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Updated 11 months ago on . Most recent reply

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Leticia Ramos
  • Rental Property Investor
  • California
1
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5
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How To Properly Inform Tenants about ADU's Being Built on Property

Leticia Ramos
  • Rental Property Investor
  • California
Posted

Hello BP Team. We informed our tenants about the possibility of building two ADU's in our property about 2 months ago. We spoke to each tenant and gave them a letter explaining our potential plans. The letter was a template used from CA. Apartment Association. Recently we decided to move forward and submitted our plans to the city. We need to inform our tenants about the new changes and would like some guidance as to which is the best way. We were thinking about having a management company or other professional help generate a letter with details about the scope of the work. Two of our tenants will need to clear out their assigned garage in order to prep that area for one of the ADU's. A common area will need to be cleared as the other ADU will be build. Our goal is to provide tenants with some suggestions as to how they can arrange for new ways to locate their things (storage facility, city yard sales, arrange for hauling service, etc.) Our tenants have been loyal and been there for about 15 years. We understand this can be challenging for our tenants, but we are planning for our children's future and teaching them about the REAL ESTATE benefits.

Do any of you have suggestions as to how we can best approach this or can refer me to someone who can prepare a letter addressing our plans for the build?  Our property is located in South Gate, Los Angeles County. 

Your thoughts and suggestions are greatly appreciated.

Leticia

  • Leticia Ramos
  • Most Popular Reply

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    Dan H.
    • Investor
    • Poway, CA
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    Dan H.
    • Investor
    • Poway, CA
    Replied
    Quote from @Leticia Ramos:

    Hello BP Team. We informed our tenants about the possibility of building two ADU's in our property about 2 months ago. We spoke to each tenant and gave them a letter explaining our potential plans. The letter was a template used from CA. Apartment Association. Recently we decided to move forward and submitted our plans to the city. We need to inform our tenants about the new changes and would like some guidance as to which is the best way. We were thinking about having a management company or other professional help generate a letter with details about the scope of the work. Two of our tenants will need to clear out their assigned garage in order to prep that area for one of the ADU's. A common area will need to be cleared as the other ADU will be build. Our goal is to provide tenants with some suggestions as to how they can arrange for new ways to locate their things (storage facility, city yard sales, arrange for hauling service, etc.) Our tenants have been loyal and been there for about 15 years. We understand this can be challenging for our tenants, but we are planning for our children's future and teaching them about the REAL ESTATE benefits.

    Do any of you have suggestions as to how we can best approach this or can refer me to someone who can prepare a letter addressing our plans for the build?  Our property is located in South Gate, Los Angeles County. 

    Your thoughts and suggestions are greatly appreciated.

    Leticia


     My view is AB1482 requires you to negotiate with tenant any significant change of lease terms (loss of garage definitely a change of lease terms, loss of yard and construction zone may be change of lease terms) and your tenant can likely block your efforts.  

    It appears you are planning to Proceed with caution which would be my advice.  Consult with professionals.  Expect there to be costs to appease the tenants.  

    Good luck

  • Dan H.
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