Cash 4 Keys only option, not able to evict in CA

[Jennifer A.]

Hi BP,

I'm in the process of purchasing a duplex in LA.  The owner passed and left the house to her 95 year old sister, who is selling it.  The front unit is empty, but the back unit has been occupied by a couple and their mother for 10+ years.  They pay a ridiculous $650 in rent.  I opened conversations of what's to come - complete renovation of both units, including foundation repair on the front.  I asked them what they were thinking about a relocation fee and they came back to me with $50K.  I told them that was about of my budget and I was looking more at $15K.  They took a few days to think about it and said they could do $40K.  Needless to say, I think this amount is insane.  

Based on a conversation with LA County Consumer & Business Affairs, I was under the impression they qualified for relocation assistance amounts under the guidelines they set.  After speaking with LA County Housing & Community Investment Dept, they said that's not the case.  That only applies if I evict the tenant, which based on my reason (renovation), I cannot evict.  

Has anyone had a similar experience?  Is it true I can't evict (putting aside eviction moratorium)? It seems crazy that a tenant can just stay in the house if a landlord wants to renovate and will only leave if they're given a ridiculous amount of money.  Any insight would be helpful, even if it's to contact a lawyer.  With that being said, if we can't come to an agreement, I'm ready to cut my losses and walk - I won't be giving this tenant $50K.  Thanks!

[Gary L Wallman]

Originally posted by @David Lam:

It's not coercing them @Gary L Wallman, they asked for that amount and they are willing to move for that amount. It may even be a head start for them to start making moves for a better future and getting a property elsewhere. No one is strong handling them, so I disagree with your assessment. I don't think that it is immoral. 

David,

You totally read me wrong. I'm not blaming you one bit. Any system that requires you to hand over what amounts to blackmail I find totally repugnant.

The immorality stems from these renters thinking they are entitled to something other than the discounted shelter they've received for a decade. I don't think your immoral if you pay them. I think THEY are immoral for demanding anything at all other then their security deposit, should that be warranted. I personally couldn't do it as a matter of business practice.

As an example; I understand why Colonial Pipeline paid off the ransomware attack as a business decision. As a moral one, IMO, it sucked.

Respectfully,

Gary