No fault evictions are making headlines . Laws are being considered or enacted recently that either ban or restrict the practice in California, Oregon and New York. Therefore now would be a good time for landlords to understand no fault evictions, why they might be used and offer some suggestions before doing so.
Understanding No Fault Evictions
A no fault eviction is a legal proceeding during which the landlord attempts to regain legal possession of a property from a tenant. The tenant is being asked to move, due to no fault of their own. Most tenants facing no fault eviction are often current on their rent and may otherwise be a good steward of the property where they reside. In lay terms one party to the lease contract, the landlord, is deciding to end the relationship. The legal process for a nor fault eviction is however generally the same as if the tenant had not paid the rent. There are legal notices, court dates, judges and judgments.
Why Use A No Fault Eviction?
A landlord might use a no fault eviction for many reasons. First, upon purchasing a property, a landlord may want to have a clean slate. Inherited tenants will not have been through the new landlord’s screening process and that may cause some unease on their part.
Second, a landlord may want to rehab and upgrade a property. I can tell you from experience that a major rehab is impossible to do with a tenant living in the property. Having a vacant property allows for the gutting of kitchens, bathrooms and the replacement of walls, windows, etc.
Third, a property owner may want to move into the property. I myself moved into one of the first properties I purchased.
Why The Backlash?
In short, there is a backlash because people are being kicked out of their homes even if they have diligently paid the rent and otherwise done nothing wrong. Some simply do not like that. They may have lived in the same place for years and developed an attachment to the neighborhood. Their rent may be under market and they worry about finding a new place of similar quality to live for the same price. They may not have the money to move. They may be older or even sick and moving will be difficult.
Taken together, these reasons have produced a backlash resulting in various w or proposed new laws across the country.
What Know About No Fault Evictions
I myself have purchased buildings with existing tenants which I intend to gut, fully rehab and bring back on the market. Believe me, they needed it and unfortunately the tenants had to go. Understanding that this can upset the inherited tenants, I strove to ensure that I was in compliance with existing laws, understood existing leases and was as accommodating as I could be. A bit of tactfulness can go a long way in these situations.
The first thing that any landlord, and tenant for that matter, must understand is that a lease is a contract. That contract specifies who is a part of the contract, what property the contract applies to, the consideration between the two contract parties aka rent, and the duration of the contract. Either party can end the contract by providing appropriate notice. Tenants can move of their own volition and landlords can ask tenants to move. When tenants refuse, then the landlord is forced to evict.
Secondly, landlords cannot just cannot arbitrarily kick people out of their homes. Even if they are a new owner and have recently purchased the property proper steps must be taken. Tenants have rights to the property they live in and their lease runs with the property, not the owner. Not having a written lease does not matter, tenant rights will still apply. You as a party to that lease contract have to uphold those rights. If a year long lease was signed two months before your property purchase, it means you will have to wait another ten months before you can file to regain possession of the property.
People Need Time
Most folks cannot just up and move tomorrow. They need time to find a new place to live and get their stuff together. If you intend to empty a property of its existing tenants, you can soften the blow with time. Give as much time as you can give. At a minimum, there will likely be contractual time obligations contained in the lease, or there may be legal time requirements.
When purchasing a property, be sure you understand the time constraints you will be under. Carefully review existing leases. Use an estoppel agreement to further clarify your new landlord/tenant relationship.
Cash For Keys
Another possibility to soften the blow is to offer some type of incentive for tenants to move. A little cash or help with a move might go a long way towards getting you the keys. It sure can be easier and less confrontational than eviction court.
If They Will Not Go
If tenants refuse to go, or drag their feet too long, you have no other option than an eviction. Evictions can be ugly in the first place, but add an angry tenant who feels that they have been wronged and it can get nasty. So nasty that it leads to calls for bans on no fault evictions. And while I can understand and sympathize with tenants, it is wrong to force one side to stay in a contract they no longer wish to be a part of. Landlords can hopefully minimize the issue by understanding what they are getting into and using some of the advice outlined above.
Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors. Subscribe to Smarterlandlording here. Contact Kevin here.
