Landlord wants to renovate 2 months into the lease

[Derek Luttrell]

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! 

[Deanna McCormick]

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.