Gov. Newsom Signed AB 1482, Rent Control and Just Cause Eviction for the complete state of California. Beginning Jan. 1, 2020 Rent Control and Just Cause Eviction will be effective in the complete State of California
The highlights of the bill are: (This is a brief summary, feel free to reach out to me for general questions but Please consult a Real Estate Attorney for your more detailed situation.)
- Annual Rent Cap increase of 5% plus the cost of living. With a max annual rent increase of 10%
- Landlords may only evict for “Just Cause”. (Breach of Lease, nonpayment, damage, etc.)
- If landlord terminates the lease for “No Fault” then a one-month relocation payment is mandatory
Most fair, honest and hardworking landlords can live with this. The major concern is this is a start and tenant advocates will press for more stringent measures. San Francisco Rent Control began with a 7% cap and now is down to about 2% and a relocation payment is a minimum of $4500 per person.
- All rent increases since March 15, 2019 count towards the annual cap. If rent was increased by greater than 10% it will have to be rolled back beginning Jan. 1, 2020.
- The Cost of living is used from the Regional Consumer Price Index published by the US Bureau of Labor Statistics from April to April. https://www.bls.gov/regions/west/news-release/consumerpriceindex_sanfrancisco.htm
- If tenant is on a month to month you are allowed to increase rent 2 times in a 12-month period but no more than the 5% plus the Cost of Living.
- Single Family Homes, Condos, Section 8 housing, Duplexes when owner is living in one unit and all buildings 15 years or younger are exempt but only if you advise the tenants in writing prior to Jan. 1, 2020. (Touch base with me in Dec. and I will get you the proper form) If notice is not given then they are not exempt. This is important.
- Just Cause Eviction only applies to tenants residing in home legally and continuously for 12 months. To avoid this, it does seem legal to offer only 11-month leases, terminate at end, and begin with new tenant.
- If you rent 3 or more rooms in a single-family home, you are subject to rent control and just cause.
- You cannot ‘Bank” (save up) a rent increase. Maybe you do not increase the rent one year you are not allowed to add that to the next year’s increase.
- This Rent Control and Just Cause bill is scheduled to terminate Jan. 1, 2030. (very unlikely this will happen)
- If a local area has more stringent controls (San Francisco) then the more stringent guidelines are effective.
- If a tenant leaves on their own, then landlord may charge new tenant any amount of rent.
- Rent Increases still require a 30-day notice.
For More info: https://www.samcar.org/government-affairs.htm
Gov. Newsom also signed another bill making it against the law to discriminate against Sec. 8 housing tenants.