Everything You Need To Know About The California Rent Control Bill AB-1482

One of the biggest current events in California news right now is all about the new housing bill. The main goals of the bill, officially called AB-1482, is to cap annual rent increases to 5% plus inflation and require landlords to provide "just cause" for evicting tenants. It is set to take effect on January 1, 2020 and will be in place for 10 years. This California bill took the original framework from the Oregon bill which had similar initiatives and was passed earlier this year. This is the most comprehensive bill that California has ever passed to protect renters from rent increases and evictions. With lots of legal changes, it's extra important to have a property management company you trust like Balboa Realty. Your friends at Balboa Realty are here to break this bill down and we're here for you every step of the real estate way. 

Have more questions? Give us a call anytime: (877) 713-6902

Read the full bill AB-1482 HERE

About The Bill 

Gov. Gavin Newsome has prioritized California's housing issues and has spearheaded this endeavor to protect tenants. This is in response to the rapidly growing homeless population, many referring to it as an epidemic. Currently about 10 million people rent in the state of California and half of these renters spend more than 30% of their income on rent which reaches the federal government's definition of "rent-burdened". Newsome explained, “These anti-gouging and eviction protections will help families afford to keep a roof over their heads, and they will provide California with important new tools to combat our state’s broader housing and affordability crisis.” In reality, many people won't see much of a savings with this bill. The main group of people who will see the benefit's from this are the low income demographic. Since this is a vulnerable population, this bill is aimed to help housing be more affordable and protect them from big rent increases.

So What Do People Think? 

From landlords to tenants to developers to real estate agents, every group has an opinion. Critics of this bill warn that landlords will now set rents higher to begin with because they are limited on how much they can raise rent annually. They also argue that this will put a strain on small businesses and landlords. Having the ability to raise rent up to their discretion is important for these small landlords to cover rental costs and repairs. Developers also argue that this would slow down new construction and prevent people from investing which is very much needed for the state. A compromise was struck between developers and lawmakers, explaining that new developments would be exempt from the rent control for 15 years. This bill aims to be both pro development and also pro tenant and says these two can work hand in hand.

Chat more about this with Balboa Realty: (877) 713-6902 

Tenant Eviction Protection

Many people are focused on the rent increase part of the bill, but it's important to not overlook the tenant eviction protection part as well. Right now, a landlord has the right to evict a tenant without explaining why, but this is all about to change. The landlord will be required to provide "just cause" which is means a valid specific reason for eviction or else they could find themselves in court. This is to give more power to the tenant and to prevent landlords from evicting tenants over small reasons like a tenant bugging a landlord for rental repairs. Single family homes, however, are exempt from this law unless they are owned by corporations. With lots of changes happening in the real estate world, it's now even more important than ever to have a property management company you trust. Here at Balboa Realty we like to keep you in the know and we always have your back.

Read the full bill here 

Published on Friday, October 18, 2019