#LANDLORD LIFE ISSUE #1 | WINTER | $2.00 HOW DOES THE NEW RENT CONTROL LAWS AFFECT YOU? A Brief Q&A W ith Assembly Bill 1482 being passed by the California Legislature and signed into law by Governor Newsom on October 8, 2019, a lot of things are set to change for landlords. Many property owners have questions about how situations that they have handled easily in the past may now be an entirely different story. Included below is a brief Q&A with some of the most important answers to those questions. Q: WHEN DID THE NEW LAW ACTUALLY GO INTO EFFECT? A: January 1, 2020. Q: WHAT NEEDED TO BE PROVIDED TO TENANTS? A: The new “Rent Cap and Just Cause Addendum” (Form RCJC) needed to be provided by January 1, 2020. Q: DOES IT MATTER IF THE TENANT IS MONTH TO MONTH? A: For month-to-month tenants, the addendum needed to be incorporated into the rental agreement by a change in the terms of tenancy using the “Notice of Change in Terms of Tenancy” form (CTT). Q: WHAT IF THE TENANT IS ON A LEASE? A: For these situations, the addendum will be provided as a stand-alone notice. Q: DOES ANYTHING NEED TO BE DONE FOR NEW OR RENEWED TENANTS? A: Yes. Any tenant that is signing a rental agreement, new lease, or a renewal agreement after January 1, 2020, must receive a copy of the addendum. Q: WHEN DO RENT INCREASES BEGIN TO COUNT TOWARD THE PERMISSIBLE MAXIMUM RATE? A: The increases began to count toward the permissible maximum rate from March 15, 2019, onward. Any landlord who increased rent after that date but before January 1, 2020, cannot subsequently increase the rent beyond the maximum rental rate for any 12-month period. Q: IS THERE A RENT ROLL-BACK PROVISION? A: Yes. Landlords who increased the rent on or after the March 15 date but before January 1, 2020, beyond the maximum rental rate would then be required to roll back that change in rent. The rent reduction was effective on January 1, 2020. Q: DOES THIS LAW HAVE A SUNSET DATE? A: Yes. This law is going to sunset after a 10-year period (i.e., January 1, 2030). Q: WILL THIS LAW HAVE ANY EFFECTS ON COMMERCIAL PROPERTY? A: No. The law as it currently stands covers only residential property. For now, these questions cover some of the most common questions landlords have. In our next issue we’ll discuss how to deal with rent raises.