Chicago, IL · Member since 2017 · 231 posts · 124 votes
Hi Everyone, my older sister rents a house in downtown San Diego, and I wanted to reach out for her on here.
Two months ago, she and her husband/young kids moved into a 3 bedroom house that rents for $2900/month. It's a 12-month lease.
The landlord has notified them that he wants to do a gut rehab of the house (built in the '20s) and convert it into two units to generate more revenue (it has a basement with a bedroom/bathroom). The landlord says he will move them into another 2-bedroom nearby that he owns, though they have 3 young kids, and there's no way that would work.
Is she safe by having a lease? Can the landlord buy them out, and would that price be up to my sister to declare? I would imagine that the landlord has no choice but to let her lease play out, but any expert advice from CA residents/investors would be greatly appreciated!
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
Your sister has a lease and the terms of that protect her.
If the landlord is offering a lease buy out to her, because he want's to change the property then I believe she has the choice to accept or decline that she would agree to move.
Basically if you sister does not agree to the buy out then the landlord is stuck until the end of the lease term.. but if your sister can find other housing and wants to make a buyout deal.. I'd say consider a offer to the landlord of like 10 grand.. that's about 3 months rent.. with a mutual time frame to vacate.. as she knows now she won't be able to renew the lease if she was planning on staying after the initial lease term.
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
Your sister has a lease and the terms of that protect her.
If the landlord is offering a lease buy out to her, because he want's to change the property then I believe she has the choice to accept or decline that she would agree to move.
Basically if you sister does not agree to the buy out then the landlord is stuck until the end of the lease term.. but if your sister can find other housing and wants to make a buyout deal.. I'd say consider a offer to the landlord of like 10 grand.. that's about 3 months rent.. with a mutual time frame to vacate.. as she knows now she won't be able to renew the lease if she was planning on staying after the initial lease term.
Investor · searcy, AR · Member since 2016 · 147 posts · 111 votes
9y
It all depends on her lease and how it is written and worded. I would visit with an attorney on this issue with lease in hand so they can go over it. Legal or not, a landlord can literally make her life horrible, so I would weigh the costs of fighting with them.
Chicago, IL · Member since 2017 · 231 posts · 124 votes
9y
@Deanna McCormick and @Dustin Lavender thank you. I just found out that the original owner sold the house to large, national PM company one month into her lease. When she moved in, he told her that this was his childhood home, and he was planning to keep it in his family for generations to come.
Low and behold, an investor comes in, and the owner sells it for $1.7 million. This may change the game a bit now that a corporation is the one trying to get her out.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
9y
The lease matters and she should not move into a new unit offered by this landlord unless it is a comparable acceptable unit. She should have a legal representative look over anything that she signed with this new owner.
All that said she should look for something else because what she has is going away and the landlord could make it a bad relationship in the interm She has time now because my guess is if she found something they would be likely work with her. She could also dig in until they offer a more comparable unit.
She would be wise to start looking for another place to live rather than stay with a landlord that does not want her as a tenant if she informs the PM company of her legal rights and she still gets push back.
The stress of a fight is not worth it even if she is right.
Chicago, IL · Member since 2017 · 231 posts · 124 votes
9y
@Colleen F. she hasn't signed any new paperwork provided by the new ownership, which should mean that the original lease is in play. There's no chance she's moving her 3 kids into a 2-bedroom.
The best case scenario is she gets to live out her lease, which is disappointing enough for her. The place was great for her family's needs, and she could walk to work at the nearby hospital. More and more neighbors are finding themselves in similar situations. I grew up in San Diego in the '90s with my parents renting a 4 /3, 2400 sq ft for $1000/month. Amazing time for buy-and-holders, but you do have to pity the generational tenants who are losing their roots.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
9y
Some good advice above. She should start looking just to see what else she might be able to find and got how much - so that she can be better positioned for buy out negotiations. Plus the landlord might do things that make life miserable - ignore repairs, schedule repairs for off hours, get picky about the terms in the lease - nobody with children would want that. And this will not be home for long anyway; when the lease is up it certainly won't be renewed.
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
If a corporate owner purchased the property they have the bucks to offer a decent relocation fee to the leaseholder. If she chooses not to accept that then her original lease is still valid for the period of time it was written for. The new corporate owner was fully aware of the lease, that was in place they are stupid. The lease holder should not feel pressured to accept a relocation fee / lease break agreement if she can't find something suitable. I wouldn't accept or encourage her to move into anything they own or operate going forward.
As far as current owner not fixing things or treating her unwisely,, her complaints should go to city inspectors if not handled and she should document in writing all repair requests to owner and all and any complaints.. The only thing they can get her on is if she has a lease violation, and hasn't paid her rent at this point.
She needs to make sure she documents all calls and any further contacts with the new owner.
Chicago, IL · Member since 2017 · 231 posts · 124 votes
9y
@Steve Babiak@Deanna McCormick@Connor Heim thank you. She will take her time finding a new place, though she will likely have to move inland in order to find a comparable setup. Hopefully she can negotiate a favorable lease buyout from this new corporate owner, because if she stays for the entire lease, it obviously won't be getting renewed.