Tuesday, September 27, 2016
A Brief Description of the Ellis Act
As the owner of Residential Foreclosure Wholesale, LLC and East Bay Holding Co., LP, Danny Olmstead oversees all aspects of these property investment firms. In this capacity, Danny Olmstead has had experience restoring and subdividing duplexes in the city of San Francisco, careful to select non-Ellis Act properties.
The Ellis Act is a California law that was passed in 1986. The legislation allows landlords to legally get out of the rental business. If a landlord decides he no longer wants to rent out a property, the Ellis Act allows him to evict all tenants and remove the units from the rental market without city or government interference.
Ellis Act legislation comes into play when a landlord wants to change the use of the building. For example, the owner may wish to convert the units from rentals into condominiums. Alternatively, he may plan to build a mansion, using all the square footage for a single luxury residence. If landlords wish to execute their Ellis Act rights, there are a series of rules they must follow to do so. These regulations aim to protect tenants’ rights and to give them adequate time to relocate.