My question involves landlord-tenant law in the State of: California
Hi everyone, I am at my wit's end and hoping I can get some useful advice here. Here's the story:
I evicted the tenants from my condominium back on November 15, 2009, for non-payment of rent that eventually totalled more than $20,000. The tenants are a middle-aged couple that are very personable but apparently have very, very poor business sense. This couple left the residence at my request and I had them sign a contract specifying that starting in January 2010, they would repay the balance of the outstanding rent at a rate of $250/month.
The husband is a commercial contractor and offered some his contracting services to help pay down the outstanding balance, so I took him up on his offer. I commissioned him to replace the carpeting in the condominium with laminate flooring, and to remove the popcorn ceiling and repaint it. The condominium is small, 2br, approximately 1400 square feet. The work started in January 2010.
It is now nearing the end of July 2010 and the work is STILL not completed. I purchased all of the flooring materials at my expense, and they are still sitting on the floor of the condominium, which is currently bare concrete. Over the last 7 months I have had to endure delays and excuses every few weeks from the guy, and every time I have received assurances that everything "will be done", he just needs a few more weeks.
At this point in time I have had enough. I told him that I will no longer grant any more extensions after July 31, and will be requesting return of the door keys and gate opener on that date, and I will hire a different person to complete any unfinished work (which appears to be the whole project).
Not only that, but this couple has fallen delinquent on their repayment of the back rent by 3 months now. I confronted the husband about this, and was told that currently he has NO funds to give me and I would simply have to wait.
This situation is killing me. I have no idea what recourse I have. At this point I am stuck paying the mortgage on a condominium that is half-finished and un-rentable, and the tenants that owe me over $20000 are flaking out on repaying me under terms that I let them define.
What can I do? I really need some help/advice. Thank you!

