Can’t rent an apartment? You are not alone. The apartment industry has changed tremendously as the Apartment Complexes have automated their tenant screening, pricing, and monthly payment collection processes. Most large and medium apartment home communities have cut back on staffing of resident managers and leasing agents, and will not even show you an apartment unless you have a prescheduled appointment. Most apartments are owned by Hedge Funds and REITs (real estate investment trusts), which are located in New York or other major financial centers. There are very few locally owned apartment complexes left in Georgia and Tennessee.
Apartments are priced by computer software which keeps up with the availability of 1, 2 or 3bedroom units in your area. If there is an excessive number of 2 bedroom apartments available in your area the prices drop until they are leased. As the number of tenants increase 2 bedroom prices are increased. The apartment owners turn to computer software subscription such as Yardi Matrix which offers comprehensive rental pricing information on 15.2 million apartments over 124 Metro Areas, to optimize their profits by increasing rents.
Can I afford to sign a new apartment lease?
If you are wondering why your apartment lease has rose 10% or 20% or 30% it is because of the apartment pricing software that lets the apartment price your new lease at a price where it is too costly for you to pay all the expenses of moving and paying new utility deposits as well as the prices of other apartments in the surrounding area where you may be considering moving. Apartment owners know you can move but they also realize that most people will stay and pay the increased rent for one more lease term as they plan their next move. Most apartment communities only inform the tenant of monthly rate increase within 30 days of your lease renewal so you don’t have time to plan a move and have to make a quick decision about relocating. The timing of the lease renewal is purposely designed to favor the apartment owner over the tenant.
Can I fight back?
Can I sue my apartment complex for raising rents? No unless you are in a protected class of tenants protected by the Fair Housing Act that prohibits discrimination in housing because of:
- Race
- Color
- National Origin
- Religion
- Sex (including gender identity and sexual orientation)
- Familial Status
- Disability, all in one place
It is illegal discrimination take any of the following actions because of race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status and disability:
- Refuse to rent
- Falsely deny that housing is available for inspection and rental
- Use different qualification criteria or applications, or rental standards or procedures such as income standards, application requirements, application fees, credit analyses, rental approval procedures or other requirements.
Most apartment complexes are now requiring a credit score of 670 which eliminates of 35% of the adult population in the United States. Many young adults just starting out in life with their first jobs and little or no credit history will have a score below 670 thus barring them from renting an apartment.
We have also discovered that many apartment complexes are requiring that your employer direct deposit your wages into your bank account or the income will not be considered. This rule especially effects restaurant workers who are paid in shift cash-outs or tipped income and self employed potential tenants who may have fluctuating income.
What can I do?
If an apartment manager tries to discourage you from renting then demand to fill out an application so there is proof you tried to rent. If you are turned down the apartment should send you a letter in writing as to why they will not rent you an apartment. If they just call text or email to say you didn’t qualify then call a lawyer at Lober & Dobson, LLC and please screen shot any texts, save a copy of the application you submit and save any emails. We are very serious about holding these apartments accountable for violation the law and we will seek money damages to the maximum extent the law will provide.
