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Updated over 2 years ago on . Most recent reply

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Justin Dao
  • Investor
  • Santa Barbara, CA
5
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19
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Understanding California Rent Control

Justin Dao
  • Investor
  • Santa Barbara, CA
Posted

Hey BPers,

I wanted to better understand California rent control. I've read a summary of AB 1482, the 2019 California Tenant Protection Act, but just had a hypothetical question I wanted to ask to make sure I'm understanding it.

Say I was buying a condo, newer construction (~2017), which had a "grandfathered" tenant who was paying $1000/mo in rent. Since the condo meets both exemptions (condo + built in the last 15 years) for rent control and "just cause" for evictions, would I legally be able to increase the tenant's rent to market rate, say $4000/mo, after their lease was up? As I understand it, I could also choose not to renew their lease and then raise the rent to market rate for the next tenant.

Just wanted to ask, thanks in advance!

Most Popular Reply

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749
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287
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Chad Hale
  • Property Manager / Investor
  • San Jose, CA
287
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749
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Chad Hale
  • Property Manager / Investor
  • San Jose, CA
Replied
@Justin Dao
The new AB1482 law was written that properties were only exempted if the notice of exemption was given to the tenants.  If not, the tenants were automatically exempt.  The law put the burden on the landlord.
If the existing lease has these exemptions listed/checked, you should be fine.

You can raise the rent at the end of the lease without limit.  Just be sure to follow notice guidelines based upon how much of  percentage rent increase you are giving.  Generally, if more than 10% 60days notice is required.



  • Chad Hale
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