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  • Writer's pictureSteve & Kendra Day

Statewide Rent Control in California

Updated: Sep 18, 2019

There has been a lot of concern about California statewide rent control and the bill that was passed last week on September 12, 2019. The biggest question is, “What does this mean for owners?” Here’s a quick summary of the bill:

California Statewide Rent Control AB1482

1) Passed by the state legislature on 9/12/19

2) Landlords are restricted to rent raises of 5% plus cost of living (currently 2.5%). In today’s market, landlords can raise rent 7.5%. There is a 10% maximum in all circumstances.

3) The bill takes effect January 1, 2020 and is valid for 10 years unless extended by the legislature.

4) New rent increases and notices to vacate after March 15, 2019 need to comply with the new law.

5) The bill does not cover units built after 1995 or single family residences owned by

“Mom and Pop.”

6) It DOES cover single family residences if “Mom & Pop” own more than 10 houses or if the houses are owned by Corporations, REIT’s, LLC’s, or Trusts.

7) Landlords cannot evict tenants that have been in the property for more than 1 year without "just cause".

8) “Just cause” evictions include: violation of the lease, non payment of rent,


9) Some exemptions to the “just cause” evictions include an owner who wants to: occupy the property or have immediate family occupy the unit, convert the building to condos or do substantial renovations, withdraw the unit from the rental market, or has been ordered by the government or local ordinance. The owner must provide relocation assistance equal to 1 month’s rent.

10) Duplexes that include a unit occupied by an owner are exempt.

11) An owner can still raise the rent to market once a tenant moves out. At least this is how we interpret the following clause: (b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.

We are still reviewing the law and working to understand the intricacies of the bill. We own investment property and manage properties from the South Bay to Orange County and we are not concerned with these changes for ourselves or our owners. If you are asking yourself the question, “What do I do now? My rents were not at market value?” or “What is the value of my property?” With almost 40 years of real estate and property management experience, we can help you answer any questions. Call us today for an analysis of your investment property.

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