CA Rent Control + Covid Question

[Shelby Pracht]

We acquired a new multifamily property in the height of covid this year with a handful of tenants paying extremely under market rent (read, less than 50% of current market rate). The tenants in question are on a month to month lease. I've given them notice that we wish to terminate the lease, but they are pushing back and don't want to leave. (I mean, with rent that low I wouldn't either). Because this is a month to month lease, am I allowed to be firm and make them leave, or would this be considered an eviction, which I know are not allowed now because of covid.

We are planning on renovating the unit and then raising it to market rent.

I would also consider allowing tenants to stay if they would be willing to pay closer to market rate, but I don't believe I can legally request that CA rent control laws. 

Anyone have any insight? TIA

[Kyle J.]

@Shelby Pracht  You haven't provided enough info to answer this question with 100% certainty, but I'll offer you some thoughts. 

First, terminating a tenancy is not the same as an eviction.  However, if the tenants "push back" and refuse to leave after having their tenancy terminated, the only way to remove them at that point is through an eviction (unlawful detainer).  Make sense?

Okay, now that we've cleared that up, on to the next issue at hand.  You don't say how long these tenants have resided in the property.  However, if they have lived in the property over 12 months, they are going to be protected under the new law (AB1482) and you'll need "just cause" to evict them (unless there's an exemption you qualify under).  It doesn't even matter any more that they're month-to-month, if they've lived there over 12 months. 

That same law (AB1482), by the way, is also the one that controls how much you can raise the rent.  So it's going to be critically important that you familiarize yourself with it.  Here's a couple resources that might be helpful to start with:

https://a17.asmdc.org/issue/ab-1482-frequently-asked-questions

https://cal-rha.org/legislative/ab-1482/

Best of luck with your new investment.