Purchased a leased multi-unit

Purchased a leased multi-unit

Real Estate Broker · Los Angeles, CA · Member since 2016 · 112 posts · 34 votes

Hello Bigger Pockets family!

I was lucky enough to be able to purchase my first 4plex property! I had a few questions in terms of how the leases the tenants that were renting the unit out prior to me purchasing it works? I guess I'll list them out as simple as I can and I can answer any questions on the details since I'm fairly green to being a property manager.

1. The lease that the tenants signed was an extremely basic one since they were made by the flipping contractors. I would like to add things like regulations on drug use, smoking inside, subleasing, etc. What is the best way to go about this? The lease is for one year, then goes to month to month. I know I can't do much to change the lease until the year is up (or can I?). So after the lease goes month to month, can I just make a brand new contract for them to sign to lease for 1 year?

2. Once the year lease is up and it goes month to month, can I give them a 30 day notice to vacate with no real reasoning? Or would there need to be just cause?

3. Piggybacking on question 2, how do most people calculate appropriate rent raises on a non-rent controlled property?

4. What is the final pusher that gets managers to finally decide to evict their tenant? If they pay rent on time but are not taking good care of the unit, would you keep them then just charge everything through their deposit? What if you start to feel like the deposit won't cover the damages they are doing to the property?

As usual, thank you all for any and all help clarifying these questions and if you need any additional details, don't hesitate to ask! Thanks in advance!

Cheers,

Geo

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  • Lender · Los Angeles, CA · Member since 2015 · 399 posts · 174 votes
    9y

    This will answer all you questions and more: The California Landlord's Law Book: Rights & Responsibilities 

  • Santa Clarita, CA · Member since 2016 · 7 posts · 2 votes
    9y

    Hi Geo.  Great questions.  I don't have the answers for you, but very much interested in what the rest of the BP community has to say on these.  Just some simple answers would be great.  I don't have time to read the Nolo book, but will definitely pick it up.  Looks like a great reference for those of us in CA - and Nolo has been a great resource to me in the past.

  • Property Manager · Los Angeles, CA · Member since 2013 · 58 posts · 9 votes
    9y

    Answers to your questions:

    1. Normally, standard C.A.R lease contract should stated most of the things you mentioned.

    2. You have to give them 60 days notice if your tenant have been living there for over 1 year. If the contract is month to month then 30 days is fine..

    3. Generally, you do not want to increase more than 3-5% and if your property is in rent-controlled area then you most likely need an expert to help you so you don't violate any laws.

    4. We need to determine case by case for this situation.

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