How To Tell A Tenant They Can’t Move-In

How To Tell A Tenant They Can’t Move-In

Learning how to tell a tenant they can’t move in saves landlords time during a difficult situation. Find out when such situations occur and how to deal with them.

KEY TAKEAWAYS

• Learn what circumstances create a situation where the landlord decides not to let the tenant occupy.
• How a landlord decides not to let a new tenant move-in differs when a lease agreement is signed or not.
• When a landlord decides to move in or lets a close relative move in and notifies a new tenant before occupancy.
• Situations where a landlord can legally reject a new tenant’s application before moving in.
• Learn what legal liabilities a landlord faces for illegally barring a new tenant from occupancy.
• Learn how to write a rental application denial letter.

 

When Landlords Can Tell A Tenant They Can’t Move-In

 

No Signed Lease Agreement

 

Under California law, before moving in, tenants’ only protection is the written lease agreement. If the landlord and tenant did not sign a written lease agreement the landlord can tell a tenant they can’t move in.

What circumstances create a situation where the landlord decides not to let the tenant occupy? Here are some reasons:

• Another tenant offered to pay a higher rent;
• A relative of the owner asked to move into the unit;
• A friend of the owner wants to rent the unit;
• The landlord decides to take the rental unit off the market; or
• The landlord decides to demolish or do a major renovation of the unit.

 

When a Lease Agreement is Signed but the Tenant hasn’t Moved In

 

Certain circumstances allow the landlord to prevent the new tenant from moving in. One of them is the owner or a relative deciding to move into the rental unit.

 

Occupancy by the Owner or the Owner’s Relative of the Unit as a Primary Residence

 

If the signed lease agreement contains a clause allowing the landlord to evict a tenant to allow the owner or a close relative to occupy the unit for at least 36 months.

Even without this clause, California eviction laws allow an eviction for the owner or close relative occupancy for at least 36 months under certain conditions. California law firm, Bornstein Law, explains this eviction process and which relatives qualify including:

• The owner’s spouse;
• A domestic partner;
• Owner’s children;
• Owner’s parents; and
• The owner’s grandchildren.

 

Tenant’s Bad Acts Before Moving In

 

Landlords often rely on what tenants state on their rental applications. Yet, bad acts by the tenant before moving in can allow a landlord to prevent the occupation. Here are some bad acts by a tenant.

• Lies: The tenant lied on the application. For instance, the tenant lied about having a steady job or the amount earned to qualify for the rental;
• Bounced check: If the tenant’s first and last month’s rent or security deposit check bounces;
• The applicant is illegally breaking the lease with the current landlord: This shows an unreliable tenant who will cause problems;
• False loan application documents: For example, a tenant provides an altered credit report showing a higher credit score to qualify;
• Fake pay stubs: Tenants have been known to provide copies of fake or altered pay stubs showing a higher income;
• Fake reference letters: Landlords should always contact tenant references to verify their recommendations. Sometimes, tenants provide forged reference signatures on recommendation letters written by the tenant;
• Potential violation of no-smoking policy: You find out that the new tenant is a chain smoker; and
• Violation of No Pets Policy: You discover the tenant intends to move in with a pet in violation of the no pets policy in the lease agreement. You contact your tenant who states the pet will move in any way.

Note: An exception exists in California allowing emotional support animals to move in. Learn about his exception in our post titled: “Must San Diego Landlords Allow Emotional Support Animals?”. This blog post describes the federal laws, California state law, and San Diego ordinances about emotional support animals.

 

Liability for Illegally Barring a Tenant from Occupancy

 

Housing Discrimination

 

A tenant can claim the landlord violated the Fair Housing Act which ensures equal access to housing for renters without discrimination from landlords.

The Federal Fair Housing Act of 1968 requires fair housing practices across the U.S. The law protects tenants from discrimination based on protected classes.

Other laws protecting tenants include:

• Americans with Disabilities Act;
• Civil Rights Act of 1968;
• Equal Credit Opportunity Act (ECOA); and
• The 14th Amendment of the U.S. Constitution.

 

Under the above-mentioned laws, the protected classes include:

• Age;
• Color;
• Disability;
• Familial status;
• Gender and gender identity;
• Marital status;
• National origin;
• Race;
• Religion; and
• Sex and sexual orientation

 

California Fair Housing Laws

 

Like all the 50 states, California has its fair housing laws.

Read our post titled: “California Fair Housing Laws”. You will learn everything you need to know as a landlord and a tenant.

 

Breach of Contract

 

If you find out about lies or other bad acts committed by your tenant after the lease agreement was signed you must avoid a claim for breach of contract.

Breach of contract is defined by Investopedia as a violation of the conditions and terms of a legally binding contract.

The new tenant can claim a landlord breached the lease agreement by preventing occupancy. The tenant can file a lawsuit seeking monetary damages and a court order requiring occupancy.

Avoid a breach of contract claim by claiming the new tenant lied in the application resulting in a lease created by fraud. Concealing material facts or misrepresentation is ground for declaring the lease agreement void and unenforceable.

 

How to Write a Rental Application Denial Letter

 

It’s never easy to give bad news to tenants. As a landlord, when you have to deny occupancy to a prior approved tenant it should be in writing. A well-written rental application denial letter protects you from legal liability.

 

 

The reasons for denying a rental application or occupancy from an approved tenant must provide legal facts.

If you accuse a person of lying you must back it up with proof. Laws exist allowing people to sue for defamation, libel, and slander. Yet, truth is a defense for all these legal claims. So, provide the documents you found showing the lies.

For example, if you can get one of the tenant’s references or an employer to claim the tenant lied or exaggerated income it will support your denial.

All it takes is one lie. You don’t have to prove every lie. Just one will do.

The Fair Credit Reporting Act (FCRA) requires landlords to give the tenant an application denial letter based on any consumer reports. For example, the credit score I lower than what the tenant claimed. Or, a background check or prior eviction report caused you to reconsider and reject the tenant application.

Although the FCRA allows an application denial delivered orally, you must put it in writing to protect yourself from a claim that the tenant never received the notice.

The FCRA requires the following information in the denial letters:

• Reporting agency’s name, address, and phone number that provided the report;
• A statement that the denial was not made by the reporting agency as it was made by the landlord based on the report;
• A statement that the applicant can dispute the report’s accuracy or completeness; and
• Disclosing the applicant has the right to get a free copy of the report from the company within 60 days.

 

How To Tell A Tenant They Can’t Move In – Conclusion

 

Our post: “How To Tell A Tenant They Can’t Move In” explains the following landlord situations:

• What circumstances arise causing a landlord not to let a new tenant move-in;
• How to notify a new tenant not to move in before or after a lease agreement is signed;
• When the landlord or a close relative wants to move into the rental unit before a new tenant occupies;
• Legal reasons allowing a landlord to reject a new tenant’s application before moving in;
• Legal liabilities a landlord faces for illegally preventing a new tenant from occupying; and
• What to include in a written notice of rental application denial.

 

Need Professional Property Management Services in San Diego?

 

 

Now that you learned about the pitfalls and liabilities you as a landlord may face when renting to new tenants in San Diego County. You can avoid them by hiring a professional property management company.

WeLease Property Management Company offers experienced property managers to handle all your rental needs. Whether you own single-family rental homes, a duplex or a fourplex, or a large apartment building/complex in San Diego County, we can help.

Contact us to learn more about how our property management service saves you time, money, and stress. Enjoy the fruits of life while we take care of your housing rentals.

 

 

Steven Rich, MBA – Guest Blogger

 

 

 

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