New Landlord

[chikia]

Hello all,

I just purchased my first place and its a duplex in Burbank, CA. There are tenants currently living there. I've given 30 days notice to the tenants in the unit I want to move into. I am still trying to get copies of the existing rental agreements.

I would like to raise the rent on the other unit and get the tenants to sign a new lease.

Questions:
1) Do I have to honor the old lease or can I have them sign a new lease (month to month)?
2) How much can I increase the rent for and how much notice do I have to give of the increase? The tenants has lived here for 10 years and has is paying $550 for a unit that can go easily for $900-$1000 in the area.
3) If they refuse to sign can I evict them?
4) I am being told that as a landlord I am responsible for paying the water bill. Is this true? I believe the prior landlord did pay for the water, do I have to honor that?

I hope someone can help me - I know too many questions. I am a young first time homeowner and I'm stressing about my mortgage and now I have tenants!

In dire need of guidance!

Jamer
[email protected]What is the name of your state?

 

[Just Blue]

Hello all,

I just purchased my first place and its a duplex in Burbank, CA. There are tenants currently living there. I've given 30 days notice to the tenants in the unit I want to move into. I am still trying to get copies of the existing rental agreements.

I would like to raise the rent on the other unit and get the tenants to sign a new lease.

Questions:
1) Do I have to honor the old lease or can I have them sign a new lease (month to month)?
2) How much can I increase the rent for and how much notice do I have to give of the increase? The tenants has lived here for 10 years and has is paying $550 for a unit that can go easily for $900-$1000 in the area.
3) If they refuse to sign can I evict them?
4) I am being told that as a landlord I am responsible for paying the water bill. Is this true? I believe the prior landlord did pay for the water, do I have to honor that?

I hope someone can help me - I know too many questions. I am a young first time homeowner and I'm stressing about my mortgage and now I have tenants!

In dire need of guidance!

Jamer
[email protected]What is the name of your state?

Do all the tenants have exising leases? If so what are the terms?

 

[Who's Liable?]

Hello all,

I just purchased my first place and its a duplex in Burbank, CA. There are tenants currently living there. I've given 30 days notice to the tenants in the unit I want to move into. I am still trying to get copies of the existing rental agreements.

I would like to raise the rent on the other unit and get the tenants to sign a new lease.

Questions:
1) Do I have to honor the old lease or can I have them sign a new lease (month to month)?

You MUST honor the old lease until it ends. Once it ends, you can draft up a new lease.

2) How much can I increase the rent for and how much notice do I have to give of the increase? The tenants has lived here for 10 years and has is paying $550 for a unit that can go easily for $900-$1000 in the area.

You will need to verify with your county/city/state on how much you can raise rent etc.

2)3) If they refuse to sign can I evict them?

Yes, you will need to PROPERLY evict them though.

4) I am being told that as a landlord I am responsible for paying the water bill. Is this true? I believe the prior landlord did pay for the water, do I have to honor that?

What does the existing lease with the tenant state?

I hope someone can help me - I know too many questions. I am a young first time homeowner and I'm stressing about my mortgage and now I have tenants!

In dire need of guidance!

Jamer
[email protected]What is the name of your state?[/QUOTE]

You have much to worry about. Did you get the deposits from the old owners of the building? If not, you'll need to ge them quick, for as soon as the tenants start moving, they're gonna come looking for it!

 

[moburkes]

In CA, I'm pretty sure it is limited to 10% annually.

 

[ecmst12]

At least in my experience, the LL usually pays the water bill unless the tenant is renting the whole building. I suspect this is because it's either too difficult or too expensive to install separate water meters for each unit.

You definitely have some research to do and consulting a local LL/T attorney wouldn't be a bad idea, to get some pointers on where to begin.

 

[moburkes]

At least in my experience, the LL usually pays the water bill unless the tenant is renting the whole building. I suspect this is because it's either too difficult or too expensive to install separate water meters for each unit.

You definitely have some research to do and consulting a local LL/T attorney wouldn't be a bad idea, to get some pointers on where to begin.

I've been looking at apartments in Columbus, OH, and they charge a water fee based on the number of tenants in the unit, or a flat amount. So, I've seen $10 per person (per month) for a total of $30 for my family, or a flat $35/month. Until then, I'd never heard of it either, if there weren't separate water meters.

 

[CA LL]

Burbank does not seem to fall under L.A. rent/eviction control which is good. Need first to make sure it does not have it's OWN rent/eviction control as many areas around there do.

If not...

Questions:
1) Do I have to honor the old lease or can I have them sign a new lease (month to month)?

If there is fixed term lease in place yes you MUST honor it. If they have a MTM in place you can give them 30 days notice to sign a new MTM rental agreement and/or change the terms that you wish (exception being rent increase over 10% when combined with any other increases they have had in the last twelve months which requires 60 days notice).

2) How much can I increase the rent for and how much notice do I have to give of the increase? The tenants has lived here for 10 years and has is paying $550 for a unit that can go easily for $900-$1000 in the area.

First check for Burbank rent control oridinance. If none, next find out for sure the condition of the unit (often extremely run down if not at market and long term tenants). Unless you want all units vacant...I would NOT suggest raising to market all at once.

CA STATE LAW (local laws may have more STRICT laws) requires 30 days written notice (plus five additional days if mailed) for any rent increase of 10% or less over the past year and this means COMBINED with any other increases they have received in last twelve months. If over the 10% 60 days (plus five if mailed) is required.

3) If they refuse to sign can I evict them?

Again it all depends on what you are trying to do and what they have in place right now and IF Burbank has it's own rent/eviction controls..I'm not aware of any...they don't fall under the L.A. one but they could have their own.

IF they are on MTM I STRONGLY suggest you first have them sign a new MTM rental agreement with the SAME TERMS as existing agreements. THEN in a few months..maybe six, issue the 30 day change of terms (or 60) to increase rent, late fees, etc..any terms you wish to change.

4) I am being told that as a landlord I am responsible for paying the water bill. Is this true? I believe the prior landlord did pay for the water, do I have to honor that?

Unless the water is metered separately it is STRONGLY SUGGESTED that you pay water yourself and is the "norm" in SO CA. You build the cost into the rent. CA LAW requires that if not separately metered a formal agreement must be presented and signed which spells out exactly how they utilities will be charged. I would STRONGLY SUGGEST you continue to pay water yourself for a number of reasons..

Please folks don't GUESS at CA law to respond to folks on here. For example saying I think 10% is the max allowed...not only is there NO MAX under STATE law but under LOCAL laws the maxes are all different depending on the local rent control where applicable.

 

[SDlandlord]

You've Got Work To Do!

Have you got your work cut out for you!

Start reading. A good Place to start is Nolo's (www.nolo.com) The California Landlord's Law Book: Rights & Responsibilities. This will be the best $40 you can spend in your situation.

Join a local landlord association.

This is a good place to learn about problems with rentals nd tenants, but there are a number of landlord centered discussion groups on the web. Find them and participate.

If you run into problems and you will if you don't get going, the courts will cut you no slack as you are in a business and expected to be a professional.

Good luck.

 

[FarmerJ]

When it comes to water and sewer useage you can look into sub metering. there are firms out there that can go as far as installing micro meters that are radio frequency based. These sub meters report to a central reading device and can tell you how much of a utility is used so you can indeed bill out each tenants use accordingly. OR the old fashion way of line separation wich a plumber can do if your city code wont let you do it your self. Last method is when state law spells out a alternate method of determining useage like body counts or sq ft break downs. Either way wait till your settled into havng the property so you can plan such changes if you go that route. After Mortgage and taxes and ins common metered utilities are your next biggest expense. At some point later should you use one of the methods from above and require tenants to pay the utility fee. Then it will have been done with enough planing that it cannot bite you back. ( there are some submetering firms that will even do the billings for the LL )

 

[chikia]

New Landlord - Thank you everyone~

I want to thank you all for your help, I really appreciate your guidance.

I'm confused on the following, as the new owner, do I have to give 60 days notice to vacate? I want to move-in already!

The Civil Code Section 1946.1(c)http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=92222629898+0+0+0&WAISaction=retrieve states 60 however, it seems the exception is 30 days if the tenant has lived at the residence less than 1 year or if escrow opened and there's a bonafied purchaser (me).

I am going to put the water in my name because its a duplex and there is only 1 water meter.

Thanks again everyone!