Legislature passes California rent control bill

September 12, 2019

Statewide rent control is expected to soon take effect in California after a bill that would place a cap on apartment rental rates passed the state Legislature this week. [Cal Coast Times]

AB 1482, authored by Assemblyman David Chiu (D-San Francisco), would prohibit property owners from raising rent more than 5 percent plus inflation over a 12-month period. The bill would also prohibit property owners from raising rent more than twice over a 12-month period once the tenant has occupied the home for more than a year.

The rent control rules exempt most single-family homes, as well as homes built within the last 15 years.

For affected properties, the rent control regulations are retroactive to March 15, 2019. If property owners violate the provisions over the duration of this year, the tenant’s rent at the beginning of 2020 would revert back to the rate it was on March 15.

In addition to enacting rent control, the bill makes it more difficult for property owners to evict long-term tenants. AB 1482 forbids property owners from terminating a lease without just cause after a tenant has occupied the home for 12 months, with limited exceptions.

California Gov. Gavin Newsom has already indicated he will sign the legislation.

“CA just passed the strongest rent control package in America,” Newsom stated in a tweet on Wednesday. “The rent is too damn high — so we’re damn sure doing something about it.”

AB 1482 passed the state Senate on a 25-10 vote on Tuesday and the Assembly on a 48-26 vote on Wednesday.


Loading...
Rambunctious

Name one thing that government gets involved in that hasn’t been made worse….look for even fewer rentals because of this law…and look for more landlords to scrutinize renters even more thoroughly….


Jon Tatro

As a landlord I can tell you this law was written to make the politicians feel good about themselves and nothing more. It doesn’t apply to single family homes and you can raise rent 5% and Cola every year. You will quickly over price your rental right off the market costing you money as it sits vacant.


fat chance

I just raised the rent on a house I own, it came out to about 6%. That was the after about 4 years of no rent bumps. This law seems to me makes it easier to raise the rent. It’s saying I can raise the rent 5% every year now and have the legal right to do it. No questions asked.


copperhead

The rent is high because property values are high. If one purchases a property for income, and they have negative cash flow then it makes no sense to purchase the property in the first place.


How about a cap on the “rent” that the state charges us to live here?


AmericaTheFree

Too little, way too late…

And where does most of the price gouging go on? Right where the Gov’ gave a pass to, single-family homes!


jimmy_me

This is an attempt at controlling rampant greed. It will fail.


Snoid

And this comes from a governor who just “downsized” from a $6 million dollar home to a measly “most expensive home in Sacramento” $3.7 million. Good thing he cares about you.


Fleet

Well shoot now the 50,000+ homeless in L.A. and the 28,000+ homeless in the Bay Area can now afford a place to rent. Governor is doing a hell of a job.


Snoid

“CA just passed the strongest rent control package in America,” Newsom stated in a tweet on Wednesday. “The rent is too damn high — so we’re damn sure doing something about it.”

Say Nuisance, yes the rent is to damn high, along with real estate prices an gas. Does this lower the rents? Nope. So this really dose nothing for current rent costs now does it. More lip service from the nothingman.


George Garrigues

Landlords will start raising the rent today or tomorrow to beat the effects of this law.


MrYan

What about the word retroactive don’t you get?


Can’t happen as you say. They’ll raise them 5% plus inflation just like the law will allow…..retroactively of course.


They greater affect of the law will be to fight against gentrification.

Raising rents precipitously is often a tactic to move out the long term tenants in order to covert property to something more desirable.


Not saying that is right or wrong, but just stating the underlying intent of the legislation. It keeps existing rental properties on the market.


Landlords need to have a certain % of unoccupied rentals in a property in order to legally justifying moving out other tenants to convert it to condo’s for example. This law neuters this tactic.


SLO rentals, non-complex ones, can continue to set rates as they wish.