California’s housing market has long faced challenges, leading to legislative action aimed at protecting tenants and promoting fairness in rental practices. Two pivotal laws, AB 1482 (Tenant Protection Act of 2019) and SB 567 (updated in 2023), shape the current landscape of tenant rights. Below, we break down these laws, their timelines, and their implications for landlords and tenants.
AB 1482: Tenant Protection Act
What is AB 1482?
AB 1482 established statewide rent caps and just cause eviction protections for most residential rental properties in California. The law was introduced to address rising rents and displacement risks in the state’s competitive housing market.
Key Provisions
Rent Caps
- Limits annual rent increases to 5% plus local inflation, not exceeding 10% in total.
- Applies to properties over 15 years old, except for specific exemptions (e.g., single-family homes owned by individuals).
Just Cause Evictions
- Protects tenants who have lived in a property for at least 12 months.
- Landlords must provide a valid reason for eviction, categorized as:
- At-Fault Evictions: Non-payment of rent, lease violations.
- No-Fault Evictions: Owner move-in, property renovations, or withdrawal from the rental market.
- In cases of no-fault evictions, landlords must provide relocation assistance equivalent to one month’s rent.
When Was It Passed?
AB 1482 went into effect on January 1, 2020, marking California’s first statewide rent control and eviction protection law.
Impact on Landlords and Tenants
For Landlords:
- Must navigate rent caps and provide proper documentation for evictions.
- Subject to penalties for non-compliance, including tenant lawsuits.
For Tenants:
- Offers stability by limiting rent increases and protecting against unjust evictions.
SB 567: Strengthening Tenant Protections
What is SB 567?
Signed into law in 2023 and effective January 1, 2024, SB 567 expands upon AB 1482 by closing loopholes and increasing enforcement of tenant protections.
Key Provisions
Enhanced Just Cause Protections
- Applies protections more broadly to include certain previously exempt properties.
- Requires stricter proof for no-fault evictions, ensuring landlords fulfill their stated reasons (e.g., occupying the property).
Extended Tenant Right to Sue
- Tenants can now sue landlords for violations of rent caps or eviction rules, with a three-year statute of limitations for filing claims.
Relocation Assistance Enforcement
- Ensures landlords pay relocation assistance promptly in cases of no-fault evictions.
When Was It Passed?
SB 567 was signed into law by Governor Gavin Newsom in 2023 as part of California’s ongoing efforts to address the housing crisis.
Impact on Landlords and Tenants
For Landlords:
- Increased accountability and stricter requirements for compliance.
- Higher risk of lawsuits for violations, making meticulous record-keeping essential.
For Tenants:
- Strengthens protections against unjust displacement.
- Offers legal recourse for violations of tenant rights.
How These Laws Work Together
AB 1482 laid the foundation for tenant protections, while SB 567 builds upon it by addressing gaps in enforcement and expanding safeguards. Together, they aim to balance the rights of landlords and tenants, promoting stability in California’s housing market.
Conclusion
California’s tenant protection laws represent a significant shift in the rental landscape. For landlords, these laws require diligent adherence to rules and careful documentation. For tenants, they offer increased stability and recourse against unfair practices. Whether you’re a property owner or renter, understanding these laws is essential for navigating California’s rental market effectively.
Need help managing your property while staying compliant with these laws? Contact Fitch Property Management Group for expert guidance.