By Sasha Struthers, Esq., Struthers Legal, APC

At both state and local government levels there is a lot of activity going on to further regulate housing and rental property owners. All housing providers are encouraged to reach out to their representatives to voice concerns over these proposed laws. California is one of the most regulated states in the union, and by far has more housing laws than any other state.

Considering the expansion of “Just Cause” eviction ordinances to non-rent stabilized (controlled) rental properties within multiple jurisdictions, property owners are finding it incredibly difficult to owner-occupy tenant occupied single-family residences or any other non-rent controlled residential properties. In order to owner-occupy rental property in these jurisdictions, the owner has to consider the following:

• What are the requirements? Requirement to owner-occupy a property within many jurisdictions requires that owners file paperwork, pay the tenant relocation payments in the required time intervals, and hire applicable ancillary services like escrow companies and/or relocation agencies. Many of the requirements are incredibly cumbersome on top of the filing fees you may have to pay which are upwards of $1,000 in some jurisdictions. Additionally, relocation payments may cost tens of thousands of dollars.
• Is the tenant protected? Some jurisdictions limit an owner’s ability to occupy a property, even a single-family residence, if the tenant meets certain qualifications such as when they have lived at a property for an extended period of time and are either elderly or disabled. In that case, the owner may not be able to owner-occupy even though it is their property!
• How long does the owner or qualified family member need to live in the premises? Some jurisdictions have a minimum occupancy requirement of between 1 to 3 years. Some jurisdictions require that owners file a declaration every year that they are still owner-occupying the property. Owners risk civil liability if they rent the premises before that minimum occupancy period is met.
• What happens if the tenant does not move out? Even if the owner can occupy the property, the tenant may not move out and the owner will have to file an eviction proceeding, which is another layer of paperwork and expense. Evictions can be lost by landlords based on minor technicalities.

Prior to going through the owner-occupancy steps, owners may wish to reach a voluntary move out agreement with a tenant. The plus side of this is that the tenant and owner reach an agreement. The agreement may do away with a lot of red tape that owners are having to deal with, which often benefits the tenant who receives more money or more time to vacate the premises.

What I often see that can derail the owner-occupancy process is the tenant’s own frustrations. Many times, tenants feel blindsided by an owner-occupancy. Further, tenants often take issue with the relocation amounts and move out deadlines and for that reason will fight or try to prolong the process in hopes of netting more money or wearing out the owner. Even though an owner has the right to move-in and live at the property they own, it helps to have a dialogue with a tenant, especially a long standing tenant, about the change that is about to happen.

Owners can still pursue owner-occupancy if a voluntary move-out agreement is not reached. Prior to making the decision and spending the time and money on the process, it helps to explore the tenant buyout process and see if that is more suitable for your situation.

If you are interested in learning more about tenant buyout agreements and wish to have a one-on-one session to go over your specific situation, you can sign up for a consultation with Sasha. Sasha Struthers is a California licensed Attorney and Real Estate Broker with a law practice that focuses on ‘Cash for Keys’/ tenant buyouts and government agency complaints such as REAP, CRD, and Orders to Comply. Sasha’s experience managing a 15-building real estate portfolio, including five apartments subject to LARSO has allowed her to help landlords strategically reposition their portfolios, maximize income, and reduce management stress. You can check out her law practice at www.struthers.legal.