California’s rental market continues to heat up and the use of Ellis Act based evictions continues to rise. Subsequently, tenants and landlords continue to face off over the fair and legal use of evictions.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “The increased use of the Ellis Act in California highlights the rapidly changing rental market in that state, specifically in Los Angeles and San Francisco, and further politicizes tenants and maybe spark further change in the rental market in regards to evictions.”
The goal of any landlord is to gain long-term residence in order to create a predictable income. However, as rental values continue to rise long-term renters are displaced in order to take advantage of higher values and rental rates.
As reported in The San Francisco Chronicle (Jul. 27, 15):
The number of rent-controlled San Francisco tenants receiving eviction notices is rising sharply, the latest evidence that the city’s economy continues to drive the displacement of long-term residents. (1)
A common tactic for eviction is the use of the Ellis Act. This law has been frequently used in San Francisco (2) and, increasingly, in Los Angeles.
From The Sacramento Bee (Jul. 31, 15):
Political and legal wars have erupted in both regions, and pressure is building on local officials to step in with tighter anti-eviction laws and on the Legislature to modify the Ellis Act, a three-decade-old state law that allows landlords to evict tenants to demolish units or convert them into condos. (3)
An additional challenge to renters is the so-called “gotcha eviction.” A “gotcha eviction” is based on a stringent interpretation of lease agreements.
From The San Francisco Chronicle (Jul. 29, 15):
… a “gotcha eviction” — a category of breach of contract or nuisance eviction that has doubled since the real estate market started taking off in 2011. According to the San Francisco Rent Board’s Annual Eviction report, there were 2,120 notices of evictions filed for the year ending Feb. 28, 2015 — a 54.7 percent increase over five years ago. The number of evictions targeting tenants accused of violating their lease or causing a nuisance has doubled since 2010. (4)
Adam Almeida states: “The challenges landlords and renters are going through in California may lead to a greater change in the rental landscape. As low-cost housing struggles continue governmental change may occur and that could create concern over the use of eviction records”
Eviction records contain critical information a landlord needs to make an informed decision regarding a potential tenant or tenants. As an integral part of the tenant screening package, eviction records combined with consumer credit reports provide invaluable background history for landlords and property managers.
Almeida states: “Ultimately landlords and property managers should utilize a well-qualified tenant screening company in order to remain compliant with existing laws that govern tenant background checks, as any change in law that may come about due to the developing battlefield between landlords and tenants in California.”
TenantScreeningUSA.com provides full service background screening to landlords and property managers of any size. TenantScreeningUSA.com offers tenant screening packages that include a national eviction search, national sex offender check and national criminal background check.
Notes:
(1) sfchronicle.com/politics/article/Why-S-F-evictions-are-on-the-rise-6408950.php
(2) sfchronicle.com/politics/article/Why-S-F-evictions-are-on-the-rise-6408950.php
(3) sacbee.com/news/politics-government/dan-walters/article29765722.html
(4) sfchronicle.com/bayarea/article/S-F-tenants-groups-fight-gotcha-evictions-6413712.php
