SAN DIEGO
TENANT UPDATE
New landlord Tenant laws
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2006 2007 2008
2009
NEW FEDERAL LAW REGARDING TENANCIES AFTER FORECLOSURE
On May 20, 2009, the President signed S.896 (word version) into law to take effect immediately. The law has a significant impact on tenants residing in a residential property that has been foreclosed upon. The bill is intended to assist residential tenants by doing three important things;
!. Transferring existing leases (including section 8 tenancies) to the new owners after a foreclosure sale.
2. Requiring 90 day notices to vacate (State law was 60 days) in month to month tenancies after a foreclosure sale.
3. Declaring that a foreclosure is not "good cause" alone to evict a section 8 tenant.
There are conditions to be included under this new law
The lease or rental agreement must have been in existence
prior to the "notice of the foreclosure"
There must be a "bona fide tenant" or "bona fide tenancy"
If these conditions are not met, then State law applies.
Additional consequences and effects
Paying Rent Coming under this law means that the tenant may now have to pay the lease rent after a foreclosure. Existing State Law allowed a tenant 60 days after a foreclosure of a dwelling to vacate without paying rent. This was regarded as an unofficial relocation benefit. This new Federal Law appears to wipe out the free rent California tenants were enjoying. The (pre- foreclosure notice) lease may be recognized and assumed by the new owner who may now want the rent immediately after the foreclosure sale.
Stranger as New Landlord After the foreclosure sale, the tenant will "inherit" a new landlord who may not be the person or entity that the tenant would have a wanted as a landlord if they had a choice in the matter.
Terminating Leases The new owners may terminate an existing lease including,
section 8 tenancies, if the new owner intends to move in with 90 days notice.
[This law is set to expire on 12/31/2012]
VACANCY RATE RISES AND RENTS DROP
FOR LARGER APARTMENT COMPLEXES
A recent survey by MarketPointe reported the vacancy rate at 5.29 percent in March 2009, up from 3.63 percent in March 2008 for apartment complexes surveyed with 25 or more units. This is the highest rate since 5.36 percent was reported in September 1994 at the depths of another major economic downturn. The average monthly rent in March 2009 was $1,323, down 1.6 percent from $1,344 recorded in September 2008, the first decline in MarketPointe's 22 years of record keeping for San Diego area apartments.
NEW LAWS PROVIDE REMEDIES AND
PENALTIES FOR DOMESTIC VIOLENCE IN RENTALS
Under certain conditions where a tenant was the victim an act of domestic violence, sexual assault or stalking, the tenant may terminate the tenancy by written notice to the landlord.. (The remaining tenants who were not victims of this conduct may still be held responsible under the rental agreement) To prove such acts, the tenant must first obtain a Restraining Order or have made a Police Report. Other conditions and restrictions apply.
If a tenant has committed any of these acts, that tenant may be given a 3 day notice to vacate the premises by the landlord..
SURVEY SHOWS RENTS SLIGHTLY DECREASED FOR LARGER APARTMENT COMPLEXES WHILE ANOTHER SURVEY SHOWS RENTS SLIGHTLY INCREASED FOR SMALLER APARTMENT COMPLEXES
In a survey taken by RealFacts of apartment complexes of 100 units or more, the rents have decreased slightly by less than 1 percent in the 4th quarter of 2008 compared with the 3rd quarter of 2008. In a survey taken by MarketPoint, rents in complexes of 25 units or more have shown a slight increase in rent in September 2008 as compared with rents back in March of 2008 ($1,344.00 in September 2008 compared with $1,312.00 in March). This points to a softening of rents for the larger (and probably also more expensive complexes). Tenants seeking those accommodations may expect some incentives or other concessions not seen in the past few years. Tenants seeking to rent apartments in smaller complexes or single houses may see slight rent increases.
EVICTIONS IN 2008 UP BY 15 PERCENT
Cmdr. Glenn Revell of the San Diego Sheriff's Department told the San Diego Union Tribune that he estimates Sheriff deputies will serve 8,625 eviction orders this year (2008), compared with 7,500 in 2007. This represents an increase in Eviction Orders in 2008 of 15 percent over those served in 2007. Contributing factors include the sagging economy coupled with the many occupants being forced from homes foreclosed on.
TENANTS CHECKING CREDIT OF LANDLORDS?
With so many foreclosures, maybe it is time tenants check the credit of landlords before renting. Some landlords who face foreclosure will rent the home to unsuspecting tenants collecting rent all the way to losing the home at a foreclosure sale. They collect rent but do not pay the mortgage since they are planning to let the home go. The problem is that the tenants do not know about the owner's plans and think they are leasing a secure home. These tenants become victims because they leased a home on the edge of foreclosure which will lead to their eviction, regardless of the lease. Tenants can actually research the risk of foreclosure before renting and moving in. Anyone can access public records in San Diego to see if there is a NOTICE OF DEFAULT (NOD) on the property. Once one of these is issued, the owner has 180 days to cure the default before the sale. Clearly, tenants who discover a NOD should understand that beginning to or continuing to rent that home carries the risk of being evicted by the lender after a foreclosure. Innocent tenants displaced by a foreclosure may make a claim against the owner for breach of the lease and perhaps even a claim for damages based on fraud.
REPRESENTING YOURSELF
IN DEFENDING AN EVICTION?
DON'T DO IT
Tenants here are still losing valuable rights by handling their own eviction defense. Defending yourself in an eviction case in San Diego, in the vast majority of cases, is court "suicide". Statistically, most all tenants who represent themselves in eviction court will lose or be tricked into signing a bad settlement. Using any self help assistance service or book creates a serious risk that you will lose your case, regardless of your rights. Having someone prepare your papers without them being available to represent you in court is very dangerous. This is because eviction cases and trials are so complex that a skilled attorney is really necessary to properly handle these matters. Even with settlements, remember the landlord is motivated to settle the case with your attorney, not you. This is because, they are not afraid of you in court, only your attorney. By the way, this situation is pretty much the same for landlords. Many landlords have represented themselves in court against a skilled tenant's rights attorney and learned the hard way just how technical and difficult these cases can be. Coming in second in trial (i.e. losing) for a landlord who just assumed they would easily win can be a real eye opener.
LANDLORDS ABUSING THEIR
POWER OF EVICTION
Many San Diego tenants are still receiving eviction notices for minor and trivial reasons. San Diego County is still a "no cause" eviction jurisdiction. San Diego City, however, is now a just cause eviction jurisdiction after the first two years of a tenancy according to the City ordinance. Landlords continue to seek only the "best" or "their favorite" tenants and tend to evict the rest. These desired tenants can be the good timely paying tenants or simply those tenants willing to accept abuse and unfair treatment without complaint.
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California law for San Diego is applied in these pages. Such laws may or may not be applicable in other jurisdictions. The information provided herein is of a general nature and is not intended to be taken as specific legal advice. For legal advice in a particular situation, promptly consult with an
appropriate attorney