							Consumer Protection Division
						Maryland Attorney General's Office
TIPS FOR TOUGH TIMES
#59 
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APARTMENT RENTAL FEES

	 The Consumer Protection Division receives many complaints each year about rental problems, including some from consumers who never even moved into the apartment.
	When you find an apartment you are interested in, many landlords will ask you to pay some up-front fees. Before you turn over any money, you should be sure you know what you're paying for and whether or not you can get the money back if you change your mind about renting.

* Maryland newlyweds completed a credit application and paid a $75 application fee. When their application was approved and they were ready to sign the lease, the rental agent would not allow them to look at the unit they'd be renting.  The couple refused to take the apartment, but were unable to get their money back.

* A Prince George's County college student gave a prospective landlord $875 to hold an apartment he hoped to rent with five other students. When the landlord insisted all the students' parents sign the lease, the students decided not to rent there, but the landlord refused to return their deposit.

* A landlord told a Baltimore man that his application to rent would be processed only if he paid a $400 security deposit. After inspecting the apartment -- but before signing a lease -- he decided to rent elsewhere, but the landlord insisted on keeping his deposit.

Application Fee

	Before agreeing to rent to you, most landlords will ask you to complete an application form and pay an application fee. An application fee is any fee paid to the landlord before a lease is signed to cover the cost of a credit check or other actual expenses related to processing your application.  Make certain the document the landlord gives you is an application form, not a lease. You should not agree to sign a lease until you are sure the apartment and the terms of the lease are right for you.
	A landlord is entitled to keep an application fee of $25 or less. If an application fee is more than $25, any amount that was not actually used to process the application must be returned to you within 15 days after you've moved in. If either  you or the landlord has sent a letter saying the rental won't take place, you are still entitled to a refund of your application fee, less the landlord's application-related expenses. 
	
Security Deposit

	A security deposit is your payment to a landlord to protect the landlord against any damage you may cause to the property you rent. It also protects the landlord if you fail to pay your rent or if you break your lease and the landlord incurs damages as a result. Although a landlord may ask you to pay a security deposit when you apply for the apartment, it is not wise to do so until you are ready to sign a lease.
	If a landlord asks for money to hold an apartment, it may not be clear to you that you are being asked for a security deposit. Before you pay any money, you should confirm with the landlord that it will be refunded if you decide not to rent or if the landlord decides not to rent to you. Ask the landlord to write that information on the receipt. It could save you from having to fight for it later.
	Maryland law gives you certain rights when you pay a security deposit. For example, the security deposit may not be more than two months' rent. You must receive a receipt, which can be included in the rental agreement. The landlord must put the security deposit in an escrow account. The law imposes specific penalties on the landlord if these rights are violated.
	At the end of your tenancy, the landlord has 45 days to return the security deposit plus 4 percent interest, less any damages withheld. If the landlord fails to do this, you may sue for up to three times the withheld amount, plus reasonable attorney's fees.
		
Inspect the Actual Unit

	Before you sign a lease or pay a security deposit, you should look at the unit you'd be living in, not just a model. Often, the model units are nicer than the actual rental units. If you are asked to pay a security deposit but you cannot see the unit you will be renting, ask for a written statement that allows you a full refund if you choose not to rent after inspecting the unit.
	After you have inspected the property and before you've paid any money or signed a lease, ask the landlord for a written commitment to correct any problems you notice. Always get all promises to clean or make repairs in writing before you sign a lease. 

Free Booklet on Tenant Rights

	For a free, 16-page booklet on tenant rights and avoiding disputes with landlords, send a self-addressed 6" x 9" envelope with 78 cents postage affixed to the Consumer Protection Division at 200 St. Paul Place, 16th floor, Baltimore, MD 21202. Ask for Landlords and Tenants.
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You can find back issues of Tips For Tough Times on the Internet at http://sailor.lib.md.us/docs/tip_toc.html

Tips For Tough Times is available in alternative formats for visually impaired consumers. Call (410) 576-6956.

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January 1997. Tips for Tough Times is produced by the Consumer Protection Division of the Maryland Attorney General's Office.
J. Joseph Curran, Jr., Attorney General
William Leibovici, Chief, Consumer Protection Division
Lucy Weisz, Deputy Chief, Consumer Protection Division
Jackie Ward, Editor
Andrea Cooper, Graphics

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Volunteers Needed

Help consumers with problems, experience the workings of a law enforcement agency, and develop valuable skills by volunteering at the Consumer Protection Division's downtown Baltimore office as a:

* Consumer Affairs Mediator: Mediates consumer complaints against businesses and responds to consumer inquiries on the telephone hotline.

* Health Advocacy Mediator: Mediates consumer complaints against health care providers and responds to consumer inquiries on the telephone hotline.

* Legislative Aide/Consumer Advocate: Assists in conducting research, preparing reports on consumer issues, and monitoring state and federal legislation affecting consumers.

Our office is convenient to the Light Rail and Metro. The Inner Harbor, museums, theaters, restaurants and other attractions are close by. Interested? Call Ann Brooke at 410-576-6550.

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HOW YOU CAN REACH US

Consumer Protection Division, Maryland Attorney General's Office
Downtown Baltimore
Consumer Protection Division
200 St. Paul Place, 16th Floor
Baltimore, MD 21202-2021

Complaints
* General: (410)528-8662 (9 a.m. to 3 p.m., M-F)
* Health Education & Advocacy Unit: (410)528-1840 
	(9 a.m. to 4:30 p.m., M-F)
* D.C. Metro Area: (301)470-7534
* TDD for hearing impaired persons: (410)576-6372
Send written complaints to:
Consumer Protection Division
200 Saint Paul Place, 16th Floor
Baltimore, MD 21202

Branch Offices
* Cumberland
	(301)722-2000
	(9 a.m. to 12 p.m., 3rd Tues. of each month)
* Frederick
	(301)694-1071
	(9 a.m. to 1 p.m., 2nd and 4th Thurs. of each month)
* Hagerstown
	(301)791-4780
	(8:30 a.m. to 4:30 p.m.)
* Salisbury
	(410)543-6620
	(8:30 a.m. to 4:30 p.m.)


