What You Need to Know about Statewide Rent Control Rent Caps

Dec 27, 2019
Rent increases are capped at 5% plus CPI, or up to a hard cap of 10%, whichever is lower.
  • All rent increases since March 15, 2019 count towards the rent cap
  • Increases since March 15, 2019 above the permissible rent cap, must be rolled back effective January 1, 2020
  • This law sunsets January 1, 2030 after 10 years
  • Only applies to residential property
photo

WHEN STATE AND LOCAL RENT CONTROL DO NOT AGREE

The more restrictive law to the landlord (tenant friendly) rules.

EXEMPTIONS

The exemptions listed will apply to up to both rent cap and just cause.
  • Single-family properties and condos if:
    1. Notice of the exemption is provided to the tenant AND
    2. The owner is not a REIT, a corporation, or an LLC where an owner is a corporation
  • Housing built in the last 15 years
  • Owner-occupied duplexes

HOW TO CALCULATE CPI

The regional Consumer Price Index (CPI) published by the US Bureau of Labor Statistics (Using the 12-month period from April to April). If regional index is not available then the California Consumer Price Index for All Urban Consumers shall apply.

JUST CAUSE EVICTION

Applies to tenants who have been continuously and lawfully occupying the property for 12 months. Landlords may only evict for “just cause.” There are 15 reasons categorized as “at fault” or “no fault.”

EXEMPTIONS TO JUST CAUSE

Owner-occupied single-family properties renting no more than two bedrooms including Accessory Dwelling Units (ADUs). If a property is exempt from just cause, the owner can evict without cause.

BASIS OF CAUSE – “AT FAULT” AND “NO FAULT”

“At fault” is based upon a tenant’s breach of the lease and does not require the landlord to make any payment for relocation assistance. “At fault” includes:
  1. Non-payment of rent
  2. Nuisance
  3. Criminal Activity
  4. Refusal to allow entry
  5. Refusal to sign a new Lease
  6. Breach of material term of Lease
“No fault” is allowed when the tenant has not breached the lease and requires the landlord to pay one month’s rent in relocation assistance. “No fault” includes:
  1. Owner occupancy
  2. Withdrawal from rental market
  3. Substantial remodeling
  4. Compliance with government order to vacate

THE NEED FOR PROFESSIONAL PROPERTY MANAGEMENT IN CALIFORNIA

The overlapping City and State rent control laws make it more important than ever to use a professional management company that is able to sort through all the often confusing new laws and keep landlords in compliance.
A wooden house with four columns of coins in the background, each column increasing in size.

Changes to Security Deposit Caps

By John Tiner • 26 Apr, 2024
Effective July 1, 2024, AB 12 introduces significant changes to security deposit caps for rental properties. Under the new law, the maximum security deposit allowed will be reduced to one month's rent for both furnished and unfurnished units. However, small landlords owning two residential rental properties with four doors or less are exempt from this change. Property owners already holding deposits exceeding one month's rent are grandfathered in. Professional property managers are adjusting their policies to comply with the new law, with many opting for a flat security deposit rate of one month's rent. Learn how Tiner Property Management is navigating these changes to ensure compliance and competitiveness in the Sacramento market.

Rental Market Update

By Krystal Tiner • 25 Oct, 2023
A review of vacancy trends, and advice on how to best market in the current economy.

Rent Values Are Changing

By John Tiner • 21 Oct, 2022
 A rent market update by John Tiner October 2022

Can’t Sell Your Home In This Market? Rent Instead!

By John Tiner • 22 Sep, 2022
“It’s Dejavu all over again” (Yogi Berra)

Selling a Rental Home with Tenants in Place

By John Tiner • 08 Mar, 2022
Step-by-step instructions on navigating the tricky process.

Why is it important for landlords to keep up with market rent values?

By John Tiner • 19 Jan, 2022
Protecting your investment for you and your posterity

The End Of The Eviction Ban - AB 832

By Krystal Tiner • 14 Oct, 2021
New Rules for Eviction October 2021 –March 2022 AB 832 – The Tenant Relief Act - March 1, 2020 to September 30, 2021
Scales of justice

Eviction Ban Overturned, Rent Repayment Promised

By Krystal Tiner • 13 May, 2021
CDC's Federal Eviction Moratorium Overturned

Celebrating 45 years of Property Management in the Greater Sacramento Area

By Krystal Tiner • 12 Mar, 2021
Established in Carmichael in 1976, 2021 marks the 45th anniversary of Tiner Properties. We have never drifted from our roots and as our business has grown, so has our canopy of relationships with the people and small businesses in the greater Sacramento area.

FAQ regarding SB 91 COVID-19 Relief

By Krystal Tiner • 05 Feb, 2021
SB 91 was passed into law 1/29/21 and it is the newest COVID legislation. It provides a plan for relief for landlords and tenants who need it most. Tiner Properties is thankful to the vast majority (over 99%) of our great tenants who have stayed up to date on their rent payments throughout the Pandemic. The FAQ in this blog will be welcome information for tenants and landlords whose rent has been adversely impacted by COVID.
More Posts
Share by: