California’s Rent-Control Law
The California Governor Gavin Newsom signed a new rent-control law in October, which is aimed at tackling the housing crisis in the state as rent prices have soared in recent years. Assembly Bill 1482 will go into effect on January 1, 2020, and is set to expire in 2030. It is important for landlords to be aware of the new rules, given that they affect how rent prices can be changed. If you have any questions about rental rules and how the new bill will affect your property, speak with an experienced California attorney.
Brief Overview of the Rules
The rules are slightly different depending on the city in question, but generally speaking, a landlord cannot increase rent beyond 5 percent plus inflation each year. Landlords will also not be able to evict a tenant without cause just so that they can increase the rent for the next person. However, even with regional rule variations, some buildings will not be eligible for the limits for a while. According to the law, buildings built in the last 15 years are exempt from the rules, but this is a rolling date. Other exemptions include single-family homes not owned by a company.
The housing crisis has been ongoing and the state faces increasing homelessness rates. Some cities already have their own local rent control laws, for example, Santa Monica has its own rules in place. The new bill will not override already existing local laws, but it will be applied to units that had not been covered previously. Given that the law has its own exemptions and it will work alongside other existing controls if landlords or tenants have questions they should consult with a lawyer about how the bill can affect them.