Proof Of Service

Jun 20
2010

Once an unlawful detainer complaint has been filed with the Court, a separate Proof of Service must be completed for each tenant served.  If personal service cannot be obtained, CCP 417.10(f) allows for substitution of service.  This method requires an additional declaration of diligence.

It allows the landlord to served the Summons and Complaint by “Posting & Mailer” but only after a court order under 415.45 has been obtained.  It takes a total of 10 days after the documents have been posted and mailed to effectuate service.  Then the tenant has 5 days to file their answer.

Single Lodger

Jun 10
2010

A lodger is a person who lives in a room in a house where the owner live.  The owner can enter all areas occupied by the longer and has overall control of the house.  Most lodgers have the same rights as a tenant.

However, in the case of a single lodger in a house where there are no other lodgers, the owner can evict the lodger without using formal eviction proceedings.  The owner can give the lodger written notice than the lodger cannot continue to use the room.  The amount of notice must be teh same as the number of days between rent payments (for example, 30 days).  When the owner has given the lodger proper notice and the time has expired, the lodger has no further right to remain in the owner’s house and may be removed as a trespasser.

Rent Limitations

Jun 03
2010

A three day notice to pay rent or quit may be served at any time within 1 year after the rent becomes due.  Thus, a landlord is apparently limited to demanding rent that becomes due within the year preceding service of the notice.  Although the landlord usually serves a notice to pay rent or quit within a relatively short period after rent is due and unpaid, problems may arise under this statute – primarily as a result of the landlord’s accounting procedures.

For example:  If a tenant fails to pay the March 2009 rent, but ten pays the April rent, the landlord may credit the tenant for paying the April rent, and consider the March rent to be unpaid.  After one year has passed, if the landlord shows the March 2009 rent to be still unpaid but the tenant to be otherwise current, an unlawful detainer action based on nonpayment of the March rent is now precluded.  Had the landlord followed the more common practice of considering the payments to be late each month, after one year the tenant would be late on the last month’s payment and would not invalidate the notice.  CCP Section 1161(2).

A more complicated problem arises if the tenant in this example stops paying rent altogether in April 2010 and the landlord serves a three day notice in June.  Presumably, if the three day notice includes a demand for the March 2009 rent as well as the April and May 2010 rent payments, the entire notice would be ineffective under the rule that the noitce must demand the extact amount due.

Because each periodic monthly rental payment is a severable contractual obligation, the statute of limitations begins to run on each monthly payment from the time it is due.

Hotel & Motel Guess

May 30
2010

Guest in certain categories of hotel and motel are not considered to be tenants, are not subject to California landlord tenant law.  Therefore, they are not entitled to notice before their occupancy is terminated.

Under CCP Section 1161, a “tenant” is “any person who hires real property” except those persons whose occupancy is described in Civil Code Section 1940(b):

(a) Persons who maintain transient occupancy in a hotel, time-shares, or other facility, subject to the hotel tax under Rev &TC 7280;

(b) Persons who ahve ot made valid payment for all room and other related charges owing as of the last day on which the occupancy is or would  be subject to that tax; or

(c)  Person who maintain occupancy in a hotel where the management retains a right to enter and control the rooms, and offers all the following services to every resident:

- facilities for safeguarding personal property; central telephone service;

- maid, mail, and room services; occupancy for fewer than 7 days; and

- food services meeting specified requirement.

Effects of Rent Payment

May 28
2010

If you send out a 3 day notice to pay rent or leave and the tenant tenders the full amount of rent demanded in the notice and it is accepted by the landlord within the 3 day notice period then this cures the default and extinguishes the rental obligation.

The tenant’s performance within the 3-day period also nullifies any declaration of forfeiture in the notice. CCP §1161.5.  Therefore, if the tenant pays the rent due within the notice period it also eliminates your ability to terminate and evict the tenant.

To extinguish the rent obligation, the tenant must actually pay the amount due, or (under Civil Code §1500) deposit it in a bank account in the landlord’s name and give the landlord notice of the deposit.  A deposit in accordance with the provisions of CC §1500 is not a mere “tender” of rent, but actual performance that discharges the obligation. Walker v Houston (1932).

Payment of the rent demanded in a 3-day notice within the 3 days nullifies any declaration of forfeiture in the notice. CCP §1161.5.

Although a tender of rent refused by the landlord and not deposited in a bank to the landlord’s credit does not extinguish the rental obligation, it does ensure that the tenant has not breached the covenant to pay rent. Randol v Tatum (1893) 98 C 390, 398, 33 P 433. See also Walker v Houston (1932) 215 C 742, 745, 12 P2d 952.

Thus, although the landlord may still maintain an action for rent, the tender protects the tenant against an unlawful detainer action based on breach of the covenant to pay rent. An unaccepted tender is also sufficient to terminate the incidents of the tenant’s obligation to pay rent under the lease or rental agreement (e.g., interest, attorney fees, costs). CC §1504.  Holland v Paddock (1956).

A tenant who defeats an unlawful detainer action by proving tender of the rent, and who deposits the rent into court, might recover attorney fees under CC §1717(b)(2).

Although the general rule is that a creditor may refuse a tender made by check rather than in cash, if the mode of payment during the lease has been by check, then a tender by check is proper unless the tenant has been notified otherwise. Strom v Union Oil Co. (1948).

Perfecting Title

May 28
2010

The first step in the process of a eviction on a foreclosure mortgage sale is perfecting title.  Generally title is duly perfected upon recording of the deed with the county recorder’s office.  In California, title is deemed perfected on the actual date of the sale if the trustee’s deed is recorded within 15 calendar days after the sale.

Once the title is perfected, the new owner can serve the Three Day Notice to Quit to begin the eviction process.

Foreclosed Property

May 27
2010

With the rise of foreclosure due to the poor economy, property is turning hands quickly.  Several entities and individual are acquiring property through trustee sales.

What generally happens is that the buyer bids on a property and acquires the property because they are the highest bidder.  After the deed of trust is transferred over and recorded, some of these new owners, are finding, when they visit their property is that the previous owner is still living there.  Some refused to move out.

As a result, the new owner now must evict the old owner out.  Its basically a eviction after a mortgage foreclosure sale.  It a summary proceeding in the same fashion as if there was a tenant that you need to evict.  However, only a three (3) notice to quit is required.  If after receiving notice the old owner refuses to move out, you can file your unlawful detainer complaint, serve him, and start the process.  Once the writ of possession is issued by the court, you can take it to the local sheriff office and have them evict the old owner.

The process can take about one month or longer depending on whether the old owner attempts to fight it.  It is becoming a necessity these days in the foreclosure market.

Rent Moratorium

May 21
2010

The Los Angeles City Council on May 21, 2010 is scheduled to consider an ordinance preventing the owners of thousands of apartments from imposing an optional 3% rent increase between now and Oct. 31.

The proposed ordinance would impose a rent moratorium for buildings constructed before 1978 that have six or more units, a group that is governed by the city’s rent-control law, according to the Los Angeles Times.

Owners of rent-controlled buildings with five units or fewer, a group some council members refer to as “mom-and-pop landlords,” would be exempt. Housing officials said at least 200,000 of the city’s 630,000 rent-controlled apartments would qualify for the exemption, which was proposed by Councilwoman Janice Hahn.

On May 7, the council by a narrow 8-6 vote approved a measure asking City Atty. Carmen Trutanich to prepare the rent moratorium, which was proposed by Councilman Richard Alarcon.

Under the city’s housing law, owners of rent-controlled properties are eligible to impose 3% rent increases on July 1. Opponents of the moratorium said they would ask the county to lower their taxes by reassessing their property values downward if the measure passes. Supporters pointed out that owners of rent-controlled buildings will still be allowed to pass various costs, including repairs, to tenants.

How to count notice days

May 19
2010

Here are some things you should know about how to count the number of days you have on a three day notice.
It doesn’t matter that you didn’t actually receive notice until later.  To count the three days, do the following:

- Ignore the date of service and start counting on the next day.

- If you were served personally, count three days.

- If you were served by “nail and mail” , count three days.

- If the third day falls on a Saturday, Sunday or holiday, ignore that day and move onto the next business day.

Example 1.

If you are served on Wednesday.  To count the three days, do not count Wednesday.  Begin with Thursday.  This makes Saturday the third day.  But Saturday is a holiday and so is Sunday.  So the third day is Monday.  Therefore you have until the end of Monday to comply.

Example 2.

If you were served on Friday.  Saturday is the first day.  Sunday is the second day and Monday is the third day.  Neither the weekend days extends the three day period.

I hope this explains and clears things up for everyone.

Holding Deposit

May 13
2010

Sometimes, the tenant and landlord will agree that the tenant will rent the unit but the tenant cannot move in immediately.  In this situation, the landlord can ask the tenant for a holding deposit.  A holding deposit is a deposit to hold the unit for a stated period of time until the tenant pays the first month’s rent and any security deposit.  During this period, the landlord agrees not to rent the unit to anyone else.  If the tenant changes their mind about minding in, the landlord can keep at least some of the holding deposit.

A tenant can also lost all or part of their deposit if the reason they cannot rent is not their fault – for example, they lose their job and cannot afford to rent.

A holding deposit merely guarantees that the landlord will not rent the unit to another person for a stated period of time.  The holding deposit doesn’t give the tenant the right to move in.  The tenant must first pay the first month’s rent and other required fees and/or deposits within the holding period.  Otherwise, the landlord can rent the nit to someone else and keep all or part of the holding deposit.

If the landlord rents the unit to someone else during the holding period and the tenant was willing and able to move in and their paid a holding deposit then landlord should, at a minium, return the entire holding deposit to the tenant.

If a tenant gives a holding deposit to a landlord when they submit the rental application, and the landlord does not accept you as a tenant, then the landlord must return the entire holding deposit to you.

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