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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  • Member since 2020 · 10 posts · 4 votes
    6y

    Did anyone see on FB that attorney Dennis P. Block filed a motion with the Supreme Court to overturn the emergency rules of the Calif. judicial council? You can follow the motion @ 123evict.com/update. I really hope he can overturn the EM. 

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

    If I’m not mistaken, the judicial council will be voting to lift the eviction ban in the next couple of weeks. How’s everyone holding up? @David To are you okay?

  • Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    Here’s a link to the article about the judicial counsel voting on the eviction moratorium: 

    https://www.google.com/amp/s/w...

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

    @Debbie Farmer how likely do you think that would be for the judicial council to lift their moratorium? 🤔 I believe it’s all for show... I believe they are doing this to have landlords think that the council is trying to do something for them. I mean if it’s lifted the damage has already been done. 

  • Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    I believe the judicial council will push it off to the legislature.    Once that happens, the legislature may try to create even more draconian measures.   Or maybe not.   No way to know yet. 

  • Member since 2020 · 10 posts · 4 votes
    6y

    Has anyone talked to or retained an eviction attorney? 

  • Member since 2020 · 3 posts · 5 votes
    6y

    Hi, I’m in California can’t work health issues and not getting money from any source. I’m so upset about the situation. My house is been paid off, and is ridiculous for someone who invested all her/his money in to a business plan and fall in to a system that takes away your rights and give it to someone else. How! How the government takes a property, your property and decides what to do whit it? That’s the kind of things you see in some other countries that rules under communism. Where is liberty? People has money to pay their rent. Usually they make it with unemployment, now they have a plus, $600. Per week plus stimulus check and not paying a cent on rent! They are living the life, getting advantage on you, on me, just because someone told them they are aloud to be in someone else’s property that doesn’t belong to them with out paying! Now what? If the system wants to protect them why they don’t send them through the system and offers them a loan with or without of proof of the situation, how ever they want, why it has to be you or me the one to solve the government’s problems? Is very unfair they put all this heavy weight on someone else shoulders.

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

    Im sure this is a subject that upsets every single landlord in the U.S... Let’s just hope it gets resolved in the next couple of months. I think the judicial council is voting this upcoming week on lifting their restrictions. But I also head trump also signed federal protections against evictions 

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

    Imelda, agree completely. Homelessness is not an issue. It's simple economics. If someone is living on a property they cannot afford, they simply move to a smaller place somewhere else for half the price and problem is solved. And if necessary, get a roommate to share an apartment with. Squatting off someone else's property and causing all kinds of damages and depreciation, that's all going to cost the landlord. So the eviction moratorium is stupid. Make the rules such that the tenant, in order to get the extra federal unemployment, must pay at least half of it to rent. Else, move to a smaller unit or take in an extra roommate. I'd rather have a property remain vacant to I can spend time cleaning up and getting it ready and back-online so it could be available for someone else to rent.

  • Member since 2020 · 3 posts · 5 votes
    6y

    I tried to work whit him. I was trying to sell my house. When I told him about it, he said he can pay 6 month ahead, even though he was behind on rent already. I told him I was forced to take the option to sell it, because of my situation. I even ask if he needed some help.
    He said he was interested in buying it under (lease to own) I said that was not a option so, two days later he said he was affected with COVID and didn’t want me to send him any messages to him,  saying was harassment, and denying saying anything about the 6 month of rent he offered to pay at front. He didn’t summit any proof of being affected! Is just ridiculous. :(  Thanks for your comments.

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

    @Imelda Orellana have you tried to sell the property with your tenant in it? 

  • Member since 2020 · 3 posts · 5 votes
    6y

    Ricardo, I don’t think it will attract any buyer in this situation, specially when they won’t get anything in return.

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

    I think we are kinda screwed🤔 Trump extended the Eviction Moratorium until December 15 2020. I mean it’s better than what the democrats wanted. 

  • Investor · Los Angeles, CA · Member since 2020 · 6 posts · 3 votes
    6y

    Hi Imelda, i think you should still list it and be honest in the listing that it comes with non-paying tenant. You never know what buyer is out there looking for a house just like yours for whatever reason at whatever cost.  The new buyer may have enough money to float the mortgage till this is over or they may offer the non-paying tenant cash for keys, who knows but give it a shot for 60 days to see if you get any offers.  Be honest in the listing so you wont get unnecessary inquiries.  

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

    We have about 5 percent of tenants who had valid covid issues. But now 50% are not paying. Have many accounts with 5-8k owed now. $200,000 of rent not paid over the last 4 months. Why pay rent when your landlord gives you free housing, free maintenance team, free mortgage, free electricity, free water, free trash? 90% of these tenants are scammers. Housing is apparently a human right that's owed from the owner to the renter. Why can't I go into whole foods and steal their food without getting the police called on me? I guess food isn't a human right... What a ****ing joke. They better supply a massive amount of federal bailout funds to landlords after Trump's little act today, which  he used to buy the voting base.

  • Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    So basically the left wants us to give our properties away and the right is ready to buy them at fire sale prices as we go under.... 

  • Investor · Los Angeles, CA · Member since 2020 · 6 posts · 3 votes
    6y

    Debbie, I think that is the plan.  If not the right it will be the city, state, or federal government themselves for the large urban cities that don't have enough section 8 or subsidized housing available.

  • Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    I have three vacancies in a C class neighborhood and the only people I’ll rent to now are Section 8 with a small tenant portion.   I can’t survive otherwise. 

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

    On the bright side it can be the last extension since everyone’s talking about the vaccine being right around the corner

  • Investor · Los Angeles, CA · Member since 2020 · 6 posts · 3 votes
    6y
    Originally posted by @Debbie Farmer:

    I have three vacancies in a C class neighborhood and the only people I’ll rent to now are Section 8 with a small tenant portion.   I can’t survive otherwise. 

    @Debbie I am about to buy a duplex and that is my plan as well (section 8 tenants only) ... right now that is the only recession proof return on my investment I can think of because even folks with "good jobs" may be  furloughed or laid off in the next year. With everything I've learned on BP about how to screen for section 8; I'm taking that route...

  • The Plaza · Member since 2014 · 15 posts · 14 votes
    6y

    Renting to only Section 8 now is possibly the best course of action if the rent you are willing to sale is low enough. You will always get that portion. 
    Trump just extended the eviction moratorium through an executive order.  The plan is not clear, but hopefully there will be payments directly to landlords.  The Democratic bill proposed seems to offer funding to landlords while the Republican bills offers landlords nothing. 

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

    Albert,he did mention he would be helping landlords and renters But I guess “HOW” was never explained atleast not yet. Hopefully this is the last extension done through the federal government. 

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

    Hey @Ama Ols you are correct businesses are leaving but two spring up to take its place. Ever wonder why California doesn’t go to other states to recruit...it’s because they don’t need to. The investment in the education and health of its citizens is repaid in innovation and business startups. I am not a fan of high taxes or regulations but when a business leaves one of my properties I am swamped with calls with out advertising and this is in the highly liberal Bay Area. Sometimes elephants must die so lions can eat.

  • Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    @Debbie Farmer    @Melanie Gibson  @Albert Hall   Try not to feel so discouraged about renting to Section 8 tenants. There are plenty of forums here on BP about it and if you go to YouTube there is a lot of good info on it. In fact there is a Podcast right here on BP by Joe Asamoah about it. Years ago when I started buying rentals I had some "interesting" experiences with cash tenants and I decided that in (Tenant Friendly Bay Area of) California when I had a cash tenant move out, I would only replace them with a Section 8 tenant. A properly screened Section 8 tenant. Section 8 does a rudimentary screening of the tenants but you need to do your own screening.  Here's what I do....again it may be controversial, but there is such an enormous pool of tenants that have vouchers that I can do this and still have plenty of people...

    No smoking of any kind.....I don't care if you have a card that says you need "it" for medical reasons.

    No evictions, ever.

    No felonies in the last 5 years.

    No dangerous breed "animals" or pets  and when fully grown the pet can't weigh more than 20 lbs.

    They will pay for a background check through SmartMove that costs $40.00

    I don't care what "story" they have, I don't sign the RFTA package until they give me one full months deposit

    I actually don't care what their credit score is because the housing authority pays most of their rent.

    I don't care about their oncome because the housing authority pays most if not all of their rent. 

    I know if they lose their job, they will notify the housing authority and then the housing authority will adjust accordingly and pay all the rent.

    Like I said there is plenty of info right here on BP about how/why to rent to tenants on Setion 8, and this was before Covid.

    I have rentals in Contra Costa County and Alameda County and for years have only placed Section 8 tenants in those rentals because I know how tenants can abuse the system in a tenant friendly area. I've also had rentals in Cleveland for years and I only work with PMs there that work with Section 8 tenants.

  • Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    I totally agree with Brian.   Half of my rental portfolio for the last 10 years in the Bay Area have been Section 8 tenants.  I’ve never had to evict any.  Yes, the bi-yearly nit picky inspections can drive me crazy, (torn screen , etc) but in the long run it’s worth it. Especially nowadays.   Plus, right now in the Bay Area they are paying top rent. More than what I could get on the open market.   Just make sure you screen, screen, screen. 

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