[CA] How do I handle a tenant turned squatter?
I own a house in a popular beach town in Southern California via a trust. Started rehabbing the house to provide family income.
I hired an unlicensed contractor to do some work. I grew up with him, and he was going through some hard times. I let him stay there while the house was being worked on, and he agreed to pay rent. He ended up being completely unreliable. Sent rent late, partial payments, or did not pay at all. Promised to do work in exchange for rent, which was not always completed.
City started sending me code enforcement issues over incomplete permits and a lack of a certificate of occupancy. He wanted to move his kids in which I denied because of permits and lack of c.o, said he will squat.
I fired him from any and all work and am in talks with a licensed contractor to finish the house and close out the permits. Unlicensed contractor squatter wants a 2-year lease or an absurd payout of 30-40k. I paid him for all jobs he bid on in full, and the work was not finished as described.
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It was very kind of you to try to help this worker. I'm sorry he took advantage of that. In California, all contractor work over $1,000 must be done by a licensed contractor. I don't think it will be helpful to you to have him do anything further. You need to have a licensed contractor come in and straighten this out. I would go ahead and send him a three-day notice to pay or quit. Then, if he doesn't pay, you move forward with an eviction action.
The whole state has a just cause to evict act (California Tenant Protection Act 1482) even if your particular city or county does not have their own and also a cap on how much you can increase rent for a tenant each year (5 percent plus CPI or 10 percent whichever is less-I believe orange county is 8.9 percent right now). Proper notice has to be given for a rent increase (30 days for tenant of less than a year CIV § 1946.1(c)).
The exceptions to the ordinance are Single family homes, townhomes, and condominiums owned by individuals, family trusts, or limited liability companies so long as the LLC does not have any corporate members but you have to give the tenant notice before they move in that the property is exempt or it will be treated as if it is not exempt.
The three-day notice you give the occupant should include all the past-due rent plus any late charges allowed in your contract. If he happens to come current, just make sure next month to serve it as quickly as possible (check the lease for grace periods) if he is late again. Once he is gone, you are free to establish a market-value rent for the new tenant, as you mentioned.
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I own a house in a popular beach town in Southern California via a trust. Started rehabbing the house to provide family income.
I hired an unlicensed contractor to do some work. I grew up with him, and he was going through some hard times. I let him stay there while the house was being worked on, and he agreed to pay rent. He ended up being completely unreliable. Sent rent late, partial payments, or did not pay at all. Promised to do work in exchange for rent, which was not always completed.
City started sending me code enforcement issues over incomplete permits and a lack of a certificate of occupancy. He wanted to move his kids in which I denied because of permits and lack of c.o, said he will squat.
I fired him from any and all work and am in talks with a licensed contractor to finish the house and close out the permits. Unlicensed contractor squatter wants a 2-year lease or an absurd payout of 30-40k. I paid him for all jobs he bid on in full, and the work was not finished as described.
Lexi, Chatbot
I understand the challenges you're facing with your unlicensed contractor turned squatter. Have you consulted with a real estate lawyer regarding this situation?
Yes I spoke with a attorney today about a 3 day pay or quit. I'm concerned it could be difficult with the lack of C.O and all the red tape involved with the remodel and obvious conflict of interest with him being a former worker and would be tenant at will.
He has taken advantage of me ad I'd like to get the property back in my possession to finish the work. Also during this time, another tenant is living downstairs and is paying rent on a timely basis. My issue is with the unlicensed contractor squatter upstairs where the work is unfinished. Should I got forward with the 3 day pay or quit or attempt to finish the permits before addressing the tenant at will turned squatter?
Lexi, Chatbot
have you documented all the agreements, payments made, and work completed by the unlicensed contractor?
I've paid him cash and only have some text message chains about missed rent and unfinished work. He complained he bid too low and tried to get more money out of me.
Lexi, Chatbot
is there anything else the real estate lawyer should know before i connect you? rest assured they'll be able to help with your unlicensed contractor issue.
When will I receive a answer from a lawyer?
Anne B., Esq.
Hello this is Anne B. I have been a licensed California attorney for over 17 years and I would be happy to help you navigate this issue with your contractor. Just a moment please while I fully review your request and obtain some information for you.
Anne B., Esq.
It was very kind of you to try to help this worker. I'm sorry he took advantage of that. In California, all contractor work over $1,000 must be done by a licensed contractor. I don't think it will be helpful to you to have him do anything further. You need to have a licensed contractor come in and straighten this out. I would go ahead and send him a three-day notice to pay or quit. Then, if he doesn't pay, you move forward with an eviction action.
The whole state has a just cause to evict act (California Tenant Protection Act 1482) even if your particular city or county does not have their own and also a cap on how much you can increase rent for a tenant each year (5 percent plus CPI or 10 percent whichever is less-I believe orange county is 8.9 percent right now). Proper notice has to be given for a rent increase (30 days for tenant of less than a year CIV § 1946.1(c)).
The exceptions to the ordinance are Single family homes, townhomes, and condominiums owned by individuals, family trusts, or limited liability companies so long as the LLC does not have any corporate members but you have to give the tenant notice before they move in that the property is exempt or it will be treated as if it is not exempt.
The three-day notice you give the occupant should include all the past-due rent plus any late charges allowed in your contract. If he happens to come current, just make sure next month to serve it as quickly as possible (check the lease for grace periods) if he is late again. Once he is gone, you are free to establish a market-value rent for the new tenant, as you mentioned.
Ok. The permits on the house were opened as the owner-builder. He has been fired and is not doing anything else. If he manages to scrape the money together for the three-day pay or quits, I will still need a strategy to remove him from the property long term, as the price I have given him is far below market price for the popular beach area.
He is late every month or doesn't pay at all. He also left a lot of trash on the sun deck and has not cleaned it as I have instructed him to. Once the house is finished, permits are removed, and c.o. is obtained, I would like to raise the monthly rent to market value. I understand it is not a rent control area. He will not be able to afford any increase, let alone a significant one, and has said in the past he will not agree to a rent increase.
It feels like he is trying to hold the property hostage.
Anne B., Esq.
If he comes current after your three day and doesn't have a lease for years and its just month to month, you can also serve him with a 30 day notice to increase the rent up to the 8.9 percent. He doesn't have to agree.
Anne B., Esq.
I know this is all very complicated so please let me know if you have any further questions.
If I do eventually make a lease so that we at least have some sort of legible contract on paper, and the lease ends, and he does not remove himself, what is my next course of action?
He is a bad tenant all around, leaves the house a mess, brought a dog that he doesn't clean up after, and is late with rent, etc.. My short-term to long-term goal is to have him removed permanently and hand the house over to a licensed property management company.
Once he's removed the fair market monthly value is a significant pay increase and like I mentioned the house is in a trust and I'd like to do my fiduciary duty to pay its beneficiaries. Also, there is concerns that he may become or is already disgruntled and can damage the property causing further remodel issues.
Anne B., Esq.
If he does damage beyond any security deposit you may have collected, you can sue him in small claims if under $12,500 or if over 12,500 to 35,000 limited civil court.
I would usually write him a demand letter to pay for the damages he has caused first and give him a deadline to pay. If he doesn't pay, then you file the lawsuit. Small claims is pretty easy to do yourself without a lawyer.
Anne B., Esq.
If you do end up with a lease with him, I would only do month-to-month so it's easier to end. You still have to give proper notice to terminate the tenancy. It doesn't just end when the lease ends. If he has been there less than a year, you can give him a 30-day notice to terminate tenancy. If more than a year, it's 60 days.
Anne B., Esq.
Then when you eventually get a property management company, if the house is a single family residence, be sure the company provides the notice of exemption form to the tenant so they don't have just cause to evict rights. I see many property management companies forget this step making things harder for the owner.
Anne B., Esq.
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