Dear Valued Clients,

I hope this letter finds you all in good health and good spirits.  As we close this eventful year of 2005, we would like to update you on some new legislation that affects Landlord/Tenant issues.  Some of these changes will benefit you and others will not.

30/60 DAY NOTICE TO QUIT / CHANGES TO CODE OF CIVIL PROCEDURE–SECTION 1161(1)

As most of you know since 2004, if a tenant resided in the property for over a year, you were required to serve a 60 Day Notice to Quit.  If the tenant resided in the property less than a year, you were only required to serve a 30 Day Notice to Quit pursuant to Code of Civil procedure 116(1) by reference to Civil Code Section 1946.

As of January 1, 2006 the rule for giving a 60-Day Notice has changed.  If you have a month-to-month rental agreement and the tenant has lived in the property for over a year, you are no longer required to serve a 60-Day Notice to Quit and you can go forward on a 30-Day Notice to Quit.  (This however, does not apply to properties located in Los Angeles County.)

MANDATORY COURT FILING FEE INCREASES

Unfortunately, as of January 1, 2006,the Superior Courts of California will be increasing their Unlawful Detainer filing fees.  We initially were informed that all of the Courts in the State of California would streamline their fees and we have been trying to get an exact amount of the increase, but each court is informing us of a different amount.  Generally, each court is increasing approximately $50.00, so we must raise our prices to cover this unfortunate increase.  We will keep you informed of the fee increase before the new year.

CHANGES IN THE BANKRUPTCY LAW REGARDING MOTIONS FOR RELIEF FROM STAY

Many of you know that Congress revised the Bankruptcy Abuse and Consumer Act of 2005 with many provisions that went into effect as of 10/17/05.  The new bankruptcy law allows the landlord to continue an eviction without seeking relief from the automatic stay if there has been a judgement for possession entered before the tenant filed for bankruptcy protection.  Basically, what this means is that once judgement is entered, your tenant cannot file bankruptcy as in the past.  Also, most bankruptcy courts have streamlined the procedure for filing so it is more difficult and expensive for the tenants to file.

COMMERCIAL LANDLORDS CANNOT USE THE SECURITY DEPOSIT TO PAY FOR FUTURE RENT

A recent Court of Appeal decision states that a landlord cannot use a security deposit to offset future rent owed if the tenant breaches the written rental/lease agreement.

LANDLORDS EXCULPATORY CLAUSES RE: MOLD

A recent Court of Appeal decision states that a landlord must include a mold disclosure notice in all leases and may not escape liability for any mold related problem(s) even if the the tenant signs a waiver for any claims involving mold.

SECTION 8 NOTICE OF TERMINATION WITHOUT CAUSE

The California Superior Court has finally decided that a Section 8 tenant must be given a 90-Day Notice to Quit when the eviction is without cause.  The rules for 3/30 day notices for cause still apply.

LEGAL AID MAY BE RETAINED BY YOUR TENANTS

Legal Aid has been sitting in and soliciting in most major courtrooms.  Legal Aid funding comes from our taxes, therefore, landlords must begin writing letters to our state and federal lawmakers.  This soliciting is causing the eviction to be delayed by 20 to 25 days and could possibly cause you to incur an additional $150.00 or more in attorney fees.

Sincerely,

Fast Eviction Service