California's "Tenant Protection Act of 2019" & What It Means to You

There is little argument whether or not our entire state is in the midst of a housing crisis.  The affordability of housing has dwindled and millions of Californians are faced with dire housing consequences.  Market rents on rental housing have risen dramatically over the past decade, especially in our larger metropolitan areas such as Los Angeles, San Francisco, and San Diego.

On January 1, 2020 the entire State of California will be under what the New York Times has called the strictest rent control ordinance in the nation.

Every city, every property that qualifies under the new “Tenant Protection Act of 2019” signed into law by Governor Newsom and every tenant and landlord will be impacted.

What do you need to know in order to understand the new law, both as landlords and tenants?  Urban Advisors is here to assist.

Effective January 1, 2020 if you live or own an apartment building or duplex, in which the owner does NOT live in one of the units, and if the building was constructed MORE than 15 years ago, the following base rules apply:

1.     In a 12 month period, the rent cannot be raised by more than 5% plus a Cost of Living Adjustment.

2.     If the rent is greater that 5% plus CPI, combined, in any calendar year, and if the tenants chooses to move, the tenant shall receive the equivalent of one month’s rent as compensation.

3.     The law does NOT apply to individual condominium or single family home rentals.

4.     The law does NOT apply to the rental rate on newly vacated units (the phrase known as “vacancy control[NC1] ”).

5.     The provision of “Just Cause Evictions” applies.  Simply put, the owner cannot unilaterally terminate your tenancy with a 30 or 60-day notice, if you have lived in the rental for over 12 months, without a specific violation of the lease (including not paying rent, having unauthorized occupants, damages, crime, etc.).

6.     The new law sunsets in 2030.

There are many more subtle provisions in the “Tenant Protection Act of 2019”.  Stay tuned for more updates.

Please contact us at contact@urbanadvisors.net if you have any questions or thoughts to share.