LEGAL CORNER B y S tephen C. D uringer , E sq .
Questions & Answers I understand that my options are still limited when dealing with a non-paying resident, but there must be something that can be done. I can barely make my mortgage payment yet my resident still lives in my rental without paying a dime. What should I be doing now?
As of this writing, second week of November, Governor Newsom’s declaration of a state of emergency is still in place, the controversial CDC Order has not been vacated, and AB 3088 is still restricting our ability to remove nonpaying residents. Essentially, those housing providers with non-paying residents have been involuntarily placed in the role of lenders with non-performing assets. Most courts are now open, albeit with reduced schedules, mandatory video appearances and trials, all fraught with delays and disfunction. Going forward, continue to communicate with your residents, thank the ones that are performing, continue to allow payment plans for those making the effort. For
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Apartment News
those residents who are violating the terms of their lease, i.e. by subletting without your consent, maintaining a pet without your consent, have altered or damaged the premises, you do have a remedy. Identify the material breach, prepare and serve a three-day notice to perform conditions or covenants or quit. If the resident has not cured the material default within three business days, then you are able, thank you AB 1482, to prepare and serve a three-day notice to vacate. If the resident has not vacated within three calendar days, then you may file an unlawful detainer action to recover possession. This process is available whether the resident has a month to month tenancy or a fixed term lease. Alternatively, many housing providers may form the intent to ‘withdraw the rental unit from the housing market.’ Not surprising when a resident is in possession, not paying rent, and causing wear and tear to the rental property. Talk with an experienced attorney, one intimately familiar with
www.aaoc.com
December 2020
AB 1482, AB 3088 and the CDC Order before proceeding down this path. My new tenants just moved in a month and a half ago. The lease requires that the tenant pays for all utilities, and must put the utilities in their own name prior to moving in. Well, I just received the electric bill, and it’s still in my name. I’m thinking about not paying it, just letting it get shut off. Maybe when the lights go out, they’ll take care of it. Can I do that?
No, you can’t let the utilities be shut off. Your tenant’s actions are a breach of the rental agreement and must be addressed in compliance with California law. You should immediately prepare and serve a Notice to Perform or Quit — Breach of Covenant notice. The notice should identify the specific breaches, the failure to place the electric utility in their own name, and their failure to pay the utility charges incurred since taking possession. The notice should be specific as to
