Most landlords worry about whether a tenant will pay the rent on time and take care of the property, but a difficult tenancy can ultimately cost an owner far more than a few missed rent payments. When a rental situation goes badly, it can lead to legal expenses, delayed possession, problems during a sale, significant carrying costs, and an enormous amount of time and stress.
Topanga’s rental market is unusual because most rentals are single-family homes, guesthouses, ADUs, studios, cottages, converted spaces, or other living areas located on larger residential properties. In many cases, the rental is closely connected to the owner’s home or to a property they may eventually want to sell, which makes understanding the potential consequences of a tenancy before handing over the keys especially important.
A Rental Application Is Only the Beginning
A prospective tenant may appear completely qualified on paper, come across as friendly and professional, provide references, and say all the right things during the application process, but that doesn’t mean every piece of information they provide should automatically be accepted at face value.
Tenant screening shouldn’t involve only collecting an application, running a credit report, and calling the references provided by the applicant. Whenever reasonably possible, important information should be independently confirmed, particularly when it relates to previous rental history.
For example, when an applicant provides a former landlord as a reference, it can be worthwhile to confirm that the person actually owned or managed the property and, when possible, locate contact information independently rather than relying exclusively on the phone number supplied by the applicant. A reference may sound completely convincing while still failing to provide an accurate picture of the applicant’s rental history.
Get Important Agreements in Writing and Understand What They Actually Mean
Anything that’s particularly important to a property owner should be addressed clearly in the rental agreement, including rent, utilities, pets, maintenance responsibilities, parking, access, and any other conditions that are specific to the property.
This becomes especially important when an owner believes there’s a possibility the property may eventually be sold. If future possession matters, the lease should be prepared carefully, and the owner should understand how state and local laws may affect the ability to recover possession later.
Written agreements are extremely important, but having something written into a lease doesn’t necessarily mean recovering possession of the property will be simple. California landlord-tenant law can be complicated, and local regulations may add additional requirements and protections depending on where the property is located.
A provision that seems perfectly clear to a property owner may still be affected by state law, local tenant protections, notice requirements, or court procedures. If the ability to recover possession of a property in the future is particularly important, it makes sense to discuss that issue with a knowledgeable landlord-tenant attorney before the tenancy begins rather than waiting until a problem develops.
A Property Sale Can Change Everything
This issue can be especially important in Topanga because so many properties here include guesthouses, studios, ADUs, converted structures, detached units, multiple dwellings, or other spaces that may be rented separately from the main residence.
Renting an additional unit can provide meaningful income, but owners should also think several years ahead and consider what could happen if they eventually decide to sell, if a buyer wants the property delivered vacant, or if the tenant doesn’t want to leave.
A tenant occupying a guesthouse or secondary unit can become a significant issue during a real estate transaction, particularly when a buyer loves the property but isn’t willing to close until possession has been resolved. At that point, a landlord-tenant issue can also become a real estate issue that affects negotiations, escrow timing, carrying costs, and potentially the sale itself.
Before renting any portion of a property, owners should have a clear understanding of what rights the tenancy may create and what rules could apply if they eventually need the unit back.
Don’t Let Serious Problems Drift
When a tenant has been reliable in the past or there’s been a good relationship, it can be tempting to give the situation more time when something goes wrong. An owner may hope that the rent will arrive the following week, that a promise will eventually be honored, or that another conversation will resolve the problem.
Sometimes additional time does help, but there are also situations where every additional month makes the problem more expensive and more difficult to resolve. Once rent stops being paid, significant lease terms are being violated, or it becomes clear that an important agreement may not be honored, the owner should begin understanding the options available rather than allowing the situation to continue indefinitely.
That doesn’t necessarily mean immediately beginning an eviction, because depending on the circumstances, a negotiated resolution may be faster, less expensive, and less stressful for everyone involved. The important thing is recognizing that allowing a serious problem to continue without a plan can create consequences of its own.
Document Everything
Good documentation becomes incredibly important when a tenancy starts to deteriorate, so owners should keep the signed rental application, lease, addenda, payment records, notices, inspection records, repair requests, emails, text messages, and other meaningful communications.
When an agreement changes, the change should be documented, and when a tenant makes an important commitment verbally, it can be helpful to follow up in writing so there’s a clear record of what was discussed. Owners should also maintain an accurate rent ledger and make sure any required notices are prepared and served correctly.
A landlord may clearly remember what happened, but months later an attorney, mediator, judge, buyer, escrow officer, or other third party may need to understand the history as well. A complete written record can explain that history far more effectively than anyone’s memory of a conversation that took place months earlier.
California Landlords Need to Be Careful With Evictions
Property owners sometimes assume that if a tenant stops paying rent or violates the rental agreement, the owner can simply require the tenant to leave. In California, residential eviction involves a legal process, and the steps an owner must follow can depend on the reason for the eviction, the property, the tenancy, and the local jurisdiction.
The process generally begins with the appropriate written notice, and if the tenant doesn’t comply, the landlord may then be able to pursue an unlawful detainer action through the court. The details matter because an incorrect notice, improper service, missing language, or failure to comply with an applicable local requirement can delay the process or create additional problems.
This can be particularly important for properties in unincorporated Los Angeles County, including much of Topanga, where additional tenant protections may apply depending on the property and tenancy.
Topanga Properties is a real estate brokerage, not a law firm, so when a tenancy reaches the point where possession of the property is at stake, involving a qualified landlord-tenant attorney can be an important part of protecting the owner and making sure the required procedures are followed correctly.
Careful Screening at the Beginning Can Prevent Enormous Problems Later
No screening process can guarantee that a tenancy will go perfectly because circumstances change and even responsible tenants can experience financial or personal difficulties. The goal isn’t to assume the worst about every person who applies for a rental, but rather to be thorough before handing over possession of a valuable property.
Property owners can protect themselves by verifying information whenever reasonably possible, using a professionally prepared rental agreement, understanding the rules that apply to their particular property, maintaining good records, and addressing serious problems before they become much larger ones.
Most tenants pay their rent, take care of the property, and move on when the tenancy ends without creating significant problems. Unfortunately, the smaller number of tenancies that go badly can become extraordinarily expensive, particularly when unpaid rent, attorneys’ fees, delayed possession, and a pending property sale all become part of the same situation.
Taking additional time at the beginning of a tenancy can ultimately save an owner months of frustration and potentially a significant amount of money.
Thinking About Selling a Property With a Tenant?
In Topanga, tenant issues can become especially important when a property includes a guesthouse, ADU, or other secondary space and the owner may eventually want to sell. Questions about possession, timing, disclosures, and existing tenancies can all affect how a property is marketed and how smoothly a transaction closes.
If you’re thinking about selling a Topanga property with a tenant in place, or considering buying a property with an existing rental situation, Topanga Properties can help you understand how those issues may affect the sale.
This article is provided for general informational purposes only and isn’t legal advice. California and Los Angeles County landlord-tenant laws can change, and different rules may apply depending on the property and tenancy. Property owners dealing with a legal or eviction issue should consult a qualified landlord-tenant attorney.