How to evict a tenant in Los Angeles + notice of new owner

Question

Hi - we are buying a 2 unit property in Los Angeles (City) and plan to move into the building. I understand that currently the moratorium isn't lifting on Jan 31 2022 for the city, only the county.  Very curious if anyone has been dealing with this and has advice or thoughts on how to approach this.  He turned down a cash for keys offer by the seller months ago and has been underpaying rent by $300/mo., and has not applied for any assistance.

1.  What are requirements to provide notice for him that we will be the new owner, how (to where) he should pay his rent, etc.

2.  His last rent increase was in 2014, and he has refused to sign a tenant estoppel.  He underpays his rent, weekly deposits to the current owner - we want him to pay in full on the 1st of the month per the lease.  Any ideas of how to clarify his rent due etc. that don't violate AB1482 other than the estoppel?

3.  Anyone know if the no fault owner occupier eviction can work during COVID in LA City?  It seems unclear.

Thanks so much, community!

Bill

Jon Schwartz · Answer

He lives in LA, so LA makes sense for an owner-occupied investment.

Plus, do you know any LA real-estate investors who aren't filthy rich? This the best market in America — if you can afford it!

Jon Schwartz · Answer

Bill,

I hate to be the bearer of bad news, but the LA eviction moratorium prohibits all no-fault evictions. That includes owner-occupant relocations.

Additionally, LA has enacted a rent freeze until one year after the local emergency is declared over. So not only are you stuck with this tenant, you can't raise his rent anytime soon!

If I were you, I'd connect with an eviction attorney ASAP. My understanding is that if the tenant isn't paying full rent and hasn't gone through the necessary COVID protocol (namely, delivering a letter saying he was impacted financially by COVID), then you have ground to evict for non-payment of rent. You'll probably have to stop collecting any payments (accepting a partial payment will forestall the eviction process) and sit tight for a few months while your case goes to court.

Bottom line: don't rely on us knuckleheads. Google "los angeles eviction attorney" and get a professional opinion.

Good luck!

Best,

Jon

Jon Schwartz · Answer

Agree with you there!

Bill Levey · Answer

Hey, thanks guys, just realizing I hadn't replied to this... it's certainly tricky, and even the attorneys have no idea really how this all will or should go.  I feel bad for some tenants, but also for the property owners.  We love living here but definitely taking a hit in Year 1 and hopefully not long after.  Bought this place for the long-term and priced in the idea that we'd have to deal with this, but it still hurts! I appreciate all the thoughts.

Also, @Tevis Verrett my best friend's name is Tevis and have never met another...nice to meet you!

Bruce Woodruff · Answer

Oh, I know, I spent 40 years in SD...it's not even the money (which can be huge) It's the insanity of it all...it just drives me nuts.....;-0

Bruce Woodruff · Answer

Are you sold on buying in LA? I'm not understanding why.... this is how the game starts and you still want to play? Must be something I'm not seeing...but good luck!

Bill Levey · Answer

Thanks @Scott and @Mel.  Think we are getting closer to understanding the procedure and variables.  Mel, he is in the largest unit and we are moving in as a family and there isn't another comparable.  I don't want to ever ask someone to leave a place they call home but it's only a 3 unit place, not rent controlled and he has been underpaying for years and hasn't even applied for rental assistance during COVID while the seller (previously his good friend of 30 years) practically begged him to.

Should be interesting.  I am still planning to be as nice as possible unless there's a reason not to be, and happy to update you privately @Tevis (btw my best friend's name, and haven't met another!)

Mel Hayes · Answer

@Bill Levey

Hey Bill, Is the problem tenant the longest tenured tenant? If so, you can not evict them. You must evict the shortest tenured tenant UNLESS their unit does not fit your needs. Example you have 3 kids and their unit is a 1bd/1ba and the problem tenant has a 2bd/2ba.

Although the tenant refused cash for keys, you will still have to pay them. The city a table for you to follow.

Unless you are getting this property at a killer deal, I would walk. L.A does not favor LL at all in these situations.

When looking at properties that have problem tenants, I ask the current owner to negotiate cash for keys and I put that money in escrow and close with the property vacant.

Good luck.

Tevis Verrett · Answer

I am following this thread, maad good luck during this moratorium!

How to evict a tenant in Los Angeles + notice of new owner

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