Avoiding the Headaches of an Eviction Process
No landlord looks forward to evicting a tenant – that’s why plan A is always for the landlord and tenant to part ways voluntarily. One potential way to avoid the eviction process is by creating a voluntary vacate agreement. This is when you and the tenant work out an agreement where the tenant moves out and saves you both from having to go through the eviction process.
Understanding Voluntary Vacate Agreements
Voluntary vacate agreements are less formal than evictions, but there is still a legal framework. A voluntary vacate agreement must be signed by both parties, and the compensation you offer as an incentive may be regulated by local laws. For example, in Santa Monica, the city code sets minimum compensation for tenants willing to vacate.
CONTACT USOffering Cash for Keys
The most common type of voluntary vacate agreement is a “cash for keys” agreement. This is where the landlord effectively buys a tenant out of their lease. In LA County, voluntary vacate agreements are more tightly regulated than they are elsewhere in the state.
For instance, in Santa Monica, you can’t simply select an arbitrary amount of money and offer it to the tenant. You must offer the tenant relocation assistance as outlined in the Santa Monica Municipal Code. As of July 1, 2024, you must offer at least this much based on a standard tenancy:
- Single: $19,100 – ($19,950 if the household includes a senior/minor/disabled person)
- One Bedroom: $26,350 – ($28,100 if the household includes a senior/minor/disabled person)
- Two or More Bedrooms: $36,600 – ($39,00 if the household includes a senior/minor/disabled person)
As the example above shows, certain tenants may be entitled to higher relocation amounts. Depending on the location of the property, those tenants include:
- Seniors
- People with children
- People with disabilities
- People with terminal illnesses
- Lower-income tenants
Offering enough relocation assistance is important, but it’s only one of the many requirements for voluntary vacate agreements in the County of Los Angeles. Violating any of the laws surrounding voluntary vacate agreements can cause significant legal issues.
Requirements surrounding these agreements can vary substantially depending on your county and city. To avoid legal challenges, you should ask a local, experienced attorney to draft your voluntary vacate agreement for you — or, at the very least, to look over the agreement you already have.
The Voluntary Vacate Agreement Checklist for Landlords
Before you start drafting your voluntary vacate agreement, you should have a general understanding of how the process works. While there are many steps involved, the highly detailed process is designed to both protect tenants’ rights and your best interests under the law. The process for unincorporated Los Angeles County is instructive:
1. Give the Tenant a Disclosure Notice and Your Initial Offer
In order to prevent landlords from trying to rush tenants into decisions, Los Angeles requires you to serve the tenant with a Disclosure Notice at least 45 days before the signing. You also must include a copy of the buyout agreement itself.
You must make sure that the Disclosure Notice and the official buyout agreement are both in the tenant’s primary language. If they aren’t, you are responsible for having them translated.
2. Sign the Agreement With Your Tenant
If the tenant agrees, you both can sign the buyout agreement. This agreement must include specific language provided by the County of Los Angeles Department of Consumer and Business Affairs (DCBA) detailing the tenant’s rights.
3. Provide Copies to the Tenant and the local housing authority
Once you both have signed the agreement, you have 10 days to give the tenant a signed copy of the agreement. Within that same 10 days, you also must provide the following to the DCBA:
- A copy of the Tenant Buyout Agreement signed by you and the tenant
- The completed Disclosure Notice
- A copy of the proof of service that shows the tenant received the Disclosure Notice
It seems like the process is completed at this point — and it may be. However, under city law, the tenant has up to 45 days after the date of signing to rescind the agreement.
This only applies in unincorporated portions of Los Angeles County – for other cities/municipalities, the rules are certain to be different.
Benefits of Voluntary Vacate Agreements for Landlords
If you’ve ever had to formally evict a tenant, you already know just how beneficial avoiding that process can be. For landlords, voluntary vacate agreements come with a number of advantages:
- You are free to rent the property to a new tenant and/or raise the rent
- You can easily sell the property
- You can make renovations
- You can get rid of a difficult or problematic tenant
- You don’t have to pay filing fees and other eviction-related expenses
The faster process means you can re-rent the property sooner.
Voluntary vacate agreements are usually beneficial for tenants, too. If a tenant is evicted from a property, the eviction may become public record and impact their ability to secure alternative housing.If you offer some kind of incentive to leave (like waiving rent), some tenants will see the advantages and accept.
In many cases, it may be more financially advantageous for you to offer a cash-for-keys agreement rather than pursuing an eviction.
The Role of a CA Property Law Group in Voluntary Vacate Agreements
Evictions and voluntary vacate agreements are just one aspect of landlord-tenant law. Given the highly specific regulations and requirements surrounding voluntary vacate agreements, you shouldn’t automatically assume every landlord-tenant lawyer has the knowledge and experience needed to help you navigate this process.
The right law office can do more than simply draft a voluntary vacate agreement for you to use. It can also do the following:
- Help you understand how and when to serve a Disclosure Notice
- Ensure your voluntary vacate agreement meets all state and local requirements
- Explain the waiting periods involved in the process
- Offer tips on encouraging tenants to accept the agreement
- Handle notifying the local housing authority when needed
Before agreeing to work with any given firm, you should verify that it has experience with voluntary vacate agreements in your specific area. Taking a little time to investigate any law office you’re considering may save you significant money and time in the long run.
Why Choose an Eviction Lawyer Specialized in Landlord-Tenant Relations?
The attorneys at CA Property Law Group are committed to protecting the rights and interests of landlords in Los Angeles County, San Bernardino County, Ventura County, and Orange County. Southern California eviction law is very tenant-friendly, so we’re here to advocate for your rights while ensuring you don’t accidentally violate the rights of your tenants.
While we assist our clients in all areas of landlord-tenant law, we primarily focus on evictions and related issues like voluntary vacate agreements. We’re up to date on state and local laws, and our attention to detail is unmatched.
The Process of Drafting a Voluntary Vacate Agreement
In Los Angeles, landlords must follow exacting standards when it comes to drafting voluntary vacate agreements. By way of example, LA County Code requires you to include exact statements that communicate the following to the tenant:
- They can cancel the agreement in writing up to 45 days after all parties have signed
- They have the right to not enter into the agreement
- They have the right to consult a lawyer before signing
The County of Los Angeles Department of Consumer and Business Affairs (DCBA) may offer more information on buyouts
The importance of meeting city requirements concerning advance notice, the amount of money offered, and the specific language included cannot be overstated. Los Angeles takes these requirements seriously, and if your buyout agreement doesn’t meet them, it may be legally unenforceable against the tenant.
Terms to Include in a Voluntary Vacate Agreement
Los Angeles does not offer a standard voluntary vacate agreement or template, so you are responsible for crafting your agreement and ensuring it clearly outlines the terms of the contract.
When in doubt, you should always err on the side of providing more detail. The clearer and more specific the language, the lesser the chance it will be misinterpreted. You should ensure the agreement includes at least the following:
- The tenant’s name and contact details
- Your name and contact details
- The name and address of the rental property
- The date the tenant agrees to voluntarily move out
- The exact amount of money you’re offering the tenant to leave
- How the money will be paid
- What will be done about any past-due rent
- The condition the tenant must leave the property in
- A statement that you release one another from any legal claims once the tenant has left the property
Between including all necessary terms of the agreement and making sure you meet all of the city’s disclosure requirements, it’s easy to forget something — especially if you’ve never created a cash-for-keys agreement before.
Landlord-tenant lawyers have extensive experience with situations like this, and the right attorney can create a detailed agreement.
Ensuring Tenant Understanding and Compliance to Avoid an Eviction
In Los Angeles (and in some other localities), a tenant has the right to back out of a signed voluntary vacate agreement for a certain period of time. That makes creating future plans a challenge.
You might want to start renovating as soon as possible — but if you schedule a contractor now, you may have to cancel if your tenant backs out of the agreement.
While there’s no way to guarantee your tenants will comply with the agreement, you can maximize your chances of a favorable outcome when you take the following steps.
Explain All Documents and Answer Questions
For some tenants, discussing their rental situation with their landlord can be intimidating. They may not ask questions even though they have them. Even though tenants may consult an attorney before signing a voluntary vacate agreement, not all of them have the resources to do so.
Helping your tenant understand the document can reduce your chances of running into problems. If possible, consider going over the agreement and what it means when you first serve the Disclosure Notice. You should also give the tenant the chance to ask any questions they have.
Don’t Pay Until the Tenant Has Vacated
The money you’ve offered your tenant is their main incentive to vacate the property. If you hand over the money before the tenant hands in their keys, you lose the one form of leverage you had. You should always wait until the tenant has moved out and left the property in good condition before sending any payment.
The Importance of a Solid Voluntary Vacate Agreement to Comply with Eviction Law in California
When done correctly, a voluntary vacate agreement is a win-win for you and your tenant. The tenant receives financial compensation and avoids the damaging effect of eviction on their rental history, and you gain access to the property without having to go through the eviction process.
Putting together a voluntary vacate agreement on your own can be overwhelming, and even small mistakes can prove to be disastrous. However, the right attorney can help you make the process as efficient and painless as possible.
