New to Real Estate · Sacramento · Member since 2021 · 9 posts · 4 votes
Hi,
My family passed a duplex property to me. The rents were way below market value, and the tenants are giving me issues. What do you guys recommend to buy the tenants out. As Los Angeles is tenant friendly, we can't just ask the tenants to leave even if they are on month to month. My family needs a place to stay too. I am thinking about doing a move in eviction for 1 unit if they are not accepting buy out. Has anyone use the forms below before?
Real Estate Agent · Colorado Springs, CO · Member since 2021 · 279 posts · 121 votes
3y
As you mentioned "Cash for Keys", maybe the best strategy is to show interest in their lives to discover a plan where you can help them achieve a goal. Maybe they really want to move into a SFH and they need a larger deposit to do so, you could trade some cash for those keys in that manner....
You also mentioned that the rent was below market, if they are on a month to month lease, then you should be able to start systematically raising rent to bring them up to market. This alone may cause them to move on to the next property. If you need to do some renovations in order to raise rent, you should be within your legal bounds to work on the property while they are living there.
You may not be able to get them out tomorrow, but you should have plenty of options to start the process and hopefully have them out or up to market rent over the next few months!
I wish you the best on your real estate journey! Take Care,
Investor and Real Estate Agent from Los Angeles · Los Angeles, CA · Member since 2017 · 41 posts · 28 votes
3y
Hi @Jian Feng, do you know if your property is subject to LA's Rent Stabilization Ordinance (RSO)? If so, there's currently a moratorium on no-fault evictions (which includes evicting a tenant for the owner/owner's family to move in), which I believe will be in place until 2024.
Cash for keys is a good option, but keep in mind the tenants aren't obligated to accept the offer, and if the current rent they're paying is low enough it might not be worth it to them to accept.
If you're interested in the subject, a great resource for tenant/landlord laws in the LA area is Dennis Block's website. He has an "Ask Dennis" section on his site where landlords ask questions and he posts the answers, which I always find fascinating to read.
Hi @Jian Feng, do you know if your property is subject to LA's Rent Stabilization Ordinance (RSO)? If so, there's currently a moratorium on no-fault evictions (which includes evicting a tenant for the owner/owner's family to move in), which I believe will be in place until 2024.
Cash for keys is a good option, but keep in mind the tenants aren't obligated to accept the offer, and if the current rent they're paying is low enough it might not be worth it to them to accept.
If you're interested in the subject, a great resource for tenant/landlord laws in the LA area is Dennis Block's website. He has an "Ask Dennis" section on his site where landlords ask questions and he posts the answers, which I always find fascinating to read.
I understand that it's a difficult situation and one that requires careful consideration. In California, there are several options for buyouts available to you. The first option is to offer tenants financial compensation in exchange for vacating the property. This could include a lump sum payment or a promise of relocation assistance (such as help with finding new housing). Most tenants will respond favorably to this kind of offer, especially if they feel like they can get a better deal elsewhere.
Another option is to offer tenants an incentive to move out voluntarily before their rental agreement has expired. For example, you might be able to work out an early lease termination agreement with them and provide them with some additional compensation, such as free rent for a specified number of months. This could be a good solution if you need the tenants out quickly and if the tenants are not interested in your buyout offer.
Finally, if the situation becomes more complicated or adversarial, you might have to pursue a formal eviction process. But currently, a moratorium on no-fault evictions, needs to wait till February 2023, I hope. Good luck!
The one for the City was supposed to be January 31st, but now I'm hearing that might get extended. Especially with Karen Bass in office.
Cash for keys right now is really your only option. The problem is because the tenants are paying such low rents, the amount you would need to offer has to be substantial. For example offering them $10,000 when rents might be $3K, that means they are only good for less than four months not even including the deposit. You are probably looking at $40K+ to start the conversation.
New to Real Estate · Sacramento · Member since 2021 · 9 posts · 4 votes
3y
I appreciate everyone's responses. I just checked. You guys are correct. No-fault eviction is still not allowed yet. Hopefully, it does expire on the end of January 31.
I appreciate everyone's responses. I just checked. You guys are correct. No-fault eviction is still not allowed yet. Hopefully, it does expire on the end of January 31.
This is Los Angeles, California. Were I a gambling man, and could find somebody to take me up, I'd bet on another extension.
I doubt I could find anybody to bet the other way though, so it's probably just as well I'm not a gambling man.
Real Estate Agent · Member since 2022 · 88 posts · 23 votes
3y
Good evening @Jian Feng . We can help you to sell fast. We invest $$$ in marketing and use a lot of data and targeting to sell the property much quicker.