Los Angeles, CA · Member since 2015 · 61 posts · 15 votes
Hello, I'm looking to buy my first duplex, where I plan on living in one unit and renting the other. There are currently tenants in both units...a Section 8 tenant in unit 1, and a family in unit 2. The property was built in 1959, so I assume it's rent controlled (although, the seller's agent doesn't seem to know much about that). I'd like to renovate and get market value rent. Does anyone have any experience with removing acquired tenants? Can I remove one of the tenants, since I plan on living there? And can I give the other section 8 tenant notice, so they can be relocated? Any advice or suggestions would be greatly appreciated!
I have had luck negotiating sellers to pay a portion of or all of cash for keys cost for my buyers. In rent control areas you must pay them to leave, non rent control areas just require a 60 day notice to vacate. The fee schedule is on the city of LA Rent Stabilization website, if you cannot find it feel free to send an email my way. We vacated three units in mid city last year, and I just did a cash for keys for my sisters newly acquired duplex in San Pedro. The San Pedro deal was unique due to our negotiating the sellers to leave $17,500 in escrow for the buyer to pay the tenants for relocation, needless to say they did not hesitate to leave, but instead of taking my advice and buying property they chose to lease in a higher rental market. The amount of money we gave the tenants was about the same as my sisters out of pocket with an FHA loan.
Michael Plante Cash for keys, you can't force someone out. Cash to voluntarily get out. CA is one of the toughest tenant eviction states. Cockroach lawyers get paid 200-500 to delay eviction for 6-9 months, rents are at 2k/mo, it's a no brainer to hire them if you really want to screw someone.
@Danny Farrell , for the unit you plan to owner occupy I believe you can evict the tenant to move in but the fee is pretty high. You'll want to do some research on the Ellis Act.
As far as the other unit, I believe you can only do that if you plan to 'get out of the rental business' , basically to redevelop into condos etc.
Here is some info from a law firm on 'owner occupancy' eviction.
Los Angeles is making it tougher for landlords more recently and making it so you have to provide a certain number of 'affordable units' even if you build new.
I have had luck negotiating sellers to pay a portion of or all of cash for keys cost for my buyers. In rent control areas you must pay them to leave, non rent control areas just require a 60 day notice to vacate. The fee schedule is on the city of LA Rent Stabilization website, if you cannot find it feel free to send an email my way. We vacated three units in mid city last year, and I just did a cash for keys for my sisters newly acquired duplex in San Pedro. The San Pedro deal was unique due to our negotiating the sellers to leave $17,500 in escrow for the buyer to pay the tenants for relocation, needless to say they did not hesitate to leave, but instead of taking my advice and buying property they chose to lease in a higher rental market. The amount of money we gave the tenants was about the same as my sisters out of pocket with an FHA loan.