At the end of May 2019, the California Assembly narrowly passed a statewide rent-cap proposal. At present, the bill is in committee for review in the California Senate. If approved by the Senate and signed by the Governor – two actions that pundits have deemed likely – Assembly Bill 1482 would apply to most properties not covered by local rent control ordinances — including rented single-family homes and condos in cities with rent control. The Bill, as presently drafted, exempts properties that are less than 10 years old. Property owners with no more than 10 single-family homes are also presently exempt from proposed law. The Bill is also expected to undergo key changes in the Senate.

As presently proposed landlords would be prohibited from raising the rent each year by more than 7 percent plus the annual increase in the cost of living. By its terms the proposed law will expire in 2023.

If you are a landlord who owns 11 or more single-family homes or condos that are 10 years old or older in a jurisdiction without local rent control, contact your attorney. Should AB 1482 become law there are strategies you may be able to use to avoid its application to your properties.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.