landlord building ADU in backyard after renewing lease
New to Real Estate · Los Angeles, CA · Member since 2021 · 8 posts · 2 votes
Hi everyone! I recently renewed my lease but just found out the new owners are now building two ADUs in the backyard. This is more a question from a tenant’s POV—but I figure people in real estate were the best people to ask. I have a call with the property manager next week but want to go into it having done some research.
If you were the landlord in my situation, would you charge your tenant any fees to break the lease early? (I’m in Los Angeles if that makes a difference.)
If I stay, what can/should I negotiate (i.e. rent, increased electricity bill if the crew uses exterior outlets, construction start/stop times)? How much should rent be reduced for no longer having the full backyard and garage? Should there be a clause that lets us leave with 30 days notice and without any penalties if we can’t take the noise after all? (My partner and I both work from home.)
Thanks for your help!
I emailed the property manager/owner with questions about options and some of the things he’s saying make me think they’re gonna make this process difficult.
“Every lease unless stated otherwise allows for construction/remodel of property.” Is that true? Minor construction I get. (The previous owners had an electrical fire, rotten fence, etc—and we were fine when people came to repair it.) But does “every lease” really allow major construction?
They would need 60 days notice of a lease break or else they'll take our security deposit. The owner was saying that he was helping us out because typically they'd take our deposit for any kind of lease break. Now, this seems sketch because they're essentially breaking the terms of the lease with this ADU build—but on the other hand, it would probably take us a month or two to find a new place.
There’ll be a 15% discount on rent during construction. (They say construction will last 6 months—from 8am-4pm Mon-Sat—but I’m skeptical because it’s taken me months to do minor repairs at my rental property. Can’t imagine how building 2 ADUs will take 6 months.) We’ll get $100/month for losing our driveway. Does that seem like a fair rent reduction? If we have to be here for two more months, we want to make sure we’re at least compensated for the inconvenience.
BS to the LL claims. Repairs are typically covered in a lease and likely implied if not covered by the lease. New construction is not implied by any lease.
The yard being included is implied in the lease unless explicitly excluded.
The LL is breaking the lease by taking away a yard and driveway (assuming the yard and driveway are not excluded in the lease) and they are breaking the lease by performing new construction on your rented property (again assuming it is not explicitly covered in the lease).
I am not a lawyer but suspect my knowledge in this area exceeds your LL but suggest you verify what I indicate with a tenant rights attorney. I believe they cannot legally start construction, without your permission, until the end of your lease. This is because they are breaking the lease which implied a yard/driveway as well as breaking the lease with new construction. If they want to start construction prior to the end of the lease they should buy you out of your lease. Forget that BS about you being the one to break a lease, the LL is breaking the lease. Consult a tenant rights attorney. In many areas Tenants have free access to tenant attorneys. Do not agree to anything prior to consulting an attorney.
The LL is trying to take advantage of your perceived ignorance. You have the control here. You LL will not be able to keep your deposit for you moving (no court would allow this if you presented things accurately) as they are breaking the lease. They should be paying you for moving expenses and the hassle of moving if you choose to move. Because you have the leverage, the $100/month reduction in rent for loosing driveway/yard and dealing with the construction is a joke. If you move out, the LL might find it difficult to obtain a tenant at less than a 25% discount and would have the expense of the vacancy and the tenant turnover costs.
You did not indicate if you property was rent controlled, but if it is you could possibly have additional leverage.
Good luck
There's really no 'standard' answer to any of this. The items like start/stop work times, and utility usage are items that can be discussed and could go either way. Work times will be regulated by the City code, but what is polite or reasonable may be different...and depends on if I'm renting the space for a discount, then I might expect to be slightly more inconvenienced than if I'm paying a premium for the space.
One item you can look at is if your lease gives you the right to the yard etc, and they are now going to build in that space then they're breaching the lease for the space you're renting. So that may be a valid item to discuss, and they can't just push you out of the yard space IF it is included in your rental agreement.
The other thing here is did they just provide notice of this, but aren't actually starting construction? As in maybe they plan to do this after your lease is up, but they're informing you today so that you have time to plan in advance?
@Matt Devincenzo Thanks for responding!
No, the lease only states that we get a “storage space” (the garage). When we renewed the lease, we asked the owners to specify that we get the backyard but they said that was typically not done and that they had used the same contract language the previous owners used. (The property changed hands last spring, and the new owners just copy/pasted the old lease agreement.)
They’re starting construction in 2.5 weeks unfortunately. We had a feeling something was happening because they recently had an appraiser visit. I assumed they were just refinancing because their 6-month seasoning period just passed. I checked with the city and they submitted the permits in July—but I’m assuming they didn’t want to say anything because we wouldn’t have renewed our lease if we knew there’d be major construction.
You should try to contact some tenant rights organization in LA or your city to see what your options are. It does sound like you are losing the yard space that you thought you were getting. And based on the permit history, the owner knew of the plans to construct the ADUs, but did not disclose those plans to you when signing the lease.
You also have the right to quiet enjoyment of your rental. And that may not work with constant construction in the backyard. Building two ADUs will take months. Again, the landlord was aware of the construction and did not disclose.
You should at least ask for a rent decrease. You should also consider just moving out, and claim that the landlord signed you into a new lease without disclosing the construction that they were aware, and that your rights to quiet enjoyment is being violated. I would not want to rent from a landlord who purposely misleads me into signing a lease. It's a bad sign that there will be more issues to come.
As a landlord myself, I hate it when other landlords do this. It gives all of us a bad name.
I just read this article online and it sounds like you may have some talking points. I would discuss with the property manager and see what they are willing to work with you on.
Here's the article I read: https://www.rentecdirect.com/blog/construction-on-rental-properties/?amp=1
What outcome are you hoping for?
There's always two sides to every story, so my advise is based only on yours...Without knowing the specific set up it's difficult to say, but if it appears the yard is included in 'your' space then that's worth something...it would be like me removing the driveway to my duplex garage mid-lease and telling my tenants they just have a 'storage space' but it doesn't include vehicle access to park. They rented based upon what was visually evident at the time, same for your backyard. So I would assume unless they excluded it, then you should still have the right to it since you are paying for the space.
Ultimately if this gets adversarial only the court can decide. But I would approach them with a kind but firm presentation that they have (or it will be in a couple weeks) changed the material condition of the property you rented. Based upon this change you would either 1) like to break the lease...you will continue paying rent until you find a new place, and will provide notice of your final date as soon as you find a place 2) you would like to discuss a lease amendment to reflect impact to the property you rented and the change in its condition. This would be where you could negotiate a rent reduction etc.
At the end of the day if they say no to both of those options, then your only recourse would be court...which is obviously not ideal, and probably not really worth it unfortunately. My opinion is they really should have been upfront with the pending construction, or at least created a physical separation to ensure there was no physical impact to your leased space.
@Wendy Wong They would be an idiot not to let you go easily and they shouldn't charge you a break lease fee...you are definitely be burdened by this and could likely cause delays in construction if you were to be difficult. They have every right to improve their property, but they were not up front with you about what they were planning to do and trying to charge you to get out of the difficult situation they are putting you in is BS. That said, there are a lot of idiots out there.
But even if you"win" in terms of reduced rent or what have you, you aren't going to be happy, especially if you are working from home...construction just isn't that quiet.
If you are paying for electricity or water and they use any of it, then you should negotiate with that. You didn't say if you are renting the entire house, it seems odd that the backyard isn't included. Not to mention you're going to have workers (and a port a potty) in 'your' yard along with their vehicles.
Ask for quiet times, how long construction will last and if you can break your lease early without penalty (ask for 2 weeks' notice) if the noise gets to be too much. Remind them you are working from home. I think it is scummy of them to not say anything. You'd find out sooner or later.
Thank you all so much for the advice!
I’m a landlord myself, and I wouldn’t do this to one of my tenants. I wouldn’t want to trick someone into signing a lease without knowing something this major—and I really wouldn’t want to deal with the headache of an angry tenant. I’d rather they know ahead of time and decide for themselves.
We're leaning toward moving. We just want to protect ourselves so we don't get hit with a lease break fee or told we only have a week to move out. Lack of trust is the main issue. The owners haven't been forthcoming—even with the type of construction. I only know it's two ADUs because I looked up the permits and one of the owners also posts on this forum for ADU advice. I don't want to be around for the next surprise. (If it was a different landlord, I'd probably try to stick it out.)
I emailed the property manager/owner with questions about options and some of the things he’s saying make me think they’re gonna make this process difficult.
“Every lease unless stated otherwise allows for construction/remodel of property.” Is that true? Minor construction I get. (The previous owners had an electrical fire, rotten fence, etc—and we were fine when people came to repair it.) But does “every lease” really allow major construction?
They would need 60 days notice of a lease break or else they'll take our security deposit. The owner was saying that he was helping us out because typically they'd take our deposit for any kind of lease break. Now, this seems sketch because they're essentially breaking the terms of the lease with this ADU build—but on the other hand, it would probably take us a month or two to find a new place.
There’ll be a 15% discount on rent during construction. (They say construction will last 6 months—from 8am-4pm Mon-Sat—but I’m skeptical because it’s taken me months to do minor repairs at my rental property. Can’t imagine how building 2 ADUs will take 6 months.) We’ll get $100/month for losing our driveway. Does that seem like a fair rent reduction? If we have to be here for two more months, we want to make sure we’re at least compensated for the inconvenience.
I emailed the property manager/owner with questions about options and some of the things he’s saying make me think they’re gonna make this process difficult.
“Every lease unless stated otherwise allows for construction/remodel of property.” Is that true? Minor construction I get. (The previous owners had an electrical fire, rotten fence, etc—and we were fine when people came to repair it.) But does “every lease” really allow major construction?
They would need 60 days notice of a lease break or else they'll take our security deposit. The owner was saying that he was helping us out because typically they'd take our deposit for any kind of lease break. Now, this seems sketch because they're essentially breaking the terms of the lease with this ADU build—but on the other hand, it would probably take us a month or two to find a new place.
There’ll be a 15% discount on rent during construction. (They say construction will last 6 months—from 8am-4pm Mon-Sat—but I’m skeptical because it’s taken me months to do minor repairs at my rental property. Can’t imagine how building 2 ADUs will take 6 months.) We’ll get $100/month for losing our driveway. Does that seem like a fair rent reduction? If we have to be here for two more months, we want to make sure we’re at least compensated for the inconvenience.
BS to the LL claims. Repairs are typically covered in a lease and likely implied if not covered by the lease. New construction is not implied by any lease.
The yard being included is implied in the lease unless explicitly excluded.
The LL is breaking the lease by taking away a yard and driveway (assuming the yard and driveway are not excluded in the lease) and they are breaking the lease by performing new construction on your rented property (again assuming it is not explicitly covered in the lease).
I am not a lawyer but suspect my knowledge in this area exceeds your LL but suggest you verify what I indicate with a tenant rights attorney. I believe they cannot legally start construction, without your permission, until the end of your lease. This is because they are breaking the lease which implied a yard/driveway as well as breaking the lease with new construction. If they want to start construction prior to the end of the lease they should buy you out of your lease. Forget that BS about you being the one to break a lease, the LL is breaking the lease. Consult a tenant rights attorney. In many areas Tenants have free access to tenant attorneys. Do not agree to anything prior to consulting an attorney.
The LL is trying to take advantage of your perceived ignorance. You have the control here. You LL will not be able to keep your deposit for you moving (no court would allow this if you presented things accurately) as they are breaking the lease. They should be paying you for moving expenses and the hassle of moving if you choose to move. Because you have the leverage, the $100/month reduction in rent for loosing driveway/yard and dealing with the construction is a joke. If you move out, the LL might find it difficult to obtain a tenant at less than a 25% discount and would have the expense of the vacancy and the tenant turnover costs.
You did not indicate if you property was rent controlled, but if it is you could possibly have additional leverage.
Good luck
Classic, going right to bully mode thinking thats going to help. They actually offered a no-fault exit (albiet with 60 days) and a rent reduction, but managed to make you more upset by their tone and threats when there was simply no need to do that.
Same advice as before really, unless you want to get down in the mud and wrestle with the pig, so to speak, maybe just put in writing you consider the lease broken, the tenancy at will and you will give proper notice according to CA state law, nothing more. You can say that any reduction of YOUR security deposit other than for out of the ordinary damage will force you to pursue remedies. Maybe quote or just list the statute. Accept the rent reduction since you are leaving anyway.
The parking is a big deal by the way, they can't just take it and force you to accept it, you have a lease that includes it. So you could be difficult. @Dan H. is absolutely right.
Write it with an eye towards a reasonable judge reading it. One part of me would be tempted to mess them up by filing for a stop order, and you could probably profit from the situation but thats the same bad tendency they are exhibiting. A peaceful life is worth something.
I emailed the property manager/owner with questions about options and some of the things he’s saying make me think they’re gonna make this process difficult.
“Every lease unless stated otherwise allows for construction/remodel of property.” Is that true? Minor construction I get. (The previous owners had an electrical fire, rotten fence, etc—and we were fine when people came to repair it.) But does “every lease” really allow major construction?
They would need 60 days notice of a lease break or else they'll take our security deposit. The owner was saying that he was helping us out because typically they'd take our deposit for any kind of lease break. Now, this seems sketch because they're essentially breaking the terms of the lease with this ADU build—but on the other hand, it would probably take us a month or two to find a new place.
There’ll be a 15% discount on rent during construction. (They say construction will last 6 months—from 8am-4pm Mon-Sat—but I’m skeptical because it’s taken me months to do minor repairs at my rental property. Can’t imagine how building 2 ADUs will take 6 months.) We’ll get $100/month for losing our driveway. Does that seem like a fair rent reduction? If we have to be here for two more months, we want to make sure we’re at least compensated for the inconvenience.
Make sure the 15% does not include the driveway. I wouldn't trust these people. Where are you supposed to park? It sounds like there have been other problems with this landlord and PM. If you were thinking of moving anyhow, I'd tell them you are moving. Take the time to find something that works. As for losing the driveway, how much is your total rent? I'm sure the lease specifies the driveway as part of the lease, so they are breaking the lease. I can't see them renting it while the construction is ongoing, so they will also be hit with a vacancy.
Agreed with @Dan H. that the lease providing the ability to perform repairs, and maybe even upgrades, but new construction is not in any way anticipated. A contract is interpreted in light of what it was intended to do, which in this case is create a tenancy. It's not reasonable to imply that it also created the ability to materially change the condition of the property and not inform you of that when the lease was signed.
I'd definitely reach out to a tenant advocacy group of some sort. You may be able to escrow rent and withhold it if they breach the lease by starting construction without resolving this. But you need to make sure you follow the law exactly on how that should be done so as not to create a new issue for yourself. Obviously the ideal scenario is they agree that you can vacate and that they will be flexible with when that is based upon you being able to find a new place. They should also give the rent discount for the remainder of the time that you are there.
I have not seen where anyone addressed that when construction is complete and tenants move in to the new dwellings, that brings on an added burden and imposition to the original tenant that he/she did not sign up for. If the lease agreement is a customary lease agreement, then the original tenant has leased a SFU, not a Triplex. Unless the layout of the property is such that the original tenant doesn't see or hear the new tenants (never mind the loss of usable space), I can't see that sharing a property with other people, the noise, and additional traffic associated with other tenants and their guest on the property is something he/she agreed to. I'm sure there is more to this story, but from the perspective of a conventional lease for a SFU, this doesn't seem acceptable or permissible.
Thanks so much! You’ve all been so helpful.
It’s a home split into a triplex. Our unit takes up the bulk of the house and includes the driveway, garage, and backyard. There are two studios on the side of the house—and those tenants enter the house through a small side entrance, park on the street, and don’t get backyard access.
I don’t trust the owners. There haven’t been major problems like this in the past—but a couple red flags that the owners are inexperienced. (The previous owners hinted these were novice real estate investors. I looked them up and most are recent college grads—not to say you can’t be young and a great landlord.) For example: Before closing, the new owners didn’t tell the previous owners they were sending an inspector—so that was a comedy of errors with the crew wondering if they were in the wrong backyard and us/old PM wondering if we needed to call the cops.
Our rent is $2,450. So we’d save $367.50 + $100/month (if they take our driveway)—which honestly isn’t worth the inconvenience. The blocks around us have recently had an uptick in car break-ins so that’s one of the reason we don’t want to park on the street. I plan on asking for a 30% reduction. They probably won’t go for it but we’ll see.
@Dan H. Yard and driveway aren’t mentioned in the lease. The lease says we get 1 “parking space” and 1 “storage space.” No, no rent control. We’re in LA County—but our city (Pasadena) doesn’t have any rent control policies.
I reached out to a local tenants org—but with the holidays, I’m not sure if I’ll hear back before our call with the property manager/owner. Though my partner and I already agreed not to verbally commit to anything over the phone. And depending on how the call goes, we’ll have a lawyer review any amended contract. I’d rather not have to take them to small claims because it’s just a headache even when you win. But we’ll see how things go.
@Jonathan R McLaughlin Yeah, the tone wasn’t helpful at all. Though I think he’s trying (albeit failing) to come off as if he’s on our side vs. just the owners. So less “you should be lucky I’m helping you” and more “I can let the loss of a security deposit slide just this once.” But because the loss of a security deposit shouldn’t even be on the table—it’s annoying. Also we know he’s really one of the owners. He just doesn’t know we know. So we want to roll our eyes every time he says he needs to talk to the “owners.” (I happened to work in business formation and residential lease law at my last company—though not a lawyer by any means—so I knew where to find the right documents.)
Thanks so much! You’ve all been so helpful.
It’s a home split into a triplex. Our unit takes up the bulk of the house and includes the driveway, garage, and backyard. There are two studios on the side of the house—and those tenants enter the house through a small side entrance, park on the street, and don’t get backyard access.
I don’t trust the owners. There haven’t been major problems like this in the past—but a couple red flags that the owners are inexperienced. (The previous owners hinted these were novice real estate investors. I looked them up and most are recent college grads—not to say you can’t be young and a great landlord.) For example: Before closing, the new owners didn’t tell the previous owners they were sending an inspector—so that was a comedy of errors with the crew wondering if they were in the wrong backyard and us/old PM wondering if we needed to call the cops.
Our rent is $2,450. So we’d save $367.50 + $100/month (if they take our driveway)—which honestly isn’t worth the inconvenience. The blocks around us have recently had an uptick in car break-ins so that’s one of the reason we don’t want to park on the street. I plan on asking for a 30% reduction. They probably won’t go for it but we’ll see.
@Dan H. Yard and driveway aren’t mentioned in the lease. The lease says we get 1 “parking space” and 1 “storage space.” No, no rent control. We’re in LA County—but our city (Pasadena) doesn’t have any rent control policies.
@Wendy Wong Are you in unincorporated Pasadena? Since its a triplex and depending on a couple other factors, you most likely fall under the CA state wide rent control. If you're in the unincorporated area of Pasadena, then you'll also have the LA County RSO on your side: https://dcba.lacounty.gov/rent...
60 days notice isn't much a gift since they're required to give you 60 days notice, assuming you've been there greater than a year. I'm assuming this since you renewed.
Best of luck. I hope you're able to get a favorable situation and possibly enlighten your new landlords that honesty and transparency can go a long way.
Oh that’s good to know! We’re in the incorporated part of Pasadena though.
Yeah, that’s my feeling about the 60 days notice too. (We’ve been there 2 years so far.) They tried to say that our lease requires giving 60 days notice. (But the lease doesn't say that.) I asked whether we could do 30 days instead. Does that seem fair—or are we putting ourselves at a disadvantage?
Thank you! I hope so too. I want a drama-free ending if possible—but also ready to go the small claims route if needed.
Oh that’s good to know! We’re in the incorporated part of Pasadena though.
Yeah, that’s my feeling about the 60 days notice too. (We’ve been there 2 years so far.) They tried to say that our lease requires giving 60 days notice. (But the lease doesn't say that.) I asked whether we could do 30 days instead. Does that seem fair—or are we putting ourselves at a disadvantage?
Thank you! I hope so too. I want a drama-free ending if possible—but also ready to go the small claims route if needed.
In the absence of the lease stating otherwise, the tenant is only required to give 30 days notice. The LL is required to give a minimum of 30 days if tenant has been less than one year and a minimum of 60 days if tenant has been there over one year (regardless of whether lease indicates the LL can provide shorter notice). So in your case the LL must give at least 60 days notice, but you only have to give 30 days notice (assuming you are correct that lease does not state otherwise).
note both the tenant and LL are obligated for the lease period, so the notice rules likely do not apply to either party assuming you did not renew into a month to month lease.
The LL really has virtually no power here. You have a signed lease. In the absence of the lease excluding anything, your lease is for the items typically conveyed in a lease. In this case you have rented the yard and driveway (assuming not explicitly indicated otherwise in the lease). The LL can not simply take away your yard or driveway mid lease any more than they can take away your kitchen. Similarly, the owner cannot simply decide to turn your rented property into a construction zone. This materially affects the rent value.
By the way, the addition of the 2 ADUs will not place any of these units under statewide rent control for 15 years (Costa Hawkins); the person who applied otherwise is mistaken.
Consult with tenant advocate prior to agreeing to anything. Because you have the power to hold up their plans, you very much are in the stronger position. You should decide if you want to live through a construction project with substantially reduced rent (significantly more than $100 reduction), if you want to move with the LL paying moving expenses and possibly compensating for the hassle of the move, or if you want to force the owners to honor their lease and start the construction at the end of the current lease (even if you are month to month your lease is for 60 days after LL provides you notice).
Good luck
Thanks for clarifying! We have a 1-year lease.
The tenants right org got back to me today—which I really appreciated considering it’s new year’s day. They’ve forwarded my info to someone who specializes in my situation.
We’re definitely leaning toward moving. I’ve lived through major construction before and it’s a nightmare. It'll be worse with both of us working from home. The LL’s lack of transparency only makes the situation even worse because we don’t know what other surprises they could throw our way mid-construction. If we asked the LL to pay for moving expenses and the inconvenience, what’s a fair amount to ask for?
Oh that’s good to know! We’re in the incorporated part of Pasadena though.
Yeah, that’s my feeling about the 60 days notice too. (We’ve been there 2 years so far.) They tried to say that our lease requires giving 60 days notice. (But the lease doesn't say that.) I asked whether we could do 30 days instead. Does that seem fair—or are we putting ourselves at a disadvantage?
Thank you! I hope so too. I want a drama-free ending if possible—but also ready to go the small claims route if needed.
In the absence of the lease stating otherwise, the tenant is only required to give 30 days notice. The LL is required to give a minimum of 30 days if tenant has been less than one year and a minimum of 60 days if tenant has been there over one year (regardless of whether lease indicates the LL can provide shorter notice). So in your case the LL must give at least 60 days notice, but you only have to give 30 days notice (assuming you are correct that lease does not state otherwise).
note both the tenant and LL are obligated for the lease period, so the notice rules likely do not apply to either party assuming you did not renew into a month to month lease.
The LL really has virtually no power here. You have a signed lease. In the absence of the lease excluding anything, your lease is for the items typically conveyed in a lease. In this case you have rented the yard and driveway (assuming not explicitly indicated otherwise in the lease). The LL can not simply take away your yard or driveway mid lease any more than they can take away your kitchen. Similarly, the owner cannot simply decide to turn your rented property into a construction zone. This materially affects the rent value.
By the way, the addition of the 2 ADUs will not place any of these units under statewide rent control for 15 years (Costa Hawkins); the person who applied otherwise is mistaken.
Consult with tenant advocate prior to agreeing to anything. Because you have the power to hold up their plans, you very much are in the stronger position. You should decide if you want to live through a construction project with substantially reduced rent (significantly more than $100 reduction), if you want to move with the LL paying moving expenses and possibly compensating for the hassle of the move, or if you want to force the owners to honor their lease and start the construction at the end of the current lease (even if you are month to month your lease is for 60 days after LL provides you notice).
Good luck
@Dan Heuschele
I appreciate your insight on what's implied vs excluded when it comes to the lease. Since the original property is a triplex and assuming its older than 15 years old, wouldn't it be subject to AB-1482? I agree with you that the new ADUs would be exempt since their certificates of occupancy will be issued within the last 15 years.
Oh that’s good to know! We’re in the incorporated part of Pasadena though.
Yeah, that’s my feeling about the 60 days notice too. (We’ve been there 2 years so far.) They tried to say that our lease requires giving 60 days notice. (But the lease doesn't say that.) I asked whether we could do 30 days instead. Does that seem fair—or are we putting ourselves at a disadvantage?
Thank you! I hope so too. I want a drama-free ending if possible—but also ready to go the small claims route if needed.
In the absence of the lease stating otherwise, the tenant is only required to give 30 days notice. The LL is required to give a minimum of 30 days if tenant has been less than one year and a minimum of 60 days if tenant has been there over one year (regardless of whether lease indicates the LL can provide shorter notice). So in your case the LL must give at least 60 days notice, but you only have to give 30 days notice (assuming you are correct that lease does not state otherwise).
note both the tenant and LL are obligated for the lease period, so the notice rules likely do not apply to either party assuming you did not renew into a month to month lease.
The LL really has virtually no power here. You have a signed lease. In the absence of the lease excluding anything, your lease is for the items typically conveyed in a lease. In this case you have rented the yard and driveway (assuming not explicitly indicated otherwise in the lease). The LL can not simply take away your yard or driveway mid lease any more than they can take away your kitchen. Similarly, the owner cannot simply decide to turn your rented property into a construction zone. This materially affects the rent value.
By the way, the addition of the 2 ADUs will not place any of these units under statewide rent control for 15 years (Costa Hawkins); the person who applied otherwise is mistaken.
Consult with tenant advocate prior to agreeing to anything. Because you have the power to hold up their plans, you very much are in the stronger position. You should decide if you want to live through a construction project with substantially reduced rent (significantly more than $100 reduction), if you want to move with the LL paying moving expenses and possibly compensating for the hassle of the move, or if you want to force the owners to honor their lease and start the construction at the end of the current lease (even if you are month to month your lease is for 60 days after LL provides you notice).
Good luck
@Dan Heuschele
I appreciate your insight on what's implied vs excluded when it comes to the lease. Since the original property is a triplex and assuming its older than 15 years old, wouldn't it be subject to AB-1482? I agree with you that the new ADUs would be exempt since their certificates of occupancy will be issued within the last 15 years.
You are correct if the triplex is older than 15 years. I had missed that it was a triplex. I was under the belief that the person thought this was rent controlled because of the 2 ADU units being added. In addition, the OP had indicated it was not rent controlled (OP is mistaken if it was a multiplex for at least 15 years).
If this is a triplex over 15 years old, the tenant has a much stronger case. The rent control law (aB1482) prohibits a LL from mandating materially changing a lease (ever) and provides the LL limited reasons for a no fault lease termination (move in immediate family, a renovation of the unit extensive enough that tenant must vacate, removing from the rental market, or government mandating). a no fault lease termination requires the LL to pay the tenant, but adding units does not qualify for a no fault lease termination. This implies the tenant can potentially stop the ADU additions until the conditions for no fault lease termination is met. At that time, the LL still must provide 60 days notice and provide 1 month rent compensation.
The LL initial offer, if this unit is rent controlled, should be 2 months to vacate with one of those months being rent free. This is minimum that AB1482 requires, but the requirement for the no fault lease termination is not necessarily satisfied and therefore the tenant can negotiate additional compensation (but at a minimum is to get 2 months notice and compensated one month rent as dictated by ab1482 and minimum lease termination law).
Oh wow, thank you so much for all that info! I had no idea about that law—and really should have. Silver lining: This situation is motivating me to do a lot more homework/research because I don’t want to accidentally make a mistake as a LL myself.
I believe the house was originally built as a SFH in the early 1900s. Over the years, the owners walled off certain rooms to turn it into a triplex. I checked the permit history and it looks like it was officially a triplex since at least Feb 2005—so it's past the 15-year mark.
When I looked up the law, it looks like it mostly applies to evictions. (I’m also totally new to this so I could be understanding it wrong!) Could the LL say they’re not evicting us and we’re just choosing to break the lease on our own? I also wonder if they could say no to relocation assistance because we could technically still live in our unit—it’d just be painful with the loss of access and construction noise.
Or could “terminate a tenancy” simply mean changing the lease terms?
Oh wow, thank you so much for all that info! I had no idea about that law—and really should have. Silver lining: This situation is motivating me to do a lot more homework/research because I don’t want to accidentally make a mistake as a LL myself.
I believe the house was originally built as a SFH in the early 1900s. Over the years, the owners walled off certain rooms to turn it into a triplex. I checked the permit history and it looks like it was officially a triplex since at least Feb 2005—so it's past the 15-year mark.
When I looked up the law, it looks like it mostly applies to evictions. (I’m also totally new to this so I could be understanding it wrong!) Could the LL say they’re not evicting us and we’re just choosing to break the lease on our own? I also wonder if they could say no to relocation assistance because we could technically still live in our unit—it’d just be painful with the loss of access and construction noise.
Or could “terminate a tenancy” simply mean changing the lease terms?
Over 15 year old multiplex implies ab1482 applies.
The primary point of AB1482 is to cap rent increases. To accomplish this requires that the LL cannot simply terminate the lease if the rent gets below market. So AB1482 includes under what conditions a lease can be terminate. At fault allows the lease to be terminated because tenant is not abiding by the lease (includes not paying rent, causing damage, breaking any other legal lease terms). No fault lease termination I covered in early reply, but it does not include to add units.
To make the rent control meet its needs, ab1482 does not allow the LL to materially change the terms of the lease. For example, they cannot take away items that are currently included. This would be a way to subvert the rent control if it was allowed.
If this is a rent controlled unit (which appears to be the case from what you indicated) your leverage increases substantially. You could potentially hold up this project until a time the LL can meet the conditions for a no fault termination. Then the LL must provide 2 months notice (because you have been there more than a year) and provide 1 month rent of compensation.
Talk with a tenant advocate before you agree to anything. Also think about what you want. I know I would not want to live through a construction zone. I would want time to find a good replacement home and the month of rent compensation specified by Ab1482. Note you could negotiate more because you can potentially hold up this project.
Good luck