A new law is being implemented in January 2020. This new law is AB1482, which covers rent control in California.
How will rent control impact you and your property?
The bill states that you cannot raise your rent more than 5% annually, and the CPI changes depending on the area of the state you're in. It typically ranges anywhere from 1 - 8%. It can change quarterly. Be sure to be checking back as this number can constantly change. We believe in keeping rent as close to the market rate as possible. This means making small adjustments over time, whether up or down. Because we make these small changes continually, these ranges should not be an issue with properties we manage.
Quite a few properties are exempt from this law. Any new construction within the last 15 years is exempt. Single family homes, condos or townhomes that are not owned by a corporation are also exempt. Many people have homes owned by LLC's, and these would be exempt unless the LLC is owned by a corporation.
Duplexes, triplexes, and anything above that will be affected.
We believe that there should be no problem ensuring we are within the guidelines.
Finally, there are at-fault and no-fault evictions. In the case of no-fault evictions you must pay your tenant to move within 15 days of noticing your tenant that they must move. This payment should be equal to a month of rent. Or, if your tenant agrees, you can let them reside rent-free in the property for a month. In an at-fault eviction, you must have a reason and you do not