California call for class action lawsuit on Eviction Moratorium

California call for class action lawsuit on Eviction Moratorium

Newport Coast, CA · Member since 2014 · 95 posts · 73 votes

So I owe two homes that I'm renting out, one tenant is paying just fine but the other tenant owes me two months of non-payment and are not paying since she's been unemployed. If she applies for unemployment, she'd be getting about $4,000 a month in California, which is more than enough for the rent payment. But she isn't cooperating and I believe is abusing the system.

I wonder, what is better to do? With California's judicial council law, you have to wait another 90 days after the governor lifts the eviction moratorium (that means July 28, 2020 plus 90 days afterwards so we are looking at October 28, 2020). That's a potential of 5 - 6 months where the tenant doesn't have to pay me a single dime and will be squatting in my house for free. Not to mention any damages to the property I will have to suffer as well. And it could get extended to 2021.

What's the chance of me getting the rent back-pay owned to me? The tenant can simply delay and move out or get evicted in November and it could end up in small claims court if I want to get any money back or a collection agency will have to go after the tenant (and the collection agency gets 40% of anything they can collect on). 

Should I gamble on this or look into how to file a class action lawsuit against the State of California and the Judicial Council?

Any other people in California having these issues and would like to get together to file a Class Action Lawsuit or offer suggestions on joining local Landlord associations who are already looking to do so? Strength in numbers is the way to do anything about this. 

Do other landlords have problem tenants that are not paying as well?

Let me know your thoughts.

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Investor · wilmington, NC · Member since 2012 · 3 posts · 28 votes
6y

Absolutely you need to sue them. I own several hundred rental units in other states, otherwise I'd join you in helping cover the costs. California needs businesses to start putting a lot of pressure on it. The good news is that most of the businesses are moving to Texas which is the biggest hurt that they can put on the state. Without businesses it loses its revenue and becomes a trash heap. Sue them. They are violating your constitutional rights and probably violating the takings clause. They are usurping your property for the benefit of the public. They must reimburse you for taking your private property and using it. Start reaching out to landlords, you can get all their contact info using reonomy which only cost about $100 per month to get direct owner contact points. Get a handful together to start, so you have some cash to initiate the class action. If we can get more landlords across the country to take action we have the possibility of 30 million housing units suing the federal and state governments! Federal Cares act alone is causing over 5 billion in damages for it's moratoriums imposed on landlords.

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  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    Has your property manager tried to file paperwork with the courts? Or are you just waiting for their notice to leave expire?

  • Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    6y

    There's a 60 day termination of tenancy served to the tenant and tenant attorney back on July 28, 2020 for tenant to be out of the property end of September 2020. That's all I know. If they don't comply, I believe then the paperwork will be filed with the courts.

    1) they violated my lease agreement by re-keying the locks and refusing to let me do a walk-through (excuse was she has covid)

    2) since it's a month to month lease, I can also end the lease and state I will be moving back onto the property and taking it off the rental market

    Hopefully, these two conditions will hold up in court and will favor me.

  • Member since 2018 · 51 posts · 10 votes
    6y

    I'm in a similar boat where its a month to month and the person was supposed to be out in June. She refused to leave but is not financially impacted by covid. My condo was for an Airbnb so this was never supposed to be a long term lease, shes been there 6 months now. Recently got a complaint from the HOA that multiple people were coming in and out of the unit, I'm hoping this is a breech of lease and my attorney and I can get her out. Thanks everyone for posting updates on whats going on, this thread has been very helpful.

  • Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    6y

    Heather, has she been paying all this time though? Or did she refused to pay? If she violated the lease agreement, you should have a great case in your favor. Also, you should also consider in your talk with your attorney that you will be moving back into the property and taking it off the airbnb marketplace. 

  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    I just hope this doesn’t get extended past the January time frame. 

  • Member since 2018 · 51 posts · 10 votes
    6y

    @David To Yes she has been paying me a discounted rate we agreed on in March. I thought she was only gonna be there a few months so I was fine taking a discount but now its gone on much longer obviously. In her initial letter telling me she refused to leave she never cited being financially impacted by covid, all she said was she was going to follow the stay at home order(this was in June). Shes paid the discounted rate the whole time(which Im glad its at least something). So she definitely violated the lease by not leaving on the agreed date, and then shes refused to sign a new lease so now its month to month. But now that I have the complaint from the HOA saying people are coming in and out I'm quite worried, if shes so afraid of covid why are people coming and going. I've mentioned to my attorney about me moving in, but he seems hesitant to move forward since its very easy for a tenant to claim covid hardship.

  • Member since 2018 · 23 posts · 8 votes
    6y
    Originally posted by @Heather Collins:

    @David To Yes she has been paying me a discounted rate we agreed on in March. I thought she was only gonna be there a few months so I was fine taking a discount but now its gone on much longer obviously. In her initial letter telling me she refused to leave she never cited being financially impacted by covid, all she said was she was going to follow the stay at home order(this was in June). Shes paid the discounted rate the whole time(which Im glad its at least something). So she definitely violated the lease by not leaving on the agreed date, and then shes refused to sign a new lease so now its month to month. But now that I have the complaint from the HOA saying people are coming in and out I'm quite worried, if shes so afraid of covid why are people coming and going. I've mentioned to my attorney about me moving in, but he seems hesitant to move forward since its very easy for a tenant to claim covid hardship.

    can you use "nuisance " instead of financial reason to evicted since the HOA complaining? Try to learn.

  • Member since 2018 · 51 posts · 10 votes
    6y

    @Ed Zhao Ya, this is really recent so I'm trying to get as much info from the HOA as I can on what she was doing exactly and hopefully use it as a case against her. Its one thing for her and I to have issues but if shes causing problems for the HOA and other residents its way too far.

  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    I really hope everyone is hanging on strong. I have a feeling I’ll be having a non paying tenant too. 😒 so many protections in place for tenants and nothing for landlords California lol 

  • Member since 2018 · 51 posts · 10 votes
    6y

    Ugh I'm really sorry to hear that @Ricardo P.  why do you think theyre not gonna pay now?

  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    @Heather Collins I’m starting to notice this specific tenant of mine work less and less. And I’m also starting notice strange behavior (breaking lease agreement) on different occasions. Something this tenant hasn’t done before. I know it sounds odd but I see it coming eventually maybe not right now but it will come. For example he asked me lastnight if i would evict if he didn’t pay rent, I replied and said “absolutely,the only way I would let you slide is if Lamborghini lets me have a free car due to the pandemic” he looked at me with a straight face and walked away. 

  • Member since 2018 · 51 posts · 10 votes
    6y

    @Ricardo P. Oh man, that does seem suspicious. I really hope they don't take you down that road :/ 

  • Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    6y

    Well, my squatting, covid tenant was supposed to move out today but she didn't and provided my property manager with the Covid hardship statement, and states she cannot afford to move or pay rent at the moment. Yeah, she had a great 4 months where she was collecting unemployment insurance of over $3200 per month and still refused to pay me a single penny. This is totally an adult individual leeching / parasitic on another person. Well, hopefully, my property manager and the eviction attorney can move forward through the courts because gave her 60 days notice of termination because I'm moving back into the house. Plus she violated the lease agreement by rekeying without written permission from owner and refusing to give the new key to property manager and myself.

  • Member since 2018 · 51 posts · 10 votes
    6y

    :( I cant believe how terrible some people are acting with all this. I really hope you have luck evicting her.

  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    October is now here. Let’s see what it has in store for us 

  • Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y
    Originally posted by @Heather Collins:

    I'm in a similar boat where its a month to month and the person was supposed to be out in June. She refused to leave but is not financially impacted by covid. My condo was for an Airbnb so this was never supposed to be a long term lease, shes been there 6 months now. Recently got a complaint from the HOA that multiple people were coming in and out of the unit, I'm hoping this is a breech of lease and my attorney and I can get her out. Thanks everyone for posting updates on whats going on, this thread has been very helpful.

     I would get on a call with an attorney asap.   Are airbnbs even part of this whole legal mess?  post on your local areas BP forum and ask for atty references.  Then start making phone calls. you need facts.... 

  • Member since 2018 · 51 posts · 10 votes
    6y

    @Mary M. Thanks for the advice, yes I've been speaking with and attorney, it all falls under the same covid laws. Its been so frustrating, I still get people wanting to book so its like I know I could still have a chance to come back financially but this person just refuses to leave. At this point I just want to get it back so I can sell it :(

  • Member since 2019 · 6 posts · 3 votes
    6y

    @Ama Ols, Ama you don’t need to own properties in California to donate to the cause. And I am constantly surprised by People who believe “most” or “all” of the businesses in cali are leaving. My corporate rentals are never empty and I live in the bay area the most liberal part of the state. Businesses are building and hiring but I get why some leave it feels like your constantly walking uphill. But that just means more opportunities for those that stay. As of today all my units are paid in full including a small strip mall in Oakland and I am contacted constantly to see if I have other properties. People believe that the shedding of business hurts California it may but we don’t care because two pop up to replace it. Just sayin sometimes “elephants have to die so lions can eat”

  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    Get ready ladies and gentleman. Nancy Pelosi’s new relief plan is asking 12more months of no evictions on top of what we are going through. I wouldn’t be surprised if 6months were able to go through the senate. 

  • Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    6y

    Damn, I hate the democrats and their stupidity of pushing everything for free (free healthcare, forgiveness of student loans and debts, free rent), etc. There's no such thing as a free lunch. Someone else has to pay for all the free stuff someone else receives. Just like Obamacare. You are simply taking money from some class of people and giving it away freely to another class of people. 

  • Member since 2018 · 51 posts · 10 votes
    6y

    Well, just got a letter from my tenant claiming I am harassing her and to cease and desist. It wasnt an official letter form an attorney but one that looks hand typed. I've barely spoken to this person, so I cant believe they are going this route. Anyone got any tips for this craziness??

  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    @Heather Collins I’m sorry to hear this. I don’t understand why tenants can assume they’ll live there for free for ever or that it’s their home now. Eventually they’ll have to pay all the back rent owed. Eventually they’ll have to be evicted. Now, if anyone wants to hear better news I was reading the laws regarding evictions during the pandemic. And if I’m not mistaken I read that after Feb 1 2021 there won’t be anymore eviction extension/protection for tenants. 

  • Member since 2018 · 51 posts · 10 votes
    6y

    @Ricardo P. Ya its been rough, but that is some good news. Where did u read that?

  • LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    @Heather Collins I read that on the California’s Apartment Association website. They give you more info on rules about eviction processing during the pandemic.   

  • Member since 2018 · 51 posts · 10 votes
    6y

    @Ricardo P. Ill have to check that out, that would be amazing that theres at least some light at the end of the tunnel. Its hard to be optimistic though when then change things so quickly. Fingers crossed

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