Archive for the ‘Appartment Homes’ Category

An Eviction Overview & Tips to Avoid a Do Over!

Thursday, March 8th, 2007

This information is not meant to be specific legal advice. Although it is believed a reliable overview, it is not guaranteed. The laws in California change frequently and you should consult an attorney for specific legal advice.

As a first time Landlord, eviction can sometimes seem scary. With the right document preparation and procedure, it can go smoothly. I am a big proponent of doing your homework up front when screening for the best most qualified tenant applicant. But even the best of us will once in a while get a bad apple due to unforeseen circumstances. If this happens, save yourself a lot of grief and consult a professional attorney who handles evictions. Most of them charge only around $500 for the procedure and can save you thousands in lost time, aggravation, damages, and yes a do over ordered by the courts for failing to comply with state law.

In general there are 2 types of evictions, contested and uncontested. Lets first look at the uncontested eviction. When a tenant fails to pay rent or when a landlord wishes to terminate a month to month tenancy, there are 2 forms most commonly used. Respectively, they are the 3 day pay or quit and the 30 day notice to vacate. When a tenant fails to respond to these, a complaint is filed with the court. A summons and complaint is then served to each party to the action. At the time of this service, it is recommended that a prejudgment claim of right to possession be served also. This will make the judgement applicable to all parties occupying the residence not just the specific person mentioned in the complaint. This form could avert a third party “Arrieta Claim” in effect causing a do over! Once served the resident has 5 days to answer the complaint. If the resident fails to respond, the owner can request to enter default and judgment and be issued a writ of possession.

The writ of possession is then given to the Orange County or other Sheriff. and the eviction notice will be served. The tenant has 5 days to vacate at which time the sheriff will remove them if they are not gone. As the owner, you should be prepared to change the locks and secure the property. If the sheriff removed the occupant, then the occupant has 15 days to claim their belongings. If no sheriff was involved they have 18 days. After this time, the owner may dispose of the items if they are valued at less than $300. For items more than $300 a public action must be held. Any unpaid balances will have to be collected with another court action.
With regard to a contested eviction, if the resident answers the complaint, a memorandum to set a civil trial should be filed with the court clerk and request for a trial and notice of trial. The judge will hear the arguments and if the owner wins, judgment after trial by court and notice of entry of judgment will be prepared and recorded. The remaining steps are the same as above in the uncontested eviction. Should the tenant win, this is equivalent to a do over, and the owner will have to go back to the beginning and better prepare his case.

It is my sincere wish that you never have to use these procedures. But if you do, please consult the help of a professional attorney. If you don’t have one, feel free to contact me for more information.

Estoppel Certificates???

Sunday, December 3rd, 2006

If you are a multifamily investor, consider the use of estoppel certificates. What are they, you might ask, and why are they important?

Quite simply they are a legal document that the tenant signs that states the terms of his tenancy. Items such as rent, term, security deposit and number of keys are included along with the tenants contact info.

This is important as it is considered legally binding by the courts. Obtaining these certificates from the tenant means that you can prevent misleading financial information from the seller. Building values are often calculated off gross multiples of the income, sellers often seek to show the highest rents possible.

Obtaining these certificates puts the terms of the tenancy in the tenants own handwriting as he signs them. This also protects you from a number of other transgressions such as management company skimming, and tenants claiming different terms than the seller represented.

The definition of estoppel certificates is “the barring of a person, in a legal proceeding, from making allegations or denials which are contrary to either a previous statement or act by that person”

For more information on this topic send me an email at john@jdanielrealty.com

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