Renting out a garage unit without following building codes? Los Angeles landlords beware of this costly mistake
This big mistake could cost you thousands and thousands of dollars.
You've just bought a home or property with a garage in Los Angeles. You decide that the garage would make a perfect studio to rent out for extra money. You then spend thousands of dollars renovating the garage into a studio apartment and list the rental on Craigslist and other websites.
A tenant moves in and you start collecting the rent and enjoying the steady stream of income. Sounds like a success, right? WRONG.
In Los Angeles, many properties have garages that were illegally converted in violation of city building and zoning codes. In many of these situations, the tenant is protected under the Los Angeles Rent Control ordinance. The City will likely order you to evict the tenant and return the garage (or other unpermitted space) back to its original condition. But you don't get to evict the tenant until you've paid them relocation assistance.
Relocation assistance varies depending on the number of people in the unit, their income, etc. but will cost the property owner between $7,800 to $19,500, plus potentially thousands more in legal fees, construction fees, city fines etc.
Tenants should be aware of this as well, because they could be eligible for relocation assistance if this happens. In either case, an experienced attorney dealing with landlord-tenant matters will be able to help you.
Kellan Martz Law understands relocation assistance matters in the Los Angeles area and is ready to help you. Call for a free consultation today at 323-522-4440 or email at firstname.lastname@example.org.