Took the leap, now how to give a 60 notice!

[Andrew Caballero]

Looking for your advice! 

My back story: Long time BP lurker, first time posting. Currently about to close on my second home ( bought and sold my first single family home). this is my first investment property as it's a duplex with both units filled.

My problem: With both units filled and me using a VA loan i have to live in one of the units for at least a year. I feel so bad that someone has to go. Unit #1 has a lease out to October and unit #2 is month to month. I'm going to give unit #2 a 60 day notice to of vacate ( Is this the right term?). How do I go about this and what if she doesn't leave after said notice? If she doesn't leave, I'm homeless as I already gave my notice to my apartment. Also what is a good resource I could use to learn how to landlord? Things I'm interested in learning are how to write a lease, how to raise rent to market value and how to collect rent. Thanks BP community!

[Patricia Steiner]

First, congratulations on your recent acquisition...from lurker to investor is quite the accomplishment!  Just a couple of things first:

1.  You're running a business.  You will be making business decisions that are right for your business. The only way to do that is KNOW the business.  The first thing to do is to know your state's landlord/tenant laws; they're available online so start there. Writing a lease is something you don't want to wing.  There are attorneys and property managers who do this for a reasonable transaction fee; it's worth looking into.  Market rate rent increases can only happen at lease end with notice. Again, know your state laws.

2. If a tenant needs to vacate for your business to operate the way you want it too, let that be the seller's problem by making it a condition at the time you place your offer on the property.  Buy the property - not the problem.  

3.  "Someone having to leave" is nothing to feel bad about. I bet that same tenant wouldn't think twice about giving you notice and walking if something better came their way.  It's the risk that both sides assume on a month-to-month tenancy.  Just do it respectfully and
unapologetically, in writing, and give the full notice.  

And, to the immediate issue at hand, here's California's notice requirement to terminate a month-to-month tenancy:  "Under California state law, a landlord can terminate a month-to-month tenancy by serving a 30-day written notice if the tenancy has lasted less than one year, or a 60-day notice if the tenancy has lasted more than one year." 

Put the notice in writing and send one copy by registered mail with proof of delivery. Be sure to include in your notice that the tenant will need to contact you to set-up a final walk of the unit with you before leaving so you can settle the security deposit.  

If the tenant doesn't leave, you will need to file for eviction.  The best way to mitigate that is to check-in periodically with the tenant to see how their new home search is going, scheduling the final exit walk of the property, etc.  It's also helpful to have the contact information for a couple of rental realtors who might be able to help them find their next home.

Again, congrats!