Assembly Bill No. 1482 – Tenant Protection Act (Rent Cap)
The AB 1482 law went into effect January 1, 2020 and set to expire January 1, 2030. It is designed to protect tenants from evictions without “cause” and cap the rent increase.
The days of giving a minimum of 60-day notice to occupying tenant with at least one year of occupancy or at least 30 days to less than a 12-month lease prior to the terminated date without cause is not good enough. A reason should be provided along with the notice.
The landlord is limited on increasing the rent to 5% on residential properties in a course of one year in addition to the local inflation or 10%, whichever is less.
Please note this law applies to California residential rentals that are at least 15 years old. Single family residents and condominiums are exempted unless it is owned by a corporation, REIT, or limited liability corporation (LLC) if one of the owners is a corporation. A duplex is also exempt from the law if the owner is occupying one of the units at the onset of the tenancy. This bill only applies to California cities that currently do not have rent control laws.
Please note that new “Rent Cap and Just Cause Addendum” C.A.R. forms are available to new and existing tenants whether it’s month-to-month or a long-term lease.
Here are some of the “just cause,” which must be written in the termination notice or eviction: Note, the landlord must give the tenant an opportunity to cure the violation before a three-day notice to quit can be sent out for termination.
At-fault just cause:
Failure to pay rent
Breach a material term of a lease contract after a written notice was given to correct the violation, i.e., subleasing or assigning.
After the old lease contract expired, the tenant refused to sign a new contract extension.
Tenant committed illegal activities on the property including threats to the owner or owner’s agent.
The tenant had refused the owner/landlord to enter the rental for the purpose of repair, maintenance, etc.
For the no-fault cause termination, the tenant is entitled to relocation assistance fee of one month rent or a last month rent waiver. The payment must be paid within 15 days of the notice.
No-fault just cause:
The owner or the owner’s family intends to occupy the property as long as the tenant has agreed to beforehand.
The owner removes the property for rent and intends to sell the property
The court order to vacate
For the no-fault just cause tenancy termination, the tenant must be notified of the tenant’s right to relocation assistance or rent waiver equals to one month rent and the assistance must be paid within 15 calendar days of the notice.
Major remodeling of the property
This information deemed reliable but not guaranteed. The article is not intended as legal advice. Please consult with a local attorney for info on real estate laws.