Under California’s statewide rent control law and just cause eviction law, single family homes and individual condominium units are exempt from rent control and from just cause for eviction (except for those owned by a REIT, a corporation or an LLC with a corporation as a member).
However, this exemption does not apply, unless the lease with the tenant includes the following language, exactly:
“Notice of Exemption from AB 1482 for Single Family Homes and Condos: YOU ARE HEREBY NOTIFIED IN ACCORDANCE WITH CIVIL CODE 1946.2 that this property is not subject to the rent limits imposed by §1947.12 of the Civil Code and is not subject to the just cause requirements of §1946.2 of the California Civil Code. This property meets the requirements of §1947.12 (d)(5) and §1946.2 (e)(8) of the Civil Code and Owner is not any of the following (1) a real estate investment trust, as defined by §856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
Do not change this language in any way. Do not shorten it or explain it. Add it to your lease form just like this.
If your tenants are month-to-month, you can make this amendment to the lease on 30 days notice, 60 days for tenants who have been there more than one year. If your tenant is on a lease for one year or two years, then you can ask the tenant to sign a new lease or an amendment, but the tenant is not required to agree. In those cases, you would have to wait until the end of the lease term before adding this notice to the lease.
This comes up most often when the owner wants to sell a rented house or condominium unit. If the buyer wants to move in and live there herself, for at least three years, that qualifies for the exemption, but that exemption would only apply to the buyer. The buyer would have to purchase the property with the tenant in place, and evict the tenant after the sale. That is why you hear about landlords paying tenants to leave. If the lease has this language, then the seller can terminate the lease and force the tenant to leave.
If you have a question about this rent control and just cause for eviction exemption, please call or email Dana Sack at 510-286-2200 [email protected]