Guidance on Terminating Tenancies

Federal, state, and local laws govern the proper procedures for terminating tenancies, whether under a lease agreement or on a month-to-month basis. Failing to follow these regulations can result in serious legal consequences. To avoid such complications, it’s important to consult with an experienced lawyer.

At Wallace, Richardson, Sontag & Le, LLP, we bring over 40 years of experience in representing landlords and property managers. Having handled thousands of evictions, we are well-versed in the complexities of properly terminating a tenancy. Contact us today to learn how our California lease termination lawyers can support you through the lease termination process.

Understanding Notice Requirements for Terminating Tenancies

When a landlord seeks to terminate a tenancy, strict adherence to legal procedures and requirements is crucial. The preparation and service of a lease termination notice must be done correctly. As the saying goes, “A landlord rises and falls on its notice.” If the notice is executed and served properly, the termination process typically proceeds smoothly. However, if the notice fails to meet legal standards, the landlord may be forced to restart the eviction process.

The consequences of a failed eviction can extend beyond delays and lost rent—it may result in the landlord being held responsible for the tenant’s attorney fees and costs. To avoid these risks, it is essential to have an experienced landlord-tenant attorney review or draft any notices or communications served on tenants.

Three-Day Notice to Pay Rent or Quit

If a tenant fails to pay rent on time, a landlord is generally entitled to serve the tenant with a three-day notice to pay rent or quit. The notice must be in writing and describe the premises in question with reasonable certainty. The street address, unit number, city, state and zip code are generally sufficient. For residential tenancies, a notice must state no more than the amount of rent due; and it must be served after the stated amount becomes due. For commercial tenancies, the landlord is entitled to estimate the amount of rent due.

The notice must include the name, telephone number and address of the person to whom the rent payment is to be made. If payment may be made personally, the notice must also state the usual days and hours the specified person will be available to receive the payments.

Alternatively, the notice may state: (a) the name and address of a financial institution, and the account number at the institution, where the rent may be paid, provided it is within five miles of the rental property; or (b) that payment may be made pursuant to a previously-established electronic funds transfer procedure. The notice may be served “at any time within one year after the rent becomes due.”

If the tenant fails to pay the rent within three days after service of the notice, excluding Saturdays, Sunday and other judicial holidays, the landlord generally has the right to file an unlawful detainer (eviction) action. The notice period begins to run the day after service is made.

In some situations, the lease or the law may require the landlord to provide the tenant with more than three-days notice and/or comply with other requirements.

Three-Day Notice to Perform Covenant or Quit

For any material breaches of the lease other than non-payment of rent, a landlord is generally entitled to serve the tenant with a three-day notice to perform covenant or quit. If the tenant fails to cure the breach within three days after service of the notice, excluding Saturdays, Sundays and other judicial holidays, the landlord generally may commence unlawful detainer proceedings. In some situations, the lease or law may require the landlord to provide the tenant with more than three-days notice or comply with other requirements. Such requirements may include restricting the types of lease violations that are grounds for termination and requiring service of additional notices.

For certain “non-curable breaches”, a landlord may have the right to terminate the tenancy by serving a three-day notice to quit, which does not give the tenant an opportunity to cure the breach. Examples of breaches that are generally considered non-curable include nuisance, waste (i.e. damage to the premises), using the premises for an unlawful purpose, or assignment or subletting in violation of the terms and conditions of the lease. However, depending on the circumstances, state or local law may provide otherwise.

30/60 Day Notice of Termination of Tenancy

Generally, a month-to-month tenancy may be terminated by serving a written notice of termination of tenancy. Residential tenants who have been living in their units for less than one year are entitled to at least 30 days’ notice of termination. Residential tenants who have been living in their units for one year or more are entitled to at least 60 days’ notice of termination. The tenant, on the other hand, may terminate the tenancy on notice at least as long as the periodic term. For example, a tenant may terminate a month-to-month tenancy by giving 30 days’ notice of intent to vacate.

Unless a tenancy is subject to law requiring just cause or a legal reason to terminate the tenancy, landlords need not state a reason for serving a notice. In such a case, a notice to terminate may be served for any reason or no reason at all. However, tenants are protected against evictions motivated out of desire to retaliate against the tenant for the exercise of protected tenant rights.

If a tenancy is subject to a law requiring just cause or a legal reason to terminate the tenancy, such as the California Tenant Protection Act or a local rent control or just cause for eviction ordinance, then the landlord will need a legal reason for terminating the tenancy, as specified in the applicable law. Also, the law may require the landlord to comply with additional requirements to terminate a tenancy.

90 Day Notice of Termination of Tenancy

A residential tenant whose rent is subsidized under the Housing and Urban Development (HUD) Section 8 Housing Choice Voucher program must be given at least 90 days’ notice of termination of tenancy. The notice must state good cause to terminate the tenancy under federal law and a copy of the notice must be served on the local Housing Authority at the time it is served on the tenant. Also, the tenant must be served with documents relating to the Violence Against Women Act (VAWA), which is a federal law protecting victims of domestic violence, dating violence, sexual assault and stalking.

California Tenant Protection Act

The California Tenant Protection Act (AB 1482), enacted in 2019, includes two components: rent caps and just cause eviction requirements. The law applies to most residential properties that are more than 15 years old, with certain exemptions, such as single family homes not owned by corporations or real estate investments trusts, provided a required disclosure is included in the lease.

When it applies, this law limits annual rent increases to 5% plus the local rate of inflation, with a maximum cap of 10%. This law also requires landlords to have just cause to terminate a tenancy after the first 12 months. Acceptable just causes include nonpayment of rent, material lease violations, or the landlord’s intent to occupy or make substantial renovations to the property. When a tenancy is terminated for a no-fault reason (e.g., owner move-in, substantial renovations, or compliance with government orders), a landlord is generally required to provide the tenant with relocation assistance, which can be provided as a direct payment to the tenant or as a rent waiver. The amount of the relocation assistance is equivalent to one month’s rent.

Local Ordinances and Tenant Rights

While state law offers substantial protections for tenants, it’s important to recognize that local ordinances may provide additional rights that go beyond state requirements.

In certain jurisdictions, landlords may be required to demonstrate just cause before terminating a tenancy, which can complicate the process, especially if you are unfamiliar with local rules and regulations. Our firm is equipped to advise you on how municipal codes may affect your rights when termination of tenancy becomes necessary. Contact a lawyer from our firm today to learn more.

Ensuring Proper Service of Notices

For the termination of tenancy to be lawful, landlords must provide formal notice to the tenant about the impending proceedings. It’s not enough to simply complete the correct document; the notice must also be served in compliance with California law.

There are several methods available for serving these notices. Typically, notices can be delivered via:

1. Personal Service: Directly handing a copy to the tenant.
2. Substitute Service: If the tenant is not home, the notice can be left with a person of suitable age and discretion at the tenant’s residence or place of business, with a copy also mailed to the tenant.
3. Posting and Mailing: If the tenant’s location is unknown or no suitable person can be found, the notice can be posted in a conspicuous place on the property, mailed to the tenant, and delivered to anyone residing there if possible.

Certain types of notices may have additional requirements or service options. Given the complexity of these procedures, it is highly recommended to consult legal counsel to ensure everything is handled correctly. Mistakes during this process can lead to significant delays in eviction proceedings.

Let A Lawyer From Wallace, Richardson, Sontag & Le, LLP Assist You

At Wallace, Richardson, Sontag & Le, LLP, our attorneys bring decades of experience in handling thousands of evictions for landlords and property managers. With a deep understanding of the laws surrounding lease terminations, we are fully equipped to apply our expertise to your case. Contact us today to discuss your options with a knowledgeable California lease termination lawyer and ensure that your interests are protected throughout the process.