Can a New Duplex Owner Terminate Month-to-Month Tenants in the City of Sacramento?

I recently spoke with an aspiring real estate investor who was considering purchasing a duplex in Midtown Sacramento. Both units were occupied by long-term tenants (long term = occupied the unit for more than one year) on month-to-month rental agreements. His plan sounded pretty straightforward: purchase the property, give the existing tenants notice, furnish the units and operate them as short-term rentals. Interesting idea. But there was an important wrinkle: Just because a tenant is month-to-month doesn't necessarily mean a new owner can simply give them notice and ask them to leave.

Buying the property doesn't eliminate or void the existing tenancy. And this is an especially important consideration when purchasing an occupied multi-family duplex, triplex or fourplex within the City of Sacramento due to their Tenant Protection Program. 

Buyers naturally spend a lot of time analyzing the real estate itself. What is the condition of the roof? How old is the HVAC? What are the operating expenses? Does the property need updating? But with an occupied investment property, the tenants and their tenure in the unit are every bit as important. I sometimes put it this way: you're not just buying the building. You're also buying the existing tenancies. And those tenancies can directly affect what you're able to do with the property after closing. 

But what if the tenants are month-to-month? This is where investors can get tripped up. It's easy to hear "month-to-month" and assume that means the tenancy can simply be terminated with appropriate notice. But rental units covered by the City of Sacramento's Tenant Protection Program can have just-cause eviction protections once a tenant has occupied the property for more than 12 months. In other words, the expiration of an original lease and conversion to a month-to-month rental agreement doesn't necessarily eliminate the tenant's protections. 

A landlord generally needs a legally recognized "just cause" to terminate a protected tenancy. Some qualifying "just cause" reasons involve actions by the tenant, such as failure to pay rent, certain breaches of the rental agreement, nuisance or criminal activity, or failure to provide lawful access. 

There are also certain circumstances that don't necessarily involve wrongdoing by the tenant. These are sometimes referred to as "no fault evictions" and can include an owner move-in, withdrawal of the unit from the rental market, or necessary and substantial repairs requiring temporary vacancy. But simply purchasing a property and preferring to have it vacant is not, by itself, the same thing as having a qualifying just cause. 

Why this matters to your investment strategy? Go back to the duplex this potential buyer was considering. His entire investment plan depended on terminating the existing tenancies and taking possession of both units after closing. That makes the status of those tenancies more than a minor due-diligence question. It's fundamental to whether his proposed investment strategy will work at all.

Maybe you want to buy a duplex and live in one side. Maybe you plan a significant renovation. Maybe you're buying a property for another family member to occupy. Or maybe, like this investor, your plans for the property are completely different from the current owner's use. Whatever the goal, if your plan requires an existing tenant to leave, you should understand whether you can legally accomplish that before you purchase the property.

This is also an area where I encourage clients to consult a qualified landlord-tenant attorney. As a Realtor, I can help identify the real estate issues we should investigate and obtain information about the existing tenancies, but determining whether a particular tenancy can legally be terminated is a legal question. 

And we're specifically talking about the City of Sacramento. Here's another detail that can easily cause confusion. The City of Sacramento's Tenant Protection Program applies within Sacramento city limits. That is a specific governmental jurisdiction. A property having "Sacramento, CA" in its mailing address does not necessarily mean it's located within the incorporated City of Sacramento. There are large areas around Sacramento that people commonly refer to as Sacramento, and that may even use Sacramento as their mailing city, that are actually located in unincorporated Sacramento County. That distinction matters because local ordinances can be different depending on which jurisdiction the property is actually located in. Some areas that are NOT in the city limits with a Sacramento mailing address include the Arden-Arcade area, Foothill Farms area, South Sacramento area, Rosemont area, most of the College Greens area, most of the Sierra Oaks area, etc.

So if you're considering purchasing an occupied rental property, don't make assumptions based solely on the mailing address or ZIP code. Verify the property's jurisdiction. And remember that properties outside Sacramento city limits may still be subject to California state landlord-tenant laws and other applicable protections. Being outside the City simply means that this particular City of Sacramento ordinance may not apply. 

But the moral of the story is to understand and be familiar with the basics before you buy. When evaluating an occupied multifamily property, I want to know more than the number of units and what the building looks like. How long has each tenant lived there? Are there written leases? Are they month-to-month? What documentation has the seller maintained? Are there agreements or notices that a buyer needs to know about? Is the property within Sacramento city limits? Is it subject to the City's Tenant Protection Program? Do other protections apply? And perhaps most importantly: Does your plan for the property depend on one or more of the existing tenants leaving? If the answer is yes, that's something to investigate early. There can be tremendous opportunities in Sacramento duplexes, triplexes and fourplexes. But with an occupied property, understanding exactly what you're buying means understanding both the real estate *and* the ramifications of the tenancies that come with it.

It is worth noting that this post is intended to provide general real estate information and is not legal or tax advice. California landlord-tenant law and local tenant protections are complex and can change. Buyers, sellers and property owners should consult a qualified landlord-tenant attorney regarding a particular property or tenancy.

New Listing - 621 Jones Way, Sacramento, CA 95818

Lovingly maintained by the same family for over 3 decades, this special 2 bedroom, 1 bathroom, 1100sf home is ready for it's next chapter. You will love this absolutely adorable Land Park property that has all the charm you hope to find in this neighborhood, along with plenty of appealing and practical updates. From the moment you arrive, the covered front porch, mature landscaping will catch your eye. Step inside and you'll love the newly refinished hardwood floors, freshly painted interior, a large picture window and living room skylights filling the space with abundant natural light, and a spacious floor plan. The generous living room features a cozy fireplace and flows into a separate dining room which has a custom built-in hutch and desk which is the perfect spot for a home office setup, homework station, or simply some really great extra storage. The remodeled kitchen is bright and inviting with white cabinets, granite countertops, subway tile backsplash, pantry storage, and plenty of room to show off your culinary expertise. The updated bathroom is equally charming, with tile floors and the rare luxury of both a separate tub and tiled stall shower. Both bedrooms are nicely sized, and out back you'll find a flagstone patio along with plenty of sunny space to garden, play, entertain, or just relax at the end of the day. Central heat and air, a composition roof, attached garage, dual pane windows, pest clearance, and a new sewer clean-out mean a lot of the hard work is done for you. And then there's the location! You're just blocks from Crocker/Riverside Elementary and close to beautiful William Land Park, with neighborhood restaurants, shopping, the Zoo, golf course, and don't forget that Downtown Sacramento, the Capitol, and Golden 1 Center all just minutes away. Cute, updated, and wonderfully located...this is one of those homes that just feels good the moment you walk through the door. Don't wait! Trust Estate. Offered at $650,000. For more photos, information, and a 3D virtual walkthrough please visit 621 Jones Way, Sacramento, CA 95818.

New Listing - 1914 6th Street, Sacramento, CA 95811

Want the convenience of downtown living without sacrificing space, luxury, or outdoor living? Then you will love this special 3 bedroom, 2.5 bathroom, 2,109sf attached home because it offers something for everyone, just one block from Southside Park. Built in 2008 and being sold by the original owner, the three-story floorplan provides plenty of room to spread out, two large covered balconies and a large attached garage accessed from Solons Alley all without a yard to maintain. Step inside and you'll love the flexible floor plan, with two bedrooms on the entry level and an expansive main living level upstairs on the second level featuring beautiful flooring, abundant natural light and an open kitchen, dining and living area. The spacious kitchen offers granite countertops, extensive cabinetry, a huge pantry, a large center island with seating and plenty of room to cook and entertain, while the adjacent living room features a fireplace and access to one of two large covered balconies. A built-in wet bar with wine refrigerator adds another fun touch for entertaining. Upstairs, the generously sized primary suite feels like its own private retreat, complete with a dramatic tray ceiling, large walk-in closet with built-in organizers and spa-like ensuite bathroom. New interior paint and carpet make this home move-in ready, while central heat and air, a composition roof and pest clearance mean the house is move-in ready. Large attached garage with access from Solons Alley. With no yard to maintain, being a hop-skip-jump from Southside Park, and two spacious balconies for outdoor living, this is an easy-care home in an incredible central location close to Downtown, the State Capitol, Golden 1 Center, restaurants, entertainment and everything Sacramento's urban core has to offer. Don't wait! Offered at $775,000. For more photos, 3D virtual tour, and information please visit 1914 6th Street, Sacramento, CA 95811.

A Loved One Has Passed Away. What Practical Steps Should You Take Next?

When someone close to you passes away, there is obviously a lot to process emotionally. Unfortunately, there can also be a surprisingly long list of things that suddenly need attention. One of the questions I frequently get is: “Where do I even start?” If you are the successor trustee, executor, administrator of the estate, or simply the person trying to help get things organized, you don't necessarily need to tackle everything at once. But there are a few important steps that are worth addressing early, particularly when your loved one owned a home or other real estate. Here are some practical places to start. 

1. Locate the Will, Trust, and Other Important Documents. One of the first practical steps I recommend after a loved one has passed away is trying to locate any documents relating to their final wishes. Look for a Will, Trust, amendments to the Trust, property deeds, insurance policies, bank and investment statements, tax returns, and other financial records. If there is a Trust, determine who has been named as the successor trustee. That is generally the person who assumes responsibility for managing the Trust and its assets after the original trustee passes away. If you're unsure what a document means or what authority you have, this is a good time to speak with an estate or probate attorney. 
2. Obtain Multiple Copies of the Death Certificate. You'll likely need certified copies of the death certificate for a variety of purposes, including dealing with financial institutions, insurance companies, government agencies, and potentially real estate. Rather than requesting a single copy and discovering later that you need several more, it can be helpful to obtain multiple certified copies at the outset. Trying to obtain more certified copies of the death certificate later can be difficult and more expensive than just getting multiple copies up front. And a color copy of a certified copy is not going to be an acceptable substitute. 
3. Make Sure the Home Is Insured. If your loved one owned real estate, this is one item I would not put off. I cannot emphasize enough how critically important this is. Confirm that there is an active homeowners insurance policy and determine what the insurance company requires now that the owner has passed away or the property may be vacant. Why is this so important? A house may be one of the estate's most valuable assets. If a pipe breaks, someone breaks into the property, a fire occurs, or there is another major loss while the property is uninsured, the financial consequences to the estate could be enormous. And unfortunately, you generally can't buy insurance retroactively after something has already happened. 
4. Secure and Check on the Property. If no one is living in the home, make sure someone is regularly checking on it. Collect keys, secure doors and windows, retrieve mail, deal with landscaping, and pay attention to anything that could make the property appear obviously vacant. You may also need to address utilities, alarm systems, vehicles, pets, and other practical matters. Chat with neighbors and ensure they know how to reach you if something looks amiss at the property. 
5. Identify the Assets and the Bills. Begin putting together a list of what your loved one owned. That might include real estate, bank accounts, investments, vehicles, business interests, personal property, and other assets. At the same time, start identifying recurring expenses and obligations such as the mortgage, property taxes, insurance, utilities, HOA dues, credit cards, and other bills. Often, these bills need to be continued to be paid. You may discover that some assets were held in the Trust while others were not. If that happens, consult an attorney before assuming how those assets should be handled. Personal property may need to be inventoried, distributed among beneficiaries, sold, donated, or otherwise handled according to the estate plan and advice from the appropriate professionals...so while you may be tempted to start giving things away, don't do that without consulting an attorney. 
6. Get a Date-of-Death Appraisal for Real Estate. This is one of the steps people sometimes overlook. If your loved one owned a home, rental property, or other real estate, talk with your CPA and attorney about obtaining a date-of-death appraisal. This is literally a value of the property at the date of the owner's death, which could be months or years before the property actually gets sold. The property's value as of the date the owner passed away can be important for tax and accounting purposes. This is different than “What could the house sell for today?” Even if you don't intend to sell the property immediately, establishing its value at the appropriate date will be important later. 
7. Talk With the Right Professionals. You don't have to figure all of this out by yourself. Depending on the estate, you may need an estate or probate attorney, CPA, financial advisor, appraiser, and real estate professional experienced with probate and trust sales. Each has a different role. As a real estate broker, for example, I can help evaluate the real estate, discuss its current market value and condition, determine what preparation may make sense before selling, and coordinate many of the practical details involved in getting a property ready for market. But I don't provide legal or tax advice, which is why having the right team can be so important. 
8. Decide What Needs to Happen With the Home. Eventually, there is usually a decision to make: Will the property be kept, transferred to a beneficiary, or sold? I've worked with many estate properties over the years, and the right preparation can vary tremendously. One home may benefit from paint, flooring, landscaping, and staging. Another may make more sense to sell largely in its current condition. Before spending significant estate funds, it can be helpful to have an experienced real estate professional look at the property and help determine which improvements are likely to matter to buyers, and which probably aren't worth the expense. There may also be a lot of logistical work involved: removing personal belongings, hauling away unwanted items, coordinating an estate sale, cleaning, landscaping, inspections, repairs, contractors, staging, and ultimately preparing the home for sale. A good real estate agent experienced with estates should be able to help coordinate much of that process. 
9. Establish the Appropriate Estate or Trust Bank Account. Depending on how the estate is structured, you may need to obtain a taxpayer identification number and establish a separate bank account for the Trust or estate. That account may be used to pay expenses, receive income, and ultimately receive proceeds from the sale of estate assets such as real estate. Your attorney and CPA can advise you on exactly what is required for your situation. 
10. Keep Good Records. Finally, document everything. Keep records of expenses, repairs, professional fees, distributions, property-related costs, deposits, and other transactions involving the estate. When you're juggling dozens of responsibilities, it can be tempting to tell yourself, “I'll organize all of this later.” Later has a way of becoming much more complicated. Good recordkeeping from the beginning can make life much easier for you, your attorney, your CPA, and ultimately the beneficiaries. 

Settling someone's affairs can feel overwhelming because there may be legal, financial, emotional, and practical decisions happening simultaneously. Start with the things that are most urgent: find the estate documents, identify who has authority to act, obtain death certificates, protect and insure the real estate, and begin assembling the appropriate professional team. Then you can work through the remaining pieces one at a time. During my 20+ years as a Sacramento-area Realtor, I've helped numerous clients sell homes and other real estate through Trusts and probate estates. I also served as the personal representative and administrator of my own mother's estate, so I've experienced this process from the other side as well. 

If you've inherited property in Greater Sacramento, or you're a successor trustee, executor, or probate administrator trying to figure out what to do with a home, I'm happy to help you understand the real estate side of the process and connect you with attorneys, CPAs, appraisers, estate liquidators, contractors, junk-hauling services, landscapers, inspectors, stagers, and other professionals when needed. 

Important: This article is intended to provide general information about some of the practical steps that may arise after a loved one passes away. It is not legal, tax, or financial advice. Every estate is different, so consult qualified legal and tax professionals regarding your particular circumstances.

My neighbor's home just sold, what does that mean for my home's value?

I met with a new seller recently and as we were discussing price, they excitedly exclaimed: “The house across the street just sold for $750,000! Does that mean mine is worth that much too?” Maybe. A nearby sale can absolutely help us understand your home’s value. But just because a house is in your neighborhood, or even right next door, that doesn’t necessarily make it the best comparable sale. Or even a relevant comparable sale. 

In fact, when someone points out an especially high sale price, one of the first things I often discover is that the neighboring home is quite a different than theirs. Differences matter. With this seller, the house was about 30% larger in square footage, was a down-to-the-studs remodel, and it sold over a year ago. Three strikes there. Not a comparable sale.

Does my neighbor’s sale price affect my home’s value? Yes, a nearby sale can be an important indicator of your home’s value, but only if the property is reasonably comparable to yours. When determining a potential value for a home, I look at comparable sales, or “comps.” Ideally, these are nearby homes that are similar in square footage, lot size, age, condition, number of bedrooms and bathroom, and overall features. Your neighbor’s house may be a terrific comp. Or it may require substantial adjustments before it tells us much about your home. 

Or it may be so dissimilar to yours that it really is not a relevant datapoint. 

Why isn't my home worth the same as my neighbor's? Imagine your home is 1,600sf and the house around the corner just sold for $750,000. That's exciting, until we discover that the other home is 2,200sf. That extra 600sf has value -- lots of it, and not just in a price per square foot way, but that space usually translates into more bedrooms, larger or more living spaces, and when a home is *that* much larger than yours it probably is not a comparable sale that an appraiser would use to value your home. The same is true of other significant features. Perhaps the neighboring property has a beautiful built-in swimming pool, while yours does not. In Sacramento's climate, a pool can be a highly desirable feature for many buyers, so an appropriate adjustment may need to be made when comparing the two properties. Other differences matter, too. One home may have a three-car garage instead of two, a remodeled kitchen, owned solar, a larger lot, or an ADU. One might back to a busy street while the other sits on a quiet cul-de-sac. All of these factors can influence what buyers are willing to pay.

What makes a home a good comparable sale? There isn't one magic formula. I generally look at location, square footage, bedroom and bathroom count, lot size, condition, improvements, amenities and how recently the property sold. I also look at the circumstances surrounding the sale. A house that sold $50,000 over the listing price might sound like great news for the neighborhood. But perhaps it was intentionally priced low to generate multiple offers. On the other side of the coin, a home that sold below its original asking price doesn't necessarily mean values are falling, and instead it may have started out overpriced. Or perhaps it had some other issue, like it was occupied by tenants in a long-term lease with under-market rent, or it had structural issues. The final sales price is important, but so is understanding the story behind it. When I am valuing a property, I often will do other data gathering by calling the listing agents to understand the circumstances with the transaction that are not evident from the closed out MLS listing or public record.

What about online or AI home-value estimates? Online or AI estimates can be useful data points, but an algorithm hasn't walked through your house. It may know that two homes have similar square footage, but it may not fully appreciate the difference between a beautifully remodeled home and one that hasn't been updated in decades. It also may not understand why buyers prefer one particular street, lot or floor plan over another. While this is interesting information to look at, I would not put much stock in this.

So, how do I determine what my Sacramento-area home is worth? The best approach is to evaluate multiple recent comparable sales, make price adjustments for differences in property characteristics, look at current competition and consider what buyers are doing in today's market. Your neighbor's sale is certainly part of that conversation. But the highest sale in the neighborhood isn't automatically the best comp or even a relevant comp for your house. An appraiser is going to use 3 primary comparable sales, and 3 secondary comparable sales, and possible a few other pending or active listings as well. And all of them are used to determine value.

If you're considering selling a home in Greater Sacramento, I'm happy to take a closer look at the recent sales around you and help put them into context. Sometimes the house next door tells us quite a bit about your home's value. And sometimes the differences between the two homes tell us even more.

New Listing - 9452 North Kiefer Blvd, Sacramento, CA 95826

Don't let the street name fool you: this home is on North Kiefer Blvd, a residential street just off Mayhew Road, not busy Kiefer Blvd! Located on a corner lot in Rosemont's Jordan Park community, this special 3 bedroom, 2 bathroom, 1,408sf home has had just one owner and has been lovingly cared for over the years. Now it is ready for a new owner to make it their own and begin its next chapter. Step inside and you will love the comfortable, open floor plan with a spacious living room and fireplace, plus an open kitchen with granite countertops, stainless steel appliances, a center island, and a pantry closet. Primary suite is generously sized with an inviting ensuite bathroom featuring double sinks, large stall shower, and walk-in closet. Two additional bedrooms offer lots of closet space, along with a hallway bath with a tub/shower combo and a dedicated laundry room inside the home. Out back, the private patio and lawn area offer plenty of room to garden, play, entertain, or simply relax at the end of the day. New carpet and a pest clearance mean some of the work has already been done for you! And you will love the location, tucked into an established residential neighborhood while still close to parks, shopping, restaurants, the American River, and everyday amenities, with easy access to Highway 50 for getting Downtown or just about anywhere else around Sacramento. This one is ready for someone new to fill it with memories of their own. Don't wait! Probate estate. Court confirmation is not required. Offered at $485,000. For more photos, a 3D virtual tour, and a floorplan visit 9452 North Kiefer Blvd, Sacramento, CA 95826.

New Listing - 4620 22nd Street, Sacramento, CA 95822

A rare opportunity to own a home that has been cherished by the same family for over 6 decades, this special 2-3 bedrooms, 1  bathroom, 1276sf Hollywood Park house is ready to begin its next chapter. Filled with decades of memories and lovingly maintained, it offers timeless character, a flexible floor plan, and many of the major updates are already completed - and as an added bonus the prior owner has drawings for future expansion. This is the perfect canvas for your personalization. You'll love the versatile layout with 2 bedrooms plus a possible 3rd bedroom, a spacious living room with a cozy fireplace, formal dining area, and a generous bonus room that's perfect as a home office, game room, playroom, or home gym! Hardwood floors grace much of the home, with additional hardwood beneath the living room carpet just waiting to be uncovered. Recent improvements include a beautifully remodeled bathroom, fresh exterior paint, a newer sewer line, a Section 1 & 2 pest clearance, and a 2-year roof certification. Step outside to a large, covered patio and sun-filled backyard with endless possibilities for gardening, entertaining, relaxing, or creating your dream outdoor space. Tucked away on an interior street in one of Sacramento's most sought-after neighborhoods, you'll enjoy the charm of Hollywood Park with all the conveniences nearby. Just minutes from Leonardo da Vinci K-8 School, William Land Park, Sacramento City College, UC Davis Medical Center, neighborhood parks, shopping, restaurants, and Downtown Sacramento, this location has something for everyone! Don't wait! For more photos, 3D virtual tour, and floorplan please visit 4620 22nd Street, Sacramento, CA 95822.

New Listing - 1537 Marseille Lane, Roseville, CA 95747

Welcome to resort-style living in the highly sought-after Eskaton Village Roseville 55+ community! This 'Villa' floorplan with 2 bedrooms + den, 2 bathrooms, 1597sf is ready for a new owner. Freshly updated with brand-new carpet and fresh interior paint, this beautifully maintained single-story home offers an open, light-filled floor plan designed for easy living and comfortable entertaining. Lovely laminate floors, plantation shutters, crown molding, recessed lighting, and abundant windows create a warm, inviting atmosphere throughout the spacious great room, complete with a cozy fireplace and custom built-in cabinetry. The well-appointed kitchen features granite countertops, stainless steel appliances, extensive cabinetry, a large breakfast counter, and generous workspace for preparing meals. The flexible floor plan includes two bedrooms plus a den/office or possible 3rd bedroom. The spacious primary suite offers a large walk-in closet with extensive shelving and organizers, and an ensuite bath with dual vanities and an upgraded roll-in tiled shower with bench seating. Additional highlights include built-in storage, an indoor laundry room with cabinets, and an attached two-car garage. The refrigerator, washer, dryer, and mounted television are all included, making this home truly move-in ready. Successor Trustee Sale. Relax on the private covered patio or enjoy the exceptional amenities that make Eskaton Village one of Roseville's premier active adult communities. Eskaton Village redefines low-maintenance living with a truly concierge-style lifestyle designed to simplify everyday life. Imagine never worrying about exterior painting, front yard maintenance, or routine home repairs because the HOA handles it all, including light handyman services, allowing you to focus on the things you enjoy most. A community shuttle, 24-hour emergency response system, and security patrol provide added peace of mind. At the heart of the community, the Village Center offers a heated indoor pool, fitness center, library, bistro, clubs, classes, and social events, while outdoor amenities include trails with direct access to Pleasant Grove Creek Trail, community gardens, a dog park, and putting green. With optional dining and future care services available directly in the community, Eskaton offers a lifestyle centered on comfort, connection, convenience, and independence. Offered at $510,000. For more photos, a floorplan, and a 3D virtual tour please visit 1537 Marseille Lane, Roseville, CA 95747.