Many homeowners in Los Angeles, California rent out their house when a new job, a growing family, or a move closer to relatives takes them somewhere else. Plenty of them plan to come back someday. When that day arrives, many are surprised to learn that moving back into their own home now involves a city filing, relocation assistance, and a timeline measured in months.
Jesse Sasomsup, President and Broker of Earnest Homes, a Sherman Oaks-based property management company, walks owners through this process regularly. His advice is to understand the steps well before you need them, ideally before your first tenant ever moves in.
Before COVID, moving back in was fairly simple for owners whose properties were not rent controlled. “You could just give a 30-day notice,” Sasomsup says. “If the tenant had been there longer than a year, you gave them a 60-day notice.”
Today, owners generally need to pay relocation assistance and get approval from the city before asking a tenant to leave. The same applies when an owner wants to move in an immediate family member, such as a parent or child.
These rules also apply to existing tenancies, not only new ones. Sasomsup recently worked with an owner whose tenant had lived in the home since 2017. The lease was signed years before the current protections existed, but the owner still had to pay relocation assistance. “Our job is to help owners make a well-informed decision so they don’t make a mistake,” he says.
In one recent case, an owner told the Earnest Homes team in June that she planned to move back in October. She assumed three months’ notice would be enough. Under current Los Angeles Housing Department (LAHD) rules, the process looked like this:
Sasomsup says relocation assistance typically starts at one month’s rent and can be considerably higher depending on the property and the tenant’s situation. For this type of move-out, Earnest Homes usually brings in an attorney, who can also negotiate a buyout agreement with the tenant. Owners can handle the filing themselves, but each step has to be done correctly and in the right order. A missed notice can mean starting the process over.
The exact requirements depend on the type of property and can change over time, so owners should confirm the current steps with LAHD or an attorney before getting started.
“Sixty days is the minimum,” Sasomsup says. “If you’re sure you’re moving back, I would recommend 90.”
The extra time covers the city appointment, the filing, and the paperwork that all need to happen before the 60-day notice can be posted.
Owners who think they may come back should set up the rental with that in mind from day one.
Take care of preventive maintenance first. Fixing issues before a tenant moves in means fewer repair calls once the lease starts. Sasomsup recently advised clients with roofs older than 20 years to have them inspected ahead of the rainy season.
Match the lease to your plans. Sasomsup says most tenants stay two to three years. If you expect to return within a year, a standard long-term lease may not be the right fit. If you plan to be away for two or three years or more, the timing often lines up with a tenant’s natural move-out.
Review your taxes if you are leaving California. Owners who live out of state for more than two years should talk with a CPA about California Franchise Tax Board withholding on rental income.
Moving back into your home is still possible. It simply takes more planning than it used to. Owners weighing a return can reach the Earnest Homes team to talk through their timeline before taking the first step.
Earnest Homes is a Sherman Oaks-based property management company serving owners of single-family homes, condos, and apartment buildings across Los Angeles County, including the San Fernando Valley, the Westside, the South Bay, and Santa Clarita. Founded in 2015 and led by President and Broker Jesse Sasomsup, the company provides full-service leasing, maintenance, and day-to-day management for first-time landlords, out-of-state owners, and investors.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.
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