Rent Control Laws: Do Duplexes Fall Under California's Jurisdiction?

California's Tenant Protection Act of 2019, also known as AB-1482, was passed in response to escalating rents, epic commutes, and gentrification. The Act includes two protections: eviction protection and rent-ceiling protection. Under the former, landlords can only evict tenants for fifteen reasons, or just causes. The latter caps rent increases at 5% per year, plus the annual percentage change in the annual cost of living adjustment, or 10%, whichever is lower. However, the Act does not apply to all housing types in California. So, do duplexes fall under its purview, or are they exempt?

Does California's Tenant Protection Act apply to duplexes?

The California Tenant Protection Act of 2019, also known as AB 1482, applies to most residential rental properties in California. The law limits the amount by which rent can be increased annually and requires landlords to provide a valid reason for evicting tenants who have occupied a residence for more than a year.

However, certain properties are exempt from the law, including most single-family homes, condominiums, and properties constructed within the last 15 years. Notably, duplexes where the owner occupies one of the units as their principal residence are also exempt from the Tenant Protection Act. This exemption applies as long as the owner occupied the unit at the beginning of the tenancy and continues to live there during the tenancy.

The exemption for duplexes with owner-occupied units recognizes the unique nature of these dwellings, where the owner and tenant share close proximity and often have more direct interactions. By allowing owners to retain control over rent increases and eviction decisions in these situations, the law aims to balance tenant protections with the specific considerations of owner-occupied duplexes.

It's important to note that the Tenant Protection Act is set to expire on January 1, 2030, unless it is extended or made permanent by the California legislature. Until then, landlords and tenants in California should be aware of their rights and responsibilities under this law, including the exemptions for certain types of properties, such as owner-occupied duplexes.

What are the exemptions to California's rent control laws?

California's statewide rent control law, AB 1482, caps annual rent increases at 5% plus the rate of inflation (or 10%, whichever is lower) and requires landlords to have a "just cause" to evict tenants. However, there are several exemptions to this law.

AB 1482 does not apply to:

• Units constructed in the last 15 years (on a rolling basis).
• Units restricted to be affordable for low- or moderate-income residents.
• Single-family homes unless they are owned by a corporation, a real estate investment trust (REIT), or an LLC where one of the members is a corporation. In such cases, the owner must inform the renter in writing that the tenancy is not subject to the rent cap and just-cause limitations.
• Duplexes and other two-unit properties where one unit is occupied by the owner.
• Some dormitories.
• Single-family residences with more than one dwelling unit on the same lot or an additional dwelling unit in the building that cannot be sold separately (e.g. an in-law unit).
• Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner.
• Single-family, owner-occupied residences, including residences where the owner rents or leases no more than two units or bedrooms, such as accessory dwelling units or junior accessory dwelling units.
• Rental properties already subject to a local ordinance that is more protective than state law and requires "just cause" to terminate a tenancy.
• Commercial properties.
• College dorms and schools.
• Rental properties managed by a non-profit organization.
• Buildings constructed in the past 15 years.
• Rental properties that are subject to pre-existing rent control ordinances.

Additionally, if there are no other local laws that a landlord must abide by, they are free to increase the rent as much as they want on properties that are exempt from rent control, but they must inform their tenants of the exemption under AB 1482.

What constitutes 'just cause' for eviction under California law?

Under California's statewide rent control law, landlords are required to have a valid, approved reason or "just cause" to evict a tenant. This law, known as the Tenant Protection Act of 2019 or AB 1482, was enacted to prevent egregious rent increases and provide renters with protection and affordable housing.

The "just cause" requirement for eviction applies to tenants who have lawfully occupied a residential property for 12 months or more. There are two types of just cause: "at-fault" and "no-fault". An "at-fault" just cause refers to situations where the tenant has failed or refused to comply with the lease or other legal tenant duties. A landlord must serve the tenant with a 3-day written notice to cure any "at-fault" breaches before evicting. Examples of "at-fault" just causes include:

• Default in payment of rent
• Breach of a material term of the lease
• Maintaining, committing, or permitting a nuisance
• Criminal activity or drug use
• Assigning or subletting in violation of the lease terms
• Refusal to allow the landlord access to the unit
• Using the premises for an unlawful purpose

A "no-fault" just cause is when the reason for termination is beyond the tenant's control. In these cases, the tenant cannot stop the lease termination, but the landlord is required to provide relocation assistance, either by paying one month's rent or waiving the final month's rent. Examples of "no-fault" just causes include:

• Owner or relative move-in
• Withdrawal of the property from the rental market
• Full building demolition or substantial remodelling
• Government order to vacate

It is important to note that the "just-cause" lease termination laws do not apply to all types of residential properties. Some properties are exempt from these requirements, including hotels, dormitories, short-term rentals, and most single-family homes. Additionally, duplexes where the owner occupies one of the units since the beginning of the tenancy as their principal place of residence are also exempt from the rent control and just-cause eviction requirements.

What are the penalties for landlords who violate California's rent control laws?

In California, landlords are prohibited from increasing rent in the middle of a fixed-term lease for certain types of discrimination (such as age or race) or retaliation (such as in response to a renter complaining about bugs). If a landlord does so, it is considered a retaliatory action and is illegal.

Landlords in California are also required to give tenants sufficient warning before increasing rent. If the rent increase is 10% or less, landlords must provide notice 30 days before the increase can take effect. If the rent increase is more than 10%, the landlord must provide notice 90 days before it can take effect.

If a landlord fails to give proper notice, tenants should consult a lawyer about their rights.

It is also illegal for landlords to try to "evict" a tenant by locking them out, shutting off the water or electricity, or removing their personal property. The only lawful way to evict a tenant is to file a case in court and go through the legal process.

Landlords must also return a residential tenant's security deposit upon move-out, except for amounts deducted for lawful purposes such as unpaid rent, cleaning, or repair of damage caused by the tenant beyond normal wear and tear.

Landlords who violate California's rent control laws may face stiff civil and even criminal penalties. However, the specific penalties for violating California's rent control laws are not explicitly mentioned in the sources.

How do California's rent control laws compare to those of other states?

California's rent control laws are among the most stringent in the country, and they vary from city to city. The Tenant Protection Act of 2019, also known as AB-1482, caps rent increases statewide for qualifying units at either 5% plus the increase in the regional consumer price index (CPI), or 10% of the lowest rent charged at any time during the 12 months prior to the increase, whichever is lower. This law will be in force until 2030.

In addition to the state's legislation, many of California's major cities have their own rent control measures that provide tenants with additional rights. For example, in Los Angeles, annual rent increases are limited to 8%, and landlords are only allowed to raise the rent once a year. If a new roommate moves in, the landlord may increase the rent by up to 10%. In San Francisco, the annual rent increase rate is determined by the Rent Board, and landlords of rent-controlled units are not allowed to increase rent beyond the set limits each year unless they receive Board approval.

Compared to other states, California's rent control laws are relatively strict. Oregon is the only other state with statewide rent control laws, and it caps annual rent increases at 7% plus the CPI, or 10% if the landlord agrees to limit rent increases to 7% for the following year. New York has a similar law that caps annual rent increases at 3% or 5% depending on building size. However, many other states, such as Alabama, Arkansas, and Colorado, officially prohibit rent control.

Frequently asked questions