Considerations for Landlords Looking to Owner Occupy Their Los Angeles Rental

A year after the Los Angeles wildfires displaced many property owners, while some have relocated, others still look to move back into their rentals. In theory, that sounds very doable, however, there are strong tenant protections in most if not all parts of Los Angeles. Here are some frequently asked questions that may assist you in understanding the process to owner occupy.

What are restrictions to owner occupy a property?

There are several overlapping laws when it comes to owner occupancy. There is the state law, which we knows as AB 1482, that affords tenants in certain properties protections- you cannot evict a tenant without just cause after they have occupied the residential rental for 12 or more months.

At a local level, you have individual rent controls depending on the jurisdiction. Some of those jurisdictions limit your ability to owner occupy a property if the tenant has resided in the unit for a certain number of years and usually is either a 62+ or is disabled. In that case, you would not be able to evict that tenant.

Further, at a local level there are some rules about last one in, first one out (I call this LIFO). If there are comparable units for you to occupy, the newest tenant would be the first one to go.

Then we reach the topic of minimum duration. You will be required to owner occupy the unit for a minimum length, usually between 1-3 years depending on the jurisdiction.

The main factors to consider- type of rental (multifamily, condo, SFR), if that rental falls under a rent control or just cause eviction ordinance, if the tenant meets a criteria protecting them from being evicted, and if that specific unit is one you plan to live in for the minimum duration required.

It is my property, can't I demand a tenant move out if I need somewhere to live?

Short answer- not really. The state and local government have drastically curtailed a property owner's ability to terminate tenancies since 2019. Year over year the rules become more strict. I've seen clients try to legitimately owner occupy their rentals and struggle through the eviction process when the tenant retains counsel and drags the case out, or gets the landlord on a technicality.

You may have rights that afford you the option to owner occupy, but if the tenant does not vacate as required then your recourse is eviction. The most common reason tenants do not vacate is because they have no where to go or can't find a comparable rental for the same price of which they are paying.

Do I need to pay a tenant to move out, even though I've been displace myself?

If you are owner occupying a rental that is subject to some form of eviction restriction then you likely need to pay a relocation fee. Some properties may be exempt from just cause eviction restrictions that necessitate a relocation fee, but that heavily depends on the jurisdiction the property is located in.

What happens if the tenant does not move out after I give notice?

If you give proper notice, and where applicable, comply with the local jurisdiction requirements, but the tenant does not vacate, you will need to file an eviction. If you are in a rent controlled jurisdiction it would behoove you to find an eviction attorney familiar with your jurisdiction to assist you with the owner occupancy process. Some jurisdictions requirement applications be filed, application fees be paid, and even escrows be opened to hold and pay tenants relocation fees. Then, some jurisdictions may have rules about annually reporting to that jurisdiction that you are still owner occupying as required.

What options do I have if the law says I can't evict the tenant to owner occupy?

You can always offer the tenant a buyout/ cash for keys, which allows the option to reach a voluntary move out agreement with the tenant. Even if you do have the option to owner occupy, sometimes it makes more sense to reach a voluntary move out agreement with the tenant as a way to get the tenant to mutually agree to moving out.

Many times just being upfront, having the dialogue, and engaging in a meaningful conversation makes it more palatable to a tenant, rather than just getting a bunch of paperwork terminating their tenancy. Once they become aware of what rights the landlord has, they will likely engage in discussions to confirm the move out date and relocation funds. Plus, most buyouts reached result in the tenant vacating on time or sooner.

It is a tough position for some property owners as they navigate an unexpected loss of their home or the home of a family member. It is great to own real estate, but it also comes with a great deal of regulation. Tenants are afforded a great deal of rights, some of which may impede on your ability to owner occupy, or to do some on your own timeline. You want to make sure whatever decision or course you wish to take you do some with correct guidance and a game plan.

The information in this post is for general information purposes only. Nothing on this post should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.