New Landlord-Tenant leaves for vacation without paying rent.

New Landlord-Tenant leaves for vacation without paying rent.

Los Angeles, CA · Member since 2016 · 41 posts · 29 votes

Greetings,

I've recently purchased a multi-unit apartment in Los Angeles County (No Rent Control) with intention of living in one of the units.  The only unit that was soon expire had some delinquent payment history (three months) with the previous landlord.

When the escrow closed, I sent out the transition letters to all the tenants and gotten a response from all but one unit (can you guess?).  So, I've tried reaching out to them and their next door informed me they went on a vacation to Europe for a month.  This was last week of May.

When the first rental was due, I've received all the rents except this unit and the previous landlord didn't receive anything or any explanations of why they were being late, nothing.  So I hired a Lawyer to start an eviction process.

Finally, today they reached out to me asking if we could work something out and that they didn't know there were a new ownership change and have electronically deposited the rent to the previous landlord's bank account on the 15th of June.  The tenant tried to explain how they have been mistreated by the previous landlord and that they are willing to go to court if I continue with the lawsuit and claim they weren't served properly and sue both me and the previous landlord for mistreating them.

Before starting the eviction, I asked my lawyer if I should negotiate their end of lease term (end of July) with 60 days notice to vacate and return their security deposit but my lawyer warned that it could work against me if they decide to squat at the end of 60 days and start the eviction process which seemed risky with their past history.

I'll be consulting with my lawyer later today but just wondering has anyone here experienced something like this?  If so, I would like to hear your story.  I am worried this may become a long and dreadful court case but I hope that's not the case.  Thanks.

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Kim Meredith HamptonBusiness Member
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
9y

@Michael Choi first, did you try contacting the previous owner for the rent, or is this past rent that would be owed to him?

How did you or the previous owner notify the tenants that there was a new "sheriff" in town? If everyone else knew that you were the new owner, and coincidentally they were the "only" one that didn't know!? I think a judge would find that hard that to believe, also given their past rental history. 

Once you have your answers on this, I would definitely move forward with eviction. They sound like a problem

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Michael Choi first, did you try contacting the previous owner for the rent, or is this past rent that would be owed to him?

    How did you or the previous owner notify the tenants that there was a new "sheriff" in town? If everyone else knew that you were the new owner, and coincidentally they were the "only" one that didn't know!? I think a judge would find that hard that to believe, also given their past rental history. 

    Once you have your answers on this, I would definitely move forward with eviction. They sound like a problem

  • DHS/Investor · Bowie, MD · Member since 2015 · 149 posts · 65 votes
    9y

    I would have told the previous landlord to handle this problem before closing, due to this problem here. Now you have to go to court, pay legal fees and more. All this could have been solved prior to closing and would have been someone else problem and not yours.

    Good Luck with this situation, hope everything goes well for you.

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Get confirmation from previous landlord rent was paid to him and if that money is yours ask for it.

    As far as previous landlord, if he would have started any court proceedings it would have big issues with the closing of the property it could have delayed everything.. You had no recourse until your ownership. and basically the money owed for rent to you was as of date of your possession, you can't include any past rent , only from date of possession. 

    The tenant can have the transaction reversed by their bank.. if they act right away.. and make sure all other tenants know any ACH rent set up for old landlord need to be cancelled.

    So I would give another pay or quit./ eviction and continue with the process until you are paid or tenant is out . Any rent paid by tenant to old landlord after your possession he has no claim to.  So have your attorney write him a letter maybe..

    Ask for proof of payment from tenant by them getting print out of bank statement showing the rent transaction.  

  • Los Angeles, CA · Member since 2016 · 41 posts · 29 votes
    9y

    @Kim Meredith Hampton The tenant reached out to me last night (midnight actually) trying to explain they just got back from their vacation and wasn't aware of an ownership change.  I asked why they were late making payment to the previous landlord and the tenant excuse was that someone stole his phone and basically thought he didn't think it was big deal since he was going to pay it later. ¯\_(ツ)_/¯

    I've just contacted my agent to verify with the previous owner and to return their money.  After the closing of an escrow, I've sent out the letter to introduce myself with instructions on payment and I stopped by to personally introduce myself to them.

    Their lease is to expire by end of July and my lawyer sent out the 60-day termination of the lease letter with the 3 days notice in case they were to make a payment within 3 days. 

  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Michael Choi Good luck with your new purchase, sound like you have got it under control!

  • Los Angeles, CA · Member since 2016 · 41 posts · 29 votes
    9y

    @Deshawn Lewis It's funny, the tenant was already three months behind with the previous owner and I have asked him to start the eviction and held a certain amount during escrow in case he doesn't follow thru with it which he signed and agreed upon in the addendum. 

    But once the tenant paid up, the landlord dropped the case leaving me with this mess and asked to release the remaining balance from the escrow which to his surprise the escrow refused, haha.  The addendum includes any legal fees and repair costs of eviction.

  • DHS/Investor · Bowie, MD · Member since 2015 · 149 posts · 65 votes
    9y

    @Michael Choi Nice, I'm glad you cover yourself in this situation. Again I hope all goes well and good luck!!!

  • Los Angeles, CA · Member since 2016 · 41 posts · 29 votes
    9y

    @Kim Meredith Hampton  @Deshawn Lewis  @Deanna McCormick

    Thank you for wishing me good luck.  I hope I know what I'm doing but I feel a bit nervous and worry about any conflicts I'll face whenever I visit the apartment making improvements.  

  • Los Angeles, CA · Member since 2016 · 41 posts · 29 votes
    9y

    @Kim Meredith Hampton @Deanna McCormick

    I spoke with the tenant and agreed to meet up for a cup of coffee later today and talk about our common problem.  I want to find out what they want and depends on how our conversation goes maybe offer a full refund of the security deposit to vacate by end of July without collecting rent for both June and July.  My lawyer has advised against making such a deal and go forward with eviction process or have them pay rent for the remaining months and start the eviction process again if they refuse to move out after lease termination which makes total sense.  Ultimately, I just want them to move out peacefully.

    Should there be a written document if we come to an agreement?  Thank you again for taking your time.

  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Michael Choi I have the sign an agreement to vacate. 

    Here I see a sample, although you really need to make yourself acquainted with the landlord tenant laws in your area, I'm sure they are significantly different than Florida 

    I/WE, ------Lessee, hereby agree to vacate the premises which we now are renting at ------ no later than xx/xx/xxxx. In exchange for vacating at this time, Management agrees not to file any legal action for eviction prior to this time if I/WE continue to comply with the terms of the lease agreement and Florida law.

    I/WE agree that any abandoned property that is left behind after the above date may be disposed of by Management without notice and I/WE agree to hold Management, the owners of the premises and any agents or employees harmless for such abandoned property.

    I/WE agree that this AGREEMENT TO VACATE must be signed by us AND returned to Management by hand delivery to the property manager no later than 5:00 PM on xx/xx/xxxx or Management may begin legal procedures at any time.

    I/WE agree that this document and our vacating shall have no effect upon any financial obligations, forfeitures, security deposit forfeitures, liquidated damages, early termination clauses etc under the lease of Florida law unless otherwise agreed to in writing by Management

  • Los Angeles, CA · Member since 2016 · 41 posts · 29 votes
    9y

    Thank you very much @Kim Meredith Hampton  I'll ask my lawyer to draft one out for me under California rules.  I really appreciate your help, thanks again!!

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    Get them out do what it takes. Offer incentives and be persistent you want them to leave,

  • Los Angeles, CA · Member since 2016 · 41 posts · 29 votes
    8y

    Hello everyone,

    I just thought I should leave an update.

    TLDR: In short, I got my unit back and learned a ton during the process.

    I think I have made every newbie mistakes in the book, I wanted to handle it quickly and nicely but the tenants tried to use that to their advantage.  So glad my wife pulled me away before falling into a deeper ditch and letting the pros handle it.  In the end, we settled in court and their attitude totally changed when faced with the ultimatum.

    Here's what I learned,

    1. Hire a lawyer and let them do the dirty work for you.
    2. Trust your lawyer and you will sleep better at night.
    3. Don’t try to negotiate or settle before the trial.
    4. Learn everything about your tenant and it’s best they don’t know anything about you other than you are the landlord.
    5. If the tenant tries to make contact with you just refer it to your lawyer for them to handle it appropriately.
    6. Keep notes meticulously on every interaction between you and the tenant in case they make any false claim against you.
    7. A settlement is essentially negotiating and I gave them a deal it was no-brainer it would have been stupid to refuse and they did refuse the first round.  The second round my lawyer turned the table to my favor LOL.  I took inspiration from Gary Vaynerchuck quote:

    “I like getting deals done, so my negotiation tactic is to give a better deal to the other person. Because I know exactly what to do with my portion. Too many people get caught up in negotiating the perfect terms. Speed is so much more important. Provide value and move on.”

    Thanks everyone for your support and kind replies, happy holidays!!

    Michael

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