Below are questions asked by rental property owners regarding California property management, followed by answers provided by the law firm of Simone and Blevins.
Effective June 24, 2023, the city of San Diego enacted the new Residential Tenant Protections. Ordinance No. O-21647. This new ordinance amended and replaced the Tenant’s Right to Know Ordinance that was enacted in March 2004. The new law requires certain landlords in the city of San Diego to comply with new just cause termination requirements and provide relocation benefits to tenants.
If your property is subject to the new law, you must provide your tenant(s) with:
- a copy of the San Diego Tenant Protection Guide and
- include the following notice in your lease/rental agreement:
“Notice to Tenant of Residential Tenant Protections “California law limits the amount your rent can be increased. See California Civil Code section 1947.12 for more information. Local law also provides that a landlord shall provide a statement of cause in any notice to terminate a tenancy. In some circumstances, tenants who are seniors (62 years or older) or disabled may be entitled to additional tenant protections. See Chapter 9, Article 8, Division 7 of the San Diego Municipal Code for more information.”
If your property is a single family home/condo, or if your property qualifies for some other exemption and you claim an exemption as a qualifying owner, you must provide the following notice to your tenant(s) no later than January 1, 2024: “This property is not subject to the just cause requirements of Chapter 9, Article 8, Division 7 of the San Diego Municipal Code. This property meets the requirements of San Diego Municipal Code section 98.0703(1) and the landlord is not any of the following: 1) a real estate investment trust, as defined by California Internal Revenue Code section 856; (2) a corporation; (3) a limited liability company in which at least one member is a corporation; or (4) management of a mobile home park, as defined in California Civil Code section 798.2.”
The new ordinance and Tenant Protection Guide is found here: https://www.sdhc.org/housing-opportunities/tenant-protections/
Q: I own a 6-unit apartment building in the city of San Diego that was built in the 1980s and I would like to remodel the units next year. Am I allowed to ask my tenants to vacate under the new San Diego Residential Tenant Protections?
A: Yes, under the new San Diego Residential Tenant Protections you may give notice to your tenants to vacate if you intend to demolish or substantially remodel the units. Substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, and the work requires the tenant(s) to vacate for at least 30 days. Prior to issuing a notice, you must 1) post the application for the necessary permits at the property within three business days of submission of the application; 2) secure permits necessary for the demolition or substantial remodel; and (3) serve a copy of the necessary permits with the written termination notice. The notice requires a statement, certified under penalty of perjury, stating the reason for termination, the type and scope of the work to be performed, why the work cannot be reasonably accomplished in a safe manner with the tenant in place, and why the work requires the tenant to vacate the residential rental property for at least 30 days. The notice must also include a statement that the tenant has a right to receive an offer to renew the tenancy and state how to exercise that right under the new law. Finally, the notice must include relocation benefits by a direct payment or rent waiver equal to two month’s rent or three months to tenants who are seniors (62 years or older) or disabled, regardless of the tenant’s income. After the notice is served, the landlord must provide written notice to a commission of the no-fault termination within three business days of service. These termination notices are highly technical and should not be served without consulting counsel.
Q: I issued no-fault just cause notices to my tenants at a 6-unit apartment building in San Diego and provided them with relocation benefits by direct payments as required by the new San Diego Residential Tenant Protections. Do I have to provide additional relocation benefits under the California Tenant Protection Act of 2019 (AB1482)?
A: No, you do not have to provide additional relocation benefits. In general, the just cause provisions of the California Tenant Protection Act do not apply to properties that are subject to local just cause ordinances that are more protective than the Act. The new San Diego Residential Tenant Protections is more protective and will apply to your property. You must still comply with the rent caps of the California Tenant Protection Act.
Q: I am going to remodel my 10-unit apartment building in San Diego since the units have not been remodeled since the 1960s. I posted the applications and pulled all the necessary permits to substantially remodel. I plan on giving notice to my tenants at the beginning of 2024. What happens if I waive my tenants’ rent or pay relocation benefits directly and they refuse to move out?
A: If a tenant fails to vacate after you give a proper notice, you can file an eviction against them based on your notice. Further, you can recover the waived rent/relocation benefits as damages in your eviction lawsuit.
Q: I own a condo in my trust, and I want to remodel it. Do I have to pay relocation benefits to my San Diego tenant if I ask him to leave?
A: No, under the new San Diego Residential Tenant Protections, you do not have to pay relocation benefits to a tenant that resides in your condo, so long as you own the condo in your name, or the name of your trust, and you provide your tenant with written notice that you are exempt from the new San Diego Residential Tenant Protections no later than
January 1, 2024. If you fail to provide the proper notice, then you will not qualify for the exclusion and will have to provide a cause for termination and pay relocation benefits. For any tenancy entered into after January 1, 2024, the written notice must be included in the rental agreement/lease for the exclusion to apply.
Q: I own 20 houses in the city of San Diego under a corporation for the past 20 years. Do I have to pay relocation benefits to the tenants if I want to remodel all the homes?
A: Yes, you have to pay relocation benefits because houses are not excluded from the new San Diego Residential Tenant Protections if the houses are owned by a corporation, a REIT or an LLC with a corporation as a member.
Q: I built a home in the city of San Diego in 2013 and rented it out. I want to move back into the home. Do I have to pay relocation benefits?
A: No, you do not have to pay relocation benefits because properties that are less than 15 years old are excluded from the new San Diego Residential Tenant Protections.
The law firm of Simone & Blevins has been doing evictions for over 28 years. The office is open Monday – Friday from 9:00 AM to 5:00 PM. Tel: 619-235-6180, website: www.landlordslegalcenter.com or email [email protected].