Selling LA Rental Properties
Owning real estate can be a valuable form of additional income for your family. That’s why most people like the idea of owning rental properties. It always seems like a good idea, but the reality of owning rental property is sometimes worse than the dream.
With rental homes, you have to consider all the things that can go wrong. Nothing is perfect 100% of the time. It’s likely you’ll eventually face some pitfalls with your house. And your real estate investment might end up being the exact opposite of lucrative.
You might decide that your rental isn’t worth the trouble. Especially if the home is in Southern California, where tenant laws often leave landlords at a disadvantage.
It’s important to familiarize yourself with California’s landlord and tenant laws (See Below).
Ideally, you’ll do this before the first tenant takes up residence on your property. NOLO is an online resource where you can learn more about your rights as a landlord. You can also learn about tenant’s rights, and how those rights affect you.
Overview of Landlord-Tenant Laws in California – NOLO
Understanding key California landlord-tenant laws and regulations will help both parties avoid many common legal issues and the need to retain legal council for tenancy solutions. Here is an overview of landlord-tenant laws that are commonly in question by both parties.
California Landlord-Tenant Statues
Citations for California landlord-tenant statues are great sources of information for both tenants and landlords. Congress’s legal research site’s state section offers the statues word-for-word, which can be looked up by statue number or by a keyword.
Are All Rentals Covered By California Landlord-Tenant Laws?
Separate rules apply to certain types of rental units. Floating homes, for example, such as a marina or house boat, and moveable mobile homes, have their own residency laws concerning the landlord-tenant provisions and tenancy.
California Landlord Disclosures
Landlords in California are required by state law to disclose certain information to their tenants at the start of any tenancy. This is usually included in the written rental or lease agreement. The disclosures include information such as the presence of toxic mold exceeding exposure limits and/or posing a health threat to tenants. It also includes servicing details related to gas and electricity going into a rental, including if and how the costs will be allocated when it serves other areas. Notice of registered sex offender database and former state or federal ordnance locations are required discloses, too.
California Security Deposit Limit and Return
While most California lease and rental agreements require a security deposit to cover damages that exceed normal wear and tear of a property, damages, and back-owed rent, state law limits the amount landlords may charge a renter. It also prohibits “non-returnable” security deposits. The maximum security deposit amount is two times rent for unfurnished dwellings and three times rent for furnished dwellings. Security deposits must be returned within 21 days of a renter moving out, and any intended deductions must be made available in writing before being applied.
California Small Claims Lawsuits
Small claims court handles deposits that aren’t returned in accordance with state law and landlords defending a security deposit withholding for damages, cleaning, or unpaid rent. Such lawsuits are capped at $10,000. To avoid dispute, landlords should have a move-out inspection alongside the tenant just prior to and/or after the tenant’s move-out date. At this time, the condition of the unit and contents can be systematically checked off and an itemized list of any intended security deposit deductions can be offered.
California Rent Amount/Payment Rules
Rent-related state laws and rules include late payments, rent increase notifications and limitations, and bad check fees. Landlords must offer tenants suffice notice to raise rent money, and they may file for eviction if a tenant fails to pay rent within at least three days of notice. Late fees must be reasonable and specified in the rental agreement. Do note that several California local governments have rent control ordinances separate from state law.
Rent Withholding In California
Tenants in California are entitled to their rental property being up to housing codes, in good general repair, structurally sound, healthy, and safe. When landlords fail to attend to certain fundamental repairs and maintenance, such as a broken AC unit or leaking roof, tenants have the right to move out without prior notice, call health inspectors and housing authorities, repair themselves and deduct from rent, or withhold rent if the issue causes habitability limitations.
Termination And Eviction Rules For California Landlords
California’s landlord-tenant laws specify when and how a landlord may terminate occupancy. Notice must be given of the issue in the form of an unconditional quit termination or termination for lease violation notice. The landlord would issue, for example, a stop notice or cure notice for impermissible subletting. If desired, this notice may include a three-day prior notice to move out. Only then can the landlord file for eviction
Access To Rental Property By Landlord And Abandoned Property
In California, a landlords’ right to access rental property is restricted. The landlord must provide 24 hours notice to the tenant. For final move-out inspections, 48 hours notice is required. Abandoned property is covered by detailed laws. Landlords must first determine if the property is indeed abandoned, which hinges on if the tenant’s tenancy has been terminated. The abandoned property must be deemed of value or trash, and, if of value, the tenant must be given notification of finding and the landlord’s intention to discard if not collected. Such abandoned property must be stored for at least 15 to 18 days (depending upon method of notification,) but landlords may charge a reasonable storage fee if the tenant doesn’t pick it up within two days.
California law protects tenants from landlord retaliation for complaints and exercising their legal rights, such as their fair housing rights. It also includes special protections for tenants if they’re victims of domestic violence.
Local Landlord-Tenant Ordinances
As mentioned above, certain California municipalities have landlord-tenant ordinances on a local-by-local level. Such ordinances commonly include rent control, safety and health standards, anti-discrimination rules, noise and disturbance rules, and so forth. So, it’s imperative that landlords and renters know both state and local laws that apply to their specific area. These can be found a number of ways, including the municipality’s website, Municode website, public library, mayor’s office, city attorney’s office, and city/county manager’s office.
Federal Landlord-Tenant Laws And Regulations
In addition to state and local laws, tenants and landlords should be familiar with applicable federal laws regarding property rental. Federal agencies, such as HUD and the EPA, are responsible for applying and enforcing a number of laws regarding the landlord-tenant agreement. These mainly concern landlord responsibilities regarding safety and health, such as landlord obligation to disclose environmental health hazards like lead and mold. These also cover certain discrimination issues. For a full list of U.S. Codes applicable to landlords and tenants, visit the federal section of the Library of Congress’s legal research site and search for US Code and Code of Federal Regulations. They’re organized by title.
Selling Bad Rental Property in LA
If you’re interested in selling a Los Angeles bad rental property, then you have a few options.
Keep in mind you’ll have to make repairs and get the property in decent shape if you plan to sell it to an individual. But if you sell it to a home buying company like Selelrs Advantage, it’s likely we’ll buy the property “as-is”. Seller’s Advantage will buy the house fast for cash and you’re free of any responsibility.
Most times when you sell your house to a home buying company they will likely:
– Pay closing costs and fees associated with the sell
– Buy the house “as-is” without demanding repairs
– Close on the property on a date of your choosing usually very fast
You’ll undoubtedly have questions about selling your property to us instead of a traditional real estate listing . Speak with the experts at Seller’s Advantage to learn more about how the process works and what to expect. You might decide that selling your property fast to us is a wise decision.