The Nuances of Rent Control
Rent control, in short, is a limit on how much landlords can raise rents as well as puts stipulations on evictions. Below is a simplified outline of what the law states.
The current law states that owners can raise rents 5% + Consumer Price Index. Rent increases that fall before August 1 every year, will go off of the previous year's CPI. Rent increases that fall after August 2nd every year, will go off the current year's CPI. As of April, 2020 San Diego's current CPI is 4.1%. 2022 is to be determined.
Owners cannot evict a tenant who has resided at the property longer than 1 year without “just cause” (breaking items in the contractual lease), unless:
1. Owner is to do “substantial renovations” to the building, requiring permits that take longer than 30 days to complete (no cosmetic rehabs)
2. Owner can give termination of tenancy if they, or a family member, are to occupy the unit themselves.
3. Properties built less than 15 years ago are not subject to rent control.
4. Owner-occupied properties where the other unit is in the same building and the tenant started tenancy after the owner was already living there, is also not subject to rent control.
This affects you as an owner because you will need to navigate these laws accordingly.
You can find a link to the full outline of the law here: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1947.12.
While working together, we will always look at the worst-case scenario of the building as well as the potential of the building. There are more tips and tricks to navigating being a landlord that will unfold as we continue to work together.
--Christina M. Labowicz