Topic: Building purchased in bank foreclosure 3 of 4 units residing with NO LEASE

My husband purchased a building about 2 years ago in the SOMA district of San Francisco from a bank foreclosure.

The building came with three tenants all protected under San Francisco rent control and one empty unit which he quickly rehabbed and rented out at market rate.

After going through two ineffective property managers, he asked me if I could take over in overseeing some of the necessary repairs on the building, which over the last 6 weeks has turned into a full blown property management role.

The existing tenants are unruly and continually refuse entry even with given proper written 24 hour notices, going as far as to change the locks or put deadbolts on both the front and bedroom doors.They alter living spaces and utility rooms to serve as extra bedrooms. There is a hoarding issue that has gotten to the point that its causing a health and safety issue as it blocks the egress in the bedrooms. The tenants smoke inside the building. Their personal belongings have begun to spill out into the common areas. The list goes on...

I have looked and looked and it does not seem that any leases were inherited with the purchase of the building, the attorney for the building said that the leases may have been spoken agreements because some of the tenants have been in the building so long. That gives me no legal recourse in getting these tenants to fall back in line and follow rules put in place to protect their own safety and the safety of those living around them as well as the protection of my husbands property.

How can I regain control of this property?

Because of the rent control status, it is almost impossible to evict the tenants and without written leases I have nothing holding them accountable for their behavior.

Has anyone else been in a situation like this?

I'm not sure how the rent-control issue would effect things, as I've never managed a rent-control property but...

Even without a written lease, you can still initiate an eviction proceeding. And with what is going on... I think you need to clean house. I have unfortunately had to deal with squatters before, and the process was as follows:

1. Serve notice to vacate/terminate month-to-month tenancy. Required time frame here (in Ohio) is 30-day notice. Keep in mind if your tenants get with the program during this notice period, you do not have to move forward with the eviction. Also, be prepared for all kinds of problems during the 30 days and up until you get possession of the unit back.
2. Service notice to vacate/eviction. Required time frame here is 3-days.
3. File eviction and move forward.

I would consult your attorney, as eviction process varies widely. With regards to tenants changing the locks, you do have the right to change them back just be sure to be prepared to provide them with a key and entry upon demand (even if its at 2am). Also, be sure to document EVERY SINGLE lease violation. Take pictures. Write statements for your files. Send your tenants written notice with copies of the notice in the lease file. If there are issues with building code or law enforcement, keep copies of the code violations and police reports. You will need them come time for court.

Sorry for your issues!
CA is such a tricky state, but most states have laws that kick in in the event there is no lease.
I googled SF Landlord Tenant Law and found there is a "Rent Board." Here is a PDF of the Ordinance.
sfrb.org/sites/default/files/Document/Or...-16%20bookmarked.pdf
They also have what they call:
“Info-to-Go” (415) 252.4600 (24-Hour Phone Service)
It may be more tenant-oriented, but could be a free place to start!
I would hire an attorney after initial research...
Keep us posted!

You will need an attorney. Go to the landlord tenant court in your county, and watch the eviction attorneys. It's the best way to get one that you like. Then hire one and do what they tell you to.