I inherited a home in Whittier, Ca from my parents with two houses on a lot. They are renting this home out to a co-worker of my mothers for...

Question

I inherited a home in Whittier, Ca from my parents with two houses on a lot. They are renting this home out to a co-worker of my mothers for MUCH under value. This home is a one bedroom, 2 bathroom home, with a laundry room, den (that she uses as a second bedroom to give you an idea as to size) and has had many upgrades including a new washer and dryer, a new sewage system, we repainted and sanded the porch, etc. The area in which we live is a historical area and the rent at LEAST doubles for 1 bedroom apartments in this area. My parents have been very lax as landlords but I do not plan to be so. They also have another tenant (other than her agreed upon son) living in the unit with the knowledge of my parents as well as changed (painted,remodeled) the original integrity home. My question is what are my options as to 1.) either raising the rent 2.)evicting her 3.) If evicted can I require her to restore the original state of the home including the furniture (pre-furnished home too and she STILL complains about not parking in my driveway)? As to my knowledge this is a rent to rent agreement and as no lease has been signed. She has lived on the premises for close to four years. Thank you in advance for any information in this matter!

Answer

It depends on the lease, and whether or not the property is governed by a rent control ordinance. As far as I know, Whittier does not have a local rent control ordinance.

I assume that you mean that the rental agreement is "month to month" and not "rent to rent." Rent cannot be lawfully increased in a fixed term tenancy, as that would be a breach of contract.

If the lease is month to month, you can increase the rent, but the law requires notice. You must give at least 60 days advance notice if the rent increase is greater than 10 percent. If it is less than 10 percent, you must give 30 days notice. (Civ. Code. sect. 827(b).)

Answer

I agree with Mr. Roach, and would emphasize the importance of checking to see whether Whittier has any local rent control program. Also, I have three additional suggestions or possibilities:

1. You might want to avoid being in the landlord business altogether by just selling the property. Rented or leased houses can be sold with the tenants in place as income properties, in which case, upon the sale, the tenants just get a new landlord, who inherits the problems and opportunities. Or, you can terminate the rental before putting the property on the market or when in goes into escrow. Either way, you cash out and don't have to be in the landlord business.

2. You can retain a rental management company to do all the chores, including raising the rent, performing evictions when necessary, etc., in exchange for a fee, often 8 - 10% of the gross rental income. Property managers vary considerably in ability and style, so interview carefully. Nevertheless, for a price, you can continue to own and get income while the pros deal with the hassles.

3. If you decide to remain in the landlord business, I'd suggest giving yourself a quick basic education in the laws, and techniques that work. While there's no substitute for years of experience in dealing with tenants and rental properties, you can learn the basics by finding and reviewing one or more (two recommended as a minimum) of the popular "self-help law books" in easy-to-read paperback format. Try a bookstore or on line (Amazon) and consider for example the Nolo Press book by attorney Anthony Mancuso. When selecting these books, be sure to choose only ones that deal specifically with California law.

Answer

AS stated above, you need to learn the landlord business. A clear part of that is learning that you need an eviction service to handle the details, paperwork, filings, service, etc involved in evicting tenants. you only get one shot at it, because any minor mistake will result in denial, delay and starting over. Ask around your area for recommendations for such service. Ask also for a good property manager if you aren't competent or desirous or handling all the daily tasks yourself, such as advertising, credit checks, collection, repairs. etc.