California 60 day notice to tenant

California 60 day notice to tenant

Member since 2019 · 7 posts · 6 votes

Hello All

I have a tenant since June 2021.  Since June 2022 they are on month-month lease.  The tenant has been late on rent for a few months. I want to serve them a 60-day notice to move-out.

One of my real-estate friends is telling me that the tenant is entitled for 1 month free rent. Is that true?

-R

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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
3y

@Al D.

response is pretty accurate. AB1482 applies to MF (duplex on up, but there is an exception for OO duplexes) that are over 15 years old. if property is less than 15 years old, AB1482 does not apply.

In addition various local jurisdictions may provide additional tenant protections.   You will need to determine if any local rent control applies to your property.

Assuming 1482 does not apply, you must give 60 days notice if tenant has been in a year or longer.  30 day notice at less than 1 year of occupancy.  

If 1482 does apply 1) late rent is likely not acceptable grounds for a lease termination or an eviction.  2) if you do a no-fault lease termination a) it will cost you one month’s rent (pay it after they are out; do not forgive last month’s rent to satisfy this criteria) b) there are limited legal reasons to perform a no fault lease termination.  The two primary are to move family into the unit or to do a rehab extensive enough that tenant cannot occupy the unit through the rehab.  

Good luck

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  • Investor · San Francisco, CA · Member since 2017 · 303 posts · 327 votes
    3y

    @Ravi S. I exited my last California rental in 2021, so my knowledge on the subject of the laws effective in 2020 is limited. That said, there are exemption to rules, and it may help anyone who may be able to answer your question to know some additional facts:

    -Is there a local set of tenant protections where the property is located?

    -What type of property is this? (I believe SFRs/condos and such should still be exempt. But does your 2021 rental agreement contain this info? I am not sure myself if it should.)

    -Do you own in your name or SMLLC, or something else?

    -Did you document each of the “late rent” events as a breach of contract/default in written notices to the tenant?

    I can’t wait to hear someone familiar with the Tenant Protection Act of 2019 weigh in. (New state legislature, ballot measures to overturn existing exemptions, and expanding local rent control with new fees all played a part in my decision to exit California.)

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Ravi S.:

    You would be wise to contact the housing authority to get a clear answer. San Diego is regularly introducing new rules and it's hard to get a straight answer from strangers on the internet.

    You may want to consider joining the California Apartment Association for education, forms, and more.

    The DIY Landlord Book4.7248 Reviews
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y

    @Al D.

    response is pretty accurate. AB1482 applies to MF (duplex on up, but there is an exception for OO duplexes) that are over 15 years old. if property is less than 15 years old, AB1482 does not apply.

    In addition various local jurisdictions may provide additional tenant protections.   You will need to determine if any local rent control applies to your property.

    Assuming 1482 does not apply, you must give 60 days notice if tenant has been in a year or longer.  30 day notice at less than 1 year of occupancy.  

    If 1482 does apply 1) late rent is likely not acceptable grounds for a lease termination or an eviction.  2) if you do a no-fault lease termination a) it will cost you one month’s rent (pay it after they are out; do not forgive last month’s rent to satisfy this criteria) b) there are limited legal reasons to perform a no fault lease termination.  The two primary are to move family into the unit or to do a rehab extensive enough that tenant cannot occupy the unit through the rehab.  

    Good luck

  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
    3y

    One month free rent? Yikes! 

    RentWerx Property Management4.73295 Reviews
  • Lender · Cape Cod, MA · Member since 2022 · 8 posts · 3 votes
    3y

    Since when are tenants entitled to a free month of rent?

  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y
    Quote from @Kevin Nichols:

    Since when are tenants entitled to a free month of rent?

    AB1482 is from 2019.  It applies to tenants in multiplexes that are 15 years and older (some exceptions).  So the answer for San Diego (that currently has no local juridiction rent control) is since 2019 for most tenants living in MF units.  Note in some other large cities in CA, there are local rent control regulations more excessive than the state regulation (more restrictive than AB1482).

    AB1482 does not apply to SFR including SFH and condos.

    Note not only are the tenants entitled to a month of free rent at lease termination, but there are few legal reasons for lease termination (typically to move in close family or heavy remodel).  In addition, San Diego has a "committee" of council members meeting to address additional tenant protections.  It appears that both moving family into unit and being able to terminate lease for rehab are under some level of attack in the city of San Diego (not county wide).  Note, I am unsure that banning family from moving into a unit will pass legal challenges as it seems strange that the LL cannot choose to move family into the unit and could be forced to rent a unit when they already own a unit. 

    If you invest in CA RE it is important to know the rules and know what rules are being considered.  They can greatly affect your RE investment.

    good luck

  • Real Estate Agent · San Diego · Member since 2022 · 33 posts · 17 votes
    3y

    Ravi, assuming this property is in San Diego, first you need to find out if your property is or is not exempt from AB1482 (Housing built within 15 years, 10 houses or less not owned by coporation or llc, owner occupied duplex).  Now assuming your property is under the jurisdiction of AB1482, you have a "at-fault" just cause to evict the tenant by defaulting in the payment of rent or breach of contract.  You can serve them a 3-day notice to perform or quit.  If they do not comply you got them!  Serve a 60-day notice to vacate the unit.  Now with all this said, I'd recommend hiring an eviction attorney to handle the process.  Sometimes when a tenant sees a letter from a law firm it puts the fire on their feet that you mean business.  Usually eviction attorney's will have a retainer fee of $1200-$1500.  I've been through this process before not having the write forms with the CORRECT language on the notices and then having to start the process all over!  Better to be safe then sorry and have an attorney handle it.  Message me if you'd like a couple referrals.

  • Member since 2019 · 7 posts · 6 votes
    3y

    Thanks everyone

    This info is super helpful. 

    Home is less than 12 years old, is in a duplex and owned in a Corp.

    I will reach out to eviction attorney and keep everyone posted.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Kevin Nichols:

    Since when are tenants entitled to a free month of rent?


     It's Cali..... 🥴

  • Real Estate Agent · San Diego · Member since 2022 · 33 posts · 17 votes
    3y
    Quote from @Ravi S.:

    Thanks everyone

    This info is super helpful. 

    Home is less than 12 years old, is in a duplex and owned in a Corp.

    I will reach out to eviction attorney and keep everyone posted.


    Shoot me a DM if you'd like solid referrals.  What COVID taught me is not all eviction attorney's are built the same and you want the no nonsense aggressive ones!

  • Member since 2022 · 1k+ posts · 1k+ votes
    3y
    Quote from @Kevin Nichols:

    Since when are tenants entitled to a free month of rent?


     I think even more offensive is not being able to terminate a month to month lease unless your are 1. Moving in, or 2. Massive rehab.  But the tenant can leave anytime he wants to? Not fair.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Henry T.:
    Quote from @Kevin Nichols:

    Since when are tenants entitled to a free month of rent?


     I think even more offensive is not being able to terminate a month to month lease unless your are 1. Moving in, or 2. Massive rehab.  But the tenant can leave anytime he wants to? Not fair.

    It's Cali..... 🥴
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