03 Dec Tenancy
Tenancy has taken on a whole new meaning in not only San Diego, but all of California. That’s because with new laws like AB-1482 most residential tenancies will be under some form of rent and eviction control. In fact words, starting in 2020, the Tenant Protection Act of 2019 extends a rent cap that affects rent increases as well as eviction. In other words, tenancy or the right or entitlement of a tenant to use or occupy a rental unit has a slightly different meaning.
Put simply, renters who occupy a rental unit for more than 12 months have protection under AB-1482. In addition to this new law, San Diego County landlords are also required to consider Section 8 as a source of income. Consequently, any landlord or property management company who does not comply, may find themselves in a discrimination lawsuit. For this reason, we offer some insight on key facts every landlord in San Diego should be aware of.
Assistance For A Tenancy Under Section 8
As of August, landlords with properties in the city of San Diego are required to consider Section 8, (federally subsidized rental assistance program), as a source of income. In other words, landlords cannot decline a tenant based on the household receiving rental assistance from any federal, state, local or nonprofit-administered benefit or subsidy program. Landlords do however retain the right to screen and select tenants based on valid criteria. This means, the landlord is responsible for applying his/her normal tenant selection procedures to screen and select prospective tenants.
All Property Owners & Property Managers Have A Responsibility To:
- Consider all qualified applicants equally
- Indicate no preference when advertising or showing rental units
- Give all applicants accurate and complete information about available units;
- Including occupancy dates, rental terms and conditions
- Refrain from making inquiries about ethnicity, religion, sex, handicap, or marital status
- And, be consistent in applying rental policies
AB-1482: Sections Relating To Tenancy
AB-1482 the Tenant Protection Act of 2019, is an act to add and repeal sections 1946.2, 1947.12, and 1947.13 of the Civil Code, relating to tenancy. All of which when combined, equal rent and eviction control. The law which takes effect on January 1, 2020, impacts landlords who had previously not been subject to any controls. Although some may think that their ways of doing business may change dramatically, it is really only the details not the substance that will. That is, if one follows best practices. To do this, awareness is key.
1946.2: Just Cause & Relocation Fees
Civil Code Section 1946.2 under The Tenant Protection Act of 2019, implements just cause limitations. Meaning the owner must have a just cause for the eviction (either at-fault or no-fault). This applies to renters who have resided in the unit for 12 months or more. Both tenant at-fault behavior (such as repeated late rent payments) and no-fault reasons (like owner renovations) are examples of just causes. Although there are several facts to be noted, one in particular stands out. If you issue a notice to terminate a tenancy for a no-fault just cause, you must offer relocation assistance. For more on this, read the whole section.
1947.12: Rent Control
Section 1947.12 added to the Civil Code adds rent control. Although is it not explicitly called rent control, it is in fact a form of it. In fact, California’s new rent cap law which takes effect January 1, 2020, will limit rent increases for the next 10 years. Although it will not cancel existing rent control, it will however, cap rent increases at 5% plus inflation for any building in San Diego built after 1978 (at least 15 years old). In other words, once the law goes into effect, landlords may raise the rent up to 5% plus the applicable Consumer Price Index (CPI) or 10%, whichever is lower.
With statewide rent control in California taking effect on Jan. 1, 2020 and San Diego’s Section 8 mandate, navigating your way through the red tape can be mind boggling. For this reason, having the right property management company on your side can be a relief. Especially when you consider how hard it will be to ensure compliance with all the new rules and regulations. If you are struggling to understand how this impacts you, or need help making sense of it all. You may want to consider working with property management company in San Diego who understands what to do.
Our property management services can be tailored to your needs and includes leasing, consultation, and monthly management services. From North County San Diego to Downtown, we manage all types of rental properties throughout San Diego including homes, condos, multifamily such as duplex and triplexes, and even small apartment buildings. We will manage your rental properties, so you can enjoy your life! Call us today at (858) 576-2176 and let us save you time, money, and the stress that comes along with managing your own rental properties.