Legal Q & A
Dennis Block
Below are questions asked by rental property owners regarding California rent control laws followed by answers provided by eviction attorney Dennis Block.
Question One: I recently leased a unit in the city of Pacoima to a gentleman. He had actually produced his own credit report, which indicated he had excellent credit. The contract was signed, and the first month’s rent and the security deposit were paid. He is now in possession of the unit, and I just received notice from my bank that the check was returned. The bank indicated that the check was written on a closed account. I have tried to contact my tenant, but he is being non-responsible to my calls and texts. Clearly, I have been victimized. I reached out to the police department, but they would not even take a report. They indicated that this was a civil matter. I cannot understand their position. What are my options? This tenant is in my unit and has not paid a single cent.
Answer One: I certainly feel your frustration with your tenant and with the police department. In your situation you should never accept a credit report that was offered by the tenant. You need to run your own AOA credit report. Clearly, the report that was given to you was fraudulent. In addition, a tenant should never be given possession of the unit unless the funds have first cleared your bank account. At this point in time your only option is to file an unlawful detainer to evict this person and to obtain a monetary judgment. You should serve a notice to perform or quit for the security and a notice to pay rent or quit for the rent that is currently owed.
Question Two: My property is subject to Statewide Rent Control. I recently leased my unit to a tenant who pays his rent in a timely manner and causes no disturbances to the other residents. My problem is that he is incredibly demanding. He complains about everything on a daily basis. Some of the items are legitimate, but most deal with minor cosmetic issues. This is a building that is over 40 years old and of course there would be signs of normal wear and tear. I have discussed my concerns with him, but he appears to have doubled down and continues to text me non-stop. Do you have any suggestions?
Answer Two: Cleary, you are not required to fix minor cosmetic issues. You are only required to take care of those items relating to habitability. If your tenant is on a month-to-month lease, you can easily terminate the tenancy by merely serving a 30-day notice to quit. No reason needs to be stated. This is pursuant to the laws governing Statewide Rent Control. My current recommendation is to only lease all residential property on a month-to-month basis.
Question Three: I served my tenant a rent increase notice which exceeded 10%. My property is a single-family residence and is not subject to rent control. The notice was a 90-day rent increase notice. Now that the first month has passed, my tenant has not tendered the current rent. Would you suggest that I just wait the 90-days so that the tenant will be forced to move once the rent increase becomes effective?
Answer Three: I do not see any advantage in waiting the 90 days. There is no guarantee that the tenant will just vacate at that time. You should immediately serve a 3-day notice to pay rent or quit and then proceed to file an unlawful detainer action.
Question Four: My rental agreement specifically prohibits the right to a jury trial. I recently commenced an eviction action, and the tenant has filed a demand for a jury trial. My attorney informs me that this provision in my rental agreement is not enforceable. I believe he is just saying that so that he can charge me a greater fee. Does the tenant have a right to demand a jury trial in this action?
Answer Four: Your attorney is totally correct. Under the provisions of the California State Constitution, all litigants are entitled to a trial by jury. A provision in a contract to the contrary cannot be enforced.
Question Five: I have a tenant who always pays his rent late. I commenced an unlawful detainer action against her. This tenant usually pays rent by direct deposit into my bank account. I am afraid that if she does make a direct deposit, it will have an adverse effect on my eviction action. Do you think I should just close that account to avoid any issues?
Answer Five: There is no necessity to close your account. If the tenant makes a direct deposit into your account, that would not be considered your acceptance of those funds. You would need to mail your personal check, for that same amount, to your tenant. You should include a note to the tenant which informs the tenant that she made an unauthorized deposit into your account and that it will not be accepted.
Question Six: I have a single-family residence in the city of Los Angeles. I am planning on constructing an ADU (accessory dwelling unit) in the backyard. Will I need to give my tenants any compensation, as they will be losing some of their backyard and privacy?
Answer Six: A single-family residence is not subject to rent limitations and as such, no compensation would be required. You will need to serve a 30-day notice of change of terms of tenancy, informing your tenant that construction will commence. It should be noted that once you receive a certificate of occupancy on the ADU, your front house will be subject to the Los Angeles Rent Stabilization Ordinance and your rent increases would be limited. It would be wise to raise the rent on your house, prior to receiving a certificate of occupancy on the ADU.
Question Seven: I have read the provision of AB1482-Statewide Rent Control. I have a condominium which I rented two years ago. I checked the lease, and I did not have a provision that the unit was not subject to Statewide Rent Control. Does that mean that I am limited to only an 8.9% rent increase? Can I serve a notice of exemption at this point?
Answer Seven: Under the terms of AB1482, that provision had to be stated in the lease agreement. You cannot serve a notice of exemption at this point. However, you do not have to be concerned. Under the Costa Hawkins Rental Housing Act, condominiums, townhouses and single-family residences are exempt from any rent control statute. On that basis, you are free to establish the rent to any amount. It should be noted that on the November ballot there is an initiative entitled, Justice for Renters. This appears as Proposition 33. If passed, this will revoke the provisions of Costa Hawkins. It is imperative that all landlords vote NO on Proposition 33.
Question Eight: I leased a one-bedroom apartment to a single woman. A year went by, and I had occasion to enter the unit to make a repair. I was shocked when I saw that the tenant constructed a pole in the middle of the living room. When I asked her about it, she stated that it was for exercise. She even stated that she would demonstrate how it was used. I immediately stated that I did not wish to see this and quickly left the unit. How should I handle this situation?
Answer Eight: I would send her a letter that this constitutes an alteration of the unit, in violation of the terms of the contract and ask her to remove the pole. If she refuses, this could be grounds for eviction.
Dennis Block, of Dennis P. Block & Associates can be reached for information on landlord/tenant law or evictions at any of the following offices: Los Angeles: 323.938.2868, Encino: 818.986.3147, Inglewood: 310.673.2996, Long Beach: 310.434.5000, Ventura: 805.653.7264, Pasadena: 626.798.1014, Orange: 714.634.8232, San Diego: 619.481.5423 or by visiting www.evict123.com. Now, you can also read Dennis Block on Twitter, www.twitter.com/dennisblock or text him at (818) 570-1557. “Landlord Tenant Radio Weekly Podcasts can be heard at any time at www.EVICT123.com or download the app “EVICT123”.