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

    Ab1436 from my understanding is a bill that will expire April of 2021. But it does state that you cannot evict a tenant who’s owes rent from the pandemic until April 2022. I believe the judicial council took their emergency rules off to process eviction cases that were pre pandemic era 

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

    @David To ab1436 was derailed by the CAA! I think we are on the right track to starting evictions once again!! 

    0Reply
  • Debbie Farmer
    Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    Don’t celebrate just yet.  Here is the latest from Gavin Newsom today:   https://www.kqed.org/news/1183...

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

    The new bill that the governor said he’s looking forward to signing also states there would be no more eviction moratorium extensions through the city nor state of California. Tenants will also be required to pay 25% of their rent if they want protection from eviction through the month of January. Let’s hope this is the bill they pass it’s better off than ab1436

    3Reply
  • Ricardo P.
    LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    Seems as if the cdc was to now interfere with real estate and evictions... smh 

    0Reply
  • Ed Zhao
    Member since 2018 · 23 posts · 8 votes
    6y

    Can we as landlords stick together and deduct all the non pay rents from our property tax?

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

    Ed, no can do my friend. I wish it was that easy. At the beginning of the pandemic I told myself I see this blowing over in January then this comes around. I’m sure this will easily extend towards the end of 2021

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

    Below is the link to the California Globe's report on AB3088.  To the experts among us: Please unpack this law to more digestible terms.   

    https://californiaglobe.com/section-2/gov-newsom-signs-bill-extending-eviction-moratorium-until-january-31st/

    Some striking paragraphs in the report:

    1. "Renters cannot be kicked out until February as long as they have a signed declaration of financial hardship due to COVID-19 and pay at least 25% of their rent. After January, landlords can then go to small claims court to collect any missed missed payment during this time if the tenant refuses to pay or if a back pay agreement is not reached.

    (Comment: I think that even with a favorable ruling from a Small Claims Court, a small landlord will find it hard to collect back rents from non-paying tenant.)

    2. "Most Republicans and several Democrats had questioned different aspects of the bill, notably the issue of how unpaid rent would be resolved and when evictions could continue. 

    "Assemblyman Chiu placated many by reiterating that these were only temporary measures. 'This is a temporary, stopgap measure,' explained Assemblyman Chiu on Monday."

    (Temporary, my eye.  It feels like it's been since forever.)

    3. "Susan Chang, a Los Angeles landlord who also represents a small contingent of independent rental unit owners, told the Globe that this only “continues the nightmare.”

    “About half of my tenants, half, are either not paying rent or paying the 25% minimum. Others are not as lucky, with others maybe having one or two,” Chang said. “But you also have to remember a lot of landlords have maybe 1 or 2 rental properties as their income or as a retirement nest egg. If renters refuse to pay, and we can’t legally get rid of them, it ruins us.”

    4. "Many Republicans, including Senator Shannon Grove (R-Bakersfield), noted that AB 3088 would likely be challenged in court, and abstained from voting. However, she did note that landlords would still be on the line for expensive repairs in the meantime and may not be able to afford such repairs if tenants aren’t paying rent.

    "'Those things cost money every month that the landlords and these small landlords are continuing to have to pay for,' explained Senator Grove."

    (Nope, there is no mention, at least in this report, of the state possibly helping pick up the tab for the unpaid rents.  Sorry.)



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

    This is totally insane, these politicians putting the burden on landlords to provide free housing to other people, when these other people should be moving in with family members or to a cheaper, smaller apartment instead. Also, these people have been collecting unemployment with the additional $600 a week federal money for 4 months and never bothered to pay any amount towards rental payment (money which we pay for in tax) and they get for free. These politicians are brain dead. They worry about a large homelessness crisis during a pandemic when homelessness can easily be avoided by simply moving in with relatives and family members, taking on roommates to share the cost of rent, or moving to a cheaper apartment.

    Now a lot of landlords are going to be out of rent for an entire year, not to mention depreciation on the properties due to neglect and damage and wear and tear which these landlords will have to pay out of pocket to fix if they want to sell their properties in the future or rent it to someone else once the eviction moratorium is lifted.

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

    @David To did you end up filing paperwork with the courts about your case? My neighbor down the street told me the court wouldn’t take his paperwork due to the city and state eviction moratoriums. They told him that the judicial council lifted their ban to only process pre-pandemic cases from Jan,Feb and March. 

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

    My property manager already submitted a 60 days eviction notice at the start of August, hoping to kick out the tenant in October, but I'm not sure how that's going to hold up.

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

    @David To Well on the bright side of this new law that just passed is that tenants need to pay atleast 25% of their rent in order to be protected from eviction. Are you thinking of filing when oct comes around? If so let us know how it goes. 

    0Reply
  • Debbie Farmer
    Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    Unfortunately,  the tenants have until Jan 31 to pay their 25%.  They can sit until then and pay it in one lump sum (wishful thinking) or just wait it out for free until they're finally evicted.   They do not have to pay 25% per month.   Go to Dennis Block's FB page and sign up for his webinar Friday at 10:00.   He's a top eviction attorney.   He will spell it all out.   

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

    @Debbie Farmer so since this law started in September and it goes through Jan 31. And their rent comes out to $5000 (For 5months)  r they supposed to pay 25% out of that $5,000?


    =$1250 🤔

    0Reply
  • Ryan Avila
    Rental Property Investor · Napa, CA · Member since 2016 · 69 posts · 75 votes
    6y
    Originally posted by @David To:

    This is totally insane, these politicians putting the burden on landlords to provide free housing to other people, when these other people should be moving in with family members or to a cheaper, smaller apartment instead. Also, these people have been collecting unemployment with the additional $600 a week federal money for 4 months and never bothered to pay any amount towards rental payment (money which we pay for in tax) and they get for free. These politicians are brain dead. They worry about a large homelessness crisis during a pandemic when homelessness can easily be avoided by simply moving in with relatives and family members, taking on roommates to share the cost of rent, or moving to a cheaper apartment.

    Now a lot of landlords are going to be out of rent for an entire year, not to mention depreciation on the properties due to neglect and damage and wear and tear which these landlords will have to pay out of pocket to fix if they want to sell their properties in the future or rent it to someone else once the eviction moratorium is lifted.

    What really needs to happen is instead of the state paying to rent out entire hotels to put up the homeless in. They should be putting up all the non-paying tenants into them instead. That way the state it footing the bill not us landlords. Some cities like S.F. are even providing FREE alcohol, marijuana and methadone to these people. Completely insane! 

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

    https://www.kqed.org/news/1182...

    0Reply
  • Debbie Farmer
    Rental Property Investor · Blackhawk, CA · Member since 2012 · 46 posts · 14 votes
    6y

    Ricardo, yes 25% of the rent Sept - Jan. ☹️ Just enough for property taxes.... 

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

    I’m 100% sure this eviction protection isn’t going to end in January 2021. I’m sure it’s going to last throughout 2021. Like does it really take Over year to find a job? 

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

    BTW, Ricardo, whatever happened to suggested "call for a California class action lawsuit," i.e., the topic of this thread?  Just asking.  Thanks.

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

    Well from my understanding the judicial council dropped their eviction moratorium. I think that was screwing landlords 

    0Reply
  • Anne C.
    Member since 2018 · 13 posts · 8 votes
    6y

    Does anyone know a good eviction attorney in San Bernardino County? I need to send my tenant the AB3088 informational notice and the 15-day eviction notices for missing rent in both periods, March 1 to August 31 and so far has not paid September rent. I need a referral to an eviction attorney who will serve my tenant properly. I have spoken to two attorneys in SB county in the past 6 months that I found from Yelp and they have not been helpful.

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

    HI Anne, check out this gentleman: 

    Dennis P. Block & Associates

    https://www.facebook.com/evict...

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

    By the way, they only have to pay 25% of rent by the end of January 2021 in order to be able to stay and squat in your property for September through January of 2021. And additionally, they have to sign the declaration of covid hardship, which pretty much anyone will sign since they can can flat out lie about it. Then you would have to pursue all your back-rent through small claims court starting in March of 2021 but the tenant basically has a full year after the moratorium ends to pay it back, if they pay it back.

    I'm talking to my property manager and having the property manager's eviction attorney look into a possible eviction in September due to the fact that the tenant re-keyed the locks which is a direct violation of my lease agreement, and thereby is automatic grounds for termination / eviction. I should have the law on my side to evict the tenant since the eviction moratorium due to covid hardship (cannot make rent payments) doesn't apply if they violate any conditions of the residential lease agreement (like altering the property, changing locks without owner's written permission, adding a pet, etc.). So I believe I can pursue this in September since the judicial council has ended the eviction moratorium so court proceedings of this nature other than covid can proceed.

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

    I wonder if even in an eviction moratorium ban, can the owner of the property do the following:

    1) if it's a month to month lease

    2) declare it off the market at the end of next month so that the owner himself will move back into the property

    3) and thereby, the tenant must move out regardless of inability to pay due to covid

    Just wondering if there's a legal way for the owner or his brother / sister / family member moving into the property and so the tenant must vacate? IS this possible to do legally?

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

    @David To I don’t think you can. California has a no Just cause eviction. It was passed I think in early 2020 or 2019. From my understanding courts aren’t taking ANY NEW eviction cases. I believe they only agreed to resume the cases they had pending before the pandemic when the courts shut down due to covid. 

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

    https://www.ranchomesarentals....

    Check out the above link. It's possible, but the landlord will have to cover relocation expenses. Bummer but it's still better than a non-paying covid squatter.

    0Reply
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