State Specific Question About: CALIFORNIA (CA)

Can I have input on my SD return to tenant? This will be my first return. Tenant left the lease 5 months early.

Total Security Deposit 2040.00

Rent due from: October 1, 2016 to February, 28, 2017 -6000.00

Late fees due - October 1, 2016 to February, 28, 2017 -300.00

Agreed upon cleaning -130.00

Advertising cost to re-market unit -156.00

Repair holes in two bedroom walls and re-paint walls -200.00

Amount owed to landlord ($4,746.00)

Does not look good. Others from CA will be by to give the real details, but you might be able to get the cleaning, ads & repaint, but the late fees [that have not yet accrued, and the rent that has not been yet paid....nah.

Maybe Oct. and perhaps Nov., but not to likely the rest of it. you have not yet earned the lost rents.

In most states (and I pretty sure also in Cali) you cannot just charge the tenant for the remainder of the tenancy. Rather, it is your legal duty to "mitigate loss" by re-renting as quickly as possible.

What many of us find beneficial in this case is the ELT/ETF (Early Lease Termination or Early Termination Fee). This is a one-time fee that is equal to somewhere between 4 - 8 weeks of rent for the tenant to "buy out" of his/her lease obligation early. I "sell" this to my tenants in the it could take me 1, 2, 3 months to get re-rented, especially during colder months when no one is moving. Would they rather owe for 3 months, or just pay the fee (mine is = 6 weeks rent)? The advantage to me in this type of transaction is if I hustle I can get it re-rented in a few days or a week and "double dip" because the fee is paid to break the lease early. There is no Refunded Fee if I re-rent it the day after they move out. Check with your attorney if that's legal in Cali. It works in Missouri!

Ok, I re-worked the figures. By statute, I have to give a disposition within 21 days which is why I included the cost until the end of the lease. I told him he had to pay October rent, but he ignored me.

Total Security Deposit 2040.00

Rent due from: October 1, 2016 to October 31, 2016 -1200.00

Late fees due - October 1, 2016 to October 31, 2017 -50.00

Agreed upon cleaning -130.00

Advertising cost to re-market unit -156.00

Repair holes in two bedroom walls and re-paint walls -200.00

Amount owed to landlord $ 304.00

Shorten the lines --> Oct rent $1200.00

Oct late fee $50.00

Nov rent $1200.00 (this makes more sense than charging an advertisement cost, no late fee yet - they might come forward)

Cleaning cost $130.00 (seems low, my cleaning lady comes 2 times and charges 250 because we have to move junk or remove carpet staples, fix smashed faucet or something - she seems to always make 2 trips and I buy her lunch both times with a helper sometimes)

What authorizes you to charge late fees? Don't tell me your lease. Plus, the Civil code contains a list of items that may be deducted from the SD, and late fees are not on that list.

Plus advertising costs? Hole in wall, unless they are clearly unsupportable damage, is landlord's responsibility. Hanging pictures is normal life, and the consequences are normal wear & tear. Paint is not tenant's responsibility, unless it is unsupportable damage.

I take it that your tenant left before the end of his lease. In CA, you are entitled to lost rent minus the amount that tenant proves could have been reasonably avoided. Expect the judge to question you about loss avoidance, even if the tenant never shows up in court. Reasonable avoidance is usually limited to 2 months lost rent.

Thanks, Moshe, I appreciate the advice. I have re-worked the figures again. The advertising cost is actual amount I was charged to list on a website. Tenant is well aware of the holes in the wall because I did an initial inspection. The holes are beyond normal nail holes for pictures. They are quarter-sized holes all the way through to the the studs. He mounted some type of heavy white boards to the wall. So the holes will have to patched and painted. The amount listed is what the handyman quoted me.

Total Security Deposit 2040.00

Rent: October 1, 2016 -1200.00

Rent: November 1, 2016 -1200.00

Agreed upon cleaning -130.00

Advertising cost to re-market unit -156.00

Repair holes in two bedroom walls and re-paint walls -200.00

Amount owed to landlord ($ 846.00)

mick, you missed my point about advertising cost.

How can you charge for future lost rent and also for advertising cost? If you are advertising (and charging tenant for that) why are you owed lost rent for more than a month? Where are you in CA that you cannot fill a vacancy right away? Death Valley?

It happens that CA is one of only a very few states (maybe the only one) that allows you to deduct for future lost rent. But that implies that you do not plan to rent out the premises, so how can you charge for advertising? If the tenant comes to court and points out that you are dragging your feet about re-renting the premises, then you lose your right to collect for lost rent.

So you don't know how to quickly and simply repair quarter size holes in the wall? Maybe someone on this site can give you lessons.

So the handyman quoted you prices. Did you hire him and have him do the work?

$200 to patch quarter size holes and paint? You have matching paint, don't you? You can use it to cover the quarter size holes and make the patch match the rest of the wall. But the amounts are not really at issue, if you actually hired the handyman. The requirement is "reasonably necessary", and your amounts are high but not completely unreasonable.

Mick, re-read what Moshe posted.

If I am the judge, I allow you:

$1,200 for October rent

$130 for cleaning

$200 repairs.

And I order you to pay the Tenant the $510 difference -- assuming you provided a timely accounting.

Good thinking, Mike.

BUT,

CA law allows landlord under these conditions to deduct cost of re-renting premises, so I would add $156 for advertising upon receipt showing that mick actually paid it.