What Steps Do I Take to Owner Occupy My Residential Rental

In light of the multiple jurisdictions with Just Cause eviction ordinances, property owners are finding it incredibly difficult to even owner occupy tenant occupied single family residences, or otherwise non- rent controlled residential properties.

To owner occupy a rental the owner has to consider the following:

1. What are the requirements? To owner occupy the property a lot of jurisdictions require that owners file paperwork, pay the tenant relocation payments in the required time intervals, and hire applicable ancillary services like escrow companies and/or relocation agencies. Many of the requirements are incredibly cumbersome on top of the filing fees you may have to pay which are upwards of $1,000 in some jurisdictions.

2. Is the tenant protected? Some jurisdictions limit an owners ability to occupy a property, even a single family residence, if the tenant meets certain qualifications, usually they have lived there for an extended period of time and are either elderly or disabled. In that case, the owner may not be able to owner occupy.

3. How long does the owner or qualified family member need to live in the premises? Some jurisdictions have a minimum between 1 to 3 years. Some jurisdictions require that owner file a declaration every year that they are still owner occupying. Owner risks civil liability if they rent the premises before that minimum time period is met.

4. What happens if the tenant does not move out? Even if the owner can occupy, the tenant may not move out and the owner will have to file an eviction, which is another layer of paperwork and expense. Evictions can be lost by landlords on minor technicalities.

Prior to going through the owner occupancy steps owners may wish to reach a voluntary move out agreement with a tenant. The plus side of this is that the tenant and owner reach an agreement. The agreement may do away with a lot of the red tape on owners, which benefiting the tenant with usually more money or time to vacate.

What I often see derail the owner occupancy process is the tenants own frustrations Many times tenants feel blind sided by an owner occupancy. Further, tenants often take issue with the relocation amounts and move out deadlines, and thus will fight or try to prolong the process in hopes of netting more money or wearing the owner out. Even though an owner has the right, it helps to have a dialogue with a tenant, especially a long standing tenant, about the change that is about to happen.

Owners can still pursue owner occupancy if a voluntary move out agreement is not reached. Prior to making the decision and spending the time and money on the process, it helps to explore the tenant buyout process and see if that is more suitable to your situation.

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.