Is being a landlord tiring for you? Do you want to stop dealing with troublesome tenants? Were you sick of chasing late-payment tenants? You may be tired of owning rental properties and wish to sell them. That may be happening with you, in which case we can help.
If you wish to sell your property right away, Attorneys real property management can buy it. We can also lease it to you if you want to hold income-producing properties but expect to sell them soon. All your landlord headaches will be taken care of by our team. We will handle maintenance, rent collection, and all other problems related to your current landlord relationship. Your perfect tenant will be us!
Our office helps tenants negotiate buy-outs of their tenancies.
A buy-out is a purchase in which the landlord pays the tenant to leave their rent-controlled apartment. Landlords often face this situation whether they are selling or buying properties. Some rent-controlled tenants pay rent at a much lower rate than market rates. Rent increased are restricted for landlords. As a result, it may affect the sale price or the return on investment an owner may earn. There are cases where a landlord prefers a buy-out over the eviction process in which they wish to remain in the building.
In SACRAMENTO, renters are normally evicted if a landlord has “just cause” to do so. A rent control apartment could have a much lower rent than its value. Tenants leaving a landlord’s building or looking for more rental income have been offered money to leave. Even when a landlord offers tenants a good deal, it is often not a good deal in the long run. The process of these negotiations can be challenging, which is why our office is here to guide you throughout.
Which types of buy-outs are available to me?
The value of your tenancy can vary widely.
It is possible to get the equivalent of several thousand dollars or up to six figures for a buy-out of your apartment. Whether or not you reach the price you want depends on strategy, needs, and bargaining power. It is important to understand that each situation is unique, and we are here to guide you.
There’s a high probability that your landlord is looking at this from a business perspective. That’s what you should do as well. You will eventually get back any cash you give your landlord if you sell the property after a buy-out – either charge higher rent to your new tenant or sell it for more money than you paid to your landlord. However, the amount you get is finite.
Here are some questions you should ask yourself before you commit to a buy-out:
If you move, where will you go?
Leaving a low-rent apartment in Sacramento will result in much higher rent if you’re staying there. What happens when you buy out your landlord? Will you be giving the money to another landlord? You will have more money when you move outside of the Bay Area.
Is there a risk?
Besides the owner moving in eviction & Ellis eviction, does your landlord have other ways to make you move out if you don’t negotiate a deal with him? During buy-out negotiations, it is common for landlords to threaten “no-fault” evictions. However, it can be hard to know whether the landlord is bluffing, and in certain circumstances, it may be impossible to find out. You may, however, be able to get a better sense of your comfort level and what it might mean for you if you negotiate a buy-out.
What does your plan of action look like if a deal can’t be reached?
When you don’t get the number you think you deserve, what should you do? Do you plan on defending a potential eviction lawsuit, or will you likely leave wherever you are? Would you be happy staying put if you had to? It’s crucial going into a negotiation to understand what you are prepared to offer. The best strategy to suit your needs can be developed by partnering with us.
Hundreds of tenants have been successfully negotiated buy-outs through our office. A lawyer possesses a great deal of experience when it comes to negotiating buy-outs. Because we prefer tenants to remain in their homes, our office wants you to consider all your options before agreeing to move out. Get in touch with us today to discuss your buy-out options.
The Buy-out Agreement
In exchange for a payment negotiated with the landlord, tenants agree to vacate a rent-controlled unit voluntarily. Upon a tenant’s voluntary withdrawal from a rental unit, the landlord is entitled to charge the market rental rate, which would be considerably higher than the tenant originally paid. Sacramento became concerned about buy-out offers after reports that some landlords were forcing tenants to accept them.
Tenants were then informed of their rights by the City Council in 2015 when they amended the City’s Tenant Harassment Ordinance. Tenants have various options to decide whether to enter into a buy-out agreement, including consulting a lawyer before entering such a contract and not even discussing it with the landlord.
By requiring the use of written agreements and the filing of tax agreements with the Rent Control Board, the ordinance also hoped to discourage abuses. Providing informed advice to tenants who may be considering negotiating a buy-out agreement with a property owner while maintaining confidentiality for all parties involved.
A new regulation entitled 9011 was adopted by the Rent Control Board in response to the amendment to the Tenant Harassment Ordinance, which requires, among other things:
1) Tenants must be notified in writing of certain rights before a buy-out offer is made
2) For the parties in how they report the data, the Board staff should accept for filing copies of executed buy-out agreements. Upon signing a purchase agreement, the documents must be filed with the Rent Control Office no later than 31 days after the agreement has been signed.
For privacy reasons, these agreements are maintained in a separate file within the Board’s legal department. The Board began reporting aggregated data for the first time in its annual reports in 2015.
Guidelines for buy-outs under Sacramento’s rent ordinance
A new section, 37.9E, concerning buy-out negotiations was added to the Sacramento Rent Ordinance in March 2015. Several requirements are included in the new law, including:
Sacramento Rent Board forms are required for landlords to provide tenants before they can even discuss a buy-out with you.
Leases contain a 45-day rescinding period for tenants
The Sacramento Rent Board requires landlords to register buy-outs with them. At the Rent Board’s office, you can review a list of recorded buy-outs
As is true of “no-fault evictions,” buy-outs can have an impact on a landlord’s ability to turn a building into a condominium.
The Buyout Cases Team Fights Harassment
Rent-stabilized apartments are sometimes offered for sale by landlords. Some tenants hope that one day they will be able to sell.
Whether or not a tenant accepts the first offer (or offers), they may be harassed by the landlord. It is important to understand the terms to understand the law regarding harassment and that you should never accept a buy-out if you do not want to. We at Attorney real property management know how to respond to tenant harassment. Tenants who are rent-stabilized in Sacramento have their rights protected by us. We will be tenacious and experienced in such situations. With our attorneys, you are in good hands.
Do Not Let Them Make You Leave
To charge higher rent, landlords seek buy-outs to remove tenants. Their actions might destabilize the building. Alternatively, they might demolish the building and build luxury apartments there. It doesn’t matter what they do, and they’ll make more money if they can convince you to leave.
It doesn’t matter why the landlord bought you out; they can’t harass you. The following are some common methods of harassment:
- Eviction threats
- Building a project that makes the building uninhabitable
- Blocking you from entering a building or apartment
If you are in such a situation, we can protect your rights. Tenants have been harassed in every way. We have fought for thousands of tenants. We are dedicated to providing Sacramento tenants with knowledge, experience, and dedication.
Act now before it’s too late
An even-handed and practical solution to a lease break is a negotiated buy-out. The buy-out should be based on market conditions – a high occupancy rate means it should be easy to find a new tenant, so only a short amount of vacation time is needed, plus some extra for turnover costs.
You don’t have to pay upfront costs or risk anything for a tenant buy-out case. Your attorney is currently charged for negotiating more with your landlord if you use an experienced attorney, not the amount you initially received from your landlord. The property managers at Attorney real property management are the best choice to help you with your tenant’s buy-outs.