Took the leap, now how to give a 60 notice!
Rental Property Investor · San Diego, CA · Member since 2018 · 9 posts · 5 votes
Looking for your advice!
My back story: Long time BP lurker, first time posting. Currently about to close on my second home ( bought and sold my first single family home). this is my first investment property as it's a duplex with both units filled.
My problem: With both units filled and me using a VA loan i have to live in one of the units for at least a year. I feel so bad that someone has to go. Unit #1 has a lease out to October and unit #2 is month to month. I'm going to give unit #2 a 60 day notice to of vacate ( Is this the right term?). How do I go about this and what if she doesn't leave after said notice? If she doesn't leave, I'm homeless as I already gave my notice to my apartment. Also what is a good resource I could use to learn how to landlord? Things I'm interested in learning are how to write a lease, how to raise rent to market value and how to collect rent. Thanks BP community!
First, congratulations on your recent acquisition...from lurker to investor is quite the accomplishment! Just a couple of things first:
1. You're running a business. You will be making business decisions that are right for your business. The only way to do that is KNOW the business. The first thing to do is to know your state's landlord/tenant laws; they're available online so start there. Writing a lease is something you don't want to wing. There are attorneys and property managers who do this for a reasonable transaction fee; it's worth looking into. Market rate rent increases can only happen at lease end with notice. Again, know your state laws.
2. If a tenant needs to vacate for your business to operate the way you want it too, let that be the seller's problem by making it a condition at the time you place your offer on the property. Buy the property - not the problem.
3. "Someone having to leave" is nothing to feel bad about. I bet that same tenant wouldn't think twice about giving you notice and walking if something better came their way. It's the risk that both sides assume on a month-to-month tenancy. Just do it respectfully and
unapologetically, in writing, and give the full notice.
And, to the immediate issue at hand, here's California's notice requirement to terminate a month-to-month tenancy: "Under California state law, a landlord can terminate a month-to-month tenancy by serving a 30-day written notice if the tenancy has lasted less than one year, or a 60-day notice if the tenancy has lasted more than one year."
Put the notice in writing and send one copy by registered mail with proof of delivery. Be sure to include in your notice that the tenant will need to contact you to set-up a final walk of the unit with you before leaving so you can settle the security deposit.
If the tenant doesn't leave, you will need to file for eviction. The best way to mitigate that is to check-in periodically with the tenant to see how their new home search is going, scheduling the final exit walk of the property, etc. It's also helpful to have the contact information for a couple of rental realtors who might be able to help them find their next home.
Again, congrats!
First, congratulations on your recent acquisition...from lurker to investor is quite the accomplishment! Just a couple of things first:
1. You're running a business. You will be making business decisions that are right for your business. The only way to do that is KNOW the business. The first thing to do is to know your state's landlord/tenant laws; they're available online so start there. Writing a lease is something you don't want to wing. There are attorneys and property managers who do this for a reasonable transaction fee; it's worth looking into. Market rate rent increases can only happen at lease end with notice. Again, know your state laws.
2. If a tenant needs to vacate for your business to operate the way you want it too, let that be the seller's problem by making it a condition at the time you place your offer on the property. Buy the property - not the problem.
3. "Someone having to leave" is nothing to feel bad about. I bet that same tenant wouldn't think twice about giving you notice and walking if something better came their way. It's the risk that both sides assume on a month-to-month tenancy. Just do it respectfully and
unapologetically, in writing, and give the full notice.
And, to the immediate issue at hand, here's California's notice requirement to terminate a month-to-month tenancy: "Under California state law, a landlord can terminate a month-to-month tenancy by serving a 30-day written notice if the tenancy has lasted less than one year, or a 60-day notice if the tenancy has lasted more than one year."
Put the notice in writing and send one copy by registered mail with proof of delivery. Be sure to include in your notice that the tenant will need to contact you to set-up a final walk of the unit with you before leaving so you can settle the security deposit.
If the tenant doesn't leave, you will need to file for eviction. The best way to mitigate that is to check-in periodically with the tenant to see how their new home search is going, scheduling the final exit walk of the property, etc. It's also helpful to have the contact information for a couple of rental realtors who might be able to help them find their next home.
Again, congrats!
Put the notice in writing and send one copy by registered mail with proof of delivery.
Certified, not Registered.
Certified provides proof of mailing and signature proof of deliver. Costs about $3.
Registered is for high value items and requires special tape to seal the envelope. Costs about $15.
I noticed that not everyone succeeds in being a boss.
I see that you have difficulties with organizational issues in your business, such as collecting rent or evicting tenants. But unfortunately, without this, a successful apartment rental business cannot develop.
In this case, you can support your words with an agreement on the lease of houses. A 60-day warning is the correct time limit. I worked for a long time at Furnished Apartments by Churchill Living, and I talk a lot with lawyers in the field of short-term rental housing.
If your tenants do not pay you to rent, you have every right to evict them within the specified term in the contract. Otherwise, you can go to court. Don't be afraid to assert your rights as a landlord.
@Andrew Caballero
You’ve gotten some great advice here so far Andrew.
Where I will jump in is specifically related to changes and issues we’ve run into here in the Sacramento area with COVID.
There are currently restrictions on being able to serve notices to vacate. At the moment in our area there has to be an at fault just cause. You should be able to work around this since you plan to use the unit as your personal residence. At this time if the unit is coming off of the rental market you should be fine, but what is unclear is how long the home has to be off the rental market. You likely won’t run into issues here, but with the strange times we are in it’s good information to know!
Secondarily if this decides not to leave, at least here in the Northern California, the eviction courts are still closed. You can find an attorney to open and serve the eviction but you are then at a standstill, unable to collect rent until the courts finally can open again.
If you want more assistance deal free to reach out to me with property management questions.
If your lease mentions that you are on a month to month lease then it should be easy to provide a notice to vacate. You don't even have to give them a 60 day notice. But definitely go over the lease and find out what it says.
Everyone thanks so much! Such great advise and wisdom, I'm onboard with what everyone has to say and am truly humbled. Thanks again!