General Landlording & Rental Properties

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Buying Out a Tenant for owner to move in

Posted Jun 18 2022, 10:50

Dear BP

We have a rental property and wanting to do an owner move in eviction.  The tenant has been there for 10 years.  Due to covid there are no evictions of any kind currently in Oakland and we also want to avoid any legal battle.  So we are wanting to approach our tenant as see if they are amicable to moving out.  We would be willing pay to relocation costs.  Does anyone have any experience with this.  What strategy do you recommend?  How much have you offered etc?

Thanks so much

Oakland, California

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Michael J.
  • Real Estate Agent
  • Greenville SC
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Michael J.
  • Real Estate Agent
  • Greenville SC
Replied Jun 18 2022, 10:59

Cash for keys is definitely a good strategy when trying to get Tenants to leave.  I'd have a conversation with them first and see what their expectations are before you offer anything.   Let them do the talking and see what they say.  You might save some money this way.

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Osazee Edebiri
  • Realtor
  • San Jose, CA
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Osazee Edebiri
  • Realtor
  • San Jose, CA
Replied Jun 22 2022, 12:44
Quote from @Michael J.:

Cash for keys is definitely a good strategy when trying to get Tenants to leave.  I'd have a conversation with them first and see what their expectations are before you offer anything.   Let them do the talking and see what they say.  You might save some money this way.


Real Estate Agent CA (#02145259)

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Replied Jun 22 2022, 12:49

Talk to them, but don't hand over any money until they are out of the house.

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Osazee Edebiri
  • Realtor
  • San Jose, CA
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Osazee Edebiri
  • Realtor
  • San Jose, CA
Replied Jun 22 2022, 12:55
Quote from @Michael J.:

Cash for keys is definitely a good strategy when trying to get Tenants to leave.  I'd have a conversation with them first and see what their expectations are before you offer anything.   Let them do the talking and see what they say.  You might save some money this way.

Michael is right but since it is Oakland this can be trickier.

I have done a few in the past. 

Yes found if they are interested and what they know. Oakland has minimums that you are supposed to pay tenants to move. Plus all the rules can be found on the Oakland Rent Board website. 

Then you  should talk to an eviction lawyer. I used local The law Offices of Alan J. Horowitz.

You will draft up a contract pay them half up front and half when they leave.

Tenants don’t have to take it, unless you were able to do something like the owner occupied move in, but as you stated moratorium is still in affect.

Real Estate Agent CA (#02145259)

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Henry T.
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Replied Jun 27 2022, 23:46

Frightening.  If they're over 65, you can't have your unit back.  Must occupy for 3 years. Those poor landlords. Landlords! Get out now while you can! Ohio or bust!

https://www.tobenerlaw.com/oak... 

A landlord performing an owner-move-in or relative move-in eviction in Oakland must pay the following moving allowance for tenants who have resided in their unit for more than two years:

  • $6,500 for studios and one-bedroom apartments
  • $8,000.00 for two-bedroom apartments
  • $9,875 for units with three or more bedrooms

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Osazee Edebiri
  • Realtor
  • San Jose, CA
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Osazee Edebiri
  • Realtor
  • San Jose, CA
Replied Jun 29 2022, 18:05
Quote from @Henry T.:

Frightening.  If they're over 65, you can't have your unit back.  Must occupy for 3 years. Those poor landlords. Landlords! Get out now while you can! Ohio or bust!

https://www.tobenerlaw.com/oak... 

A landlord performing an owner-move-in or relative move-in eviction in Oakland must pay the following moving allowance for tenants who have resided in their unit for more than two years:

  • $6,500 for studios and one-bedroom apartments
  • $8,000.00 for two-bedroom apartments
  • $9,875 for units with three or more bedrooms

 You can always have your unit back if they agree to move, that's why you want to do it as proper as possible. Don't pay cash for example you want a paper trail. So if they try to take you to court later you can show you provided a legal document that they signed and that they deposited the money.

I haven't had any issues. I did have one family that changed their mind about moving, and they gave me my half back. I couldn't force them to move because the lawyer advised that I didn't pay them enough, which I agreed and since they gave my money back I had no issue with it. 

Many of the difficulties in Oakland are mostly solved with Human conversations. The more report you build with tenants typically they will agree to most things. 

Powell, it is likely at some point Oakland will allow you to do the Owner Occupied move in again. So hopefully you are able to solve it without having to wait but if you do have to wait, if the tenant is over 65 you will probably have to pay a bit more because that's a protected class, but it should be worth it, if that suits your overall needs and goals.

Let us know how it goes.

Real Estate Agent CA (#02145259)