If you’re a residential landlord, not only may you be dealing with tenants not paying their rent, but evolving local, state, and federal rules on what you can and cannot do in response as well. There are many moving pieces in this machine. To avoid getting caught up in it, contact my office so we can help you move this process forward as quickly and smoothly as possible.
State Law
The California COVID-19 Tenant Relief Act was signed into law on August 31. It applies to all residential rental tenants and mobile home residents, including single-family home and Accessory Dwelling Unit (ADU) rentals in the state. Under its provisions, renters can’t be legally evicted through January 31 if they:
- Pay at least a quarter of their rent
- File a declaration with their landlord attesting they’re suffering financial hardship because of the pandemic and related business shutdowns. Tenants making more than $100,000 or more than 130% of the area median income must provide additional proof of their financial hardship
After January 31, these tenants can’t be evicted for not fully paying rent for the previous months, but renters could be evicted if they don’t pay rent starting in February. This unpaid rent (what’s owed since March and unpaid going forward) could be treated as consumer debt which could be recovered through small-claims court.
Some cities and counties have strong tenant protections. These ordinances would remain in place until they expire, after which state law would apply. They must be considered before making any moves towards eviction.
For rent due between March 1 and August 30th, landlords can serve a 15-Day Notice to Pay or Quit which must contain new language about the Tenant’s rights under the new law. Tenants can be evicted starting October 5 if they don’t return a COVID-19 related hardship declaration to their landlords. Evictions for just causes other than rent non-payment were allowed starting September 2. Restrictions on commercial evictions were largely lifted in September, but the Governor has given California cities the ability to prevent them locally.
Federal Rule
In September, the federal Centers for Disease Control and Prevention (CDC) implemented a national, temporary eviction moratorium through the end of the year, reports MarketWatch. It also prevents some renters from eviction due to the COVID-19 pandemic.
It’s currently in effect and applies to all residential rental units through December 31. This potentially impacts 40 million renters and their landlords. A prior federal eviction moratorium under the CARES Act ended in late July. The newer federal ban applies unless there’s a more protective local or state eviction moratorium in place.
To be eligible, renters must have received an economic impact payment under the CARES Act. This would mean single renters could earn no more than $99,000 annually, while couples filing their taxes jointly could earn up to $198,000 each year.
The order includes a declaration renters must sign and give their landlord. Renters must state they can’t afford to pay their full rent, and if they’re evicted, they would become homeless or forced to move into housing with a large group of people. They also need to show they tried to get government aid and can’t afford rent.
The CDC rule doesn’t mean eligible renters no longer owe rent. It’s still due, but lack of payment is no longer a justification for evicting qualified renters. Eviction is still allowed if a tenant destroyed property or poses a threat to the health or safety of neighbors.
We’re Here to Help
Depending on the circumstances, you may or may not be able to evict a residential tenant living in your building. He or she could fall within a local, state, or federal COVID-19 protection, but not all tenants do.
Even without these moratoriums, an eviction can be a tricky process that requires strict adherence to the law. If you make a technical mistake you may be forced back to square one. You’ll need to invest more time, energy, and money to give it another try. If the tenant is represented by an attorney, you would have to be especially careful to do things right.
If you have any questions about COVID-19 limits on a residential eviction or need legal representation to protect your rights, call my office at (949) 244-4207 or fill out our contact form today. We can talk about your situation, how these eviction bans may apply, and your best options to move forward.
