I moved into my apartment in 9/16 and started experiencing water leaks from the roof in 12/16. After dozens of leaking events and no repairs to the roof, I started withholding my rent in 10/17. I gave them the proper notice according to the law in my state (New Jersey), and I went to court for an eviction hearing 2 weeks ago. Since I had the cash in hand and a reason for withholding the rent, I was not evicted. If I don't settle with them, there would be another court date in about 3 months where I present my evidence to the judge, who then decides what I owe in the end.
The rental company is willing to settle with my for the following offer
- 1 month's rent abatement
- $1000 moving costs
- Move to an identical apartment with an 18 month lease at my current rent level ($2100). The market rate for the replacement apartment is supposedly $2300. It's in the same building with the same floor plan and view. My lease expires in 7/18. Effectively, I'd be locking in my current rent amount for about 12 additional months.
However, I've also paid $1500 for an attorney up to this point. Taking out the attorney fees, I'd be getting back less than 1 month's rent, and I'd be locked into my apartment for 18 months. Their original offer before I hired a lawyer was just the abatement and moving costs, without providing any details regarding alternative apartments, so they haven't really budged.
My lawyer is advising me to take the deal for the following reasons (according to him):
a) The court will only consider events that transpired AFTER I began withholding the rent. The leaking is totally random based on what mother nature cooks up for me. If there are no severe enough leaks between now and the court date, I'd risk having little evidence during the period the court cares about.
b) If the court makes a judgement in my favor, I would only be able to recoup my legal fees proportionate to the abatement granted. For example, if the court awards me with a 30% abatement of what I've withheld, then I could only seek 30% of my legal fees from the landlord.
This entire situation makes me incredibly angry. Even though I'm technically in the right, the personal cost to fight is very high for little potential gain. In addition to all the anxiety and frustration this has caused me, I'll end up having wasted a bunch of time in court. And if I lose completely, it would also cost a bunch of money. I'm also angry that I've paid so much for an attorney, and I don't feel like I'm getting anything back for it.
I'm leaning towards demanding the rental company cover my legal fees, and not taking the deal if they refuse. Even if going in front of the judge costs me, it would only take a few months of living with family or renting a cheap room to recoup the loss. If I permanently downgraded my housing, it would also save me thousands over the offered lease period where I'd be spending $2100 per month on rent. I just don't see the point in spending a dollar more in rent than what's necessary if the justice system is too broken to guarantee sufficient protections for renters. The main benefit of staying is that I do enjoy living here (ignoring the leaks and legal headaches), and I could put the whole thing to rest now.
I've also been thinking about quitting my job for open-ended travel, while starting up my own business. What I really want out of FIRE is autonomy. I'm grateful for my high paying job, but it also feels like I'm "wasting" my time - like I'm waiting to live my life until after I hit my FIRE number. If I could succeed as an entrepreneur, I believe I could get the autonomy I crave much sooner than if I stick with salaried work until FIRE. I'm already at 40% of my minimum FIRE number. If I stayed in hostels and other cheap accommodations while working on my ideas, I'd be able to cover my living expenses for a few years even if I made no money at all.
However, I'm not 100% ready to commit to this, and I don't know what I need to be ready. This conflict makes me feel like I have to make a decision now - either I'm locked into my current living/work situation for 18 months, or I move out in July and figure out what comes next. At least if I move out, I haven't closed the door on anything but this particular apartment complex. I could also save more aggressively before making the leap if my housing were cheaper.
I realize that these choices are mine to make in in the end, but I figured it would be helpful to write down my thoughts and get some second opinions!