House Hacking – The accidental landlord!
So you’re considering purchasing property in the Oakland-Berkeley area and maybe renting out rooms (house hacking) or buying a duplex or a place with an ADU? Essentially becoming a landlord of some sort, and as a property owner you would get to do absolutely what you want with your property, right???
…. Well…. not so fast!
Owning property in the Bay Area is a wonderful privilege and invariably a good long term investment, but venture into rental income with your eyes open. The housing market is tight, the laws are very specific, there are folks who may take advantage (sad but true), and the penalties for missteps can be Draconian!
Do yourself a HUGE favor if you have not purchased yet, and consult with a local qualified landlord tenant attorney so you know the lay of the land!
If you currently own property, join a LOCAL landlord advocacy group and consult with legal staff. These groups are an excellent resource for landlords.
Many homeowners become accidental landlords. A relocation enabled them to keep a property and rent it out, or they decided to rent out a room or convert part of their home to a rental. And for the House Hackers…roommates? Can you raise the rent? Can you get them out? This is current day California land of legislation… not the TV Wild West of my youth! I’d suggest look into what you can and cannot do.
Whilst many Bay area cities including Berkeley and Oakland have had various levels of rent control and tenant eviction restrictions in place for years, the number and type of properties which fall under these restrictions has recently increased.
Many cities have “Just cause eviction” ordinances. As a landlord in most cases you cannot blithely give your tenant notice because you want to sell the property…. this is likely NOT a ” just cause” for eviction. A local attorney who specializes in this area of the law can advise owners of options if they wish to sell. Several cities, including Oakland now have minimum mandatory buyout requirements for negotiating tenant move outs.
I regularly work with property owners who wish to sell and in conjunction with their landlord tenant attorney we figure out what works best for all involved.
Being a property owner is great, but know your rights and obligations… and stay safe!
As always, I’m happy to be a resource for those considering a move and to offer advice in the current environment!
- Jackie
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