AB 1482 in California also known as the Tenant Protection Act of 2019, has a major impact on the housing scene of the state. After all, it was enacted to address the growing housing crisis in the state. This law aims to provide tenants protection against unreasonably high rents and eviction rates. In fact, the main focus of California Assembly Bill 1482 is housing affordability. Want to know more about the legislation? We have you covered. This blog covers the key aspects of AB 1482, its impact, and what it means for the housing future in the state. So, keep reading.
All You Need to Know About AB 1482 in California
The Tenant Protection Act, AB 1482, ensures that all the tenants have a fair chance to be in their homes. It introduced several key provisions. The most notable of them were limits on the annual rent hikes as well as requirements for just cause evictions. This helped and is helping a great deal in enhancing the housing ratio in the state.
“The owner of the residential property is prohibited from terminating the tenant without any just cause.” – Assembly Bill No. 1482
The California Tenant Protection Act is important for both tenants and homeowners. After all, it impacts the finances (and lives) of both. Let’s talk about all the important features of this law.
Provision | Description |
Rent Control | Limits annual rent increases to 5% plus the local rate of inflation, or 10%, whichever is lower. |
Eviction Protections | Requires “just cause” for evictions, protecting tenants from arbitrary removal. |
Exemptions | Exempts certain properties, including single-family homes, new constructions, and affordable housing. |
Notice Requirements | Landlords must provide a notice period before letting the tenant go. |
Tenant Relocation Assistance | Requires landlords to provide financial assistance for tenants evicted without cause. |
Enforcement | You can sue for damages if landlords violate the provisions, including wrongful eviction claims. |
Statewide Applicability | This applies to most residential rental properties across California, enhancing tenant protections statewide. |
Key Provisions of the CA Tenant Protection Act (CA AB 1482)
The name of the law says it all. The main focus of this law was tenant protection. It includes several provisions that make rentals more convenient for the tenants. Here are the main components of the law:
● Rent Control Limits
The main feature of AB 1482, California is that it establishes a cap on annual rent increases. It limits the law to 5% plus the local rate of inflation, or a maximum of 10%, whichever is lower. This provision is very a plus point for tenants. After all, it focuses on preventing the major reason for housing instability: excessive rent hikes. Besides, this AB 1482 rent control has also lowered tenant displacement in the state.
● Just Cause Eviction Requirements
The law requires the landlords to give a “just cause” for evicting tenants. This provision is mandated in the case of tenants who have lived in a rental unit for more than 12 months. Just causes include the following:
- non-payment of rent
- breach of lease terms
- landlord’s intent to occupy the unit
Moreover, this is one of the major provisions that helps protect tenants from arbitrary evictions. Now that you know that tenants can’t be evicted without a reason. You should also know how much notice period they have when they’re finally being let go of.
● Notice Requirements
You should know that the existing law requires homeowners or landlords to provide a notice period of at least 60 days to leave the premises. Landlords are mandated to give this time period to the tenants so they can arrange a substitute residence in that period. Moreover, if the rental period of the tenant is less than a year, the notice period will be 30 days. In most circumstances, the landlords have to stick to the requirements. Also, they have to properly to inform the tenant of their rights and the reasons for termination.
● Exemptions
There are specific properties exempt from AB 1482. These include the following:
- Single-family homes (any notice given by an owner must adhere to specific formatting and content requirements)
- Newly constructed buildings (less than 15 years old)
- Other affordable housing units
These exemptions have helped big time in encouraging new housing developments. After all, they protect many tenants. But this is not all! There are other provisions you should know about.
● Relocation Assistance
This point addresses the case of no-fault evictions. So, when a landlord decides to take the unit off the rental market, the tenants residing there are entitled to relocation assistance. This means that they’ll get financial assistance to move to a new place.
● Enforcement and Penalties
AB 1482 California provides mechanisms for tenants to enforce their rights. This includes their ability to sue for damages if landlords violate any term of AB 1482. This is yet another benefit for the tenants given by the Tenant Protection Act. After all, it empowers them to stand up against unjust practices.
With the provisions listed above, the tenants can better understand what rights they have. Besides, if anything unjust happens they can even sue the landlord. They also have a notice period before termination and no one will compel them to pay extra rent. Need help to understand the nuances of AB 1482 or other housing laws, feel free to contact a real estate professional. Getting assistance on real estate matters always helps with informed decisions.
What is the Impact of AB 1482?
AB 1482 California has a major impact on the housing scene in the state. After all, it has capped annual rent increases and established just-cause eviction requirements. Also, it focuses a lot on protecting tenants from sudden rent hikes and arbitrary evictions. Let’s get into the details of this. Here are the main benefits of the California Tenant Protection Act of 2019 or AB 1482:
● Capped Rent Increases
This is one of the major impacts of the rent control aspect of this law. This is so because it limits annual rent increases to 5% plus the local rate of inflation, or a maximum of 10%, whichever is lower. Moreover, it also focuses on providing stability for tenants and preventing excessive rent hikes.
● Regional Variations
You should know that California is a state of different cities. Therefore, different areas may take the law differently based on local inflation rates. This majorly impacts how much the landlord can increase the rent on an annual basis.
● Tenant Security
Landlords must provide a valid reason for evicting tenants. This one is specifically for tenants who have lived in a unit for over 12 months. As a result, tenants have more security. This is so because tenants won’t be evicted without a valid reason.
● Reduction in Arbitrary Evictions
This law solved a major housing issue in California. Because of so many vague evictions, tenants weren’t able to find secure housing. However, after the law is implemented, the housing scene in CA became a lot more stable.
● Time to Prepare for Move
Because tenants were given a notice period, they now had a suitable amount of time to prepare for the move. Before this, no proper regulations for termination were being followed and the tenants had to suffer. But now, they can look for a substitute residence without the panic of any hurry.
● Financial Support
With AB 1482 Tenant Protection Act, tenants can avail of this benefit in case of no-fault evictions. If you are evicted without a substantial reason or without any fault of yours, you get a certain amount of financial help for assistance. This can help you with the budgetary burdens of moving – big time.
● More Rights to Tenants
The California Assembly Bill 1482 provides tenants with the ability to sue for damages if landlords violate its provisions. Whether they are evicted at no fault or are subjected to pay more rent, this law allows them to take legal action against injustice.
What are the Limitations of this Law?
Although this law has a lot of benefits, it has some limitations too. These are mostly faced by the landlords. And knowing about them is important if you want to invest or have invested in real estate. Some limitations impact tenants too. Here are some you should know about:
● Exempted Properties
If you are renting properties such as single-family homes or newly constructed buildings, you may not benefit from this law. As a result, it can limit the law’s overall effectiveness in several markets. Moreover, renters may not enjoy the tenant protection terms if they have rented any of the exempted properties.
● Disadvantages for Landlords
Many critics argue that the law may discourage new housing development and investment. Why so? Because so many strict rent control measures can seem like a hurdle to investors. As a result, they can be less interested in investing in rental properties. Are you one of these? Well, investing in multifamily property for rentals can still be a win-win. All you need is the guidance of the right real estate professional by your side. Reach out to Evelyn Baez for expert investment advisory and to tap on the best opportunities out there.
Conclusion
The AB 1482 Tenant Protection Act has played a major role in stabilizing the housing scene in California. It has helped tenants of this state have more secure housing and less hassle. They are no longer victimized by higher rents or no-reason evictions. Besides, if the owner wants them out, they’ll first have to inform them of the reason and give a notice period. Normally, the period given is 60 days to one year or more for older employees. If you have lived less than a year, you’ll have a 30 day period to move out. It’s true that this law comes with some limitations. Still, it has majorly improved the housing conditions in California.
