A question frequently arises when selling tenant-occupied property: how do I show the home with the tenant in place? (and, do I event want to???)
Navigating the landlord-tenant relationship in Newport Beach, Costa Mesa, and the broader Coastal Orange County area requires a clear understanding of both parties’ rights and responsibilities, especially concerning a landlord’s right to enter a tenant-occupied property.
Landlord’s Right of Entry in California
In California, landlords are permitted to enter a rental unit under specific circumstances, provided they adhere to established legal protocols. The primary reasons a landlord may seek entry include:
- Performing Necessary Repairs or Maintenance: To ensure the property remains habitable and safe.
- Conducting Inspections: As outlined in the lease agreement or as permitted by law.
- Showing the Property: To prospective tenants, buyers, or contractors.
- In Cases of Emergency: Situations that pose an immediate threat to the property or occupants.
Notice Requirements
Except in emergencies, California law mandates that landlords provide tenants with at least 24 hours’ written notice before entering the unit. The notice should specify the date, approximate time, and purpose of the entry. Entries should be scheduled during normal business hours to minimize disruption to the tenant’s daily life.
Of course, if a tenant is agreeable, you can circumvent these requirements by mutual agreement.
Approaching Open Houses
When selling a tenant-occupied property, holding open houses can be a point of contention. The 2013 case of Dromy v. Lukovsky addressed this issue. In this case, the court permitted landlords to hold open houses on weekends, recognizing that weekends are considered “normal business hours” in the real estate industry. The court outlined specific guidelines:
- Frequency: Up to two open houses per month.
- Timing: Weekend days between 1:00 p.m. and 4:30 p.m.
- Notice: Landlords must provide tenants with 10 days’ advance written notice of the proposed open house dates.
- Tenant’s Rights: Tenants may propose alternative weekend dates within 48 hours of receiving the notice.
These guidelines aim to balance the landlord’s need to market the property with the tenant’s right to quiet enjoyment.
Dealing with Uncooperative Tenants
If a tenant refuses reasonable requests for entry:
- Communication: Initiate a respectful dialogue to understand the tenant’s concerns and attempt to reach a mutually agreeable solution.
- Written Notice: Ensure all entry requests are provided in writing, detailing the purpose, date, and time, and adhere to the notice requirements stipulated by law.
- Legal Recourse: If a tenant continues to deny lawful entry:
- Notice to Perform or Quit: Serve a “Notice to Perform Covenant (Cure) or Quit,” informing the tenant that they are in breach of the lease agreement by denying lawful entry and must comply or face potential eviction proceedings.
- Legal Action: Consult with a legal professional to explore options such as seeking a court order to compel the tenant to grant access.
- Making a “Deal” with the tenant and “Cash for Keys”: Perhaps the easiest path is to make an arrangement with the tenant with some offering such as a gift card to a local restaurant, some reduction in rent or outright offering to pay the tenant to move out early, discussed further below.
Making a “Deal” with the Tenant and “Cash for Keys”
Perhaps the easiest path to ensuring smooth access and cooperation is to make an arrangement with the tenant—whether that means offering incentives for access such as gift cards, or perhaps reduction in rent or negotiating an early move-out.
In Newport Beach and Costa Mesa, where rental demand is high, many tenants may be willing to cooperate with showings in exchange for a reduction in rent, gift cards, or other incentives. Creativity and negotiation will be key here, some tenants may be content with a $20 Starbucks card, others may firmly demand significant concessions. No rule requires the landlord agree to this, it’s simply a potential ‘path of least resistance’.
If the goal is to sell the property vacant, a cash-for-keys agreement can be a smart alternative to a drawn-out eviction. This involves offering the tenant a lump sum payment in exchange for vacating the unit by an agreed-upon date, ensuring the property can be prepared for sale without delays or tenant-related complications. When handled properly with a written agreement, cash for keys can be a win-win—allowing the tenant to relocate smoothly while saving the landlord from potential legal disputes or extended vacancies.
It’s crucial to handle such situations delicately (and cash for keys arrangements require specific language and a specific order of events in the offer, acceptance, payment and move out) to maintain a positive landlord-tenant relationship and to ensure compliance with California’s landlord-tenant laws.
Conclusion
Understanding and respecting the legal boundaries concerning property entry fosters trust and cooperation between landlords and tenants. By adhering to California’s regulations and maintaining open communication, landlords in Newport Beach, Costa Mesa, and surrounding areas can ensure harmonious and lawful interactions with their tenants.
Contact Us for Expert Landlord Support
If you own rental property in Newport Beach or Costa Mesa, don’t let the complexities of landlord tenant law catch you off guard. Reach out to Lucas Real Estate today for tailored advice and support. We’ll ensure your rental business thrives while staying compliant with California’s evolving landlord-tenant laws.
Contact us anytime via phone (949-478-1623) or email ([email protected]) to schedule a consultation or learn more about our services!
Lucas Real estate specializes in assisting property owners and Trustees with real property.
Devin Lucas is Real Estate Broker, Real Estate Attorney, and REALTOR®, Courtney Lucas is a CPA and REALTOR®. Together, they are experts in California Real Estate sales, capital gains issues, property tax matters including Propositions 13, 58, 193, 60, 90 and new Proposition 19 and property management.
If you’re preparing to sell, lease or manage real property in Newport Beach, Costa Mesa, or nearby communities like Huntington Beach or Laguna Beach, trust Lucas Real Estate to handle your transaction with precision and professionalism. From understanding key landlord tenant requirements, to taxation issues, to disclosure exemptions to fulfilling your obligations, we ensure a smooth and compliant sale.
For more insights and professional real estate services in Newport Beach, Costa Mesa, and the coastal areas of Orange County, contact Lucas Real Estate today. Let us guide you through your next property transaction with confidence and clarity.
Contact us anytime via phone (949-478-1623) or email ([email protected])
– Devin Lucas
Author Devin R. Lucas is Real Estate Professional – a Real Estate Broker, Real Estate Attorney, and REALTOR® – specializing in Newport Beach, Costa Mesa and Orange County coastal communities, serving individuals and Trustees in residential real estate.
Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in California Real Estate sales, capital gains issues and property tax matters including Propositions 13, 58, 193, 60, 90 and new Proposition 19.
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