AB -1842 potential new rental property ?

[Guillermo Perea]

Hey everyone,  I decided to buy a 3 unit building in Los Angeles not currently on Rent Control (was built in the 80s) Will AB-1482 affect me ? The existing tenants are paying way below market rents. 

[Mike Franco]

single family homes are not exempt for absentee owners.

And fixed term leases are not required to be renewed. 

Many people have the assumption that a fixed term lease automatically goes to month to month, but there is no law that requires that. Whatever you want to do at lease end, you spell it out in the contract.

For example, the C.A.R lease template states that tenants must vacate at the end of term, unless another agreement is made in writing. 

The only time a yearly lease would become a m2m automatically is when you keep accepting rent without writing up a new contract.

As the bill states, a lease term not specified, like a m2m agreement, would automatically renew every month. 

A fixed term lease, by definition, has a term specified, and all these rules do not apply.

Under California law neither the landlord nor the tenant is required to give notice at the end of a fixed-term lease, unless the lease says otherwise. In addition, the landlord has no obligation to negotiate a renewal with the tenant at the end of the tenancy.

With a fixed term lease, tenants are always under the assumption that they need to move at the end of the term. The benefit of the yearly or fixed term lease is that they have the comfort of knowing their rent won't get hiked up during the lease term.

m2m tenants are different. It used to be that they could get surprise rent hikes of any amount, and this bill aims to protect these people specifically.