Re: Landlord/Tenant Issue Illegal Garage Conversion

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On 12/26/08, Ed wrote:
> I have a house in Los Angeles with an illegal garage
> conversion. Three years ago, a "friend" of mine began
> renting the conversion from me. We signed a one-year lease
> agreement which ended in 6/2007; the agreement then went
> month-to-month. In 1/2008, via email, we extended the
> agreement until 12/31/2008.
>
> Beginning in 8/2008, the tenant began to get squirmy
> everytime I brought up that the lease was coming due at
the
> end of the year - he did however, via email, acknowledge
> that he was leaving 12/31/2008. Around November, I began
> enquiring as to what his plans were and he began to avoid
> me. Then mid-December, when I finally got him to tell me
> what was going on, he told me that unless I paid him a
huge
> sum of money, he wasn't going to move out and that he was
> going to report me to the city. Not only would I have to
> pay him relocation fees, but I would also get fined and
> would have to pay to have the conversion brought up to
> code. A caveat here: he is a licensed contractor who moved
> into the space knowing that it was not permitted - I have
> emails attesting to his knowledge. (I also have copies of
> his rent checks.)
>
> Not sure where to go from here. On 1/1/09, should I serve
> him with a 3-day eviction notice based on the fact that
the
> lease is over? Does the fact that we exchanged emails in
> January stating and acknowledging that the lease is over
on
> 12/31/2008 constitute notification? The tenant feels that
> he is due relocation fees under the Ellis act (rent
> stabilization), but technically, since the unit isn't
> legal, is the rental agreement legal?
>
> If I go the route of evicting him because the unit is not
> permitted (and either he or I notify the city), the
> questions become: 1. Will I have to pay him relocation
> fees? 2. How much time does the city make me give him
> before he has to move out? 3. If he does sue me, am I
> liable to pay him anything since he moved into the space
> knowing that it was not permitted?
>
> Any input or ideas would be MUCH appreciated. Thank you!

You both have unclean hands. The courts will not likely
assist either of you. I doubt that either of you has a
cause of action against the other person in a civil court,
but the city may fine you. The city won't fine him. The
question is; "Who has the most to lose"? It looks like you
do.

I bet the fine you may face is less than this guy's
extortion demand. Paying extortion or blackmail will just
lead you further into a bad situation. Advice? Cut your
losses.