I have a 5 bedroom 3300sq foot home in California which has a significant amount of equity. I had a realestate agent walk through the home while the tenants were home with the intent of starting the selling process. We were both under the impression the eviction moratorium for California would remain aligned with the fed which is July 30th. We were wrong. California’s moratorium is now Sept 30th. The tenants are on month to month rent. Raising the rent could cause them to claim covid 19 and subsequently not pay rent. Now they’ve mentioned they tried to find a place to move but I’ve heard from other landlords they’re skid-dish with taking new tenants now. The tenants are paying rent but are having a hard time finding a new place.
Would any of my respected teammates here offer some guidance ?
@Sam Albury I agree with @Dylan Vargas. It sounds like you should just wait. At least the tenants are performing. It might not be ideal for you to leave them in place until the moratorium is listed, but it seems like the best option at the moment.
I'm up in Washington, but have recently had to do a little investigation into the California moratorium laws for a client. I'm fairly sure that landlords are able to give notice to evict if their intent is to sell, however the California legislature has added the caveat that the buyer must occupy and not use as a rental. You or the buyer could play around with the idea of cash for keys to incentivize them to find another place as well, if they're are looking for a rental.
@Sam Albury Welcome! Are you in a hurry to sell? Maybe wait it out if they are paying rent and good tenants. I would never count on California law about tenants moving out when a house is sold. I say that because in this day and age it really is city by city, county by county and of course the state. The rental market is very tough in many areas right now. If the tenants are trying to find housing but having no luck I am not so sure I would push the issue. I would only sell if I did my homework (which sounds like you are doing) and could be %100 assured the tenants would have to move out after house sells. Have you had a talk with the tenants? How did they respond? Good luck and keep us posted.
Just a brief thought, but it's great to hear they want to move. The obstacle is finding them a place to rent. If you haven't already, I'd recommend asking your agent to help in their search. The agent should be motivated to help since he'd be able to get your house listed sooner.
Feel free to share where the home is located and I might be able to add more value to your situation.
@Sam Albury I agree with @Dylan Vargas. It sounds like you should just wait. At least the tenants are performing. It might not be ideal for you to leave them in place until the moratorium is listed, but it seems like the best option at the moment.