You own a duplex in Los Angeles where one tenant hasn’t paid rent in seven months. Eviction proceedings stalled. Your other tenant complains constantly but always pays late. You’re hemorrhaging money on a property that was supposed to generate income.
Or maybe you inherited an apartment building in Orange County with rent-controlled units, problem tenants, and deferred maintenance. You don’t want to be a landlord, but traditional buyers won’t touch tenant-occupied properties with issues.
Urban Street Ventures purchases rental properties with tenant problems throughout Los Angeles, Orange, Riverside, San Bernardino, Ventura, and San Diego counties. We buy occupied properties as-is, handle all tenant issues after closing, and close in 14-21 days.
Why Traditional Buyers Won’t Purchase Tenant-Occupied Properties
Banks Won’t Finance Problem Properties:
Traditional buyers need mortgages. Lenders require properties to be in good condition with stable rental income. Properties with non-paying tenants, evictions in process, or below-market rents don’t qualify for financing. No financing means no traditional buyers—eliminating 90% of potential purchasers.
Buyer Concerns About Inheriting Problems:
Even cash buyers hesitate. Many investors want vacant properties they can renovate and re-tenant on their own terms. They don’t want to inherit:
- Non-paying tenants they must evict
- Rent-controlled tenants they can’t remove
- Problem tenants with lease violations
- Properties with habitability issues and tenant complaints
- Buildings with REAP or SCEP listings in Los Angeles
Agent Reluctance:
Real estate agents struggle to market tenant-occupied properties with problems. Showings are difficult. Tenants may not cooperate. Income documentation raises red flags. Agents often decline these listings entirely.
Common Tenant Issues That Make Properties Unsellable
Non-Paying Tenants
Your tenant stopped paying rent six months ago. Eviction proceedings began but stalled—California eviction processes are slow and tenant-friendly. Meanwhile, you’re paying the mortgage, taxes, insurance, and maintenance while collecting zero rent.
Traditional buyers won’t touch properties with non-paying tenants. Even if they wanted to, their lenders reject these deals. You’re stuck until the eviction completes—which could take 6-12+ months—then you need to renovate and find new tenants before selling.
Cash buyers purchase properties with non-paying tenants in place. We assume the eviction after closing. You get your cash immediately and exit the situation. Learn more about comparing cash vs. traditional sales.
Rent-Controlled Properties
LA, Santa Monica, West Hollywood, Beverly Hills, and other Southern California cities have strict rent control ordinances. Your tenants pay $1,200/month for units worth $2,500/month at market rates. You can’t raise rents to market without triggering relocation assistance requirements and complex processes.
Rent control makes properties less valuable. Traditional buyers analyze income—low rents mean low value and difficulty qualifying for loans. Many buyers avoid rent-controlled properties entirely due to complexity.
Cash buyers experienced with rent control throughout Southern California understand these regulations and price properties accordingly. We know the rules, handle the complications, and close deals traditional buyers won’t consider.
Problem Tenants
Tenants who:
- Violate lease terms repeatedly
- Create disturbances affecting other tenants or neighbors
- Damage property beyond normal wear and tear
- Make excessive complaints to code enforcement
- Refuse property access for repairs or inspections
- Threaten legal action constantly
- Run illegal businesses from the property
- Sublease without permission
These situations create constant stress for landlords. Traditional buyers don’t want to inherit these headaches. Cash buyers with property management experience handle problem tenants routinely.
Properties with Multiple Vacant Units and Tenant Turnover
Your 8-unit building has four vacant units from recent tenant turnover. You can’t afford to renovate all four simultaneously to re-rent them. The building generates 50% of potential income. Banks won’t finance properties with high vacancy rates. Traditional buyers can’t get loans.
Cash buyers purchase properties with vacancy issues, renovate units after closing, and stabilize occupancy. We have the capital and property management infrastructure to handle turnovers.
Tenant-Caused Damage
Tenant destroyed your rental house: holes in walls, ruined carpets, broken fixtures, neglected maintenance causing further damage. They vacated without notice, owing thousands in back rent and leaving a disaster.
You need $25,000+ in repairs before listing traditionally. You don’t have that cash and the tenant who caused the damage certainly won’t pay. Sell the property as-is to cash buyers who handle repairs after closing.
Inherited Rental Properties with Long-Term Tenants
You inherited an apartment building from a relative. Tenants have lived there 15-20+ years, many under rent control. You live out of state, know nothing about property management, and don’t want to be a landlord.
Selling vacant properties is straightforward. Selling occupied properties with long-term tenants who have significant rights? Complex. Cash buyers with experience purchasing inherited rental properties throughout Southern California navigate these situations routinely. Selling is often better for those downsizing or dealing with estates.
Southern California Rent Control Complications
Los Angeles Rent Control
LA’s Rent Stabilization Ordinance (RSO) covers approximately 640,000 rental units built before October 1, 1978. Properties under RSO have:
- Annual rent increase caps (typically 3-8%)
- Just cause eviction requirements
- Relocation assistance mandates ($8,000-$24,000+ per unit)
- SCEP (Systematic Code Enforcement Program) requirements
- REAP (Rent Escrow Account Program) compliance
REAP properties are particularly problematic. If your building has habitability violations, the city can force rent payments into escrow instead of to you. You can’t collect rent until violations are corrected—which can cost $50,000-$200,000+. You’re still responsible for mortgage payments and expenses while collecting zero income.
Cash buyers purchase REAP properties, handle violation corrections, and navigate the complex process of releasing escrowed rents. Learn more about selling properties with violations.
Santa Monica Rent Control
Even stricter than LA. Santa Monica’s rent control applies to buildings built before 1979 with three or more units. Ellis Act evictions (removing property from rental market entirely) come with massive relocation costs—sometimes exceeding $100,000 for a small building.
West Hollywood Rent Control
Covers most rental properties built before 1979. Similar just-cause eviction and relocation requirements. Properties in West Hollywood with long-term, low-paying tenants are difficult to sell traditionally.
Other Southern California Rent Control Cities
Beverly Hills, Culver City, East Palo Alto, Glendale, portions of Pasadena and Long Beach—all have varying degrees of rent control affecting property values and marketability.
How Cash Buyers Handle Tenant-Occupied Properties
When legitimate cash buyers purchase tenant-occupied properties, we:
Evaluate Tenant Situations Before Making Offers:
We review:
- Current rent rolls showing all units, rents, and lease terms
- Payment history identifying non-paying or late-paying tenants
- Lease agreements and their expiration dates
- Complaints or violations filed by or against tenants
- Eviction proceedings in progress
- Rent control status and limitations
- Deferred maintenance affecting habitability
We factor all complications into our cash offer calculations.
Purchase Properties With Tenants in Place:
You don’t need to evict anyone before selling. We buy occupied properties throughout Southern California—good tenants, bad tenants, paying tenants, non-paying tenants. The tenant situation transfers to us at closing.
Assume Landlord Responsibilities at Closing:
Once we own the property, we become the landlord. All tenant issues become our responsibility:
- Collecting rent (or evicting non-payers)
- Handling repairs and maintenance
- Responding to tenant complaints
- Managing lease renewals or terminations
- Complying with rent control regulations
- Resolving code violations
You walk away with cash and zero future tenant responsibilities.
Handle Evictions After We Own the Property:
If tenants need to be evicted, we handle it after closing. You don’t manage the lengthy, expensive eviction process. We have property managers and attorneys experienced with California eviction law—including complicated rent-controlled evictions.
Renovate and Stabilize Properties:
After addressing tenant issues, we renovate units, bring properties to code, and stabilize occupancy. This is our business model—we have the capital, experience, and infrastructure to handle problem rental properties.
The Math: Keeping vs. Selling Tenant-Problem Properties
Example: LA County Duplex with One Non-Paying Tenant
Option 1: Keep Property and Complete Eviction
- Time to complete eviction: 6-12 months (California is tenant-friendly)
- Legal costs: $5,000-$10,000
- Lost rent during eviction: $18,000 (assuming $1,500/month × 12 months)
- Mortgage/tax/insurance payments: $24,000
- Repairs after tenant vacates: $15,000
- Time to re-rent: 2 months
- Additional lost rent: $3,000
- Total cost: $65,000-$70,000 and 14+ months of stress
Then you can sell or keep renting (with risk of future tenant problems).
Option 2: Sell to Cash Buyer Immediately
- Cash offer: Property value minus tenant complications
- Close in 21 days
- Zero cost to you
- Immediate cash
- All tenant problems transferred to buyer
- Net result: Cash in 3 weeks and freedom from tenant stress
Many landlords choose Option 2 even if the cash offer is $40,000-$60,000 lower than eventual retail value—because the time, stress, and costs of Option 1 aren’t worth it.
Properties We Purchase Throughout Southern California
Single-Family Rental Houses
Houses rented to problem tenants throughout all six Southern California counties. Single tenants who stopped paying, damaged property, or violated lease terms.
Duplexes and Triplexes
Small multi-unit properties with one or more problem tenants. Common scenario: One unit pays reliably, one unit is a nightmare. We buy both scenarios.
Small Apartment Buildings (4-10 Units)
Buildings with multiple tenant issues: some units vacant, some with non-payers, some with long-term rent-controlled tenants, mix of problems throughout.
Medium Apartment Buildings (11-30 Units)
Larger income properties with complex tenant situations, REAP listings, deferred maintenance, below-market rents, high turnover.
Rent-Controlled Properties
Buildings in LA, Santa Monica, West Hollywood, and other rent control jurisdictions with long-term tenants paying below-market rents.
REAP and SCEP Properties in Los Angeles
Properties on city enforcement lists requiring corrections before owners can collect rent. These are particularly difficult situations we handle regularly.
Learn more about all property types we purchase.
Real Examples: Tenant-Problem Properties We’ve Purchased
Long Beach Duplex – Non-Paying Tenant:
Owner had one tenant who hadn’t paid in 10 months. Eviction stalled due to California’s tenant protections. Other unit paid on time. Owner was behind on mortgage payments due to lost income. We purchased the duplex with both tenants in place, handled the eviction after closing, and prevented the owner’s foreclosure.
Los Angeles 8-Unit Building – REAP Listing:
Building had habitability violations placing it on LA’s REAP list. Owner couldn’t collect rent, couldn’t afford $85,000 in repairs, faced mounting violations and fines. We purchased the building, completed all required repairs, cleared the REAP listing, and restored the property to habitability. Owner avoided bankruptcy and escaped an impossible situation.
Santa Ana Fourplex – Mix of Problems:
Four units: One vacant needing $20,000 in repairs, one with tenant two months behind on rent, one with problem tenant violating lease terms, one stable tenant. Owner overwhelmed trying to manage four different issues. We purchased the entire property, handled all tenant situations, renovated the vacant unit, and stabilized the building.
Riverside Single-Family Rental – Tenant Damage:
House rented to tenant who destroyed interior: holes in walls, ruined carpet, broken fixtures, neglect causing mold growth. Tenant vacated owing $8,000 in back rent. Owner couldn’t afford $30,000 in repairs. We purchased as-is, handled all repairs, and the owner received cash without spending anything on restoration.
Why Traditional Sales Fail for Tenant-Occupied Properties
Listing Challenges:
Can’t stage occupied properties. Professional photos impossible. Tenants don’t cooperate with showings. Properties show poorly. Days on market extend. Price reductions become necessary.
Buyer Objections:
Traditional buyers tour properties, see tenant issues, and make lowball offers or walk away. Those who make offers include extensive contingencies and frequently cancel after inspections reveal tenant-caused damage or income issues.
Financing Problems:
Lenders require rent rolls, income verification, and properties in good condition. Non-paying tenants tank loan applications. Below-market rents affect valuations. Banks deny financing routinely on tenant-problem properties.
Extended Timelines:
Traditional sales take 60-90+ days. If you’re behind on mortgage payments or facing financial distress, you can’t wait that long. Add in buyer cancellations and relistings, and you could be 6-12 months selling traditionally—if you sell at all.
Cash sales provide certainty and speed traditional sales can’t match. Learn about why contingencies in traditional contracts kill deals.
How We Calculate Offers for Tenant-Occupied Properties
Our formula accounts for tenant complications:
Market value if stabilized – What the property would sell for with good tenants, market rents, and full occupancy
Minus tenant issues costs:
- Lost rent from non-payers (time to evict × monthly rent)
- Legal costs for evictions
- Unit turnover costs (cleaning, repairs, advertising, vacancy)
- Below-market rent gap (difference between actual and market rents)
- Rent-controlled tenant relocation costs if applicable
Minus deferred maintenance – Repairs needed to bring property to rentable condition
Minus holding costs – Carrying costs during stabilization period
Minus our profit margin – Compensation for time, risk, expertise, capital
= Cash Offer
Everything’s explained transparently. We show our calculations and discuss any disagreements.
Counties We Serve
We purchase tenant-occupied rental properties throughout:
Los Angeles County – Extensive experience with LA rent control, REAP, SCEP, and city-specific regulations in LA, Long Beach, Santa Monica, West Hollywood, Beverly Hills
Orange County – Purchase tenant-occupied properties in Santa Ana, Anaheim, Irvine, Huntington Beach, and all OC cities
Riverside County – Inland Empire rental properties with tenant issues in Riverside, Corona, Moreno Valley, Temecula
San Bernardino County – Purchase problem rental properties in San Bernardino, Fontana, Rancho Cucamonga, Ontario
Ventura County – Tenant-occupied properties in Ventura, Oxnard, Thousand Oaks, Simi Valley, Camarillo
San Diego County – Rental properties with tenant issues throughout San Diego metro, North County, South Bay
Why Urban Street Ventures for Tenant-Occupied Properties
30 Years of Experience:
Three decades purchasing rental properties throughout Southern California. We’ve handled every tenant situation imaginable across all six counties.
Property Management Infrastructure:
In-house property managers handle tenant relations, lease management, evictions, and stabilization. We’re not flipping properties—we manage them long-term.
Legal Expertise:
Relationships with attorneys specializing in California landlord-tenant law, evictions, and rent control compliance. We navigate complex legal situations routinely.
Financial Capacity:
$352 million in purchases over 30 years proves we have capital for large apartment buildings and multi-unit properties. We’re not small operators who can’t handle complicated deals.
We’re Principals, Not Wholesalers:
We purchase properties directly with our own cash. We never assign contracts or flip deals. When we make offers on tenant-occupied properties, we’re the buyer.
Fast Closings:
14-21 days for most properties. If you need flexible terms—faster or slower closings, post-closing occupancy, extended timelines—we accommodate.
Alternatives to Selling (And Why They Usually Fail)
Hire Better Property Management:
Won’t solve non-paying tenant problems. Property managers can’t force tenants to pay or magically evict people faster. You’re still the owner dealing with the stress and financial drain.
Lower Rents to Keep Tenants:
Increases vacancy rates and attracts worse tenants. Lowers property value. Doesn’t solve problem tenant issues—just reduces your income while maintaining problems.
Sell to Traditional Buyers:
Takes 3-6+ months if successful. 60-70% of deals fall through due to tenant issues, financing problems, or buyer concerns. Meanwhile, you’re paying carrying costs and dealing with tenant problems.
Wait for Evictions to Complete:
6-12+ months in California. Legal costs $5,000-$15,000+. Lost rent during eviction. Repairs after tenant vacates. Additional months finding new tenants. Total costs often exceed $50,000-$100,000 depending on property size.
Selling to cash buyers resolves everything immediately.
Get Your Cash Offer for Tenant-Occupied Properties
Stop dealing with non-paying tenants, problem tenants, rent control complications, and rental property stress. Urban Street Ventures purchases tenant-occupied properties throughout Southern California—good tenants, bad tenants, paying tenants, non-paying tenants, rent-controlled tenants.
We buy properties as-is, handle all tenant issues after closing, and provide fast, certain closings. Fair cash offers within 24 hours. Close in 14-21 days. Zero tenant stress after closing.
Contact us today for a no-obligation evaluation of your rental property. We buy throughout LA, Orange, Riverside, San Bernardino, Ventura, and San Diego counties.
Call 1-800-500-2601 or request your cash offer.