Dear Michael: I am renting an apartment and my lease is set to expire at the end of July. My landlord has informed me that he will not renew my lease. I have two questions. A) How long does the landlord need to notify me to move out and how long can I stay after the expiration of my lease? B) Do I have the right to ask the landlord for moving expense?
Answer: If a tenant has lived in the premises for more than one year, the landlord must provide at least 60 days’ notice to vacate. If the tenant fails to vacate within the appropriate notice period, or fails to correct his/her breach of the agreement, the landlord may pursue an eviction action. There are a number of reasons for eviction. Your landlord can give you the boot if you violate the terms of your tenancy, break the law, don’t pay your rent or create a nuisance for other tenants. But there are also scenarios in which your landlord can evict you for no reason at all. This power is limited depending on the details of your rental arrangement and the city in which you live in. Additionally the type of housing you are renting can also play a factor. State law protects you from being evicted for discriminatory reasons such as your sex, religion or race. The law also protects you from being evicted for retaliatory reasons, such as having complained to the landlord about something that needed fixing, or fixing it yourself and deducting the cost from your next rent payment, or initiating legal action against your landlord because of the condition of your rental unit. More generally, you cannot be evicted for exercising any legal right that inconveniences the landlord. Some jurisdictions in California have landlord-tenant rules that go above and beyond the state’s laws. According to the California Department of Consumer Affairs, “Some rent control cities require ‘just cause’ for eviction.” The specifics depend on where you live, so your first step should be to look at your city’s website. You can also call the Los Angeles housing Right Center at 800-477-5977. You can always ask your landlord for moving expenses but he is in no way obligated to comply.
Dear Michael: I purchased a new house and have not been able to sell the old one. So, I’ve decided to rent it out. The renters I’ve been talking to want a three-year lease. I am concerned about whether I would owe capital gains taxes on the future sale of the property, as I have about a $250,000 profit on the property. Is there a way to transfer the house to a limited liability corporation (LLC) or other such corporation to allow the sale to occur before the “two out of five year” requirement is up?
Answer: If your tenants lease your home for three years, you can still sell the home while the tenants live there, but it will be sold as an investment unless your tenants agree to leave. And even if you sell it on or before the end of the third year, you would still have owned if for two out of the prior five years and qualify for keeping the $250,000 in profits (up to $500,000 if you’re married). I think having tenants who want a long-term rental is very fortunate if you are looking at a longer term investment. Your property may continue to grow in value over the years and you’ll be hopefully covering at least most if not all of your expenses. Please make sure whatever type of lease or lease/option you sign covers all of your concerns. A real estate attorney should be able to help.
Dear Michael: I am purchasing a home and my agent is telling me that it is time to remove my loan contingency. I am not comfortable doing so. Why must I remove my loan contingency? I plan on purchasing this home no matter what…
Answer: If you appraisal came in at full value and all of the lenders conditions have been met for your loan to be approved, then there is no valid reason as to why you should not remove your loan contingency. Your purchase contract dictates the time period for your loan contingency. The seller needs a guarantee from the buyer that he/she is purchasing their home and means business. The fact that you plan on “purchase this home no matter what” bares little security to a seller that vested his/her lifetime retirement on his/her home. If there is minimal doubt from your lender that you may not be approved for a loan for whatever reason: hold off on removing your contingency. Be upfront with the seller and explain the situation. Lenders requirements for loan approval can sometimes go beyond reasonable time. The seller has to understand that you are not ready to remove your loan contingency because of factors beyond your control. If the seller does not want to wait, he/she will give you a notice to perform (NBP) a removal of contingency at which time you can opt to either cancel the agreement or remove your loan contingency. If you remove all your contingencies including your loan and decide to cancel the purchase, you could stand to lose up to 3 percent (deposit) of the purchase price.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com.