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Updated about 3 years ago on . Most recent reply

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Jim Spatzenfeld
  • Investor
  • Buffalo NY & Sacramento CA
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Am I allowed to evict after I close on purchase in California

Jim Spatzenfeld
  • Investor
  • Buffalo NY & Sacramento CA
Posted

I'm under contract for a duplex in California that I am purchasing under an LLC. As far as I understand, an LLC that owns a duplex in California cannot evict a tenant except for a "good cause" eviction for things like failure to pay rent on time, failure to cooperate with legal recertification requirements, and engaging in illegal activity on the premises, etc. which is not the case here.

I would like to evict after closing because the tenant pays less than 50% of market rent and California does only allow annual rent increases between 5-10%, so I cannot bring the rent to market rent with this tenant.

Any ideas?

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Greg Scott
#3 General Real Estate Investing Contributor
  • Rental Property Investor
  • SE Michigan
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Greg Scott
#3 General Real Estate Investing Contributor
  • Rental Property Investor
  • SE Michigan
Replied

In every state in this nation, you cannot evict simply because the tenant is paying less than market rates. 

If the tenant has a lease, congrats, you purchased the contractual obligations as part of the property purchase.  You must abide by the legal requirements of that contract.  Now, at the end of that contract, you can choose not renew that contract, but that is a completely different thing from an eviction.

  • Greg Scott
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