The Landscape is Changing for Rentals in California

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The Governor is aggressively seeking changes in income properties policies for the State of California.  It is still up in the air about what will actually happen but I thought you might like to know what may be coming.

Assembly Bill 1482 has been passed by the California legislature. It is not yet law, but Governor Newsom has signaled his approval of the bill and is expected to sign it.

  To see a PDF of Bill 1482 Guidelines click here.

Quick Summary of the law and C.A.R.’s Lease Addendum Rent Cap

  • Rent increases are capped at 5 percent plus inflation, or up to a hard cap of 10 percent, whichever is lower.
  • All rent increases since March 15, 2019 will count toward the rent cap, and if above the permissible rent cap, will have to be rolled back effective January 1, 2020.

Just Cause

  • Landlords may only evict for “just cause.” There is a list of 15 reasons.
  • The just cause reasons are divided into two categories:
  • “At fault” termination of tenancy is generally based upon a tenant’s breach of the lease, among other reasons, and does not require the payment of relocation assistance.
  • “At fault” reasons include non-payment  of rent, nuisance,  criminal activity, refusal to  allow entry, and breach of a material term of the lease.
  • “No fault” termination of tenancy is allowed when the tenant has not breached the lease and will require the landlord to pay one month’s rent in relocation assistance.
  • “No fault” reasons include owner occupancy, withdrawal from the rental market, substantial remodeling and compliance with government order to vacate the property,
  • Just cause eviction only applies to tenants who have been continuously and lawfully occupying the property for 12 months.

Exemptions

  • Exempts single family properties and condos if:
    • Notice of the exemption is provided to the tenants and;
    • The owner is not a REIT, a corporation, or an LLC where an owner is a corporation
  • Other exemptions include:
  • New construction where certificate of occupancy was issued within the last 15 years
  • Owner occupied duplexes

Owner occupied single-family properties renting no more than two bedrooms including Accessory Dwelling Units (“ADU”s). (This exemption applies only to just cause but not the rent cap).

Elaine Abercrombie
Broker/Owner, SBAOR Past President, GREEN, SRES
elaine@afhomes.net
www.AbercrombieFineHomes.net

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