What Happens if You Inherit a Home with Tenants in Los Angeles?

Navigating Probate, Rent Control – and Your Options

Your Uncle Larry passes away and leaves you his Studio City condo. As you grieve and reminisce about family gatherings – the laughter in the kitchen, the old records playing in the living room – you come to realize he hasn’t lived there for years. Instead, the condo has been rented out to a family, serving as his primary source of income while he resided in a modest apartment across town.

So, what now?

With knowledge, there’s power. Inheriting a home can be emotionally and financially complex under any circumstances but inheriting a rental property with existing tenants introduces a unique set of legal, practical, and strategic considerations.

Whether you’re a first-time heir, an executor handling a probate home or just exploring your options, understanding the intersection of California tenant laws, local rent control, and probate court rules will help you avoid costly missteps and set you up for a successful transition. Here are some things to know.

Understanding tenant rights during probate

If you’ve recently inherited a property in Los Angeles or nearby areas that’s occupied by renters, your first instinct may be to wonder if you can simply ask them to leave. In most cases, the answer is no.

Probate, which is the legal process to administer a deceased person’s estate, does not automatically void existing leases or rental agreements. Under California law, as well as local ordinances, tenants generally have the right to remain in the property under the terms of their current lease.

California’s Tenant Protection Act (AB 1482) and a patchwork of city rules reinforce these protections. In Los Angeles, Burbank, and other cities, renters benefit from rent caps, just cause eviction requirements, and other safeguards. For example, a tenant in a “probate home with renters Sherman Oaks” retains virtually all the protections they had before the owner passed away.

Distinguishing between month-to-month tenants and those with fixed-term leases is crucial. Month-to-month renters may be subject to different notice periods or just cause requirements than tenants with a lease that runs for a set term. Either way, you must follow state and local law.

Reviewing and shoring up lease terms

The first thing to do after inheriting a rental is to obtain a copy of each lease. Review the lease(s) for key details: length of tenancy, renewal terms, rent amount, security deposit details, and any clauses covering repairs, maintenance, or entry.

But what if there’s no physical lease? Under California law, a tenancy often defaults to month-to-month if there’s no written agreement. Rent history, utility bills, or tenant statements can help

you reconstruct the terms. California courts generally honor long-standing rental arrangements even without a signed contract.

Be sure to verify:

· Rent payment history and security deposit records. California law requires the security deposit to be properly transferred and accounted for during probate and at sale.

· Clauses regarding property maintenance, tenant responsibilities, and renewal or termination terms.

· Compliance with California’s strict rules on handling security deposits and providing necessary written notices to tenants.

For probate and future sale, it’s important document the lease terms carefully. This will help avoid disputes and ensure a smoother transaction.

Rent control and local ordinances

The Los Angeles area is a patchwork of rent control jurisdictions – each with its own rules that may impact your inherited rental with tenants in Los Angeles.

· Los Angeles Rent Stabilization Ordinance (RSO): Applies to most multifamily buildings built before October 1, 1978. If your inherited property falls under RSO, tenants enjoy caps on rent increases and strict limits on acceptable eviction reasons, even in probate.

· Burbank Rent Control: Burbank does not have the same rent stabilization ordinance as Los Angeles, but its tenants are still protected under AB 1482, with statewide rent caps and eviction protections applying to most rental units older than 15 years.

· Other Valley Cities: Cities like Glendale, Beverly Hills, and West Hollywood have their own rent control rules. For example, West Hollywood’s rent stabilization is among the strongest in California, while Glendale has its own tenant protections but no formal rent control.

Statewide rules (notably AB 1482) provide a baseline of tenant rights. However, where local and state rules intersect, the stricter regulation prevails. Always check both before making decisions.

Your options as the new owner

Whether you want to keep the inherited rental with tenants, sell it, or eventually remove tenants, your choices are shaped by law, market conditions, and your own goals.

1. Keep as a rental

· Pros: Steady income, potential property appreciation, and tax benefits.

· Cons: You inherit landlord responsibilities, ongoing tenant protections, and limits on rent increases. Evictions can be complicated and time-consuming.

What you’ll need to do:

· Register the property with the city (L.A. Housing Department) if it falls under rent control.

· File new ownership paperwork with city and county agencies.

· Provide tenants with written notice of the change in ownership and your updated contact information as required by law.

2. Sell with tenants in place

· Many investor buyers prefer occupied properties – instant income, proven tenants, and less vacancy risk. However, owner-occupant buyers may be deterred by existing renters they can’t remove easily.

· Lease terms and tenant protections may impact market value, particularly if rent is below market or if there are long-term tenants with strong protections.

· Required disclosures to buyers include status of tenants, all lease terms, and applicability of rent control.

· If the property is in probate, court confirmation may be needed before finalizing a sale.

3. Remove tenants (if allowed by law)

· “No-fault” evictions (meaning the tenant did nothing wrong) are strictly regulated in Los Angeles and Burbank. Acceptable reasons include owner move-in (or close family move-in), substantial renovation, or withdrawal from the rental market under the Ellis Act.

· Each scenario has detailed notice requirements and, in many cases, mandatory relocation payments to tenants that can be several thousand dollars, depending on tenant income, age, and length of tenancy.

· Attempting an eviction for reasons not allowed by law exposes you to legal risks, including court penalties and possible damages for wrongful eviction.

What if the tenant stops paying rent?

· The normal process is to serve a three-day notice to pay rent or quit, then file an unlawful detainer action if the rent is not paid. In Los Angeles, additional tenant protections may extend timelines or require mediation first.

· In probate, the executor or properly appointed heir (not just any family member) must bring the eviction action.

· Evictions are highly regulated. Consult an attorney before taking any action.

SIDEBAR - What else to know

· Have open communication with tenants early. Setting expectations up front can reduce misunderstandings and prevent future problems.

· Consider hiring a property management company. Make sure that they are familiar with local rules if you intend to keep the property as a rental.

· Always seek legal advice. Do this before attempting any eviction or making changes to tenancy terms because mistakes can be costly.

· Evaluate the current real estate market. Sometimes, it’s better to sell with tenants in place, especially given how long probate can take.

· Factor in probate timelines. Sales may take months to complete, and tenants are likely to remain in the property during this period.

The bottom line

With this information, the Uncle Larry scenario can be rectified – and allow you the additional time and space to grieve. For personalized guidance on your specific situation, consider outlining your goals and gathering relevant documents before your next move. I’m a veteran Los Angeles REALTOR® and Associate Broker with Coldwell Banker Realty in Studio City and can help you navigate probate and tenant issues.

Sources

 · https://oag.ca.gov/system/files/media/Tenant-Protection-Act-Landlords-and-Property-Managers-English.pdf · https://housing.lacity.gov/residents/rso-overview

· https://housing.lacity.gov/

· https://www.dre.ca.gov/publications/ResourceGuidebook/2025_Landlord_Tenant_Guide.pdf · https://housing.lacity.gov/rental-property-owners/ellis-act-information

· https://lafla.org/get-help/housing-and-eviction/ · https://realestateadventurer.com/what-to-do-if-you-inherit-a-rental-house-that-has-a-tenant/ · https://californiatoday.com/guides/legal/2025-california-tenant-protection-act-complete-guide/ · https://housing.lacity.gov/residents/rso-overview · https://rentalhousepm.com/blog/rental-laws-glendale-ca/#:~:text=Glendale%20does%20not%20have%20its%20own%20rent%20control,to%20a%20rent%20increase%20over%20seven%20percent%20%287%25%29