CALI-How many days can a tenant leave and re-sign a new lease?

Question

I bought a house and and inherited a good tenant for a room rental.

He agreed to vacate with a 60day notice since we will be remodeling.

How many days is it legally for them to vacate and apply for a new lease with increased rents <10%?

after remodel??

Thank you

Bruce Woodruff · Answer

Ahh, I get it now. Good idea to put it on the market so no one can say it was rigged. Too bad a LL even has to go through this IMO.....it's your property, charge what you want..

Nathan Gesner · Answer

I see what you're doing.

California limits how much you can increase the rent. To get around this, you want to terminate the lease and move the tenant out, renovate the unit, then start a new lease with the tenant at a rate higher than what the law allows for rent increases. Right?

Your plan should work. I'm not aware of any time limit, particularly if the Tenant agrees to it. You're not increasing rent on an existing tenant, so the limits do not apply. Once they move out, the relationship is terminated. You can then put the property back on the market for whatever price you want.

However . . . I would be careful about this. You are in the most regulated, litigious corner of the world and people can sue for anything. It may work with the current renter, but another renter may catch wind of your "loophole" process and decide to file a complaint or sue. If it were me, I would market the property to the public after renovation so it doesn't look like you were just renovating for the purpose of increasing rent on the current Tenant.

Greg M. · Answer

Your best bet is to hire an attorney to advise you. These laws are changing so fast that you don't want to screw it up.

The exact situation is unclear to me. Did you buy the home to live in? Was the tenant renting the entire home or just a room? Did the tenant leave because they wanted to or you asked them to? Are they able to live there safely during the renovations? Specifics like these will determine if you can non-renew the lease, if you have to pay a relocation fee, if you have to re-rent to the tenant at the same rate, etc.

You're also not just dealing with CA laws, you have to consider your local OC laws.

Bruce Woodruff · Answer

If I'm understanding correctly, once they move out, they become the same as anyone else out there...so they just come in and sign a new lease for whatever y'all agree on...

The only difference is that they have 'insider knowledge' because you're holding the place for them specifically....

Trist Baylon · Answer

Yes,He's a good tenant and dont mind paying higher rent as long as its renovated..Its just I want to cover myself and not do anything illegally..

Trist Baylon · Answer

Yes,This is what im trying to do but the tenant is ok with doing that.

He likes the house and the area and doesnt mind paying higher rent as long as it is renovated..

Thank you for your input..

Zachary Beach · Answer

@Ehlen Baylon I can recommend RE attorneys in CA I use if you want they could look into or know the laws in the specific city and give you a specific answer. Message me directly if you would like that

Dan H. · Answer

Unlike some of these posts, I am a LL in CA (San Diego).

This response assumes that you are only concerned about the statewide rent control (AB1482) and not a local rent control ordinance.  In San Diego, the only rent control is from AB1482 so I have minimal knowledge of any local/city rent control ordinances.

AB1482 does not apply to SFR.   Use of “House” makes me question if AB1482 applies in your case.  AB1482 applies to multiplexes that are over 15 years old with exception for a owner occupied duplex where the owner resided in the unit prior to other unit being rented.

If AB1482 applies …

In San Diego, I have heard of Landlords getting in trouble for stating they were moving family into the unit for a no fault termination but not having the family in the unit long enough (or at all).  The common mind set is that if the family is in the unit for a year there is not going to be an issue.  If it is less than a year, the LL should be able to show plans changed and that moving the family in was not simply a farce to force the tenant to vacate.

I have not heard of any issue with regard to the no fault termination duration between tenants (time between original tenant and new tenant) with respect to a rehab.  I suspect as long as the rehab is extensive enough that tenant could not reasonably occupy the unit through the rehab (a requirement of AB1482 no fault termination for rehab) there will not be an issue and you have followed what is indicated in AB1482 (assuming you are paying the tenant one month’s rent for the no fault lease termination).

It certainly is a rare situation, but if the rehab is extensive such that tenant could not occupy through the rehab (and you paid them the required one month’s rent), I am convinced that renting to the same tenant post rehab that AB1482 no longer applies.  It seems absurd that anyone would expect a unit post rehab to be bound by the rent controlled rent from before the rehab.

Good luck

Allan C. · Answer

@Ehlen Baylon I wouldn’t trust recommendations from non-CA folks without legal expertise on this matter since no-fault evictions are a delicate matter as you sense. Your situation isn’t common as most CA tenants who vacate cannot afford rents after renovations. I also trust that your numbers are just examples as raising rent only $300 after renovations don’t seem worth the hassle in this example. A $300 rent increase suggests cosmetic improvement, which may be litigated if tenants become disgruntled down the line.

Trist Baylon · Answer

yes,But when can they come back and re-sign a lease with higher rent?

Like legally??

CALI-How many days can a tenant leave and re-sign a new lease?

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