Tenant buyouts have becoming common practice in the Bay Area. A tenant buyout involves a negotiation in which a landlord exchanges money for a tenant’s agreement to voluntarily vacate their rental unit. The amount your tenancy is “worth” can vary wildly.
In cities like San Francisco Oakland and Berkeley a landlord has to have a “just cause” to evict a tenant. If you have rent control your rent may be much lower than what your apartment is worth. Landlords looking to sell their building or looking to get more rent have turned to offering tenants money to move out. Often times this is a bad deal for tenants in the long run no matter how much money your landlord is offering.
Because these negotiations can be complicated our office is here to help steer you through the process.
What Kind of Buyout Can I get?
How much you can get for a buyout of your apartment can vary wildly from a few thousand dollars well into the six figures. The price you arrive at will ultimately depend on strategy, needs and relative bargaining power. Each situation is different, and we will use our expertise to help guide you through the process.
Your landlord is almost certainly looking at this as a business decision. You should too. While your landlord will eventually recoup whatever costs they incur in a buyout later on – either by charging higher rent to a new tenant, or because they can sell the property at a higher price, the money you get is finite.
Before you jump at a buyout consider these questions:
Where will you move?
If you’re staying in San Francisco, you can expect your rent to be much higher if you’re moving out of a low-rent apartment. Are you going to just be handing over the money you get in a buyout to another landlord? If you’re moving out of the Bay Area then your money will of course go farther.
What are the risks?
Does your landlord have other ways to force you to move out if you don’t negotiate a deal, such as an owner move in eviction or Ellis Eviction? While threats of these “no fault” evictions are common in buyout negotiations, it can be difficult to know when or if your landlord is bluffing – and in certain circumstances you may never know. However, by evaluating your options and your comfort with risk you may be able to get a better handle on what you are or aren’t comfortable with and whether or not it makes sense to test the waters in negotiating a buyout.
What are you prepared to do if a deal can’t be reached?
What happens if you don’t get the number you feel you deserve? Are you prepared to defend an eviction lawsuit if one is filed or will you likely move out all the same? Are you prepared / happy staying put? An understanding of what you’re prepared to do is crucial going into any negotiation. We can help you come up with the best strategy to fit your needs.
Our office has successfully negotiated buyouts for hundreds of Bay Area tenants. If you are going to negotiate a buyout having an experienced attorney by your side can be extremely helpful. Because our office cares about keeping tenants in their homes, we want to be sure that you consider your options thoroughly before you decide to agree to move out. To set up a free consultation to discuss your buyout options contact us today.
San Francisco: Rent Ordinance Guidelines on Buyouts
In March 2015 the San Francisco Rent Ordinance was amended to include a new section, 37.9E governing buyout negotiations. The new law includes the following requirements among others:
- Landlords must provide tenants with a written disclosure form created by the San Francisco Rent Board before he or she can even talk to you about a buyout.
- Provides tenants with 45 days to rescind any written buyout agreement
- Landlords must file and register buyouts with the SF Rent Board. A catalogue of recorded buyouts is available for review at the Rent Board’s offices (25 Van Ness Avenue)
- As with “no fault evictions” Buyouts can impact a landlord’s ability to convert a building into condos. More information about the requirements of this disclosure can be found on the Rent Board website: here.
My husband and I are ever so grateful to Daniel and his staff. We had a pretty nuanced and unusual (as per Daniel) buyout situation that stretched out over the span of a year. Daniel always fought for us and encouraged us to have high standards and not settle for less. As a result, we turned down the highest buyout offer we received and consequently were able to stay in our apartment through a change in ownership--a very happy ending indeed. Because we'd signed a contract with Daniel that he'd get paid a percentage of the settlement, and we never settled, we actually never paid him a dime...and yet, he and his staff were generously available and communicative with us on a regular basis over the course of that year. I HIGHLY recommend him for all your tenancy issues.
Daniel helped my wife and I negotiate a favorable buyout from a rental where we had rent control. He knew the laws like the back of his hand and advised us of our options accordingly. He was easy to get a hold of both via email or phone if any questions came up.
Daniel was truly looking out for our best interest and we would highly recommend him to any tenants who are dealing with issues with their living situation.
Daniel is solid and honest. He began our first interview by explaining that we could also negotiate on our own if we preferred not to hire him - but we were happy to have worked with him, and you will be too. You will find him responsive, thorough, and very professional.
I cannot recommend Daniel Wayne enough. My roommates and I just finished a buyout negotiation with our landlord and Daniel was instrumental in getting the outcome that we did. We couldn't have been as successful without him.
Daniel is intelligent, professional, and is also really down to earth. He makes a stressful situation easier to manage, is personable, and very easy to work with. Daniel is super knowledgeable about landlord/tenant law and explained it to us in an easy to understand way as it pertained to our situation. Throughout the process he did a great job of explaining our options and described the benefits and risks about each one. We had a lot of questions along the way and Daniel was always quick to respond and answered them fully. Piper, Daniel's Office Manager, was very helpful as well. Each time my roommates and I had to make a decision in the process, we were informed and educated, which was awesome.
Daniel is a master negotiator and has great recommendations on when to push and when to ease off. He really cares about tenants and that is totally apparent when working with him, I could tell that he was fighting for our best interest the entire time.
My roommates and I were considering doing the negotiation on our own. That would have been a big mistake. Daniel knows nuances that really benefit you, things that you and I don't know about because we're not tenant lawyers and he is, and he is a good one. If you're considering doing any kind of negotiation with your landlord on your own, seriously don't do it and go with Daniel.
100/10 would go with Daniel if I had landlord issues in the future.