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Minority renters face higher upfront costs, according to Zillow study

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Moving is expensive, but when you figure in rent increases, application fees, and security deposits, moving can become financially overwhelming.

Rental issues are one of the biggest topics causing people to reach out to Let Joe Know. While many Arizonans are being priced out of the rental market, some people may be impacted more than others.

Zillow's consumer housing trends report found that people of color and minorities face more up-front rental costs. The typical African American, Hispanic, and Asian American Pacific Islander renter reports spending $50 per rental application. That's compared to the average $35 per application reported by White renters.

The costs can add up quickly because the report also finds that African American and Hispanic renters tend to submit more applications before finding an apartment. According to the report, 38% of African American and Hispanic renters pay to fill out five applications while only 21% of White renters submit five applications.

In Arizona, there is no law regulating rental application fees.

"The landlord can require any amount of fees. And that becomes a moment where the landlord can make a subjective decision," explained Pamela Bridge, director of advocacy and litigation at Community Legal Services.

According to the Zillow report, people of color who are renting are also likely to pay a higher deposit on apartments — sometimes $150 more. The report finds renters of color paid a security deposit more often (93%) than white renters (85%). Among those who paid a deposit, the median amount for renters of color was higher — $750 compared to $600.

Arizona law does limit security deposits for renters to only one and a half times the monthly rent. However, landlords could charge less or offer concessions to renters.

"There's some subjectivity what landlords can do for different tenants. We would hope, again, that they would treat everyone the same," Bridge said.

The Zillow report tracks renter trends and does not go into the reason or causes behind the trends.

If you feel you are being discriminated against you can take action by contacting organizations like Community Legal Services, Southwest Fair Housing Council, or the Arizona Attorney General.

"... These organizations can send testers in to see, is that landlord actually charging the same amount for everyone. That's how organizations can establish a fair housing violation," Bridge explained, adding it's important for renters to act quickly and not wait.

Another rental issue often reported to Let Joe Know is the difficulty in getting a security deposit returned. Here are several steps to follow to help ensure your deposit is returned:

  • Complete a walkthrough with your landlord when you move in and before you leave. Take pictures or video each time so you are not on the hook for damage that was there at move-in or damage that may happen after you hand over the keys.
  • Document work orders you've sent to the landlord or property management.
  • Tell the landlord, in writing, where your new address will be and request your deposit be sent to that address.
  • Landlords have 14 business days after you've requested your deposit to send it or an itemized list of why they're keeping a portion or all of the deposit.
  • If you disagree with the landlord's decision regarding your deposit, you only have 60 days to dispute that.

Bridge says her advice to renters is to never withhold rent even if there is an ongoing dispute and to get everything in writing.
To learn more about your rights, check out the Arizona Landlord Tenant Act online.

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