All Forum Posts by: DG A.

You actually can do a major renovation, but you can only evict them temporarily for three months.

Kind of crazy I know.

From there you can actually raise the rent temporarily to pass on the cost of the renovation to that tenant.

But you can only pass on 70% of the cost and the rent increase has a specific start date and end date after the cost has been paid.

All these tricky rules are why I am only buying properties three units and smaller in Oakland. That way I'm not subject to the just cause ordinance for eviction or the rent Control ordinance .

CC: @Ronan M. ^

Just to be clear, in Oakland CA, we have REALLY strict rent control laws. 

A lease expiring does not mean the tenant has to move out. There are only 11 reasons you can get a tenant out of your property in Oakland. If it's not one of the 11 reasons listed in the ordinance, then that tenant is with you for life, or until they move. #ThatsOakland

A landlord can evict a tenant for the following reasons:

1. Failure to pay rent;
2. Breach of lease terms;
3. Failure to sign a lease extension or renewal that contains materially the same terms as the current lease terms;
4. Willful substantial damage to the unit;
5. Disorderly destruction of peace and quiet of other tenants;
6. Use of unit for illegal purpose;
7. Denial of legal access to unit to the landlord, after written notice to cease;
8. Owner seeks in good faith to recover possession of the rental unit for her occupancy as a principal residence, where she has previously occupied the unit as her principal residence and has the right to recover possession for her occupancy as a principal residence under a written rental agreement with the current tenants.
9. Owner seeks in good faith to recover possession for her own use and occupancy as her principal residence, or for the use and occupancy as a principal residence for her spouse, domestic partner, child, parent, or grandparent.
10. Necessary substantial repairs, for a three month temporary relocation; or
11. Owner seeks to remove the property from the rental market as an Ellic Act eviction.

=====> http://hooshmandlawgroup.com/oakland-just-cause-for-eviction-ordinance-specifies-reasons-a-landlord-may-legally-evict-a-tenant/

One more thought on this. 

As you evaluate the value of the property, consider any "banked rent increases" you would have with the tenant that's in place.  Fo example, if the landlord has never raised the rent on the unit, and they've been there 8 years, you have 8 years of banked rent increases. 

You can raise the rent up to 3 times the current CPI percentage (it's 2% this year) without any special petitions to Oakland RAP board (assuming you have 6% in banked rent increases). 

If a tenant is paying $1,000/month, you can raise the rent to $1,060/month just by giving 30 days notice, because of banked rent increases.

Then at the end of year 1, if you lived in the duplex, you can raise the rent to market rate. 

One thing to consider, is banked rent increases only go as far as 10 years back. So if the tenant has been there 20 years, only the last 10 years worth of rent increases are "banked."

I think it's totally worth it!

Unfortunately, you cannot just "give notice" to someone in Oakland... Unless you live IN the building as your personal residence, and it's divided into 3 or fewer units.

You could however give the tenant notice that you intend to move in. That would be considered a just cause reason to evict. The tricky part there, is if you follow through with an owner move in eviction, you are required to live in the property for a minimum of 3 years. 

You should consider reading the just cause for eviction ordinance from top to bottom. It's really worth the investment! It takes about 3 hours, but you'll be light years ahead of other investors trying to find value in tenant occupied properties. 

Here's the PDF of the Just Cause ordinance: www2.oaklandnet.com/w/OAK036393

Hey Calvin, 

Once you move into a building of 3 units or less, you change the legal structure of the building. Technically, you are no longer subject to measure EE just cause for eviction in Oakland. Again, "technically" you could simply evict the tenant the day you move in and establish that specific building as your primary residence. That does open up a bit of a risk with regard to the rent control ordinance in Oakland. Technically, you as the owner are exempt from rent control after living in the building for 1 year continuously. So, after you've lived there for a year, you can raise the rent to what ever you want. 

That said, if you were to move in, and evict because you're not subject to measure EE "just cause for eviction," there's a bit of a grey area with regard to "bad faith" and the rent control ordinance. A tenant (with a lawyer) could potentially argue that the grounds of the eviction were on "bad faith" and intended to get around the rent control ordinance which you are still subject to until after your first year living there. That specific type of situation would probably go to a hearing with the Oakland RAP board, and who knows what that outcome would be. 

My lawyer told me the safest thing to do is bite the bullet for a year, and then just raise the rent to market rate. So you're coming out of pocket for more of the mortgage year 1, but then you can get the market rate. And if the tenant can't pay market rate, that's not a problem, tell them the day you move in that you intend to charge them market rate on your 1 year move-in anniversary. They'll either leave before then, or be easy to evict, because they can't pay market rate rent. They could also pay market rate rent at that time, and then you're getting market rate rent, without having to rehab. 

Also the tenant estopel certificates "kind of" serve as a lease. Essentially, what ever the tenant has control of (garage, back yard, etc) is what's "included" in their lease. So, when you move in, you draw up a lease based on what they control in the property on that date, and make them sign. If they refuse to sign a lease that's not "materially different" that's actually solid grounds for eviction, and you could evict them. I definitely agree that you should look for historic rent checks, etc. 

One last thing, I spent $500 bucks for a couple hours of a lawyer's time. All the information I got, I would've had if I would have just invested ~3 hours into reading the Just Cause for eviction ordinance. In-fact, I did go read the whole thing, from top to bottom, after the consult with the lawyer, and it really gave me a deep understanding of what's what and what you can't do. It's a pain in the neck to read, and to google all the "notwithstandings" and other legal mumbo jumbo, but it gave me a really solid understanding of what my rights are as a land-lord. 

Here's the PDF of the Just Cause ordinance: www2.oaklandnet.com/w/OAK036393

Hey @J. Martin

Take a look at running a "preference test" on Verify App http://verifyapp.com/tour/preference-test

I use them for the work I do A/B testing and conversion rate optimization, I'm in no way affiliated with them. 

Anyway, you can do a free trial, take the jpegs from 99 designs, and have complete strangers vote on which is best. I think that's a pretty good way of getting people's "visceral" gut reactions to it, if you're interested. 

Hope this helps man! :)

-Danny

@Eric V. I'm suspicious of the same thing. Also unique about Oakland, a lot of folks are moving here to escape the high rents in San Francisco, which puts upward pressure on the rents in Oakland. Rents in Fruitvale are higher now than they were 3-4 months ago.

 What strategies are you seeing for getting around rent control for MultiFamily in berkeley/oakland? Are you talking about the exemptions for owners living in their properties 3 units and smaller as a principle residence? Or just buying single family?

Hi Everybody!

I just closed on my first property today! I'm super excited! Anyway... 

It's a tenant occupied duplex in Oakland CA. Both units are occupied. Anyone with experience doing this in oakland CA, my question is for you:

How exactly do I go about giving the tenant notice to move out, so that I can move into their unit and live there? 

Some follow up questions:

1. If the tenant moves voluntarily after getting the 60 day notice, is that technically an "owner move-in eviction"or does it NOT fall under the definition of an OMI until I file some kind of legal paperwork? In the case where the tenant leaves voluntarily after 60 day notice, am I obligated to live in that unit for 3 years? 
2. What exactly does that 60 day notice look like? Is there a form online somewhere I need to use? Does anyone have an example form or letter they can post for me to use? Obviously, I would use at my own risk, and need to consult an attorney for legal advice. Hey, direct message me if you don't want to post publicly. 
3. What happens if the tenant fights me on me wanting to move in? I legitimately intend to move into this place, right now I'm living on my mom's couch. Not fun. Is there some specific legal filing I need to start on? What are the general steps from 60 day notice on down the line in an owner move-in eviction process?

I'm really excited about starting on this RE investment journey, and grateful for any help!

Cheers! :)

-Danny