In October, Governor Gavin Newsom signed Assembly Bill 1482 into law, which is set to take effect in January 2020. Generally, the statewide rent control will cap rent increases at 5% plus CPI and require landlords to have a “just cause” to evict tenants. Units can return to market rent prices after a vacancy is occupied, and the law is set to expire in 2030. The law would apply to all rental properties, except those in cities already subject to local rent control, owner-occupied duplexes, new construction for 15 years, among other exemptions.
Below is a quick summary of what this new law entails:
- If a landlord increases rent by more than this cap between March 15, 2019, and January 1, 2020, the rent on January 1, 2020, must be what the rent was on March 15, 2019, plus 5% plus CPI
- Authorizes landlords who increased rent by less than 5% plus CPI between March 15, 2019, and January 1, 2020, to increase the rent twice within 12 months of March 15, 2019, but not more than 5% plus CPI
- Beginning January 1, 2020, requires landlords to have just cause in order to evict tenants who have occupied a unit for at least 12 months, or up to 24 months when an adult tenant adds onto a lease (change in roommates)
- Landlords will still be able to evict for at-fault reasons, e.g. failure to pay rent, breach of lease, criminal activity, creating a nuisance, committing waste, refusal to execute a written extension or lease renewal, refusal to allow the owner to enter
- Landlords can also evict for no-fault reasons, e.g. when the owner or their family plans to occupy the property if they want to remove the property from the rental market if they intend to substantially remodel the property if they are ordered to vacate by a government agency or court
- Requires landlords to provide relocation assistance via one month’s rent or rent waiver for no fault evictions within 15 calendar days of serving notice, and to notify tenants of the relocation assistance
For more information, please see our AB 1482 FAQ.