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4/17/20 Widget’s Way Webinar – COVID-19 Updates and AB 828

Published on May 6, 2020 by Patti Widget under Webinar Notes

COVID-19 Update

  • Remember: This is going to get worse before it gets better.
  • You can simply look at other countries as an example of how long this may last.
  • Try to keep the tenant that’s trying to leave because they can’t pay because they lost their job. They are trying to be responsible. This may paint a picture for the future. What if in 3 to 4 years from now, “life” happens to your tenant? Instead of waiting for an eviction, they may make things easier on you and leave.
  • Use COVID-19 specific 3 day notices if you must serve a 3 day notice. Do not use your standard 3 day notice; it must contain COVID-19 verbiage.
  • Rent reductions are not a requirement for closed amenities.
  • Remember to not speak in “absolutes.” Use words like “maybe, should could, might or may.”
  • If you don’t use absolutes, then you absolutely can’t give the wrong answer.
  • Promise to pay letter is a great tool to use in these times, but please remember that it is unenforceable in eviction court but enforceable in small claims. It helps keep both you and your tenant calm during these uncertain times.
  • Important: If you forgive a portion of the rent, IT IS GONE!
  • During this time, I recommend you do not serve any rent increase notices, termination of tenancy notices and no end of term notices.
  • Contact your legal counsel when in doubt.
  • Don’t forget to send out exemption forms and notices for AB 1482. State wide rent control

AB 828

  • Very scary! We need to send letters to Sacramento and try our best to make sure this does not happen!
  • Gives tenants 25% rent reduction.
  • Gives tenants the ability to continue their tenancy for 12 months.

You can help by writing, calling or email the following state legislators and ask them to oppose AB 828 and why!

Assemblyman Phil Til (D – San Francisco)
Phone:
415-557-2312
Email: assemblymember.ting@assembly.ca.gov
Direct Contact Link: Contact
Mailing Address:
State Capitol
PO Box 942849
Sacramento, Ca. 94249-0019

Assemblyman Kevin Mullin (D – San Mateo County)
Phone: 650-349-2200
Email: assemblymember.mullin@assembly.ca.gov
Direct Contact Link: Contact
Mailing Address:
State Capitol
PO Box 942849
Sacramento, Ca. 94249-0022

Senator Scott Wiener (D – San Francisco)
Phone:
415-557-1300
Email: senator.wiener@senate.ca.gov
Direct Contact Link: Contact
Mailing Address:
State Capitol
Room 5100
Sacramento, Ca. 95814-4900

Q&A Session

Q. Just to better understand.  If a tenant does not pay rent, we should serve a COVID19 3 day notice to pay/quit.  It would be up to the tenant to prove how they were affected?

A. Correct.

Q. On March 17, 2020, we filed a No-Fault 60 Day Notice to Vacate.  I realize that this Notice is now void & we will need to serve another one when the moratorium has been lifted. Do we need to notify our tenants that the March 17th 60 Day Notice has been cancelled?

A. I would notify the tenant that the notice to vacate has been retracted.

Q. If I’m under LA city rent control do I still have to let the residents know that I’m  exempt from AB 1482?
A. No, if you are already under LARSO then AB 1482 does not apply to you and the city of LA’s rules apply.

Q. What if the tenant fails to notify us about being affected by COVID-19, even if they had 7 days to notify us?
A. Then talk to your legal counsel about when you can start the eviction process. If you can work with them, make payment arrangements, try to keep them calm and feeling secure.

Q. What is the point of a contract then?!? Any contract?!?
A. In regards to AB 828, remember this is not a law yet. We need to focus on making sure it doesn’t pass.

Q. What happens if a current resident doesn’t pay, then at the end of all of this, they file BK and we are listed as one of the people on the BK?  They continue to still be a resident and don’t have to pay?

A. Your legal counsel can file a relief from the order to stay and that could expedite the kick out process.

Q. Does AB 828 apply to a month to month tenant?

A. All rental property in the state.

Q. Does the AB 828 25% rent reduction apply only to evicted tenants or ALL tenants in California?

A. Yes.

Q. Does the moratorium cover trailer homes?

A. Yes.

Q. Is Rialto and San Bernardino under Rent Control?

A. Yes entire state of CA could be subject to this rent control, there are some exemptions.

Q. I don’t know what to do. Both of my tenants paid 1/2 of the rent for the month of April and they claimed it is due to COVID-19. How should I proceed?

A. They still owe 1/2 the rent. No late fees, no fines or penalties. Keep track of it and if it needs to be enforced, contact legal counsel for directions.

Q. Fast Evictions said I can evict when courts open concerning health and safety of a tenant harassing the residents.  Aren’t courts taking health and safety evictions?

A. To the best of my knowledge courts are closed

Q. Does the tenant need to show evidence? I have a tenant that lost their job before this pandemic. It was hard to collect rent from them. Now she is using COVID as an excuse.

A. She most likely can because she can’t apply or find a job because of COVID-19.

Q. I currently have a vacant unit. Once I rent the unit, will the brand new rental agreement be subject to 25% rent reduction if AB 828 is passes?

A. It could???? We have to see how the bill is modified as it goes through the chain of command.

Q. For new applicants, some are stating they have been affected by this and are collecting unemployment, some say that they used to make or income requirements before this but now since unemployment happened they don’t. Can we still deny them without discriminating or legal action?

A. If you have criteria already established in writing of the requirements to obtain tenancy and they don’t meet your criteria then you don’t have to rent to them.

Q. Where can we get the COVID 19 3 Day Notice?

A. Fast Eviction Service, your legal counsel or your apartment association.

Q. I have bad tenants. Can I not repair things in the unit?
A. Yes, do your repairs if the tenant agrees to allow entry. Try to do the repair because we don’t want habitability issues where we can’t charge rent

Q. We have excellent tenants & we WANT to give them a discount on their rent. What is the best way to do this WITHOUT changing our rent amount on LARSO? Should we give our tenants a monthly gift card for $200? Should I write a personal check each month for $200?

A. Just give them a rent credit on their account. And you can make a note that you discounted their rent due to the pandemic.

Q. The judicial moratorium covers all courts, correct?

A. Yes.

Q. What’s the use of having a contract if it can be negated by the legislature? Does that mean all contracts can be negated (car, mortgage, as well as leases and rental agreements)?

A. I think that’s a great question to ask our governor when you send the letter asking him to veto the bill.

Q. When will the courts reopen?

A. I don’t know, my crystal ball is broken. I don’t know if they will open the courts once the state wide moratorium to shelter in place is lifted but we’re not going to be able to file any summons for the first 90 days after they open.

Q. Just prior to the moratorium, I had two cases that were ready for default judgment and writ. No new summons is required after courts open correct?

A. They should pick up the pieces right where they left off and continue forward. You should not have to take any action, unless of course they change the rules again.

Is there a limit of times we can contact tenants without any consequences?

A. I don’t think there’s a limit to how many times you can contact them but I suggest you do it through several different avenues. In other words, knocking and talking, serving notice on the door, sending an email and trying on the phone.

Q. When the courts do open, can’t we file an eviction right away concerning health and safety?

A. At this point, if you have an issue concerning health and safety, I strongly suggest you contact your local law-enforcement for assistance.

Q. Do I have to provide tenants with a notice that rents are reduced 25% if AB 828 passes?  Or do I wait for tenant to notify me of a COVID crisis?

Where you are going to see the 25% rent reduction is most likely in an eviction matter.

Thanks again for joining us at the webinar. If you have a few moments, I’d love for you to rate me! You can rate me either at:

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