By Lookout Staff

December 2, 2010 -- A former local landlord has agreed to pay a total of $120,000 to the City of Santa Monica and a former tenant to settle two lawsuits. Cheryl Kautzky had been accused by the City of evicting tenants paying under market rates supposedly to get out of the rental business, but then re-renting out the units to bring the rent amounts up to market rates. She was also accused of tenant harassment.

Kautzky will pay $100,000 to the City and $20,000 to the former tenant, Edward Vincent. A joint trial of the two suits had begun in October. The settlement was reached during jury selection. The agreement was finalized this week.

"This case shows that breaking the rental laws does not pay," Deputy City Attorney Adam Radinsky said. "When landlords go out of the rental business, they need to follow the law. And tenants should know that they have legal rights and can't simply be thrown out on the street."

When Kautzky bought the four-unit property in 2000, three of the units were occupied by tenants “paying controlled rents far below market price,” according to the City. The next year, she filed papers to “Ellis” the property, which is a process in which tenants are evicted so the landlord can get out of the rental business.

The tenants were evicted in 2002, but according to the suits, Kautzky then unlawfully re-rented out the units at market rates. Vincent in 2008 learned of this situation, and he claimed Kautzky forced him out of the apartment with the help of others “by removing all of his belongings while he was gone one day, and threatening him with bodily harm when he returned.

Kautzky sold the property last year.

"When landlords go out of the rental business, they need to follow the law. And tenants should know that they have legal rights and can't simply be thrown out on the street."
     Adam Radinsky