Under AB 1482, all cities in California are subject to statewide rent control. If your property is subject to this statute, good cause is required to terminate a month-to-month tenancy. With respect to rent limitations, AB 1482 prohibits landlords from increasing rent by more than 5% plus “the percentage change in the cost of living” (CPI) over any 12-month period. Under AB 1482, CPI is defined to mean the percentage change from April 1 of the prior year to April 1 of the current year in the regional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics.
Currently, in San Diego County, the rent increase for this one-year period is 9.1%. A 30-day increase notice can be served to initiate this rent increase. There are some units which are exempt from this statute:
- Single Family Homes
- Condominiums and Townhouses
- Property that received a Certificate of Occupancy within the last 15 years
The above properties are only exempt if the owner is not a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation. The following units are also exempt:
- A duplex where the owner has resided in the unit prior to the tenant’s occupancy
- Where the tenant has occupied the unit less than one year
- Affordable housing units
In these cases, no cause is required to terminate a month-to-month tenancy or to raise rent to market level. If you are raising rent more than 10%, you will need to serve a 90-day notice. If 10% or less, it would require a 30-day notice. To obtain an exemption under Statewide Rent Control, notice that the property is exempt MUST be contained in any new rental agreement. For tenancies that currently exist, a notice should be served informing the tenant that the premises are not subject to this statute. Failure to inform the tenant that the premises are exempt, will result in the premises being subject to the statute.
The state’s just cause termination provisions do not apply to a property that is subject to a local just cause ordinance adopted prior to September 1, 2019. A local just cause ordinance adopted after September 1, 2019 will only apply if it is more protective than AB 1482.