Tenant Protection Act (AB 1482): A Guide for Landlords

Introduction:

In 2019, California passed Assembly Bill 1482, also known as the Tenant Protection Act, to address the state's affordable housing crisis and protect renters from unjust evictions and steep rent increases. For landlords operating in California, understanding the key provisions of AB 1482 is essential for compliance and successful property management. In this article, we'll explore the important aspects of AB 1482 and provide guidance for landlords on how to navigate this regulatory landscape effectively. Additionally, effective April 1, 2024, the eviction notice must include a description of the work to be done, copies of required permits, and a notice that if the substantial remodel is not commenced or completed, the tenant must be given the opportunity to re-rent the unit at the same rent and lease terms as when the tenant left.

Who These Protections Apply To

The Tenant Protection Act applies to ALL residential rental units in the state except those specifically identified in the law. Some examples of properties not covered by the Act include:

• Single-family homes not owned or controlled by a corporation or real estate investment trust (the Act does apply to single-family homes owned or controlled by a corporation or real estate investment trust)

• Units covered by a local rent control ordinance that is more protective than the Tenant Protection Act

• Units issued a certificate of occupancy within the past 15 years (this is a rolling timeline, so tenants will gain protection once their building turns 15)

• Mobilehomes, unless the mobilehome is owned and offered for rent by the owner or manager of a mobilehome park

• Duplexes where the owner is living in one of the units at the time the tenant moves into the other unit, but only as long as the owner continues to live there

• Housing that is restricted as affordable housing by deed, government agency agreement, or other recorded document, or that is subject to an agreement that provides housing subsidies for affordable housing

• Dorms

1. Understanding Rent Caps:

   AB 1482 imposes limitations on rent increases for certain rental properties in California. Under the law, landlords cannot increase rent by more than 5% plus the local rate of inflation annually, or 10% maximum, whichever is lower. It's crucial for landlords to familiarize themselves with these rent cap provisions and ensure compliance to avoid potential penalties.

2. Just Cause Eviction Protections:

   Another significant aspect of AB 1482 is the establishment of just cause eviction protections for tenants. Landlords are required to provide a valid reason, or "just cause," for evicting a tenant who has occupied the property for at least 12 months. Valid reasons may include failure to pay rent, violation of lease terms, or the landlord's intent to occupy the unit. Understanding the permissible reasons for eviction and following proper legal procedures is essential for landlords to avoid legal disputes and uphold tenants' rights.

3. Exemptions and Exceptions:

   While AB 1482 applies to most rental properties in California, there are certain exemptions and exceptions to consider. For example, newly constructed buildings that received their certificate of occupancy within the last 15 years are generally exempt from the rent cap provisions of the law. Additionally, single-family homes and condos rented out by individual owners are exempt if certain conditions are met. Landlords should carefully review the exemptions outlined in AB 1482 to determine the applicability of the law to their specific rental properties.

4. Compliance and Record-Keeping:

   To ensure compliance with AB 1482, landlords must maintain accurate records of rent increases, lease agreements, and eviction notices. It's essential to document all communication with tenants and adhere to the requirements set forth in the law. Additionally, landlords should stay informed about any updates or amendments to AB 1482 and adjust their practices accordingly to remain compliant with current regulations. When raising a tenant’s rent, landlords must deliver the tenant a formal written notice of the change. It is not enough for a landlord to call, text, or email that they plan on raising the rent. Landlords must also give residential tenants sufficient warning before increasing rent. If the rent increase is 10% or less, landlords must provide notice 30 days before the increase can take effect. If the rent increase is more than 10%, the landlord must provide notice 90 days before it can take effect.

Conclusion:

As California continues to grapple with housing affordability challenges, AB 1482 represents a significant step towards safeguarding tenant rights and promoting housing stability. For landlords, understanding the key provisions of AB 1482 and implementing compliant practices is essential for maintaining successful rental property operations. By staying informed, adhering to legal requirements, and seeking professional guidance when needed, landlords can navigate the regulatory landscape of AB 1482 effectively and contribute to a fair and equitable rental housing market in California.