Rent application fees prove a hurdle to housing for Utah families

OREM, Utah — For a number of weeks, Brenda White and her household had been pressured to reside in a lodge, unable to discover a dwelling to lease.

“It might probably get fairly boring, and fairly cramped and miserable,” lamented White of her roughly 300 sq. toes of dwelling house.

White didn’t need a lot.

“Only a place for my household so we will have a traditional life,” she stated. “This isn’t regular.”

Her household discovered themselves on the lookout for new housing after their landlord determined to promote the house they’d been renting. White stated she’d been on the lookout for a spot to lease since April.

She utilized plenty of locations, however even on the lookout for a spot to reside isn’t low-cost.

Each time White submitted a rental utility, she needed to pay a number of charges: background checks for each grownup, an utility charge, even administrative charges.

White stated she was upfront her less-than-stellar monetary historical past, in an effort to not waste her cash.

“I say, ‘Hey, I’ve a chapter on there, so if that’s going to be an issue, I’m not paying the charge,’” she defined.

Regardless, White stated she was instructed to go forward and apply and pay the charges. However time after time, she was denied.

White stated the charges really feel predatory. They usually add up quick. Once we first spoke together with her in August, she estimated she’d spent about $400 simply in utility charges to over a dozen landlords.

“I can’t afford to maintain paying,” White stated.

Restricted regulation on charges

Software charges are carefully regulated in some states.

They’re not allowed in Massachusetts. New York, Wisconsin, and Washington, D.C. restrict charges. In Washington, the applying charge should value not more than the precise value of the background verify.

Maine voters will determine subsequent week in the event that they need to ban utility charges outright.

Right here in Utah, like many different states, there is no such thing as a restrict to what a landlord can cost for an utility charge. The one regulation requires landlords to reveal all charges upfront.

Francisca Blanc, who was with the Utah Housing Coalition when she spoke with KSL, stated the new housing market meant many potential tenants had been unnecessarily losing cash on utility charges.

“A number of tenants are making use of on the identical time for a similar unit. They don’t even know in the event that they’re going to be obtainable or not,” stated Blanc. “Even two minutes later, after they submit the applying, it exhibits the unit isn’t obtainable, that means they principally wasted the $50, $75, no matter the fee is.”

Blanc stated her expertise factors to greater charges coming from company property administration teams.

“These are giant properties which have elevated the applying charge to $30, $50, $100, and there’s no restrict. There’s no cease to that as a result of there is no such thing as a checks and balances. There may be no person asking, ‘Why are you charging a lot? Did they make a revenue on this?’” stated Blanc.

In line with a press launch from the Utah Rental Housing Affiliation, “near two-thirds of Utah’s condominium items are owned by corporations based mostly in Utah,” and most usually are not giant possession teams. “76%” of all unit homeowners “have a portfolio dimension of fewer than 100 items.”

With many rental items being owned or operated by the identical firm, Blanc instructed an answer: As soon as one landlord has run a background verify, the tenant ought to have the ability to take that background verify with them to the following place, eliminating a number of charges. “For the sake of our households, now we have to make use of what we now have obtainable, the expertise to make use of one firm, you’re taking that report, and go in other places,” Blanc defined. “The renter’s not going to waste a lot cash. A renter can waste simply $500 to $1,000 simply to use.”

The KSL Investigators discovered there was a push for one thing like that final yr within the Utah Legislature.

Rep. Homosexual Lynn Bennion, D-Cottonwood Heights, instructed us by telephone she met with stakeholders about ensuring landlords aren’t profiting off utility charges, and making background checks transferrable.

Bennion stated the Utah Rental Housing Affiliation (RHA) urged her to not move a regulation, promising they’d work themselves to verify utility charges improperly charged are refunded.

“The aim of the owner shouldn’t be to say, ‘Let’s see how a lot cash we might make profitably from an utility charge,’” stated RHA chair Brad Randall.

When KSL Investigators requested Randall if landlords can get into authorized hassle for profiting on utility charges, he instructed us “There’s not authorized ramifications within the Utah regulation.”

As a substitute, Randall stated any RHA members discovered profiting off utility charges can be kicked out of the affiliation.

By e-mail, he acknowledged, “We’ve by no means had any complaints about any members [profiting off fees] in the whole 20 years I’ve been right here.”

There at present isn’t any requirement for any landlord or property supervisor to affiliate with RHA.

Randall stated Blanc’s concept of constructing background checks transferrable wouldn’t work.

“Each landlord, or each condominium group, can have totally different standards,” he stated. That standards might embrace a credit score rating, monetary historical past, eviction historical past, and prison historical past.

“There’s additionally so many issues that may be fabricated now that if somebody exhibits up with a background verify, we’re going to must run the background anyway as a result of we’ll must confirm,” stated Randall. “It’s a scary atmosphere not just for renters, however for landlords.”

Randall stated there’s some accountability positioned on renters to verify they’re not making use of at locations for which they don’t qualify.

“Earlier than you go and spend $30, $50, $20, no matter it’s, learn the factors,” Randall urged. “Landlords work very arduous to evaluation these standards a number of instances per yr and publish these.”

Utah Software Dispute Fund

A part of Randall’s talks with Bennion final yr included organising a fund to reimburse would-be tenants of predatory utility charges.

The Utah Software Dispute Fund was established in September, with an preliminary funding of $10,000 funded by donations. It’s administered by RHA.

Randall stated RHA’s aim with the fund “is to coach rental property operators take functions and charges provided that they’ve a emptiness and to reveal their standards up entrance. We practice them to match individuals one by one to a set of standards they offered upfront.”

Within the occasion a renter is certified, pays the charge, and finds out the place was already rented, Randall stated the charge ought to be refunded by the owner. If not, the renter might apply for reimbursement via this fund.

To this point, just one declare has been made on this fund and paid out for $50.

“That was a case the place the property proprietor charged a charge once they already had one other utility,” stated Randall. “That utility was ultimately authorised, denying the second applicant a possibility.”

KSL Investigators discovered that single declare was made by the daughter of a Utah lawmaker.

Bennion was skeptical the fund would work, citing a scarcity of promoting and public data of the fund. It’s a subject she instructed KSL she would rethink in subsequent yr’s legislative session.

As for White, she stated she by no means received a refund from a single landlord to whom she paid an utility charge.

Finally, one $35 charge did repay. White was lastly capable of finding housing in September.

“I really feel nice, relieved,” White enthused. Have you ever skilled one thing you assume simply isn’t proper? The KSL Investigators need to assist. Submit your tip at investigates@ksl.com or 385-707-6153 so we will get working for you.