NEW RENT CONTROL LAWS STARTING JANUARY 1, 2020

Dated: February 4 2020

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NEW RENT CONTROL LAWS STARTING JANUARY 1, 2020


RENT INCREASES WILL BE CAPPED UNDER THE CALIFORNIA RENT CONTROL BILL AB 1482. WHAT DOES THIS MEAN FOR HOMEOWNERS WHO RENT TO TENANTS?
The state of California approved a statewide rent control to fight high home prices, high rents, evictions and homelessness.
Q: WHAT IS THE RENT CAP ALLOWED BY THE BILL?

A. The maximum increase within a 12-month period is 5% + inflation, as measured by the Consumer Price Index (CPI), or 10%, whichever is lower. 

Q: WHAT IS THE CONSUMER PRICE INDEX? 
A. The applicable CPI is either the regional CPI as published by the U.S. Bureau of Labor Statistics or if there is no regional index available, the California CPI for all consumers for all items, as determined by the California Department of Industrial Relations.
Q: CAN A LANDLORD RAISE THE RENT BEYOND THE CAP AFTER A TENANT MOVES OUT AND THE UNIT IS VACANT?

A. Yes, but note that a desire to raise the rent beyond the cap is not a permissible reason to terminate a tenancy under the bill. 

Q: WHAT IF MY RENT WAS INCREASED IN 2019?

A. If your rent has increased MORE THAN 8.3% between 3/15/19 and 1/1/20, your rent may go down.

  • Starting 1/1/20, your rent reduces to your rent on 3/15/19, plus 8.3%.  If your rent increased LESS THAN 8.3% between 3/15/19 and 1/1/20, your rent on 1/1/20 stays the same.
  • You can get up to 2 more increase before 3/15/20, not to exceed 8.3% above your 3/15/19 rent. 

Q: HOW DOES A RENTER KNOW IF THEY ARE COVERED BY AB 1482?

A. A renter in a single-family home is covered by the rent cap and the just cause for eviction requirement if the home is owned by a corporation or real estate investment trust. A landlord is also required to notify the renter if the single-family home is exempt from the rent cap and just cause. If the owner does not properly notify the renter that the home is exempt as required by the bill, then the home is not exempt.

Warmly,

Kaylyn



Article sourced from http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1482
This article is not intended as legal advice. To answer specific questions, it may be necessary to contact a legal counsel. 

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Kaylyn Shen

Welcome! Make yourself at home and take a look around.Originally from Shanghai, Kaylyn embraces her real estate career drawing upon her international flair and understanding of other culture....

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