Los Angeles RSO Evictions in Multi Family

Los Angeles RSO Evictions in Multi Family

Residential Real Estate Agent · Los Angeles, CA · Member since 2014 · 32 posts · 6 votes

I am interested in buying a 4 unit Multi Family Property in Los Angeles. I would be purchasing this property with a partner. I own no other units and would be occupying the property. I would like to take possession of two of the units, one in my possession and one in my partners possession. 

I see in the RSO documents that you an evict one of the units for the owner to occupy. What at the rules for evicting two units? Can I evict? Is the cost the standard rates on the RSO documents?

Rent Stabilization Ordinance Documents
Relocation Assistance Payable By Mom & Pop Landlords
Eligible Tenant - $7,350
Qualified Tenant - $14,750

thanks!


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Los Angeles, CA · Member since 2014 · 352 posts · 142 votes
11y

@Eric Zunkley @Josh Prince is right. Demanding vacant units may not have much traction but there might be simple work arounds and/or solutions. 

From what I've seen so far and have been told by my realtor who owns over five multi units himself, multi units are generally harder to move than SFRs so…. at least - ASK - your seller if she/he is willing to look into vacating that unit in question. 

Two weeks ago, I made in inquiry into a 4 plex building (1/1 x 4) just south of downtown Los Angeles that is fully occupied. The seller was definitely open to delivering the building with at least one unit for me to occupy and possibly two units vacant so asking won't hurt. 

Asking the seller to vacate unit has to be taken on a case by case basis.

I agree that you should also attempt to turn the illegal unit on the property into a negotiation advantage for you.

I too dealt with illegal unit issue (accessory dwelling unit) when I first started hunting for multi units to buy. Bear in mind I was looking to do the reverse of what you're doing. I wanted to see if I could legalize the units. It was too much work but nevertheless, see if you can get some insight. 

Check out this site.   http://buildingpermitslosangeles.com

Email JOHN who runs it with what you're looking to do. He can offer valuable insight. He's super busy so if you haven't heard from him in 24 hours after you send your email, PM me and I can email his assistant to help you.

Here is another one. She works with building to navigate the building permits maze and is is also an architect. I'm sure a phone call won't hurt with regards to the recourse you need to take.

Jamilah A Haygood Architect |  Tel: 310.801.0330 | www.buildingpermitexpeditor.com

One more thing. If the 4 plex you're attempting to buy has the tenants on month to month (you should definitely know that information), don't forget that you can solve this problem when you notify them that you'll be signing them up to new leases with new stipulations and regulations (IE: Newly non smoking allowed units, Each adult over 18 needs to sign a lease in order to live in the units, No parties after 9pm [which can be huge in Los Angeles] etc etc).

Good luck!

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  • Investor · Los Angeles, CA · Member since 2010 · 116 posts · 36 votes
    11y

    Hi @Francis A. - I am not trying to make this contentious.  Glad to hear your thoughts.  

  • Los Angeles, CA · Member since 2014 · 352 posts · 142 votes
    11y

    @Josh Prince 

         Originally posted by @Josh Prince:

         Hi @Francis A. - I am not trying to make this contentious. Glad to hear your thoughts.

    I knew you weren't being contentious. 

    By contentious I was saying that the new lease and bullet points I proposed were actually a practical solution if wielded right - a way to transition positively from the legacy (existing) tenants from the seller to the buyer (new owner)  while respecting the upstanding existing tenants and dealing with tenants who refused to respect their end of an agreed upon bargain. IE: making life difficult for everyone associated with the apartment building they were living in.

    In the end 'rent control' and non rent control even out in the sense that for example… you can't rent out a "non rent control" $1000 apartment for $1500 in a neighborhood that won't fetch that kind of price.

    And then by the same token, owning a "rent control" $1000 apartment in a neighborhood that will support  a $1500 price of that same apartment in the right neighborhood can be be awesome. Especially, if tenants transition out every 2 years. Meaning the building has to be located in an area where tenants transition out apartments is fairly common. 

    I would rather go for owning the rent control $1500 apartment knowing that I have a higher ceiling.

    Rent control can be a good thing. You just have to look through the Kaleidoscope differently from the way others are looking through it. 

  • Real Estate Agent · San Pedro, CA · Member since 2016 · 22 posts · 7 votes
    9y

    I know it has been a while since this thread was last updated, but maybe someone here can help me out.....

    I'm looking to purchase a triplex that falls under LA rent control laws. It has a SFR in the front and a duplex in the back. The duplex consisted of 2 units that were 1 bed/1 bath each. At some point the duplex was converted into a single 2 bed/ 2 bath unit. All of the documents show that the property was a triplex and all of the plumbing and electrical is still set up in the rear unit so that it can be converted back to 2 units.

    My question is this...... is there anything that says I cant evict the tenants so that I can convert the single unit back to 2 units? Doing this will increase the monthly income substantially as well as increase the properties value.

    Do the same relocation rules apply?

    Also, what types of fees should I expect if I am able to do the conversion? Any legal document fees or penalties?

    Thank you in advance. I hope I wasn't too vague and if I need to clarify anything please feel free to let me know.

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