Tenant problems - withholding rent citing code issues

[Raman Bindlish]

Hi Landlords,

I am looking for some advice from experienced landlords on tenant problem I am facing right now. My tenant has given me 30-day notice (lease is expired and we had agreed on month-to-month tenancy till the tenant finds a new place to stay - this was as per original lease terms). During the 30-day period, the tenant decided not to pay rent for last 30 days. The excuse is that there are problems in the unit and there are code violations, she sent me an email saying "I am invoking my right to withhold and/or deduct rent. (Civ. Code §1942) Green v. Superior Court (1974) 10 Cal.3d 616"

Some background 

- The home is pre-1970 and I believe that it is not necessary to meet the building codes for older houses. So, we have not fixed up everything but ensured there are no specific issues.

- Tenant reported plumbing issues 3 months back which we fixed within 24 hours

- Tenant reported electric issues last month and we sent an electrician who took care of immediate concerns (power outage) but he suggested there may be some sockets that need replacement and we are in process of taking care of any safety issues.

- Tenant is not responding to emails, calls, etc. regarding the situation and just decided to send the note that she is not going to pay the rent.

My situation

- I just passed 5 day period after rent is delinquent. I plan to send 3-day notice to pay or quit to her.

- We have 1 month deposit that can cover the rent for 30 days. We do not want to go through the eviction process as long as she vacates as she says in her email and as per 30 day notice. But we want to ensure that we are doing everything to protect ourselves in case she changes her mind.

Our opinion is that she is under some financial duress and looking to avoid paying rent so that she can use the deposit as her last month rent. Of course, this is optimistic scenario as you can never be sure. Through the lease, we received the rent on time (actually her boyfriend was on her lease and he paid most of the time). His boyfriend has walked away now on lease termination and she is staying for 30 days till she finds another place.

What do you guys recommend?

-Raman