AB 1482 Max percent increase by Counties
- January 1, 2020 Rent Modification.If you raised rent on or after March 2019, you may need to make an adjustment in the amount due for January’s rent.
- Return of Overpaid Rent:If rent was raised since March 2019 for an amount greater than allowed, the owner is not obligated to return the overage.
- Property Types: Law is focused on multi-family units. Condos and detached homes unless owned by a corporation appear exempt.
When is a landlord allowed to evict a tenant?
The bill enumerates the just causes to evict a tenant. If the landlord does not have one of these reasons to justify the eviction, attempting to evict the tenant would be unlawful. The just causes for eviction include “at fault” reasons and “no fault” reasons.
“At fault” reasons include:
- Defaulting in the payment of the rent;
- Breaching a material term of the lease;
- Committing a nuisance on the property;
- Illegally subletting the unit;
- Refusing to let an owner enter the unit as required by state law;
- However, note that tenants have the right to privacy and the quiet enjoyment of their home. Thus, except in specific situations such as an emergency, state law does not require the tenant to let an owner enter unless the landlord has a lawful purpose, proposes to enter during regular business hours, and has given at least 24 hours advance written notice. See Civ. Code Sec. 1954 for details.
- Committing a criminal act on the property;
- An employee who lives on site failing to vacate their unit after their employment has been terminated.
“No fault” reasons include:
If a landlord wants to move into the unit or move in a close family member;
- If a landlord plans to take the unit off the rental market;
- If a landlord intends to demolish or substantially remodel the unit such that it is uninhabitable for at least 30 days.
What kind of notices are tenants required to receive about the rent cap?
All tenants in units covered by the bill must receive a notice explaining the just cause and rent cap protections. For a tenancy existing prior to July 1, 2020, this notice must be provided in writing to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement. For any tenancy commenced or renewed on or after July 1, 2020, this notice must be provided as an addendum to the lease or rental agreement, or as a written notice signed by the tenant with a copy provided to the tenant. The notice language must read:
“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.”
In addition, an owner claiming an exemption under the single-family home or condo exemption must provide a written notice to the tenant. For a tenancy existing before July 1, 2020, this notice may be provided in the rental agreement. For any tenancy commenced or renewed on or after July 1, 2020, this notice must be provided in the rental agreement. If the owner does not provide the required notice, then the property is NOT exempt from just cause or the rent cap. The notice language must read:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
The only properties exempt from the rent cap are SFRs not owned by corporations. We will need to notify these tenants that the property is exempt from the new rent cap using an addendum.
For properties exempt from the rent cap, we will need to provide notice for increases as follows:
0-9% increase = 30 day notice
10-14% increase = 90 day notice
15+% increase = 120 day notice