Understanding Rent Control Laws in California

Rent control laws in California significantly impact how landlords manage their properties and interact with tenants. To navigate these laws effectively, landlords need a clear understanding of both state-wide protections and local regulations.

State-Wide Protections Under AB 1482

The Tenant Protection Act of 2019 (AB 1482) introduced critical statewide rent control measures and just-cause eviction requirements. Key provisions include:

• Rent Increase Limits: Annual rent increases are capped at      5% plus the local rate of inflation, with a maximum cap of 10%.
• Just Cause Evictions: After a tenant has lived in a      property for 12 months, landlords must have a legally valid reason to      terminate the tenancy. These reasons include nonpayment of rent, breach of      lease terms, or the landlord’s intent to occupy the unit.
• Exemptions: AB 1482 does not apply to      single-family homes if the landlord provides an exemption notice, or to      units built within the past 15 years.

Understanding these rules helps landlords avoid penalties and ensures compliance with statewide laws.

Local Rent Control Ordinances

Many cities in California have implemented their own rent control ordinances, which often impose stricter rules than AB 1482. For example:

• Los Angeles: The Rent Stabilization Ordinance      (LARSO) regulates rent increases and limits evictions for buildings constructed before October 1, 1978.
• San Francisco: The Rent Ordinance controls rent increases and requires landlords to follow specific procedures for evictions.
• Berkeley and Oakland: These cities have robust rent adjustment programs with strict caps on rent increases and tenant protections.

Landlords should familiarize themselves with the specific rules in their jurisdiction and how they interact with AB 1482 to avoid costly mistakes.

Rights to Increase Rent and End Tenancies Legally

While rent control laws impose limits, landlords still have rights. To exercise these rights lawfully:

• Rent Increases: Ensure increases comply with state and local limits. Provide proper notice, typically 30 days, for increases under 10%, or 90 days for larger increases (where permitted).
• Ending Tenancies: Just cause evictions must follow proper procedures, including providing written notice and, in some cases,      relocation assistance.
• Relocation Assistance: Some local ordinances require landlords to pay relocation fees to tenants in no-fault eviction cases, such as when the property is withdrawn from the rental market under the Ellis Act.

By adhering to these requirements, landlords can manage their properties effectively and avoid legal disputes.