AB 1482, Tenant Protection Act of 2019 (Rent Control Act)

 

As living costs soar across California amid a severe housing crunch, millions of residents will be protected for the first time from large rent increases and losing their homes if they have been reliable tenants.

California’s new rent cap and eviction protection law may have a limited effect on the Golden State’s surging apartment market following some uncertainty and disruption for investors, according to sales brokers and rental housing industry executives.

The legislation signed by Gov. Gavin Newsom is one of the nation’s strongest tenant protection laws, capping annual rent increases at 5% plus the inflation rate and restricting a landlord’s ability to evict a tenant.

California is the third state this year to adopt significant rent regulations, giving renewed national momentum to the push for rent control. Newsom predicted that more states would follow.

What types of buildings will be impacted?

Rent control will be applied mostly to apartments and other multi-families buildings—with some exceptions—along with some single-family homes.

Condos and single-family homes will be exempt unless owned by a corporation or real estate investment trust. Duplexes, where the owner lives in one of the units, will also be exempt.

How much will my rent go up?

If you live in a city that does not already have a local rent control law, rent increases will be limited to 5%, plus local inflation, but could never exceed a total of 10%.

For example, if you’re renting in Redondo Beach, which does not have its own local rent control law, and you pay $1,550 per month for rent, and Los Angeles County metropolitan area’s inflation rate is 3.8%, your landlord could raise your rent as much as 8.8%, a monthly increase of $136.40.

 

Link to Assembly Bill No. 1482

 

Source: California Legislative Information