California call for class action lawsuit on Eviction Moratorium

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California call for class action lawsuit on Eviction Moratorium

David To
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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Ama Ols
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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  • Ricardo P.
    LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    I highly doubt it stops there I mean don’t get me wrong it would be nice. @Heather Collins but that is what it says on their uploaded article And I doubt that site uploads any false news for us to read and get informed about. 

    0Reply
  • Ricardo P.
    LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    @David To how’s your case going? Any luck?? 

    0Reply
  • Marie Pruden
    Member since 2020 · 19 posts · 0 votes
    6y

    Ricardo, please help with your informed opinion:

    I'm in an area between Sacramento and SF and I'm getting sick and tired of my tenant in my one and only rental unit - my basement apartment.  

    Aside from not paying any rent since July, claiming she lost her 2 jobs due to COVID19 (and the California eviction ban protecting her) she's been complaining that there's a gap in the kitchen floor where flies could fly in, and black mold in the shower.  

    I told her I'd get my handyman to fix the floor and meanwhile, I had a look at the shower and sure enough, there was black mold there that I swear was never there before she moved in.  There were wet clothes in the bathroom floor and clothes and dirty dishes and rotting food all over the place.  There's a fan inside the bathroom and a small window over head, so I don't know if I will be blamed for the mold growing in there.  And I'm gettingso nervous and stressed out, I don't know how much longer I can bear all this.

    I also discovered that her mother had moved in with her and her two teen-aged kids.  To make room for grandma, they walled in the deck with heavy drapes and converted it into another bedroom.

    Sometime ago, she complained of leaks coming from the sewer pipe under the deck, so I had 2 maintenance men (brothers who help me with repairs and yardwork, who have been with me for 15 years, they're like family) to fix it twice.  

    My lovely tenant still complains that the men did not do it right.  My handymen assured me they did all the repairs properly and took offense at the tenant's complaints.  They threaten to quit working for me if their work from now on will be subject to the tenant's satisfaction and not to my approval.  They also suspect the tenant has been looking for anything to complain about because she simply does not want to pay rent ever.

    Long story as it already is, just one more thing:  Tenant threatens to call the home inspector on me because, she said, my apartment is uninhabitable, unsanitary, and unhealthy -- and may even take me to court.  And to think she hasn't paid her rent since July, is just breathtaking.

    Question:  It has been suggested to me by well-meaning friends to tell them to move out on the pretext that I will have to renovate the bathroom and kitchen. Yeah, like eviction without the court order.  Is that allowed?  If I simply ignore her complaints, will I go to jail?  Will I have to pay a hefty fee?  Will they put a lien on my house? 

    I'm a 77-year old widow on fixed income, an Asian-American with a special need son.  When my husband died a few years ago, I was left paying the mortgage on my own, which I was able to do out of the rent from my basement apartment until the eviction moratorium hit us, enabling tenants to go rent-free for the duration of the pandemic.  While the 3-month mortgage deferral sure helps now, I still have to pay utilities, taxes, insurance and maintenance on my house.  And I'm hurting financially.

    I think the earliest I can evict her is end of February, when the moratorium ends?  I may have to employ a lawyer to do the works.  I may also have to go to Small Claims Court to try to collect back rents.  But if she can't - or won't - pay her month-to-month now, how would she pay 10 months in a lump sum of back rents? 

    Some friends suggest I should just stage an "insured peril" to drive her out.  But I'm too scared to do anything that might be illegal.  Please help. 
     

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

    @Marie Pruden I’m so sorry to hear you are going through something like this. But I can assure you that your not alone. First thing is first. Don’t let your tenant bully you. You have to keep in mind that you are the owner and that’s something she can’t take away from you. Everything that’s going on now will only be temporary, now she does have to pay 25% of rent that she owes from September moving forward before Feb 1. That will help her from being evicted. If she doesn’t pay anything regardless if she’s going through something covid related you can evict coming feb 1. All you can do now is take pics and document what she is doing. The more pics you have the stronger your case will be. 

    Now Mold, there’s mold everywhere not just in your house. If it’s a smaller job something you can do and knock down yourself I don’t see why you can’t do it yourself. They sell chemicals at the local Home Depot that gets that stuff off. I would clean it off wait acouple days and respray that surface. But make sure you document and take pics of you taking care of business. Also make sure you document everything your tenant is doing so when it’s time to sit in the court room you have documents of everything going on 

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

    Marie, you should be able to evict her because:

    1) violation of lease agreement (taking in several new people)

    2) modification of property without owner's consent (also causing a health hazard)

    1Reply
  • Ricardo P.
    LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    @David To how’s your case going? 

    0Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    6y

    Still waiting. Attorney served the court paper to the tenant. Tenant has until 12/1/2020 to answer. After that, no idea what's going to happen until my attorney responds.

    0Reply
  • Marie Pruden
    Member since 2020 · 19 posts · 0 votes
    6y

    Thank you, Ricardo P. and David To for your kind concern advice. 

    I feel better now, but perhaps I should start looking for a lawyer who can help on the matter of the tenant taking in her mother without my permission and they having walled in the deck with heavy curtains, which impedes air circulation, etc.  

    Question:  I understand that if she pays 25% of the rent from September to February, she can't be evicted.  But what happens to her unpaid rent before that? -  She hasn't paid the July and August rents.  Can she be evicted on the basis of that, even if she pays the 25% rent from September to February?  And when are the 25% rents due - every month?  At the beginning of the Sept-Feb. period, or at the end?

    Thanks again.  God bless you both.  

    0Reply
  • Ricardo P.
    LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    @Marie Pruden the money owed before September becomes consumer debt. Meaning you’ll have to take her to small claims court in March. IF ONLY THEY DONT EXTEND THIS BS any longer. From my understanding coming February 1st people are supposed to start paying their rent in full unless these eviction moratoriums keep getting extended (which I’m sure they will) 

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  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    6y
    Originally posted by @Marie Pruden:

    Thank you, Ricardo P. and David To for your kind concern advice. 

    I feel better now, but perhaps I should start looking for a lawyer who can help on the matter of the tenant taking in her mother without my permission and they having walled in the deck with heavy curtains, which impedes air circulation, etc.  

    Question:  I understand that if she pays 25% of the rent from September to February, she can't be evicted.  But what happens to her unpaid rent before that? -  She hasn't paid the July and August rents.  Can she be evicted on the basis of that, even if she pays the 25% rent from September to February?  And when are the 25% rents due - every month?  At the beginning of the Sept-Feb. period, or at the end?

    Thanks again.  God bless you both.  

     Evict her for bringing in extra people that are not on the lease.  Evict her for creating a health hazard--closing off the deck blocks an emergency exit and stops air circulation which allows mold to grow easier, plus it is altering the house.  You can not evict for non-payment, but you can for violating the lease.

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  • Marie Pruden
    Member since 2020 · 19 posts · 0 votes
    6y

    Thank you, Lynnette.  I will do that.  It should not be too difficult for me to get a lawyer to help me.

    I appreciate your kind concern.  Thanks again, Lynnette and God bless you.

    0Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    6y

    By the way, for people on this post, please read this post and let me know your thoughts.

    issue with my Property Management company fees during covid

    https://www.biggerpockets.com/...

    0Reply
  • Susan O.
    Fresno, CA · Member since 2015 · 552 posts · 181 votes
    5y
    Originally posted by @Joe Splitrock:
    Originally posted by @Royce Kemp:

    I would be interested in filling a lawsuit. I feel I have one of the better cases because I already have a judgment in hand from February. I just can't evict, only a Sheriff can physically evict. I was 2 days away from that happening when the stay at home orders came down. The last time this Tenant paid was November 2019, so I'm at month 8 of my property being held hostage. If anyone has a lawyer in San Diego that would be a good for fit this (I believe this would be an eminent domain case), please let me know. I already contacted the organisations that pursue this stuff, none have bothered with me.

    Did this lawsuit happen becaue this isn't fair

     This is ridiculous. It is possible you may not even be able to get them out until after November, which would be a full year. I would be curious if you e-mailed your city, county and state officials with your story how they justify you having to pay property taxes. Maybe if they start hearing more real stories like this, they will shift their stance. Another option is go to the news media. It can generate sympathy for landlords and may even shame the tenant into leaving. The news media would likely share the responses you got from politicians. 

    We had a case in my state where a murder happened at a rental property. The county kept the crime scene for over a year and the landlord didn't have access to their property. They tried suing and it was a slow process. They went to the news media and within a week the property was turned back over. The court of public opinion can be much more effective.

    Good luck.

    Eviction moratorium with small landlords isnt fair  

    https://time.com/5846383/coronavirus-small-landlords how devistating the eviction moratorium is on small landlords and how theres very little help for small biz landlord

    You can organize join your landlord or apartment association locally to prevent this and also network with like minded people. Please help spread word

    https://www.facebook.com/CAAnet/ Get informed AOA is good too apartment associations!

    0Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

    So myself, my attorney and the tenant's attorney have come to an agreement. Tenant will move out of my property end of January 2021. I've agreed to this since I would have to pay more attorney fee if I continue my case of trying to get them out before eviction moratorium ends.

    Question on this board.

    a) I can pursue small claims court or civil lawsuit in February (for all unpaid rents, damages to property, attorney eviction fees, 10% interest on remaining balance and accumulation if not paid fully within one year)

    or

    b) Put forward a payment plan to tenant / tenant's attorney to agree to (say $200 to $500 / month) until all missed rent is paid off with no interest accumulation (I'm willing to waiver the attorney fees, damages to property, and 10% interest); tenant must agree to this until rent balance is all paid off (and does not file for bankruptcy in the future pertaining to this case)

    If I go with option "a", there's a chance the tenant can file for bankruptcy and not pay anything. However, tenant's credit history will take a dive and be on record and since I'm the property manager (me / owner), I will not vouch for tenant when seeking for a place to rent in the future.

    If I go with option "b" and the tenant / tenant attorney agrees and signs an agreement to make it official , at least I can get back my money within 10-15 years. I can wait that long to get the rent back; better than nothing. 

    I'd like to move forward with option "b". If tenant doesn't agree with "b", then I will move forward with option "a".

    What do members on this board think?

    David

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  • Leo F.
    Developer · New York City & L.I. · Member since 2013 · 79 posts · 29 votes
    5y

    B

    0Reply
  • Sudhanshu Singha
    Investor · Colonial Heights, VA · Member since 2015 · 78 posts · 53 votes
    5y

    @David To I think you should go with option A since I really do not think the your tenant your tenant will follow through on a payment plan that especially if they have completely stopped paying you completely. I also think the new administration is going to implement another national eviction moratorium right after inauguration. With the amount of losses you have had it might be a good time to try and offer a Cash for Keys deal for the tenant to move out and just cutting your losses while there is uncertainty about what is going to happen in 2021. The last thing you want is for a national moratorium on evictions for 2021 to become official and your tenant taking advantage of that. 

    0Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

    I don't have to worry about any eviction moratorium extension. The judge orders tenant out of property end of January. 

    0Reply
  • Nat C.
    Investor · Miami, FL · Member since 2013 · 807 posts · 475 votes
    5y
    Originally posted by @David To:

    So myself, my attorney and the tenant's attorney have come to an agreement. Tenant will move out of my property end of January 2021. I've agreed to this since I would have to pay more attorney fee if I continue my case of trying to get them out before eviction moratorium ends.

    Question on this board.

    a) I can pursue small claims court or civil lawsuit in February (for all unpaid rents, damages to property, attorney eviction fees, 10% interest on remaining balance and accumulation if not paid fully within one year)

    or

    b) Put forward a payment plan to tenant / tenant's attorney to agree to (say $200 to $500 / month) until all missed rent is paid off with no interest accumulation (I'm willing to waiver the attorney fees, damages to property, and 10% interest); tenant must agree to this until rent balance is all paid off (and does not file for bankruptcy in the future pertaining to this case)

    If I go with option "a", there's a chance the tenant can file for bankruptcy and not pay anything. However, tenant's credit history will take a dive and be on record and since I'm the property manager (me / owner), I will not vouch for tenant when seeking for a place to rent in the future.

    If I go with option "b" and the tenant / tenant attorney agrees and signs an agreement to make it official , at least I can get back my money within 10-15 years. I can wait that long to get the rent back; better than nothing. 

    I'd like to move forward with option "b". If tenant doesn't agree with "b", then I will move forward with option "a".

    What do members on this board think?

    David

    David,

    It completely depends on the tenants circumstances. If they have a assets or a stable job with good pay, I would definitely go the lawsuit route and I would do this BEFORE they leave the property and you know where they are. In this case the Service of Process will be easy but once they have moved on, you'll then likely need to hire a skip tracer to locate them. It's quite arduous attempting to sue an individual when you can't locate them and serve them.

    So if they have a good paying job, you can garnish wages or in the case of assets, you can put a lien on them and you'll get your money when they sell. Don't assume they don't own property somewhere else, just because they are renting. 

    If they don't have assets or well paid employment, I would consider the offer of the payment plan. However you are under the assumption they are actually going to pay. I am skeptical that they will honor the repayment plan until the end. And in that case, you would still need to sue but then you can only sue for the unpaid balance of the agreement and you will have to attempt to locate the debtor.

    I would make sure you have a clause in the contract that states that if they don't make the repayments as per the agreement, that attorney's fees, late fees, interest and some other penalties are payable. So at least there is some motivation for the debtor to actually continue with the payment plan. 

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  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

    Nat,

    Tenant has been unemployed since March and has been receiving unemployment insurance. I don't know how much money tenant has in checking / savings / 401K, etc. But yes, the payment plan I will be proposing will have a conditional clause that states she can miss two payments in a year and if more, I can proceed to take her to small claims court (and put back in attorney fees, 10% interest on remaining balance, property damages incurred, etc.).

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  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

    Nat, question to you.

    What happens if the tenant has like 50K - 100K or more in their checking / savings / retirement accounts? Problem is that they are not at liberty to disclose any of this information to landlord or property management. There's no accountability on tenant (simply fill out a bogus covid hardship form saying they cannot pay anything).

    Is it possible for me or some professional to do a credit report and dig up information on what their net worth is and go after their assets in the courts and the judge would force them to pay out of their checking / savings / retirement accounts?

    Because I'm paying out of my checking accounts for property management, property tax, home insurance, repairs, etc.

    So why shouldn't it be the same for the tenant?

    0Reply
  • Marie Pruden
    Member since 2020 · 19 posts · 0 votes
    5y

    Ricardo, Lynette & David To:  

    Didn't Gov. Newsom just issue another stricter, more indefinite lockdown for businesses a few days ago?  I wonder if that affects residentials as well?  

    And would that prevent evictions that are not due to nonpayment, i.e., being a nuisance to neighbors, use of drugs, taking in new people without consent by the landlord, changing the locks,  or modification of living spaces without permission?

    It seems to me this new lockdown order is more insane than the previous one.  My church cannot simply hold outdoor services but requires all attendees to stay inside their cars during Mass.  Those who have no cars or don't drive cannot simply walk into the parking lot to attend.

    If applied to residentials, such strict guidelines could mean (I hope not) nobody can be moved out of their apartment for any reason at all because all have to remain indoors indefinitely.  None - not even if they pose real danger to the lives of landlords and neighbors.  

    I hope that's not what it means.  

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  • Anne C.
    Member since 2018 · 13 posts · 8 votes
    5y

    Ugh, you guys. David Chiu is trying to extend the eviction moratorium through 2021. (https://www.sacbee.com/news/po...) This feels like it's never going to end. 

    My eviction attorney served my tenant a 15-day notice per AB3088 in early October. My tenant is a high-income tenant and therefore had to return a signed declaration of hardship along with proof of hardship due to COVID. The tenant did not send me either of those. However, it seems that the court is taking forever as the eviction attorney started filing for the eviction in mid-October...and I still have not received a confirmation of the filing and a case number, with which I need in order to serve to the tenant. It's been nearly 2 months to just get a case number from the court. How long do eviction filings with the court typically take? And does anyone know how long they take now during COVID? My eviction attorney is filing with Fontana Court. 

    1Reply
  • Paul Sofia
    Lender · Charlotte, NC · Member since 2016 · 376 posts · 172 votes
    5y

    It is really sad and unfortunate that these governors are issuing lawless mandates.  Unfortunately the court system will not follow laws.  Nobody is looking out for you except for your attorney(s) for a price.   The commercial crash is going to be huge, followed by the residential collapse.  The courts will be backlogged.  Let's not forget the individual and commercial bankruptcies to boot.

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  • Marie Pruden
    Member since 2020 · 19 posts · 0 votes
    5y

    Anne C, So while the court is taking forever to issue a case number, your high-income tenant lives rent-free, right?  It's insane!

    My case against my nuisance tenant (taking in another person to live with her without my consent and modifying the apartment to make room for the new person) was filed just last week.  I figured with the bottleneck in the courts, I'd have to wait till end of January for a number.

    But my dental hygienist told me her case went faster than that, and was able to have a nuisance tenant evicted in no time at all.  (We're both in Solano county.)  Unfortunately, we didn't have enough time to talk about it, as I was there for a completely different business - my teeth.

    But I hope and pray she's right.  

    0Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

     They are considering extending eviction moratorium to the end of Dec, 2021. That's like giving tenants 2 years of free rent. Including damages to properties that I will have to use my own money to fix, 2 years of missed rent and damages and legal fees amount to $75K - $80K. Do you think anyone can get this back in small claims court? I don't think so. Tenant will simply file for bankruptcy or flee or disappear and not pay a single penny.

    Landlords have zero rights in California, while tenants have all the rights. Simply taking money from one group of people and giving it to another.

    There should be more oversight and consequences. Tenant must prove the following:

    1) they are unemployed

    2) if unemployed, they must show their unemployment insurance statements and small business protection statements (because a lot of them are getting more money in unemployment and some also get the small business protection paychecks from their employers)

    3) if so, they must pay 50% in rent each month or should get kicked out within a month; heck 50% of unemployment check should go directly to the landlord or mortgage company so don't let the tenant be the one to decide if they want to pay out or not

    4) but with the money, they should voluntarily move into a smaller, cheaper part of town instead of staying put (common sense is that when you lose your job, you send out resumes looking for another job while collecting unemployment and also looking to move and downsize to a smaller, cheaper place); you don't stay put and be a squatter

    5) they must show their bank statements (checking, savings, retirement accounts, etc.); any money they have in there must go towards paying 50% of rent as well

    6) if they are short on all the above, they must move in with family / relative / brother / sister / parent, etc.

    7) the only situation when they have a right to be a squatter is when they can prove that they will be homeless if evicted and have no one to turn to and no money in the bank (but whoever gets to this situation is a lousy manager of money and don't know how to live within their means while employed)

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