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Starting the eviction process
Q: We have tenants who are friendly acquaintances. We knew them for 2 years from the neighborhood and our children's activities. They were to pay $1550 at lease signing, June 29. She never came by with a check. They moved in July 15 and postdated a check for July 22, which bounced. Then they gave us $600 cash with the promise of the balance. So far, nothing. The next month's rent of $1550 is due August first, plus their late rent of $950. What do we do? These tenants are well liked in our neighborhood, so we were really taken aback by this. The female tenant is even president of Little League in our area. We just found out that they were evicted from their last home. What do we do?
I have called her and she gives me a story about a mix up with the credit union. She sounds very sweet and sincere. I know I am new at this, but I could tell it is a story. We cannot afford two mortgages and we are in big trouble on the first if they do not pay. I am sure she will offer a partial payment, but what is wise? If they began this way, I can only see it getting worse. Thank you for your help.
Susan
A: I'm sure Madonna sounded sweet and sincere at one time too. But first, I'm wondering why you ever let them move in on July 15 without having paid you on June 29 like they originally promised. (Strike one!) Then, when the check bounced (strike two!), you should have immediately demanded payment of the entire month's rent in cash or a cashier's check. I'm guessing that you didn't receive August's rent of $1,550? (Strike three!) Once somebody breaks that first promise to you . . . .
Welcome to the eviction process! You might as well learn how to use this early in your career as a landlord because chances are you'll need it again. In California, serving a three-day notice to pay rent or quit, which you cannot serve until the day after the rent is late, starts the process of evicting a tenant. This notice must state the entire amount of the past due rent without including late fees. You must personally deliver the notice to the tenant; personally deliver it to another adult living there and mail it to the tenant; or post it at the rental unit and mail it to the tenant.
If you accept a partial rent payment after serving the notice, you will have to serve a new three-day notice. But, you may want to accept a partial payment anyway. At least it's money in your pocket and you can turn around and issue a new three-day notice the next day. Just be sure you don't promise to give them more time than the three days in the notice to come up with the late rent.
Alternately, you can refuse a partial rent payment. If they do not pay the amount in the notice by the end of the third day and you haven't accepted a partial payment, you should immediately begin an eviction suit. (It can take a month to six weeks from the time you begin your eviction suit (an unlawful detainer is the legal term) until you have a trial before a judge. You can read more about the eviction process in the RENTNET® legal corner.
If you elect to do the eviction lawsuit itself, some counties have unlawful detainer advisory clinics. Court personnel will offer some basic advice on filling out the unlawful detainer lawsuit forms and keeping your eviction lawsuit running smoothly. Typically, residential rental unlawful detainer actions are handled in small claims court. Check the small claims court in your area.
Or, you may want to hire a lawyer to do it. Typically, an unlawful detainer is not an expensive legal matter. Judges do insist that you follow the somewhat technical rules for unlawful detainers. So, it might be worthwhile to hire a lawyer to make sure it's done right the first time. You should call a local real estate rental management company for a few recommended lawyers.
If you really intend to be more than a temporary landlord, I'd highly recommend buying a self-help legal guide. Nolo Press sells many excellent do-it-yourself legal guides and downloadable forms at its site.
One or more of these guides may be worth its weight in gold both for screening and selecting tenants and for dealing with a variety of tenant problems as they arise. Good luck!
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Earning interest on your security deposit
Q: When you pay a deposit with your rent and stay for five years, does the landlord have to pay interest on that money when you move?
James
A: The simple answer in California, James, is no. Ultimately, this probably keeps rents slightly cheaper than they would be otherwise. It saves landlords the administrative work of calculating interest, which can take a math degree sometimes. It also gives them some extra income other than your rent check. So, in the big picture, the fact that you don't get interest on your deposit isn't necessarily a bad thing.
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