All Forum Posts by: Carlos Lez

Quote from @Carlos Lez:

Quote from @Sean McKee:

Quote from @Carlos Lez:

Esteemed colleagues,

I’m facing a tough situation and would appreciate your perspective.

On August 9th, three students (with their parents as guarantors) placed a deposit on my 3-bedroom Victorian near a college campus. As is common here, the prime leasing season is July through mid-August, and once school starts, demand drops off sharply. Accordingly, I removed the unit from the market after their deposit.

Their lease start date was today, August 16, 2025. However, when they arrived with their parents for move-in, they “freaked out.” This is an older Victorian (not a modern apartment), but it is clean, habitable, and up to code. The students had toured it in person before applying. We take pride in maintaining our properties, though of course, they aren’t new construction.

The tenants are now refusing to pay first month’s rent and sent the following notice citing habitability issues under California law (Civil Code §1941.1 and implied warranty of habitability). Their claims include:

• Mold and old food around stove
• Mold on walls
• Blood stains, dead insects, dust throughout
• Dirty stove/microwave, bathroom unsanitary
• Windows unclean with missing/damaged screens
• General filth, unswept floors
• Showerhead replacement needed

They are demanding deep cleaning, mold remediation, replacement of window screens, painting, etc. and state they will withhold rent until this is completed. They’ve also threatened complaints to the local housing authority/code enforcement.

From my perspective:

• The unit was cleaned and is habitable.
• It’s not new, but it was shown in person before application, and the condition hasn’t materially changed since.
• We pride ourselves on keeping units up to code and in good repair.

My concerns:

1. I held the property for them during peak leasing season and may now be stuck with a vacancy.
2. They’re making demands that feel like buyer’s remorse rather than legitimate habitability issues.
3. They are refusing to pay move-in rent, even though they signed a lease and provided a deposit.

Questions for the community:

• How would you handle this?
• Is this a case where I should meet their demands hoping this will not continue , or is it better to cut losses and move on?
• Has anyone dealt with similar “last-minute” habitability disputes where tenants change their minds after committing?

Any input on best practices or legal/strategic next steps would be greatly appreciated.

 If there’s actually no material issues and you are certain of it then you can:

- Offer to break lease. Return money. This would be the preferred route. They sound awful and will likely be a nightmare. It’s an older unit and if they want perfection, they need to pay up for it.

-If you don’t want to break lease or they refuse to terminate lease. Tell them any legitimate issues will be handled. Rent needs to be paid. If they refuse to pay, serve them notice and start the eviction process.

I had a very similar situations on a few occasions. Must recent was a current tenant of several years. He got a little behind on rent and started causing issues. He Refused to break lease. So I served him a 5 day notice.
He vacated a week later and paid rent

If you go the legal route be prepared to deal with the city. Tenants often retaliate this way. With an old Victorian home, there’s bound to be stuff not to current code, unless you are really on it with the updates. I’ve dealt with this as well

A lot of times people act tough, but when confronted with legal actions , they back down.

Sorry this is happening. It’s unfortunately very common. Whatever you do, I’d take action very quickly to try and squash it.

Shawn, there are no material issues. These are the people that will continually harass under threat. I am trying to get them to cancel asap. 

the only advise I am now seeking is if there is anyway to get them to withdraw the code complaint before they are out the lease. 

Carlos. I’ve only had this issue a couple of times when I was actively evicting for nonpayment of rent. Each time I was proactive and dealt quickly with the city. Each time the case was with the city was dismissed and the tenants were still evicted. City government’s like landlords that are quick to deal with issues.

You can certainly try and get them to retract it, but it might not matter. The city still might want to go out.

If you can get them to leave, it will make dealing with the City easier.

If they won’t cancel and won’t pay. Start the eviction process immediately. I don’t know California law, but they likely had to give you some demand period before legally withholding rent. I would also proceed to with making whatever necessary repairs to negate any of their complaints.

There’s a decent chance they will agree to leave or pay with a serious legal actions. The building needing some repairs doesn’t always give tenants the right to withhold rent and many of them don’t know how to do it properly.

I bought buildings with active code violations and I’ve also had to deal with tenant complaints. Most of the time they are focused on big picture issues. So if your building is as well kept as you say it is, then any citations issued will be manageable.

This is the crummy part of being and landlord. Good luck!

Quote from @Carlos Lez:

Esteemed colleagues,

I’m facing a tough situation and would appreciate your perspective.

On August 9th, three students (with their parents as guarantors) placed a deposit on my 3-bedroom Victorian near a college campus. As is common here, the prime leasing season is July through mid-August, and once school starts, demand drops off sharply. Accordingly, I removed the unit from the market after their deposit.

Their lease start date was today, August 16, 2025. However, when they arrived with their parents for move-in, they “freaked out.” This is an older Victorian (not a modern apartment), but it is clean, habitable, and up to code. The students had toured it in person before applying. We take pride in maintaining our properties, though of course, they aren’t new construction.

The tenants are now refusing to pay first month’s rent and sent the following notice citing habitability issues under California law (Civil Code §1941.1 and implied warranty of habitability). Their claims include:

• Mold and old food around stove
• Mold on walls
• Blood stains, dead insects, dust throughout
• Dirty stove/microwave, bathroom unsanitary
• Windows unclean with missing/damaged screens
• General filth, unswept floors
• Showerhead replacement needed

They are demanding deep cleaning, mold remediation, replacement of window screens, painting, etc. and state they will withhold rent until this is completed. They’ve also threatened complaints to the local housing authority/code enforcement.

From my perspective:

• The unit was cleaned and is habitable.
• It’s not new, but it was shown in person before application, and the condition hasn’t materially changed since.
• We pride ourselves on keeping units up to code and in good repair.

My concerns:

1. I held the property for them during peak leasing season and may now be stuck with a vacancy.
2. They’re making demands that feel like buyer’s remorse rather than legitimate habitability issues.
3. They are refusing to pay move-in rent, even though they signed a lease and provided a deposit.

Questions for the community:

• How would you handle this?
• Is this a case where I should meet their demands hoping this will not continue , or is it better to cut losses and move on?
• Has anyone dealt with similar “last-minute” habitability disputes where tenants change their minds after committing?

Any input on best practices or legal/strategic next steps would be greatly appreciated.

 If there’s actually no material issues and you are certain of it then you can:

- Offer to break lease. Return money. This would be the preferred route. They sound awful and will likely be a nightmare. It’s an older unit and if they want perfection, they need to pay up for it.

-If you don’t want to break lease or they refuse to terminate lease. Tell them any legitimate issues will be handled. Rent needs to be paid. If they refuse to pay, serve them notice and start the eviction process.

I had a very similar situations on a few occasions. Must recent was a current tenant of several years. He got a little behind on rent and started causing issues. He Refused to break lease. So I served him a 5 day notice.
He vacated a week later and paid rent

If you go the legal route be prepared to deal with the city. Tenants often retaliate this way. With an old Victorian home, there’s bound to be stuff not to current code, unless you are really on it with the updates. I’ve dealt with this as well

A lot of times people act tough, but when confronted with legal actions , they back down.

Sorry this is happening. It’s unfortunately very common. Whatever you do, I’d take action very quickly to try and squash it.

Quote from @Carlos Lez:

The unit is in a far better condition than when it was seen. The parents never bothered to come see it and whatever they imagined the place to be etc. the place is fully compliant and habitable. An old Victorian cannot be compared to a 2022 built apartment. There used to be no mold, it is alleged that there is. 

I surely want them out at the speed of light.

Since there is a lease signed, you need to get them to cancel it. Tell them the unit is perfectly habitable and you won't be making any changes to it and they can have 24 hours to sign cancellation paperwork if they choose. After that, the lease will be legally enforced. You will have to give back their security deposit.

Personally, since they looked at the unit before signing and you confirmed it does not have the issues you mentioned, I'd document the unit condition with provable date stamps and give them 24 hours to cancel the lease without further penalty, but inform them that you will be keeping the security deposit since you had to take the unit off the market and lost rent and listing expenses. See what they say. 

I would release them quick. However, are you implying they are making up all these things. If those things exists, Id make the same demands. 

What do YOU want to do? Are you still interested in having them as tenants or do you just want to minimize your losses and move on?

Assuming their complaints are not accurate, I'd let them know that that the unit is habitable and in the same condition as when originally viewed. They can take the unit as is or break the lease and be liable for all lost rent until you can re-rent the unit.

Let them know:

Rent is due on 8/16 and a late fee will be added on 8/21. Rent is owed regardless of whether they choose to move in or leave the unit empty. They are not legally allowed to withhold the entire rent. The most they can withhold is based on the severity of the issue in relation to the entire unit. Sounds like the only issue they may have to withhold any is the mold.  

Eviction proceedings will be started the first day allowed by law. It will be filed against all 3 students and will greatly prevent their ability to find another landlord willing to rent to them.

Lost rent (up to when you are able to re-rent the unit), late fees, and legal costs will be billed to the 3 students and their parent guarantors. If left unpaid, all will be listed in the lawsuit. If judgement unpaid, all including parent guarantors will be sent to collections and have their credit destroyed. 

Quote from @Carlos Lez:

Quote from @Jeremy Horton:

The easiest thing to do will be to release them from the lease and move on

Is it fair, no. But that will likely be the easiest cheapest route to go 

If you want, just keep part of the deposit for an application fee of some sort. Maybe add some verbiage in your lease agreement about a lease cancellation fee (if that's allowed in California). 

I had a similar thing happen once - we just returned the deposit and moved on. Didn't figure anything else was worth the cost/time/stress

I am willing to return the deposit provided they agree to it. Any ideas on how to initiate/steer that conversation? I don't want them to get any idea that I am intimidated, I just want to square this up.

 Provide them a lease cancellation form to sign - this way the lease is simply cancelled. Did they move-in the house? 

If they won't sign, then I guess you would have to start the eviction process due to non-payment. 

I don't believe they can withhold rent regardless of unit conditions. 

We rent our units "as-is" that means when you sign the lease you are renting the unit as it sits. Repainting? Lol. Negative. If there is mold that is not caused by the tenant, we'll clean it. If the tenant causes the mold then it's on them. 

The easiest thing to do will be to release them from the lease and move on

Is it fair, no. But that will likely be the easiest cheapest route to go 

If you want, just keep part of the deposit for an application fee of some sort. Maybe add some verbiage in your lease agreement about a lease cancellation fee (if that's allowed in California). 

I had a similar thing happen once - we just returned the deposit and moved on. Didn't figure anything else was worth the cost/time/stress

OMG  RUN!!!  Forget your lost opportunity cost. You do not want any of these 3.  They will be tenants from hell. Hopefully you have not turned over possession.  Hopefully you documented the condition of the property as now required/(video walk through best).

They say it is not habitable,  agree with them and cancel the lease as you need 6 months to complete all the demanded repairs and kick them out. Hopefully your lease has a clause for this.

I would suggest you have an attorney sue the parents for the unpaid rent.  If they sue you, show the move in conditions, and document what they claim are the problems. The mold is the only issue I see that is applicable to uninhabitable, and I bet it is easily remediated with some Clorox and concrobium.