#LANDLORD LIFE
ISSUE #2 | SPRING | $2.00
HOW DOES
THE NEW RENT
CONTROL LAW
AFFECT YOU?
A Brief Q&A—Part 2
I
n the first part of the Q&A, we covered some of the most common
questions that arise when talking about Assembly Bill 1482. This
time, we want to go over some of the nuts and bolts of the law and
get a little bit more in depth.
Q: WHAT AMOUNT IS THE LANDLORD ALLOWED TO
RAISE THE RENT UNDER THE NEW LAW?
A: They can raise it by 5 percent of the lowest gross rent charged
during the previous 12-month period (plus cost of living) or 10 percent,
whichever amount is less.
Q: WHAT COST OF LIVING INDEX IS GOING TO BE USED
FOR CALCULATIONS?
A: The cost of living index to be used is the regional Consumer Price
Index which is published by the U.S. Bureau of Labor Statistics.
Q: IF AN OWNER DOESN’T INCREASE THE RENT AT ALL
ONE YEAR, CAN THEY “BANK” THAT RENT INCREASE
AND DOUBLE THE PERMISSIBLE AMOUNT DURING THE
NEXT YEAR?
A: No. Owners are limited to the rent cap maximum regardless of the
circumstance. “Banking” a rent increase is not permitted.
Q: HOW MANY TIMES CAN THE LANDLORD INCREASE
THE RENT? IN OTHER WORDS, IF THE INCREASES ARE
LESS THAN THE TOTAL CAP, CAN THEY INCREASE AS
OFTEN AS THEY WANT?
A: They can increase the rent a maximum of two times during any
12-month period. Even if the increases end up below the cap, they
cannot increase the rent more frequently than that.
Q: HOW ARE NEW TENANTS HANDLED? DO THEY
CHANGE THE AMOUNT THE RENT CAN BE CHANGED
BY?
A: No. Again, owners are limited to the rent cap maximum regardless.
The circumstance only changes if all previous tenants no longer occupy
the property.
Q: WHAT ABOUT VACANCY DECONTROL?
A: New tenancies in which no prior tenants remain in possession of
the residential real property allows the owner to establish a new initial
rental rate.
Q: CAN TENANTS WAIVE THEIR RIGHTS TO THIS LAW?
A: No. Some owners may be tempted to offer lower rents under the
condition that the tenant will waive their rights under this law. The law,
though, is not waivable. Doing so would void the rental agreement.
There are, of course, going to be questions that aren’t answered here,
and Landlord-Tenant laws are constantly changing. Property law can
be an intensely complicated subject, and changes like the ones being
brought about by this new law are inevitably going to bring with them
even more confusion. Hopefully, this Q&A will help you navigate your
way through some of the issues that could come up.