Family status is not relevant. I was threatened with lawsuits 3 times this year (by tenants):
#1 was a couple with 2 kids going to one of the best public schools – discrimination
#2 single person – negligence after accident with injury
#3 single mom with 1 kid – harassment/ unjust eviction
Luckily these were barking dogs who (according to a German proverb) don’t bite. #3 was in a property that sold, she’s suing the new owner now.
they say that the landlord is entitled to a “fair return”.
You have to look at how they calculate that.
They certainly don’t look at cash-flow (which would include mortgage payments).
Contrary I have read proposals to include appreciation as landlord’s income. (Only in rising markets, of course.)
In that case, rent has to be high enough to cover property taxes, utilities, insurance and basic maintenance. Think $20k/year for your $1.5m San Jose SFR.
My grand father and parents had rent controlled apartments in Berkeley. Nightmare.
I would worry more about lawsuits from class A tenants than class C tenants. They have more resources.
May I ask how much total it cost you for the lawsuit?
Yeah… And this isn’t the only thing they’re doing it on… They don’t care at all about anyone.
Lawwuits can easily cost $100k or more…unfortunately they are not an efficient way to settle minor disputes.
Correct !
Most of the lawsuit cost is lawyer fees.
In Bay Area, normal lawyer charges $250/hr medium scale $500/hr. One email or phone call to your lawyer may cost you $50 (minimum). One consultation, over phone, may cost you $125 or in-person discussion costs $250 for the lowest $250/hr lawyer.
It can range easily from $150k (california) to $250k or more.
For me alone, without even attending/touching court, it went up to $45k+, insurance compensated only 1/3rd of it as they agreed to $150/hr lawyer fees only (while I paid $475/hr).
California court process takes 18 months to 24 months easily and all those times, we need to pay lawyer fees. One court appearance of lawyer may cost you $2000 to $3000 as judge may call the case anytime on that day. Lawyer has to be in court until judge calls the case or adjoins the case, for all these we need to pay fees.
Opponent agreed to settle out of court to avoid getting into eviction court. Just one day before filing eviction court filing, they agreed to move out.
This is the benefit of just cause eviction.
You are perfectly right. This is the way they made.
They made the case on flimsy charges, as they knew very well they will loose at judgement, but filed in superior court (not small claims). The lawyer is relative, he does not charge any money from them except court fees, but try to take all settlement amount. Experienced predatory crooked lawyer fighting proxy war.
For me, cost of lawyer is between $250 to $500 range in California no matter whether we win or lose.
They wanted 3 to 5 years extension of contract at the same rent (our rent was $1200 less than current market rate - do not ask why and how). This means they get 36 x $1200 or 50 x $1200.
Here is how crooked the lawyer was !
At one time, we served 60 day notice to vacate. On 59th day, they transferred $75 to my account (it is automatic bank account transfer - not check) to reset the notice period.
As per law “The tricky part of navigating a late rent pay or quit situation is when the tenant offers to pay you partial rent, with the promise to complete the payment sometime in the future. If you accept even a partial payment of late rent during a pay or quit timeline, you are waiving your rights to proceed with the eviction process. In other words, if you sent a notice to the tenant on a Monday, and you accepted partial payment on Wednesday, the Monday notice is no longer legal or valid. If they fail to pay the second part of the late rent, you wouldn’t be able to revert to the Monday notice. You would have to start the pay or quit process all over again from the beginning.”
My notice period was reset. I cancelled (after talking to bank to block) all incoming transfer to my account and gave another 60 day notice. They enjoyed staying the home for additional two months at the same rent.
Here also it is the same. One more addition, Do not do business with attorney’s relative too as that attorney can fight a proxy lawsuit against you. This is what happened to me.
Sounds like the only people here who should be landlords are lawyers 
If I were a big corporation, say like AvalonBay Communities, they will have standard contract with lawyers, and they challenge all the court cases.
The issue of rent control is bylaws associated with rent control which may work dis-advantageous to small landlords as they won’t have financial stability (like me) to withstand the length court lawsuits.
Small investors suffer with all rent control in California. Once law is signed, court work within that law. California will soon be out of small landlords for ever.
the real issue is that someone the size of Avalon has attorneys on payroll, they don’t cost them $475/hr.
Correct, the big corps can withstand all lawsuits, but small investors will suffer with any additional rent control measures, esp condos, townhouses, multiplexes run by individuals.
Any one whose life depends on rental income, they would suffer most by such rent controls. Those landlords are rich in the eyes of government, but they live with low margins, esp bay area with 2%-5% ROI.
Wrong assumption 
Heard and read a lot before going into rental. California is a well-known “sue” state, you can get sue for the most silliest thing if you’re not careful, knew it even in Singapore. Btw, the bad tenants I have ever experienced are in Singapore! The only reason why I’m not selling the Singapore condo is because after accounting for the mortgage interest, frequent vacancy, bad tenants’ cost and the American tax, I will end up losing $, worse need hard-cash top-up!
Probability and expected values 
. Don’t use anecdotes and personal experience.
So is a bad idea to ask too below market rent. That is what I thought too.
All businesses and investments have risks and liabilities. So long, total gains > total costs (operating costs + risks/ liabilities), you are good. Let’s face it, we can get kill by random cars or ricocheting bullets/ fragments.
My PM in Austin has one with a lawyer that specialize in tenants suing landlords cases. Predatory suing is common in Austin too.
No worries. Ptiemann would be around.
you are correct. If the government imposes challenges/ difficulties, there will be people who can figure out how to work with them and there will be people who throw in the towel and sell at a discount to the first group.
The thing about “Class-A” is that they have the money and savvy to initiate a lawsuit. I’d imagine, family member lawyers aside, that many middle class families would rather not spend the time or money to try. Poorer families may be used to getting help from services and rely on renter-advocacy groups to sue for them.
Have the potential, but why would they do it? Is the expect value higher than Class B and/or C?
Buying lottery has the potential of striking first price too 
So confidential that you belong to the first group? 
For lawsuit, higher chances in higher class than lower class. Lower income people can not feed lawyer cost unless one of their family member is a lawyer who does free service and get all settlement cost.
As your wealth increases, you are being a target here, that is why I repeated many times do not openly show wealth and be hidden under nick name. It is individual wealth is in target.
In California, there are a battalion of predatory lawyers prowling the street 
literally!