Changes to California Landlord-Tenant Laws

AB 1482 passed, which limits statewide annual rent increases and puts in place just-cause eviction protections for tenants.

The bill takes effect January 1, 2020, with a retroactive provision and will be in place for ten years.

Here’s a simple overview for multi-family property owners:

1. Single-family properties are exempt unless they are owned by corporations or institutional investors, such as a REIT.

2. Annual increases limited to 5 percent + CPI (comes to about 8 percent total) on apartments more than fifteen years old.

3. Tenants who have been in place for more than one year can only be asked to vacate upon documented just-cause actions, such as failure to pay rent or violation of lease terms. Allowable exceptions apply when the owner plans to move into the unit, demolish the building, or renovate it. In this instance, a tenant must be provided compensation equal to one month’s rent (about 8 percent of one years’ rental income).

4. The bill provides that these provisions apply to all rent increases occurring on or after March 15, 2019. In the event that an owner increased the rent by more than 8 percent between March 15, 2019, and January 1, 2020, the applicable rent on January 1, 2020, shall be the same rent as of March 15, 2019, plus 8 percent. The owner is not liable to the tenant for any corresponding rent overpayment.

Have questions about the new law? Please contact us! 

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