you can use the sample cotenant agreement in Chapter 7.

Always know your legal status when you move into an existing rental with roommates. Are you a full-fledged cotenant (having signed the lease or rental agreement) or a subtenant (responsible to the other tenant, not the landlord)? You have very different legal rights and responsibilities depending on your status. (See the detailed discussion of roommates in Chapter 7.)