[CA] Do landlords owe relocation assistance when ending a lease and taking property off the rental market?

CA Landlord-Tenant

Liz

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In California, landlords are generally required to provide relocation assistance if they are evicting tenants for no-fault reasons, such as taking the property off the rental market. It's normally a one month concession, even with month to month. If the lease ended without any extending, that could have allowed avoiding the moving allowance. (CA Civ Code § 1946.2 (d))

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I rented my home for 3 years. Their lease is up on April 30th. The lease states if they stay beyond April 30th they can go month-to-month. They would like to stay in the home until June 15th. I believe I am exempt as I plan to take the home off the rental market. Do I need to provide relocation funds or waive the last month’s rent?

Lexi, Chatbot

I understand that navigating lease agreements can be challenging. Have you discussed your plans to take the home off the rental market with your tenants?

Yes, I have.

Lexi, Chatbot

Are there any specific terms in the lease regarding relocation funds or waiving last month’s rent that you are concerned about?

No, there is not.

Liz

Hi there! Welcome to our service. My name is Liz and I’ve been an attorney for more than a decade, and I am here to assist with your legal concerns. Just so you are aware, our service is a legal information-only site. No attorney-client relationship is formed from our conversation. So I can best help, in what state is the rental?

California

Liz

Thank you for sharing that. Where in CA is it? Is it under rent control?

The city of Dublin in Alameda County. There is rent control, but I have always been below the cap.

Liz

Got it, thanks for that information. Has the tenant already agreed to leave? Also, this will be entirely no fault?

Yes, and no fault.

Liz

Can the tenants waive relocation assistance or the last month’s rent credit?

Liz

In California, tenants generally cannot waive their right to relocation assistance if it's required by law, even if they agree to it.

Thank you. The lease is up on April 30th. I do not have 60 days. Can I give them notice now or am I stuck with the relocation assistance if I would like them after the lease has expired?

If I would like them to leave after the lease expired.

Liz

You would have to give them the full 60 days. Also, since it allows for month to month, it would still stick you with the relocation assistance unfortunately.

There seems to be an option for the landlord waiving the last month’s rent. If they stay through June 15, half the month, can I prorate the waived rent?

Liz

You would have to waive a full month, so you could do half of May and then the June rent.

Is the relocation assistance a limited amount or can they ask for any amount?

Liz

It's equivalent to one month’s rent.

Would I be considered exempt from these fees if I am taking the home off the rental market?

Liz

In California, even if you're taking the home off the rental market, you typically aren't exempt from providing relocation assistance if it's a no-fault eviction.

Last question, I think. Can I simply extend the lease or write a new lease with a termination date of June 15th?

Liz

That could be seen as trying to get around the termination requirements unless they had already wanted to terminate in June.

Yes, they wanted to terminate in June. They have already purchased a home with escrow closing in April.

Liz

Now, if you mutually agreed to terminate the lease in April when it ends, that wouldn't require the notice period or payout normally.

What if we mutually agree to a new lease beginning April 30, 2026 and ending June 15, 2026?

Liz

If you both agree to a new lease with those terms, it could potentially work. However, it's important to ensure that the agreement is clear and in writing, specifying the start and end dates, and that both parties understand and agree to the terms. This way, it can help avoid any misunderstandings or legal issues later on.

Understood. I think my tenants would understand and agree to the terms to avoid any misunderstandings. Could I write an addendum to the current lease that was mutually agreed to?

Liz

You would do a lease addendum, especially as they also wish to move as they have a new home.

That sounds like the way to go. Thank you for your help. Do you have any other thoughts with regards to my situation?

Liz

Did they have a security deposit?

Yes.

Liz

Have you inspected the unit recently? You could also offer to waive damages to encourage them to agree.

Yes, and there is work to be done to ready the house for sale. I have made a list of items for them to do and a list of items that I need to do. How would I document that I would waive damages in lieu of last month’s rent or relocation assistance?

Liz

You can create a written agreement or addendum to the lease that clearly states the terms of waiving the damages. Include details such as the specific damages being waived and the amounts.

Thank you. That is very helpful. Is there a way I can print this chat for my personal use?

Liz

I believe you have to copy it to a Word document to do so, but you can print it.

Thank you for all your time and help. Have a great day!

Liz

You're very welcome! Have a great day too!

Liz

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