San Diego renter ordinance wants to stop landlords from charging for pets, trash collection

A proposed ordinance from two San Diego politicians would stop landlords from charging renters “junk fees” that include paying extra for pets and marking up trash collection, as well as offer other protections.

San Diego Councilmember Sean Elo-Rivera and San Diego County Supervisor Monica Montgomery Steppe announced the joint effort Tuesday. The changes could, presumably, cover the entire county, but there is no timetable for passage of the ordinance.

The politicians plan to present the proposal to their government bodies in the coming days but any decision could be a long ways off. Landlord and business groups were still reviewing the proposal Tuesday but already were opposed to many of the proposed changes.

“It’s disappointing that this proposal was drafted without considering existing regulations that must be followed by housing providers or industry experts,” said Alan Pentico, executive director of the Southern California Rental Housing Association, a group that represents landlords.

Elo-Rivera, in an interview Tuesday, said the proposed ordinance is rooted in a goal of addressing San Diego’s rising cost of living by cutting back on “unnecessary causes” of high housing costs.

He cited an example of one constituent who was concerned about having to pay $600 a month to keep renting a garage that had been previously included in the rent.

“This is the sort of stuff that we see, and that requires action,” Elo-Rivera said. “If we’re serious about addressing the cost-of-living crisis that we have here in San Diego, we need to be willing to take it on wherever we see it.”

Here are the biggest parts of the proposal:

Pet rent: Landlords often charge a monthly pet rent to protect against damage. Pet deposits at the start of the lease get into questionable legal territory and most landlords have moved to a monthly fee. The ordinance says landlords must do away with “any fee” related to a pet but would still allow for a pet security deposit. The issue with pet security deposits, lawyers have told The San Diego Union-Tribune, is if something happens it can be hard to argue the tenant can’t get their money back. California law says any fee charged by a landlord with the purpose to protect a landlord against damage to a property, such as a pet deposit, should be treated legally as a refundable security deposit.

Trash ‘valet’ fees: The ordinance would prevent a landlord from charging a tenant a separate fee for ferrying trash to its pickup point. Elo-Rivera described the trash valet fee as: “It means you’re not allowed to take your own trash to the Dumpster. Not only are you not allowed to, we’re going to charge you.”

Limited fees: The ordinance says a tenant must not be charged fees in excess of 5% of their monthly rent. Those fees include late fees, as well as processing fees (typically for paying online). Additionally, the ordinance says late fees cannot be more than 2% of monthly rent. That would also be different from the state, which doesn’t have a fixed amount (or percentage) that landlords can charge for a late fee. The state does require a landlord to document why a specific amount was charged.

No new charges: The ordinance would limit new charges that were not agreed to in the original lease agreement. Some San Diego renters have reported being charged a separate fee for trash as soon as the city started charging for it.

Other parts of the ordinance are mainly related to transparency, with tenants being made aware of exact rental costs and being provided educational materials related to tenant charges.

San Diego renter guide: Your landlord can charge what?

Pentico, of the landlord group, said a few of the ordinance’s proposals are already state law or, at least, followed by landlords currently. For example, the ordinance states that a landlord cannot charge a separate fee for pest control but that is already state law.

“These are complex topics that deserve careful consideration and input from all stakeholders,” he said, “to ensure any changes actually help renters without creating unintended consequences.”

While the rental housing industry has said that many of these rules are already best practices, Elo-Rivera said that such reassurance is not helpful to the tenants who do get hit by junk fees and other charges on top of their rent. He said input from landlords would be considered as the process goes along.

“It’s the beginning of a conversation,” he said.

Montgomery Steppe and Elo-Rivera plan to hold a news conference Wednesday morning about their efforts. Elo-Rivera will bring the ordinance to a city committee on Thursday, and Montgomery Steppe plans to bring it to the Board of Supervisors next Tuesday.