by Andrew Parslow
On January 1, 2022, two new statutes impacting the respective rights of landlords and tenants went into effect. California Civil Code §1947.12 and the amended §1946.2 impose a variety of restrictions on a landlords ability to increase rent, evict tenants, and terminate rentals.
Civil Code §1947.12 restricts a landlord’s ability to raise the rent on their property. Over a twelve (12) month period, rent cannot be raised more than the lower of five (5) percent plus the percentage change in the cost of living or a flat ten (10) percent. See §1947.12 (a)(1). Furthermore, even if the increase in rent would be within the proper amount parameters the rent cannot be raised in more than two (2) increments per every twelve (12) month period. See §1947.12 (a)(2). For a new tenancy which does not include any tenants from the prior tenancy, you may set the new rate regardless of §1947.12. See §1947.12 (b).
Civil Code §1946.2 restricts a landlord’s ability to evict tenants and terminate the tenancy. After twelve (12) months of residency, a tenant can only be evicted for just cause into determined by the statute. See §1946.2 (a). It further subdivides just causes as “at-fault” and “no-fault.” If the eviction is at-fault, the process proceeds as normal; however, if the eviction is no-fault, the property owner must either waive payment of rent for the last month on the tenancy, or within 15 days of notice, provide relocation assistance equal to the value of one month’s rent. See §1946.2 (d).
Prior to the notice of termination, the property owner must first provide notice of the violation with an opportunity to cure the violation if possible.
Furthermore, owners of residential real property must provide the following notice to their tenants:
While §1947.12 and §1946.2 cannot be contractually waived, they can be avoided if the rental in question has a title separate from any other dwelling unit; the owner is not a real estate investment trust, a corporation, an LLC, or the management of a mobile home; and the required statement is provided. See 1947.12 (d)(5) and 1946.2 (e)(8). The required statement is:
If you have any questions about the new laws we invite you to call to speak with us personally at (949) 729-8002, or email us, and our experienced attorneys will be happy to assist you.