California Passes Statewide Rent Control Law
Posted by PRE at Oct. 22, 2019
The Facts on California's New Statewide Rent Control | Assembly Bill 1482
- The law would be in effect from January 1, 2020, until 2030
- It will apply to cities that don’t already have rent control laws and expand rent control in those that do
- Landlords are prohibited from hiking rents more than 5 percent, plus inflation, in one year
- It also includes a provision requiring landlords to have “just cause” when evicting a tenant.
- Examples of Just Cause include failing to pay rent and violating terms of a lease agreement.
- The law applies only to multi-units apartments constructed in 1978-2004
- The law does not apply to SFR and Duplex where the owner lives in one of the units
- Apartment building constructed in 2005 and later are not subjected to this law
Ways To Protect Your Investment from The New Rent Control Bill
- Invest in Multi-units which was built in 2005 and later
- Invest in Single Units such as SFRs, Condos, or Lofts
- If you own a Duplex which was built in 2004 or earlier, occupy one of the 2 units as your primary or secondary home
- If you own a multi-units which was built in 2004 or earlier, consider upgrading your properties