California Tenant Missing Rent Since 03-2020.

General Landlording & Rental Properties
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California Tenant Missing Rent Since 03-2020.

Bao Tran
Member since 2020 · 3 posts · 2 votes
Hi, Please help my parents!!! My parents has a house in Roseville, California. 2 Years ago, I told them to move in with me in the same area so I can take care of them. They rent their house to a tenant who is terrible. This is their first time and I blame myself for not doing a better job to screen this tenant. We saw him driving a nice Mercedes back then so we thought this guy was probably good. To the main story, the house was rented for $2,450/month. Since March/2020, this tenant was blaming Covid so he did not pay a single dime to my parents. Every month, he always come up with the excuse and the promise to pay next month. He never did. His rent ended on 11/2020 but we can not do anything due to the law. Currently, he owed us $26,950 for rent he owe. My parents has to sign up for forbearance plan which will end next month. He did not pay us anything since March and I seriously don't know what to tell parents. They are old but they are so stressed out with the whole situation. Bigger pockets Community, what should I do or what can I do with this tenant as well as with all the money he owed us??? Please help!!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
5y
Originally posted by @Julius Chinn:

Aspiring investors.   This could be a motivated seller.  Way better than driving for dollars.....lol.

while burnt out land lord is a thing.. your response in my mind was in poor taste. !!

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  • Chad Hale
    Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 301 votes
    5y

    Hi @Bao Tran Get some professional assistance.  Suggest getting a good eviction attorney to start with.

    Here's one option: Todd Rothbard

    3Reply
  • Julius Chinn
    Member since 2020 · 104 posts · 54 votes
    5y

    Aspiring investors.   This could be a motivated seller.  Way better than driving for dollars.....lol.

    0Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    5y

    @Bao Tran Sorry you and your parents are going through this. 

    First, the bad news. Based on what you described (tenant paying absolutely nothing), you didn’t have to wait this long. You could likely have started the eviction process already. However, it sounds like neither the tenant or you guys knew or followed the process laid out in the new law.

    But it’s totally understandable. The new law (AB3088, also known as the COVID-19 Tenant Relief Act of 2020) is very complicated. Here’s what could/should have happened, as an example:

    Now, the good news. It’s not too late. In fact, the protections afforded to the tenant under this law are actually expiring at the end of this month.  (Be advised there is already talk to pass new laws that would extend them though, although nothing has been finalized yet. Don’t delay though!) 

    The best thing you could do at this point is do as @Chad Hale suggested and hire a competent landlord-tenant attorney to help you through this process and get this deadbeat tenant out of your parents’ property.

    Good luck!

    3Reply
  • Arthur Schwartz
    Investor · Baltimore, MD · Member since 2019 · 168 posts · 47 votes
    5y

    it would be wise to get an attorney familiar with landlord tenant issues.  Also I would offer the tenant cash for keys so you can get them out of there and find a tenant who pays. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Julius Chinn:

    Aspiring investors.   This could be a motivated seller.  Way better than driving for dollars.....lol.

    while burnt out land lord is a thing.. your response in my mind was in poor taste. !!

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    7Reply
  • Joe Bertolino
    Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    5y

    Contact Gary Link,  he's one of the top eviction attorneys in town.    I am sorry to hear this.  I believe you could have started in July or August if he wasn't paying 25%.  

    1Reply
  • Ming Wan
    Member since 2021 · 23 posts · 4 votes
    5y

    @Bao Tran This situation as bad as it is, is actually in your favor. You just need to act really fast.

    @Kyle J.  I am curious what do you think the CA government will do? Will they extend the moratorium for all types of evictions ie lease violations and holdover? Asking since my tenant is stringing me along and their lease is going to end in a couple of months.

    0Reply
  • Julius Chinn
    Member since 2020 · 104 posts · 54 votes
    5y

    No skin in the game in CA.  Id prepare for no evictions till mid 2022.  My sources telling me Biden shutting down country again.  Its what we Voted for. Got to give the people what they want.

    People are not getting vaccinated like they thought.  Surprise-very few trust the govt.....

    My state thinking of raising umemployment insurance 3X.  From 3% to 9%.

    YOU KNOW THE RAINY DAY FUND DAVE RAMSEY RECOMMENDS>>>>>>>>>Well its Raining!

    1Reply
  • Bao Tran
    OP
    Member since 2020 · 3 posts · 2 votes
    5y

    Thank you for all the comment and recommendation. I figured the best solution is to reach out to the Eviction Attorney and let them handle the whole situation. At this point, I really hope that the California Government can do something to protect the landlord instead of the tenant. My parents suffered as much as my tenant and they receive nothing out of it.

    My parents just hope that we can get this tenant out and get some of the rent back and do a better job in screening the tenant. This situation is such a great toll on them. I feel so bad as a son when I can not do anything to help them. 

    1Reply
  • Mark Pedroza
    Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes
    5y

    @Bao Tran

    For landlord/tenant assistance in the Sacramento are try this web link:

    https://www.teamlink.com/index...

    Although the attorney has closed his practice as of the end of 2020 he has provided a colleague referral..

    Good luck...

    0Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    5y
    Originally posted by @Ming Wan:

     @Kyle J.  I am curious what do you think the CA government will do? Will they extend the moratorium for all types of evictions ie lease violations and holdover? Asking since my tenant is stringing me along and their lease is going to end in a couple of months.

    To answer your question, my guess is that the legislature will extend the moratorium beyond the current January 31st expiration date.  However, they won't significantly expand upon the protections provided by AB3088.  In other words, it will still just protect tenants against eviction due to nonpayment of rent.  

    The existing law (AB3088) was passed with bipartisan support last year, and Governor Newsom has already expressed his desire to see a new bill passed to extend AB3088 before it expires.  (Source: Newsom to Legislature: Don’t let state’s eviction protections lapse)

    However, both of the bills currently being considered (Chiu's Assembly Bill 15, and Caballero's Senate Bill 3) only extend the date.   So evictions for other non-rent related lease violations could potentially still go through.

    You should research these bill's though, as Chiu's bill is vastly worse for us landlords since it extends the protections for non-paying tenants all the way to 2022.  (By comparison, Caballero's bill only extends it two extra months.)  Let's hope the California Apartment Association is able to work with the governor and legislature to convince them to decide on something more reasonable.  

    1Reply
  • Ming Wan
    Member since 2021 · 23 posts · 4 votes
    5y

    Yes I am aware of those 2 bills. I too hope the CAA has enough negotiating muscle to water down any extension.

    0Reply
  • Wilson Lee
    Investor · Indio, CA · Member since 2016 · 13 posts · 0 votes
    5y

    It's definitely tough out there. I'm sure the toll on your parents have been enormous. Just do your best to shield them from it and take on the task at hand for them. Need to separate the emotions from all of this and treat it as a business. It's a long process and don't expect to get any money back. 

    Another option you may consider is the no-fault eviction route. Instead of trying to evict them for non payment of rent, try evicting them with no-fault reasons: intent to demolish or substantially remodel  or withdrawal from rental market.

    These are just 'other' options. Consult with your eviction attorney regarding this.

    0Reply
  • Dave Peterson
    Investor · Sacramento, CA · Member since 2016 · 96 posts · 41 votes
    5y

    The tenant has to show proof that they were impacted by COVID.  For example, one of my tenants had a letter from her employer that clearly stated her position was being terminated due to COVID restrictions.  

    0Reply
  • Robert M.
    Investor · Dundee, OR · Member since 2016 · 104 posts · 162 votes
    5y

    I would suggest you and your parents sell the property. This problem is only going to get worse, just look back at the trends since March of 2020. Does anyone honestly think things are going back to normal anytime soon?  Might read the article I posted in a different thread as to the new laws proposed to help keep people in their homes, its an eye opener as to what is coming. It could be said that the new administration is anti landlord. 

    0Reply
  • Wilson Lee
    Investor · Indio, CA · Member since 2016 · 13 posts · 0 votes
    5y

    If everyone is selling, who's buying?

    0Reply
  • Julius Chinn
    Member since 2020 · 104 posts · 54 votes
    5y

    Buyers are people in FEAR OF MISSING OUT mode.  OP puts on market with 5% discount problem solved.   I dont see what all this i have to protect my parents stuff is all about.

    The House is not a beloved Dog.  Its a Freaking House.

    Lets analyze.

    Sell house at said discount-  Happy New Family.

    Parents-  Can breathe again...yes its a JOKE.

    Win Win and further govt collects Taxes.   No one loses.

    0Reply
  • Arthur Schwartz
    Investor · Baltimore, MD · Member since 2019 · 168 posts · 47 votes
    5y

    One option not mentioned above would be to ask your parents to sell you the house for $1 plus valuable consideration. Have the deed recorded.  Then send the non-paying tenant a letter and saying that you, as the new owner, are moving back into the house, so that they must vacate in 30 days.  After you move back in for the minimum time under the law, then you can rent the house out to someone new.  And the parents stress is removed immediately.  Run it past an attorney, to be sure this is legal in your state.... (PS trying to collect a debt from a former tenant is theoretically possible but often not practical)

    0Reply
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