Tenant Extortion? (Los Angeles: rentals, eviction, month-to-month)

[comptonjoe]

I have a house in Los Angeles with an illegal garage conversion. Three years ago a “friend” and I signed a one-year lease agreement which ended in 2007; the agreement then went month-to-month. In 1/2008, via email, we agreed to extend the agreement until 12/31/2008.

In November, I began inquiring 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.)

I realize that the agreement is invalid because the space is not permitted. However, what are my options here? If he doesn’t move, can I serve him with a 3-day eviction notice based on the fact that the lease is over? I did offer him a settlement which he agreed to and then changed his mind last minute. He keeps asking for more otherwise he will call the city. I believe that this is extortion and that he is trying to find a way to get a big cash payout, but I’m not sure what my rights are. Any ideas?

[Green Irish Eyes]

It wouldn't be this guy, would it?

[BennyPhoenix]

Extortion is a crime. Contact the police.

[Huckleberry3911948]

you will get in trouble. but so will he. see a lawyer asap. stop renting to people you do not know.

[bayarea-girl]

Nothing will happen to the tenant, even the other party knowing the place is illegal doesn't mean you have a case. The responsibility of you renting the place is your responsibility as a owner/landlord. You can't give anyone a 3 day notice unless they haven't paid you. It doesn't matter because your unit is illegal. You can serve he/she a 30 day notice (I would do 60 days notice) saying that you are no longer renting out the space due to it not being a legal unit and that you are giving so and so ample time to find another living situation. They have rules for this such matter so I would contact your local renter's board for more clarity in your area as to how you can handle the situation more appropriatley.

You could be asked to pay for moving expenses and or all of the money the tenant paid you from the beginning to now. If someone (previous/current tenant) finds out that you are renting the place after they move you can be in further trouble (especially if they has notified the authorities and you were fined and or asked not to rent the place). Make your unit legal or don't rent it out.

[Dirk Bonner]

Obey the law, and you will stay out of trouble.

[bhcompy]

Since it's not a legal unit you can probably just call the cops and tell them the person is trespassing. I doubt the rules that apply to legal rentals apply to illegal ones, because that would recognize illegal renting and be a little contradictory

[bayarea-girl]

bhcompy, that would be bad advice. Anyone with a key and access to a facility is not trespassing and can cause additional problems for the owner/landlord.

[JTGJR]

In my view, much of this depends on what you have in writing wrt the "extortion" or probably more appropriately, blackmail claim. If he can convincingly state that he didn't know it was an illegal conversion, then he can claim that when he did find out, he wanted to move and is demanding relocation expenses based on that claim. So that would really depend on how convincing the documentation you have that "attests" to his knowledge. Though I know nothing of rental law, my guess would be it makes little difference anyway. The fact that it is an illegal conversion probably outweighs his complicity.

So, as far as extortion is concerned, you would have to prove that he is not asking for relocation expenses but is, in fact, asking for a payoff to keep his mouth shut. This is more the definition of blackmail.

Trying to evict him is a non-starter. From what you've written, you don't have grounds to evict him and he could claim that you were retaliating when he asked for relocation expenses.

Basically, I think you're screwed unless he is truly trying to extort you. In which case, you can use that to arrive at a mutually agreeable compromise. Keep all correspondence and detailed records of your conversations. Then try to work things out with the guy and get the conversion permitted.

One definition of extortion: Unlawful exaction of money or property through intimidation or undue exercise of authority. It may include threats of physical harm, criminal prosecution, or public exposure. Some forms of threat, especially those made in writing, are occasionally singled out for separate statutory treatment as blackmail.

[katenik]

of course you can evict a tenant in an illegal unit. in fact, it is your duty. when the city authorities find out, that is the first thing they will demand you do.

if you serve him an eviction notice, he'll either move out, or try to fight the eviction. if he chooses the latter course, you'll end up in court, where he'll say you leased him an illegal unit, and you'll say he had knowledge of it from the outset and tried to extort money from you when you asked him to move out. the judge will decide which (if either) of you is less wrong, and rule accordingly as to whether you owe him moving expenses. either way, you'll be rid of him, because, as the unit is illegal, he can't continue living there!

you don't have to bring it up to code if you don't want to; you simply cannot offer it for lease anymore.

being fined by the city is a separate penalty, which, frankly, you deserve.