Not so long ago, landlords were offering free microwave ovens and trips to Hawaii to bribe people into renting apartments.
Now, vacancy rates are approaching zero, and many landlords instead are charging fees just to fill out an application.Apartment hunting is becoming expensive.
The Salt Lake City Council will decide Tuesday night whether to step in and control the fees - ending a practice a group of single mothers claims is forcing low-income people to become homeless.
City housing officials want the council to set a $15 cap on the fees, which landlords claim are necessary to run background checks on potential renters. Officials in Mayor Deedee Corradini's office want the cap set at $10. Landlords want the cap set much higher or, better yet, not at all.
James Deans, an attorney representing the Apartment Association of Utah, said he's all for laws that would keep landlords from gouging potential renters. But he doesn't want government setting arbitrary limits.
"Having the council decide on dollar-amount limits seems a little bit dangerous," he said, noting the city would have to keep adjusting the cap for inflation as the years go by. "Let's get an ordinance that says it is a misdemeanor for a landlord to take money and not process the application fee."
A group known as JEDI Women, an acronym for Justice Economic Dignity and Independence, began pushing for laws against the fees last summer. They claim some landlords charge up to $50 to run credit checks that cost a fraction of that amount. The landlords then collect hundreds of dollars off each vacant apartment while apartment hunters spend hundreds of dollars putting their names on several waiting lists.
Beth Kelly, a JEDI organizer, said Monday the group supports a $10 cap. She plans to present the council with more than 1,000 signatures Tuesday supporting such a move.
She said many landlords never perform the checks, despite collecting the money.
"I know of people who have given a list of references, and the landlord never called them," she said.
Earlier this year, JEDI members surveyed 92 apartment buildings in the city. The women found that 68 percent were charging application fees that ranged from $10 to $50. They also found that credit-reporting agencies charge between $2.50 and $10 to do credit checks, in addition to monthly charges to subscribe to the service, ranging from nothing to $25.
City Council officials said their own investigation showed $15 is a reasonable limit.
Deans said he respects the claims of JEDI Women and believes they have a legitimate complaint. But he said a cap on the fees would only serve to raise rents even higher. Some landlords, if they lose money on credit checks, may limit the number of applications they accept. The women could be hurting their own cause, he said.
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ADDITIONAL INFORMATION
Public hearing
To make your voice heard on whether rental application fees should be capped, attend the Salt Lake City Council meeting Tuesday at 6 p.m. in the Council Chambers, 451 S. State.