Negotiating Buyouts

Negotiating a Buyout in an Owner Move-In, Ellis Eviction, Relative Move-in or Capital Improvement Eviction

Updated November 5, 2010

Researching Your Landlord

Before you negotiate a buyout, you need to know everything about the owners/relatives seeking to occupy your unit. You must do your research. See Proving Bad Faith in an Owner Move-in Eviction. You are not ready to negotiate until you know (1) where the owners live; (2) whom they have evicted previously; (3) what properties they own, and (4) what other tenants and neighbors have seen and heard. Listen carefully for inconsistencies in what the owners/relatives tell you. Once you have all the facts, you can begin to calculate your offer.

Calculating the Offer

One way to calculate your offer is to look at what you stand to lose if you are forced out. Look at comparable units. Determine how much it will cost you to find a similar apartment. Then, multiply the difference in rent by at least three years.

Another way to calculate your offer is to determine what the landlord will lose.

If Your Landlord is Evicting in Good Faith

If you believe your landlord intends to move into your unit and live there for three (3) years, then the landlord has the following to lose if they do not settle:

$5,000 per tenant for rent ordinance move out payment
$3,000 per child, tenant with disability, or tenant over age of 60 years
$10,000 to hire a law firm to draft an OMI eviction notice
Landlord must live in the property for three (3) years
If the landlord wants to re-rent the unit within the three (3) year window, they must first offer it back to the original tenants at the original rent, adjusted for allowable rent increases
If the landlord puts the unit back on the market in the three (3) year window without offering it to you, then you may have a claim against your landlord for wrongful eviction.

If Your Landlord is Evicting in Bad Faith

$5,000 per tenant for rent ordinance move out payment
$3,000 per child, tenant with disability, or tenant over age of 60 years
$10,000 to hire a law firm to draft an OMI eviction notice
$100,000 for rental restrictions on unit (based on an imputed unit value of $500,000 and a 30% down mortgage – represents decline in sales value and monthly debt service)
Risk of lawsuit against landlord if landlord fails to occupy for three (3) years
Potential limits on condo conversion if another no-fault eviction on the property, or if tenants are disabled or elderly.

Last updated by Eric on April 20, 2011.

POSTED: 09/2/10 5:08 PM
FILED AS: Buyout

Negotiating Buyouts

Negotiating a Buyout in an Owner Move-In, Ellis Eviction, Relative Move-in or Capital Improvement Eviction

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