Over the last year, rent control has been something that everyone has been talking about in California.
Love it, or hate it, the State finally moved in the direction of rent control when Governor Gavin Newsom signed AB 1482 into law.
What is AB 1482? How will it change the rental market in California?
If you are unfamiliar with AB 1482, this article will provide you with everything you need to know about California’s first Statewide rent control bill.
Getting To Know AB 1482
Authored by assemblyman Dennis Chiu, assembly bill 1482, applies to apartments and other Multi-Family buildings containing two units or more. AB 1482 exempts single-family homes and condos, except when owned by a corporation, real estate investment trust, or limited liability corporation in which at least one member is a corporation.
What are the specifics of this bill? AB 1482 caps rent increases at 5% plus local inflation every year. This means that someone who owns a rental property in California area may not increase the rent on their tenants by more than 5% per year otherwise they would be breaking the law.
In some cases (depending on where you live), if the inflation rate is already at 3.8% or higher, a landlord could potentially raise the rent buy as much as 10% per year.
Assembly Bill 1482 does not apply to buildings that are more than 15 years old, so if you are an investor who owns a single-family home or multi-family property that was built in 2006, your property is going to be covered till 2021. Once the rental property that you own has passed the 15-year mark, then AB 1482 will apply to it.
One of the other important things to mention about Assembly Bill 1482 is that this bill does not apply to vacant properties. This means that if a property is currently sitting vacant, the owner can reset the rent to the current market rate without having to concern themselves about AB 1482.
Another important thing to mention about AB 1482 is that this bill also prohibits evictions without a cause for tenants that have lived in a unit for at least one year.
Contact 36 North Property Management
To learn more about AB 1482, or to speak with us about our Property Management Services, contact us today by calling (831) 484-4604 or click here to connect with us online