If you own a rental property or looking to invest in multi-unit residential properties in the state of California, you must know about the latest California Tenant Protection Act. California’s Legislature just passed state assembly bill 1482. This Bill limits the rent increase to 5% plus inflation or 10%, whichever is lower. This bill applies to multi-unit residential apartment buildings that are 15-years or older and it will go into effect on January 1st of 2020. However, rent increase as early as March 15 of this year is subject to this new law. The good news is, many types of properties are exempt from this bill. They include single-family homes, condos, and townhomes. If the property is a single-family home with an ADU or a duplex, as long as you as an owner occupy in one of the units, your property is excluded from the rent control. Assembly bill 1482 also sets new guideline on tenant eviction. Landlords can still evict a tenant for a just cause, which includes
-failure to pay rent
– breach of lease terms
-when the tenant assign or sublease the place without permission
-when the owner needs to move themselves or family members into the property
– when the owner needs to renovate the property
Without a just cause, the landlord will need to supply the tenant relocation assistance equals one month’s to have their tenants move out of the property. I hope this update helps you become aware of the latest tenant rule. If you want to get the full detail of the assembly bill 1482, click the link below for a two-page report. Thank you for watching my video and stay tuned to more real estate news!