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Owner Move in Eviction: Potential costs

Submitted by on May 8, 2009 – 9:11 AMNo Comment

There are several excellent lawyers who specialize in landlord tenant law including Robert Peterson (415-586-7460).

So, how much could an OMI run? Robert’s best/worst case scenario pertaining to expenses with OMI are as follows (per a 1/09 email):

The current relocation payments are $4,744.00 per occupant, up to $14,234.00 per unit, plus $3,164.00 for anyone elderly (over 60) or disabled, or who has minor child(ren).  These payments will increase on March 1st.

To prepare the 60 day notice to evict takes 1.5 to 2.0 hours (~$375-500).  If we hire a process server to serve the notice, the process server charges $65.00 per service.  If the tenants then move, this is the best case scenario.

If the tenants do not move, we must then file an unlawful detainer action.  The costs are usually around $1,500 to $1,700 if the tenant does not respond and we get a judgment by default.  If the tenants file an answer, the costs are usually around $2,500 – $2,800 to go through a settlement conference.  If the matter does not settle, but goes to a one week jury trial, the costs may be $10,000 to $15,000.  These estimates include the court costs and attorney’s fees.

Every property is different so it’s essential to work with an agent who is experienced in S.F.’s complicated rent control laws & can make recommendations to appropriate attorneys.  These expenses can be factored in when determining value of a property.

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