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have to evict a non-paying tenant or a tenant who is otherwise breaching the lease will have a detrimental effect on Los Angeles’ grass roots, smaller landlords with long-term tenants.
For example, we have one landlord couple now in their 80’s who own multi-unit buildings off the Venice Boardwalk. Their long-term tenants pay barely four figures for their one- and two-bedroom units and these landlords would not change that for anything. The properties have long been paid off and the rents afford them a comfortable life in addition to offering affordable housing in Venice. When a tenant needs to be evicted, for either non- payment of rent (not COVID-related) or for breaching the lease agreement (usually interfering with the quiet enjoyment of the other tenants), presently, it costs the landlord anywhere from $20,000 to $60,000 to evict them due to continuances, jury trials, motions and discovery that tenant’s rights attorneys launch. They fight very hard to keep the bad tenants in so they can recover huge attorney’s fees. If the tenant prevails, and the landlord has to pay the tenant’s attorney’s fees too, this amount doubles or more. For the landlords who offer affordable units, this represents more than what they collect a year from their tenants in one four-unit building.
What would you do if this were you? Well, being situated on Speedway in Venice, seems like an easy multi-million-dollar sale to developers. And what will developers do? Seems like a new multi-unit building with luxury units would be the best return on their investment. Where are the good tenants going to go? To the tent camp down the street?
Seek government assistance via section 8? These are their options. Do you think I am speculating? This is exactly what happened and is happening. Just look around you.
Another example is a young Hispanic family who saved their money to buy a fourplex in USC area. The family lives in the fourplex and the wife manages it. She and her husband work for the City of Los Angeles. Their kids are school age. She has one tenant who is an old man in his 80’s who has lived there for many years and pays about $450 a month, well below market rate. She would never consider evicting him. He is kind and helpful, does work around the property and pays on time. Where would he go? The third unit contains a long-term tenant who pays low rent does not like the new owners. The prior landlord never raised the rent. This new landlord gave the tenants an allowable 3% rent increase. His response was to start harassing the new owners, breaking windows, and breaking screens, taking out smoke detectors and then making complaints to the housing department and Department of Building and Safety. He plays loud music and shouts insults at them when he sees them, even in front of the children! He also harasses the woman who lives in the fourth unit because she would not get on board with him to harass the landlord. This fourth tenant successfully got a restraining order against him. She eventually moved out and her unit remains empty. When the landlord tried to evict this bad tenant, he retained a tenant’s rights attorney who demanded $125,000 for him to move. Because of the COVID-19 eviction moratorium, he has been living there rent free for
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tel 626 564 4800
dir 626 204 1525
CA DRE#: 00965553
fax 626 564 4801 cdunn@naicapital.com
225 S. Lake Ave., Suite 1170 Charles F. Dunn
Pasadena, CA 91101
Senior Vice President Apartment Sales Specialist
18 JUNE 2021 - APARTMENT MANAGEMENT MAGAZINE AMM1/6