California Rent Control + Frequently Asked Questions

[Christina Labowicz]

Below are the highlights of the California Statewide Rent Caps (AB 1482).

-Annual rent increases limited to CPI + 5% or 10% (whichever is lower)...effective 1/1/2020.

-Does not supersede existing rent control laws/tenant protections in cities with more restrictive laws under Costa-Hawkins.

-Rents can be reset to market rate once a tenant vacates.

-Include just cause eviction protections for tenants after 1 year of tenancy.

-Landlords who want to make substantial renovations or convert buildings would have to pay relocation assistance equal to one month rent.

-Exclusions: Properties built within the last 15 years & SFR's (except those owned by corporations or institutional investors).

Relocation Assistance:

Q59. When is relocation assistance required?
A59. Whenever a tenancy is terminated based on a no-fault reason.

Q60. My tenant makes over $200,000 a year. Am I still required to pay relocation assistance?
A60. Yes. There is nothing in this law that varies the amount of relocation assistance based on any characteristic personal to the tenant.

Q61. How much is the relocation assistance?
A61. One month of rent as of the time the termination notice was issued.

Q62. What are the owner’s options for how this amount is to be paid?
A62. The owner has two options:

1. The relocation assistance amount may be provided as a direct payment to the tenant with 15 calendar days of serving the termination notice. In this case, the notice of termination must notify the tenant of the tenant’s right to relocation assistance. Or,

2. The owner may notify the tenant in writing that the payment of rent for the final month of the tenancy is waived, prior to it becoming due. In this case, the notice of termination must state the amount of rent waived and that no rent is due for the final month.

Q63. What happens if I do not pay the relocation assistance?
A63. The notice of termination will be rendered “void.” In fact, the law states that any failure of the owner to “strictly comply” with the relocation assistance rules will render the termination notice void.

Q64. What happens if the tenant fails to vacate after expiration of the notice?

A64. Then the actual amount of the relocation assistance or rent waiver can be recouped as damages as part of an unlawful detainer action.

Contact me for the full list of details and FAQ and about the new rent control law that just passed!

[Chris Mason]

Cool summary. 

Questions I'll throw out there:

"-Annual rent increases limited to CPI + 5% or 10% (whichever is lower)...effective 1/1/2020."

We've had periods where inflation far exceeded 10%. Early 80s, other times too. If something like that happens again, it will devastate the rental market. Unless I am missing something.

"-Include just cause eviction protections for tenants after 1 year of tenancy."

Soooo.... 6 month leases? 9 month? Decide if you want a "permanent" tenant at that point.