Does Your Property Need Major Renovation and Your Tenant Won’t Move?
Older rental properties often need improvements, and it’s very difficult to drastically improve a property with someone living in the rental unit. If you find yourself needing to do major work on an occupied property, and the tenant won’t move, you might want to consider a substantial renovation eviction.
Defining Substantial Renovation
Before starting the Los Angeles eviction process, a landlord should make sure the changes they, as the owner, want to make qualify as “substantial.” Substantial renovations aren’t cosmetic-only changes or improvements the landlord could make while the tenant is still occupying the unit, or on the lease agreement. For a renovation to be “substantial,” it must be a major change:
- Removing or replacing interior walls
- Replacement of more than half of the roof
- Replacement or remodeling of more than half of the floor
- Relocation of kitchen or bathroom plumbing fixtures
- Replacement of all or most of the electrical wiring
California law also classifies the abatement of widespread hazards like asbestos as substantial renovation.
CONTACT USLegal Criteria for Substantial Renovations
In 2024, California changed the laws around substantial renovation evictions. Senate Bill 567 defines “substantial renovation” of a property as any major change, including one of the following:
- A modification of the home’s structure that requires a permit
- A replacement or modification of plumbing, electrical, or mechanical systems that requires a permit
- Abatement of asbestos, mold, or other hazardous materials
To qualify as “substantial,” the renovation also must meet these requirements:
- It requires the tenant to vacate the property for at least 30 days
- It cannot be completed safely with the tenant in the home
The law also clarifies that purely cosmetic changes or minor repairs that can be safely made with the tenant in place do not count as substantial renovations.
Planning and Documenting Renovations
Because some unscrupulous landlords may claim to be planning substantial renovations and then not follow through, the new laws also require you to document your plans. Before you begin the eviction process, you should have the following documentation:
- A description of the work to be done to the property
- The approximate date the work will be completed
- The approximate date of the demolition if the property is going to be demolished
- A copy of the required permits for the renovation
Often, abatement of hazardous materials like mold does not require a permit. If you don’t need a permit to have the work completed, you can instead use a signed copy of the contract with the company you’ve hired to work on the property. The contract must also include a reasonably detailed explanation of what the contractor will do to abate the hazard.
Are Substantial Renovation Evictions Legal in California?
California has strict legal criteria for substantial renovation evictions. These criteria are meant to protect tenants from unscrupulous landlords looking to evict them, make minor improvements, and then rent the property at a higher rate.
Los Angeles has some of the strictest substantial renovation eviction protections in the state. Substantial renovation evictions in multi-family properties built before 1979 are banned entirely. While substantial renovation evictions are still permitted under the Just Cause Ordinance (JCO), there is political pressure in the city to ban these evictions entirely.In late 2024, the Los Angeles City Council voted unanimously in support of removing substantial renovations from the JCO. The Council is advocating for an amended system where tenants could continue to pay rent and temporarily relocate while renovations are completed. This means that in the near future, substantial renovation evictions may not be permitted in the City of Los Angeles.
Legal Process for Substantial Renovation Evictions
California’s new laws have made the procedure to substantially renovate evictions even more complex. Working with an eviction attorney is the best way to ensure you remain compliant with the law. However, even if your attorney will handle the eviction, it can be helpful to have a general understanding of the process.
Serving Notice to Tenants
For a substantial renovation eviction, you must give the tenant at least 60 days of notice if they have lived at the property for at least one year. If they have been a tenant for less than one year, their rights show you must give them 30 days of notice.
The written notice you serve to the tenant must include the documentation mentioned above — a description of the work to be done and approximate dates, copies of relevant permits, or a copy of the contract if the work doesn’t require a permit.
It also must include:
- a statement of your intent to substantially remodel the property
- a statement informing the tenant that they have the right to re-rent the property for the same rate if the work is not completed
- a statement telling the tenant to inform you if they are interested in occupying the unit after renovation.
Does a Landlord Need to Give Tenants Relocation Assistance
California state law requires landlords to offer financial assistance to tenants in the event of a no-fault eviction. You can choose to offer one of the following:
- A direct payment to the tenant equal to one month of rent
- A waiver for the final month of rent
This is a state-level requirement, but some cities, including the City of Los Angeles, require you to provide the tenant with additional assistance.
Handling Tenant Responses and Legal Challenges with Eviction Lawyers
If all goes well, the tenant will comply with the notice and vacate before the notice period is up. If they do not, you may need to file an unlawful detainer lawsuit. Some tenants will challenge the eviction using arguments like these:
- You did not serve proper notice
- The renovations do not qualify as “substantial” under the law
- You are acting in bad faith
A person who wants to challenge the tenant eviction will file an Answer to the lawsuit, meaning they are ready to take the case to court. If this happens, the best course of action is to hire an experienced attorney to argue your defense for your landlord tenant case before a judge. Contact California Property Law Group to get the representation you need as the owner of the property.
CA Property Law Group’s Hand in Substantial Renovation Evictions
No matter where you are in the country, navigating evictions as a landlord can be extremely complex. In California — a state that arguably has some of the strongest tenant protections in the nation — it’s even more intricate.
Substantial renovation evictions are also some of the most heavily scrutinized in California. If you don’t comply with all regulations (even if the non-compliance is accidental), you can face significant penalties:
- You may owe treble damages to the tenant
- You may face criminal charges for wrongful eviction
- Local housing authorities may take enforcement actions against you
Because newer laws require you to show significant proof of your intent to renovate, it’s almost always in your best interests to work with eviction lawyers who have experience with substantial renovation evictions.
The attorney you choose should also be familiar with substantial renovation evictions in your area. Many cities, including Los Angeles, have tenant protections and rights that go beyond those offered by the state of California.
The California Property Law Group team of attorneys has extensive experience helping property owners like you navigate California’s complex real estate laws. While we’re ready to assist with any concern connected to real estate law, we have a special focus on unlawful detainer (eviction) actions.
We understand that when you need to evict a tenant, making sure you’re compliant with all state and local laws is of paramount importance. When you work with an eviction lawyer on our team, you can rest assured that you’ll avoid the financial and reputational costs of running afoul of California landlord-tenant law.
