California call for class action lawsuit on Eviction Moratorium

To my understanding SB 1410 will allow us to write the loss off of our taxes if we allow our tenants to stay. I’m not doing that. I want my tenant out ASAP! We need to go after the judicial branch!

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

Originally posted by @Ricardo P.:

@Joe Splitrock that isn’t a bad idea at all. But then again the media is very good at making us landlords look like monsters. They’ll be the first who twist the moral of the story to “LANDLORD WANTS TO EVICT TENANT DURING PANDEMIC” Or “PROFIT OVER HUMAN LIFE”

That is a risk so you want to make sure the story plays out with you as the victim. Choosing the right media outlet is important because some have agendas and twist any story to meet that narrative. However, if the tenant has not paid a single dollar since November 2019, it doesn't look good for them. If you have juicy e-mails from politicians being unsympathetic, the story is even better. The tenant side is also of interest. See what they are saying on Facebook. Maybe they are vacationing or buying a new car. That type of stuff makes them look bad. If you can prove they are employed and not paying you, that is helpful too.

Bottom line is politicians don't care about you or your tenant. They care about public opinion only.

Noel Wilson

Member since 2020 · 10 posts · 4 votes

I remember speaking to Sandra last week. Small world! We are all in this together.

David To

OP

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

Hi Ricardo, how can you let go of your lower income rentals when you cannot evict them and hence, you cannot put the property on sale?

Jacqueline Post

Member since 2020 · 4 posts · 5 votes

My mother is a landlord who just wants to return to her home. We have a tenant who we gave a proper 60 day notice and then the CA judicial council ban happened and ALL evictions, even our "no fault" was banned. We contacted a San Diego eviction lawyer, Rachell Callahan, and she told us for ~10k we could file a civil suit for "breech of contract", but she was uncertain if we could win because it "has not been tried since the 1960's", etc. The tenant has known since January that our wish is for our mother to return to her home to live, but she has been using the COVID19 eviction ban to her advantage. Her income is not impacted by COVID19, and she says she is leaving every month, but then has some kind of excuse that she couldn't move. We have offered her a "Cash for Keys", and will see if she moves out July 11th, but not counting on it. I would love to join in a protest, media coverage, lawsuit, etc. to show the different reasons this is hurting landlords. I do feel that Royce in San Diego has a compelling case.

2 Reply

Ryan Heywood

St. Helena, CA · Member since 2016 · 147 posts · 59 votes

It’s ironic that the state is essentially leaving landlords high and dry, while at the same time calling on them to step in and help solve the housing crisis. I’m constantly on the fence about building a small apartment here in California and this definitely pushes me away from that.

I’ve always believed that every regulation away from a completely free market leads to reactions that require additional legislation to solve, that again creates additional problems. This cycle creates an absolute mess. I wonder how this would have played out in the absence of any moratoriums.

The state is going to have to realize that we would make much better partners than adversaries if they want to get anything solved.

David To

OP

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

Landlords should help out people in need and the housing crisis? I don't think that's wise at all. Everyone are in control of their own destiny in America, the land of opportunity. People are adults and should behave like one. If they have trouble with making rental payments, they need to start improving their skills and look for a higher paying job or double down and get two jobs. Or they need to move to a cheaper city / state where they comfortably afford. Or else, get another roommate, etc. There are alternatives rather than become a squatter and not pay and screw the landlords who work hard for their money / keep. Nothing in life is free. You have to work for whatever you want in life and if you can't afford it, then you don't get it. It's as simple as that.

4 Reply

Ryan Heywood

St. Helena, CA · Member since 2016 · 147 posts · 59 votes

@David To I agree with you 100%. I think it is entirely up to each one of us as individuals to look after our own needs and ensure we have a roof over our heads. I always thought that San Francisco was a good example of this. No one is entitled to a Pacific Heights apartment, it is up to you to create enough value to afford to live there.

My comment on partnership in solving the housing crisis has to do with California making it more attractive for landlords and developers to do business here. The state has a goal of building 3.5 million new housing units by 2025. One of the most efficient ways of doing that is apartment buildings, most of which would likely be rentals. It seems counter intuitive to call for that level of development, and then turn around and throw landlords under the bus during the Covid crisis.

Our state is currently pushing the construction of ADUs, perhaps the easiest and cheapest way to add additional housing. This may also cause home owners to second guess that option as well, for why go to all the trouble if it could blow up on you like this.

Oleksandr IvanovskiyPro Member

Rental Property Investor · Member since 2019 · 124 posts · 38 votes

@David

I have same issue. Even though my property in VA the earliest court day my attorney was able to get is almost 3 months out. Tenant will move out by then. We filling nevertheless to get judgement and sent to collections.

Michael A.

Investor · Richmond, VA · Member since 2016 · 164 posts · 114 votes

Our eviction ban was lifted just recently, but our governor is encouraging judges to stop hearing eviction cases. Mine is scheduled for a month from now after being moved and I am just praying that it happens so I can finally start to get my house back from squatters. People like me who are mom-and-pop landlords (like the rest of you?) just get screwed during all of this. It's like we're not even citizens who matter. We provide the places for people to live and deal with all of the headaches of being responsible landlords, and then get crushed under legislation. And we're just expected to deal with it? I wonder how many large corporate banks will repossess rentals when this is all said and done. Fortunately I am not over leveraged such that I can't afford my one rental's mortgage, but best of luck to the people out there who are...

LakeWood , CA · Member since 2018 · 268 posts · 331 votes

On the bright side your Eviction moratorium was lifted. Here in California its a different ball game. I’m sure ours will take monthS maybe years. No end in sight😞

Michael A.

Investor · Richmond, VA · Member since 2016 · 164 posts · 114 votes

@Ricardo P. This is going to sound like a dumb question, but has there been any talk at all of how landlords are going to be compensated during all of this in California? I just can't believe that local governments expect property owners to foot the bill indefinitely and for the housing system to not fall apart as a result...

LakeWood , CA · Member since 2018 · 268 posts · 331 votes

@Michael A. believe it or not, but here in California there’s 0 talk about how we are supposed to be compensated. I guess at this point they don’t care about landlords. I think they care more about the homeless. Seems as if they have a lot more rights than we do🤷🏽‍♂️ Gotta love Cali

3 Reply

Moises R Cosme

Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes

Ugh, my heart goes out to you guys; California is a completely different world.

Clint ShelleyPro Member

Surveyor · Dothan, AL · Member since 2014 · 425 posts · 391 votes

This is an example of government tyranny. The kind that needs to be sent packing. If things ever return to "normal", I'd fire sale my shiz and leave that arm pit.

Clint

Susan O.

Fresno, CA · Member since 2015 · 552 posts · 181 votes

https://www.naahq.org/advocacy

Originally posted by @Sandra Slivka:

There is a law SB 1410 working through the CA state legislature. You can google and follow it's action. It's passed the state senate and is now with the assembly. They need to work together to edit it. Once it is passed, I predict evictions will resume. It will be Fall at best. I'm following it closely. You can read about it here:

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB1410
.

The rent controls or extremely lopsided anti investor is to join apratment associations and band together.

You can sign up for national apartment association or just google your local state ones

http://rentalhousingsurvivalfu... California landlord rights funds

https://www.naahq.org/news-pub... see article congress is swaying with the tenants to get everything free. more votes for politicians even trump

Congress might allow tenants some sort of forgiveness or a long term payoff. Most tenants won't even pay they'll just leave

Susan O.

Fresno, CA · Member since 2015 · 552 posts · 181 votes

Originally posted by @Moises R Cosme:

Ugh, my heart goes out to you guys; California is a completely different world.

Mass is similar. It will start with the coasta urban then go into suburban and rural

http://rentalhousingsurvivalfu... gotta fight it dennis they might allow tenants some sort of forgiveness or a long term payoff. Most tenants won't even pay they'll just leave

https://www.naahq.org/news-pub... see article

Susan O.

Fresno, CA · Member since 2015 · 552 posts · 181 votes

Originally posted by @Ryan Heywood:

@David To I agree with you 100%. I think it is entirely up to each one of us as individuals to look after our own needs and ensure we have a roof over our heads. I always thought that San Francisco was a good example of this. No one is entitled to a Pacific Heights apartment, it is up to you to create enough value to afford to live there.

My comment on partnership in solving the housing crisis has to do with California making it more attractive for landlords and developers to do business here. The state has a goal of building 3.5 million new housing units by 2025. One of the most efficient ways of doing that is apartment buildings, most of which would likely be rentals. It seems counter intuitive to call for that level of development, and then turn around and throw landlords under the bus during the Covid crisis.

Our state is currently pushing the construction of ADUs, perhaps the easiest and cheapest way to add additional housing. This may also cause home owners to second guess that option as well, for why go to all the trouble if it could blow up on you like this.

Ryan I agree with you about that it disincentivize us to build more when they can just turn around and screw over landlords. This will spread from california to other states with time. It always starts here then spreads

2 Reply

Moises R Cosme

Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes

Susan O. you just scared the living bejeezus out of me, because you are so right!!!

Marian Smith

Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes

@David To In Texas there is a way of using tenant personal property to pay past rent. I am too lazy to look it up, but pretty sure it is legal. I just can't remember how it works. Changing locks and holding contents hostage maybe. See if your state has something like that on the books. And look around for a new jet ski,etc. (I posted a pay or quit notice on the door of a rental house with a new jet ski parked along side the garage once. Had kids in school too. Eventually paid, but pretty sure the jet ski was paid with rent.) Pretty sure you cant take a car or anything bankruptcy court would withhold from proceedings. But it would help a little to take a few of the things your tenants unemployment check was spent on. Big TV? If you end up in eviction court vs them moving immediately once the moratorium is lifted. Or enter "for repairs" and take photographs of expensive new stuff for court...but they may be paying down credit cards. You guys could also use the media to let tenants know California landlords are organizing a database of non-payers with no landlord provided written evidence of hardship to help everyone screen future tenants...and do it.

LakeWood , CA · Member since 2018 · 268 posts · 331 votes

@David To eviction moratorium for California was Just extended through September! This is horrible!!

3 Reply

Steve Morris

Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes

I'd join a class action suit, however, getting judges to agree (since in OR a lot get appointed by the government) is going to be a hard push and they'll find every excuse not to stop it.

Kinda funny, how if in OR, we want to get PERS benefits modified since it's bankrupting us, we get the ongoing "sacredness" of contracts argument and that we can't make ANY changes.

Someone should remind them a lease is a contract also since it creates legally enforceable obligations.

David To

OP

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

Ricardo, this is horrible. Both city of San Diego and state of California has extended eviction moratorium to end of September. So they went from June 30 to July 28 to September 30. Damn, they are screwing landlords while giving tenants (who don't deserve it) a free ride. The government is screwing is pretty good.

Shiva Bhaskar

Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes

Hi David, I see you're in OC. In Los Angeles, AAGLA (one of the LA landlord associations) already filed suit in federal court against city of LA. @Ricardo P. referred to that I believe.

I think the California Apartment Association is doing the same (not sure if that one is in state or federal court). Most of the bigger property owner associations in CA have deep pockets, and are taking this to the higher levels. There are many federal judges who understand you can't just take people's property with no compensation. The courts are not nearly as crazy as the local politicians.

LakeWood , CA · Member since 2018 · 268 posts · 331 votes

@Shiva Bhaskar I don’t see this moratorium getting over turned through a lawsuit to be honest with you. It’s been almost 5months and we haven’t heard any movement nor seen anything happening for landlords. I’m sure Judges are ready for any landlord with dozens of excuses on why to not drop the moratorium. But let’s see what apartment associations have in mind when they go to court.