Attention Rental Property Owners & Managers: New Notices May be Required per California Assembly Bil

Industry News,

Assembly Bill 1482, the Statewide rent control and tenant protection law that became effective on January 1, 2020, requires rental property owners and their agents to provide written notice to renters under existing lease NO LATER THAN August 1, 2020 (and within new lease agreements beginning on July 1, 2020 and thereafter) IF:

1. Rental Unit Exempt from Local Rent Control and Statewide Rent Control Under Assembly Bill 1482

(Generally, properties built within last 15 years)

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12(d)(5) and 1946.2(e)(8) of the Civil Code and the owner is not any of the following: (i) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (ii) a corporation; or (iii) a limited liability company in which at least one member is a corporation..” (See AAGLA Form D.1)

2. Rental Unit Subject to Statewide Rent Control Under Assembly Bill 1482 (Not Exempt from A.B. 1482)

(Generally, properties in jurisdictions that do not have local rent control and are older than 15-years)

“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.” (See AAGLA Forms D.2 and E.1)

3. If Not Covered by Statewide Rent Control, but Covered by Local Rent Control

No notice required. However, it is suggested that these notices be included within your lease agreements for new leases. These notice provisions are included in AAGLA’s form lease agreements. Further, there is “no harm, no foul” if you would like to provide these notices to your renters.

If you have specific questions relative to the notice requirement and its applicability to your specific tenancy or property, please consult with an attorney.