Clarification of California’s Moratorium

[Paige Arias]

COVID TenantHey, I’m just so confused about where we stand as landlords. I watched what seems like the worst video I’ve ever seen today: he seemed super excited that he got a tenant to live in a house rent free for 4.5 years.

Anyways - we gave them a 60 day notice so we could start an assisted living community back in February. They’ve ruined our home so we need to renovate for the business. 

They did not move out, offered to pay rent one month after they were supposed to be gone, but that was the beginning of COVID so we didn’t know what to do. Didn’t take it. 
Then they offered to buy our house from us? 

No communication after. 

I guess my question is: 

1. Is the lease and it’s terms still in effect or can they start doing whatever they want?

2.My parents are the names on the utilities. Do they have to keep that up? 

3.Are we responsible for basic repairs now that they’re squatting and avoiding us at all costs if they decide it’s too cold this winter?

4. I’m not certain I understand the 25% rent thing. Do we send them a notice every month or wait until January 31? 

Cash for keys was a no go.
thanks for any information who might understand this better than me! 

I can’t figure out how to move this video. Sorry! But that’s the one about tenant rights and never paying their landlord ever. 

[Kyle J.]

@Paige Arias  Sorry you're going through this.  California has one of the more complicated laws (AB 3088) on this subject, and there's way too much to cover in a single forum post.  However, I can sense your frustration and confusion, so I'll try to address your specific questions.

1. Is the lease and it's terms still in effect or can they start doing whatever they want?  Yes, the lease is still in effect.  AB 3088 (also known as the COVID-19 Tenant Relief Act of 2020) did not nullify your lease.  It did, however, offer substantial new protections for the tenant from eviction due to non-payment of rent.  And no, the tenant cannot do "whatever they want".  Tenants may still be able to be evicted for other reasons where they do not comply with the lease.

2. My parents are the names on the utilities. Do they have to keep that up?  I don't know because I don't know how your lease reads.  Again, this new law does not nullify or change the terms of your lease.  In the future, this is just one of several reasons you should require utilities to be in the tenant's name.  I know that doesn't help you now, but it's something to keep in mind for your next tenant.  As for this current tenant, again, no one can tell you what your parents should or should not do because we haven't read your lease.  However, in the event the lease does require the utilities to be maintained in your parents' names, I would caution them against having them disconnect the utilities (as much as they'd probably like to) because it could be considered a self-help eviction.  Just FYI.

3. Are we responsible for basic repairs now that they’re squatting and avoiding us at all costs if they decide it’s too cold this winter?  This depends on what you mean by "basic repairs".  I certainly wouldn't be doing any upgrades on the home until these tenants have moved out.  However, you legally must maintain the home in a habitable condition.  Here's some info on what that entails: Landlord Obligations for Habitable Premises - The Basic California Law.  Not only is it a good idea (and legally required) to keep your property in habitable condition, but the law also says that you're not entitled to collect rent for a property unless you do.  (And I know you're not collecting rent right now, but hopefully you'll get a judgment for rent at some point.)

4. I’m not certain I understand the 25% rent thing. Do we send them a notice every month or wait until January 31?  This is going to be tricky because your tenants haven't been paying rent for so long.  Basically this new law treats rent different if it wasn't paid between May-August, than if it wasn't paid between September and beyond.  However, with regard to the "25% rent thing", after you serve the appropriate notices, basically the tenant cannot be evicted if they make a payment equal to 25% of the payments missed as a result of the tenant's COVID-19-related financial distress for rents due beginning in September by January 31, 2021.  If the tenant fails to make this payment, an unlawful detainer (eviction) can be filed against them beginning February 1, 2021.  (Note:  Nothing in the law actually waives the unpaid amounts, even if the tenant cannot be evicted for not paying those amounts.  And the landlord can still seek payment in small claims court, but not until after March 1, 2021.)  Here's a flow chart that MIGHT help make it a little easier to understand:

As I said previously, this law is one of the most complicated and confusing ones out there.  Trying to understand it is not easy.  Based on what you wrote, and the predicament you're in, I would recommend two things.  First, join the California Apartment Association.  They have a whole section of their website dedicated to AB 3088, with webinars, FAQ, and all the forms you need for this new law. 

Second, consult with a local/experienced landlord-tenant attorney and just turn this case over to them and let them handle it for you.  As you saw from that video link that you posted, tenants have attorneys that work to keep them in your property for free.  It's sick, but it's a reality.  You need someone working for you to get them out.  It may seem like an expense you don't want to pay, but I promise you it will be cheaper in the long run than having a non-paying tenant occupying (and destroying) your property for the foreseeable future.

Good luck to you.