Loma Linda, CA · Member since 2018 · 34 posts · 8 votes
Need a little help with understanding Evictions and leases.
I'm closing on a duplex in Redlands Ca. There is currently a tenant in one of the duplexes. He's been there for 5 years, but his lease is up in about 2 months.
I want a brand new tenant in there because the current rent is below market.
My question is,
when his lease is up, does he just leave? Does he have the right to stay on a month to month?
Do I have to give him a notice first that I'm not going to renew his lease once his current one is over?
I have a 60-day notice to Vacate form, but not sure when to give it to him or when will that take effect. Since he only has 2 months left do I give it to him right away or do I give that to him once his lease is over meaning he'll have 2 more months in the property?
Investor · Tempe, AZ · Member since 2018 · 1k+ posts · 731 votes
7y
Hi @Lex Phumirat. It's important to read and understand the existing lease. The lease should state their requirements for notice as well as yours but if nothing occurs then almost every lease transitions to a month-to-month.
Have you consider bumping their rents? People hate to move. I would have that conversation with them first because if they're willing to accept then you just eliminated vacancy risk. Which is huge.
I would simply send a letter notifying you are the new landlord, their lease expiration date and then state the new rent. Let them decide to accept or reject.
Investor · Tempe, AZ · Member since 2018 · 1k+ posts · 731 votes
7y
Hi @Lex Phumirat. It's important to read and understand the existing lease. The lease should state their requirements for notice as well as yours but if nothing occurs then almost every lease transitions to a month-to-month.
Have you consider bumping their rents? People hate to move. I would have that conversation with them first because if they're willing to accept then you just eliminated vacancy risk. Which is huge.
I would simply send a letter notifying you are the new landlord, their lease expiration date and then state the new rent. Let them decide to accept or reject.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
@Lex Phumirat Be sure to send it to them certified mail so you do not get the "I didn't get the notice" excuse. Should they leave if you notify them? Sure. Will they? Who knows, complete wild card. I would try and keep them if they are solid tenants, it is worth exploring that before incurring the costs associated with vacancy, turnover, etc..
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
7y
@Lex Phumirat If it were me, instead of giving him a 60 day notice to vacate, I would give him a 60 day notice of rent increase to whatever the market rate is. (Assuming it’s over a 10% increase it also requires a 60 day notice.)
That way, the ball is in his court and he may choose to stay, which for you would actually be the better option because you’d get the higher rent and avoid all the costs typically associated with a vacancy (i.e. painting, repairs, paying for utilities while it’s vacant, etc). Win-win.
Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
7y
Oh no. This is bad. You clearly bought a rental in CA without researching the landlord tenant laws. Do not make a move. Do not contact the tenant. Do not do ANYTHING, except research your local laws. CA has (probably) the most tenant friendly laws out of any state. You must print out a copy of these laws. Read them three times. Keep them by your bed. Read them every night, twice. That is your new bible, and you will find the answers to all your questions there.
Talk to him, but if you haven't closed, you don't own the property and aren't his landlord. As soon as you close, tell him the lease is not being renewed (or if you want to keep him), what the new rent will be. You could let the current owner pass on the info. NEVER do a 5 year lease. Do a 1 year lease.
Loma Linda, CA · Member since 2018 · 34 posts · 8 votes
7y
Thank you so much everyone. Hoping to sign today or tomorrow, crossing fingers. This will be my Third property if all goes good.
The current lease ends 9/18/19 and changes to a month to month. If I close, I'll make sure to talk to the tenant first. I'm really trying to Airbnb my duplex so I would rather him leave.
I'm guessing once his lease is up, He maybe have another 60 days according to the rental laws in CA. I think I'll offer cash for keys to see what he says after his lease is over.
Property Manager · Los Angeles, CA · Member since 2017 · 216 posts · 110 votes
7y
If the property is in a city with rent control, which I believe Redlands is not, you may be severely limited on terminating without just cause. Otherwise in California, and unless specified differently in the lease (I suggest reading the lease before you sign so you know what you are getting into) you need to give a properly written 60 day notice to change existing lease or rent terms. If the lease does not state any specific time requirements for renewal or non-renewal, then you may only need 30 days notice before the lease expires for non-renewal (although 60 days is customary). On the other hand, if the lease expires and goes month-to-month, then you need a 60 day notice of termination.
Property Manager · Los Angeles, CA · Member since 2017 · 216 posts · 110 votes
7y
You are correct, @Mike Franco in that the C.A.R. lease agreement language states that neither party has any obligation to renew and expiration of the lease, tenancy is terminated. However, my understanding is that in California, Civil Code 1946 in practice not only applies to month-to-month tenancies but leases with defined terms as well. I believe this is related to Civil Code 789, where at least 30 days notice is required to end any tenancy.
Los Angeles, CA · Member since 2013 · 555 posts · 261 votes
7y
As the wording goes, all these apply to tenancy at will, or indefinite leases like month to month.
A tenancy at will is when you let the tenant stay and accept rent without an end date. Same deal with month to month without end date. That's when the 30 day notice applies. And if the tenant has stayed for over a year and is now month to month, then the landlord has to give 60 day notice.
When you have a defined end date, as every yearly lease does, there is no requirement to give notice at the end, and is merely done out of courtesy.
I never do month to month. I only renew terms with defined end date, whether that be 6 months 12 months or anything in between.
At the end of a lease with a definite end date, as long as I don't accept rent, tenant must move out.
Property Manager · Los Angeles, CA · Member since 2017 · 216 posts · 110 votes
7y
I am aware of California Civil Codes relating to end of tenancy, but I stand corrected in referencing Civil Code 789. Indeed in California, no requirement of notice by landlord or tenant is required with a fixed term lease. That said, in practice, notices for non-renewal are the norm. For a landlord, especially one with multiple properties, it may be expected as a normal part of business.
Although it may be "legal on paper", I believe it would be very challenging for a landlord to successfully win an unlawful detainer action with absolutely no prior notice of non-renewal of a tenant with a lease for at least one year. Often, CA courts will consider landlords to be more sophisticated than tenants.