Eviction due to lease non renewal in LA county

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Eviction due to lease non renewal in LA county

Tammy Skeath
Member since 2019 · 95 posts · 67 votes

Hello BP members,

I’m having a nightmare situation with two tenants in Long Beach CA. Both have been given non renewal notices and are due to move out at the end of this month both are saying they can’t find another rental and want to stay. That is not an option because both have been terrible tenants hence us giving them non renewal at the end of their 11 month lease. My property manager says we will have to evict them for not vacating the unit once the moratorium expires on June 30th. Does anyone have any further advice on how I can get them out sooner? Besides cash for keys because I’ve already dumped too much money into these guys.  One of the tenants is already behind two months in rent and I’m realizing why being a small landlord in LA sucks so bad. We own in Florida as well and have no such issues there:( I should mention neither has been affected by Covid. 

Is the eviction process for non renewal squatting any easier than a non payment eviction? 

Appreciate any insight from local investors!  

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y

Your PM should give them a simple notice that their lease WILL terminate on the aforementioned date. If they refuse to move out, they will become holdover tenants and the eviction process should start immediately. If the court refuses to process an eviction, file anyway and wait your turn. The renters will get spooked and move out, they will pay rent until you kick them out, or they will pay nothing until you kick them out. No matter how they behave, you should stick to the process.

I don't know how you handle it in the People's Republik of Kalifornia, but I have a holdover rate that is equal to four times the rent, prorated per day. If rent is $1,500 a month, the daily rate for a holdover tenant is $200. It gets very expensive and they are sent daily notice every time a charge is added. That puts pressure on most ordinary people. Some tenants won't care or will just laugh knowing how much they are stealing from you.

Don't take it personally and don't get emotionally involved. It's just business. Follow your process until it's over, don't negotiate or give an inch.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    Has the PM simply told them that staying is not an option and they need to find a new place?

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  • Tammy Skeath
    OP
    Member since 2019 · 95 posts · 67 votes
    5y

    @Theresa Harris yes they have but they are saying they can’t find another place blah blah blah.

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  • Derrick Dill
    Investor · Hawaiian Gardens, CA · Member since 2015 · 308 posts · 386 votes
    5y

    Eviction process is easier for non-renewal squatter.. but it's still going to be a long, tough road ahead:

    Eviction moratorium is not over, and it still might be extended (again)

    Courts aren't taking on evictions in my county in Bay area at all, when the moratorium is over and they do start taking them, there's going to be a huge backlog of people wanting to evict.

    I would reinforce you're not renewing their leases (make sure you don't accept their money during the next term), and let them know you plan to evict if they plan to stay there. Let them know If you evict they will: have an eviction on their record and be very hard to rent anywhere again, there credit score will be ruined, can still pursue their back-rents in small claims court.

    I know it's not what you want to hear but, California is ridiculously tenant friendly, and the moratorium makes it even more ridiculous in their favor. 

    You'll spend a good couple thousand on lawyer and eviction, might be worth it to offer them that same couple thousand? If not, buckle up.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    Your PM should give them a simple notice that their lease WILL terminate on the aforementioned date. If they refuse to move out, they will become holdover tenants and the eviction process should start immediately. If the court refuses to process an eviction, file anyway and wait your turn. The renters will get spooked and move out, they will pay rent until you kick them out, or they will pay nothing until you kick them out. No matter how they behave, you should stick to the process.

    I don't know how you handle it in the People's Republik of Kalifornia, but I have a holdover rate that is equal to four times the rent, prorated per day. If rent is $1,500 a month, the daily rate for a holdover tenant is $200. It gets very expensive and they are sent daily notice every time a charge is added. That puts pressure on most ordinary people. Some tenants won't care or will just laugh knowing how much they are stealing from you.

    Don't take it personally and don't get emotionally involved. It's just business. Follow your process until it's over, don't negotiate or give an inch.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    3Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y
    Originally posted by @Tammy Skeath:

    @Theresa Harris yes they have but they are saying they can’t find another place blah blah blah.

    I'd print off a sample list of places in the same area that are for rent and tell them here's a start.  They are the ones behind in rent, why should you be the one taking 'no I don't want to move' for an answer?  Your PM should also have gotten them to sign the form that says they can't pay due to covid (even though it isn't true)-I believe the form mentions that lost work due to covid is the only reason you can't pay and reminds them that to lie on the form is perjury.  May not work, but worth a try.

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  • Tammy Skeath
    OP
    Member since 2019 · 95 posts · 67 votes
    5y

    @Derrick Dill thanks for your response. Yes the fact that we can’t file for eviction even under this non renewal squatter situation is really the crummy part. Waiting until July 1st, to then start a possible 6 month costly process does make me want to cash for keys her at least for her entire deposit. However, she is a bit of a pro and may try and drain me which makes me think sticking to the eviction process will be my best bet. She already records all her convo with PM and has sued her employer for some other ridiculous claim so she’s chomping at the bit to try and find an angle to catch someone. Because of this I’d rather stick to the books and get her out through the courts. The other tenant already owes about $2700 and their rent is only $1500 so I’d rather hold off and also go to court knowing I’ll have to eventually try and get the back pay through small claims. It’s such a headache and I’m really disappointed in the “vetting” process my PM used. I plan on getting the tenants going forward... it’s been a painful lesson so far.

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  • Tammy Skeath
    OP
    Member since 2019 · 95 posts · 67 votes
    5y

    @Nathan G. Thanks Nathan. Yes I will stick to the process. Unfortunately, here in CA the deck is stacked against us but eventually we will get them out it may take thousands and 6 months and in the process it will ruin their records, it’s a lose lose but how do you explain this to a person who is ignorant. Either way my PM will try and make this hopefully clear and we will wait until July 1st to begin eviction proceedings. :(

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  • Tammy Skeath
    OP
    Member since 2019 · 95 posts · 67 votes
    5y

    @Theresa Harris thanks, yes the issue is that the new places they are applying to see their track record and don’t want to rent from them. When they ask our PM for their payment they see late payments and the new landlords don’t want to rent to them. I really wish all the agencies trying to help renters would also tell them that willingly not paying rent will eventually bite them in the butt instead they just give them the letter of the law and don’t explain the ramifications of late payments.

    1Reply
  • Shiva Bhaskar
    Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes
    5y
    Originally posted by @Tammy Skeath:

    Hello BP members,

    I’m having a nightmare situation with two tenants in Long Beach CA. Both have been given non renewal notices and are due to move out at the end of this month both are saying they can’t find another rental and want to stay. That is not an option because both have been terrible tenants hence us giving them non renewal at the end of their 11 month lease. My property manager says we will have to evict them for not vacating the unit once the moratorium expires on June 30th. Does anyone have any further advice on how I can get them out sooner? Besides cash for keys because I’ve already dumped too much money into these guys.  One of the tenants is already behind two months in rent and I’m realizing why being a small landlord in LA sucks so bad. We own in Florida as well and have no such issues there:( I should mention neither has been affected by Covid. 

    Is the eviction process for non renewal squatting any easier than a non payment eviction? 

    Appreciate any insight from local investors!  

     Hi Tammy, sorry to hear this. I'm a local investor (multifamily mostly). In this case, your options would seem to be either cash for keys, or an eviction. I would suggest starting the eviction process (happy to suggest a great lawyer for this, am an attorney myself) and if you can work it out at some point with them, then go for it.

    I'd definitely operate under the assumption that you are going to have to evict. If they get a lawyer, he or she is likely going to suggest they reach a settlement with you and move out, instead of getting an eviction on their record. 

    You already know this, but for the future, make sure you're carefully checking tenants court / public records, in addition to credit, and also verifying references from prior landlords. We like to go through that credit report with a fine tooth comb - because of past mistakes we made! Anyhow, good luck, and feel free to reach out. 

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  • Tammy Skeath
    OP
    Member since 2019 · 95 posts · 67 votes
    5y

    @Shiva Bhaskar thanks I will be in touch. And yes I’m proceeding under the assumption that I will evict, unfortunately. And absolutely this painful lesson will make vetting my tenants all the more stringent

    0Reply
  • David Shaw
    Member since 2018 · 26 posts · 12 votes
    5y

    @Tammy Skeath

    Sorry to hear about what you're going through, CA has really done a number on small landlords. I am also trying to evict unauthorized tenants and it's taking much longer than 6 months these days, the tenants get free legal aid and they pull out all the tricks and lies to delay. If the tenant is paying I would suggest keeping her for another 6 months to a year until the courts clear their back logs then get rid of her. If she isn't paying then yes might as well attempt to evict, but know it will cost you time and money.

    I will never buy in CA again, the landlords are treated like scum here.

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  • Tammy Skeath
    OP
    Member since 2019 · 95 posts · 67 votes
    5y

    Thanks for all your comments. @David Shaw I agree it’s pretty bad how landlords are treated here. I’m considering selling this building and 1031 the proceeds into another property in FL where my other investments are. As of right now, one tenant is saying she will leave by the 23rd if I give her her full deposit ($3000) even though she is behind a bit in rent. So basically a cash for keys...I’m prepared to do that to just be rid of her. Praying she will leave but still prepared for the worst. Still no response from other tenant but prepared to file for eviction at the end of the month. It’s so sad BC an eviction really does ruin their financial life for years and years to come but it doesn’t seem to be a deterrent now a days. Anyway, thank you all again for your input! I really appreciate this community! 

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