Legal Question in Real Estate Law in California

Hi,

I am renting an apartment in California. I love the place and my neighbors are awesome.

My neighbor who lives in the apartment above mine paid only $700 a month and the "landlord" jacked my rent up to $1200 when I signed the lease. I later found out that he sublets the apartment and the house in front of mine. Between both properties (all are owned by the owner who no one has spoken with - he hasn't raised rent in 15 years) he is making over $2000 a month.

If I try and lower my rent when I renew my lease can I threaten to report him to the IRS? Is there a way to find out if he's paying taxes on this income? He's also not a registered property manager in CA, isn't this illegal? Isn't it illegal to sublet a property that you don't own and don't have a lease for?

Thanks!


Asked on 11/18/09, 5:57 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Unless the original lease does not allow sub-leasing it is perfectly legal to do so. If you own the property you would not be subletting to a tenant but rather renting. You can not find out if he is paying taxes. I am not sure who "him" is. If you are sub-leasing from the tenant upstairs neighbor then your contract is with him and not the owner of the unit You could legally tell the landlord about the sub-leasing, but how would that result in a lower rent?operty. If you tell either one that you will report them to the IRS, the owner, or anyone else who has the power to punish them, unless they lower your rent, your are guilty of extortion. How does the fact that he is taking advantage of the owner justify your trying to extort a lower rent from him?

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Answered on 11/23/09, 10:59 pm


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