California passed a new landlord-tenant law that will provide additional protections for renters around just cause evictions. The law took effect on April 1, 2024, and requires landlords to have just cause to terminate tenancy after a California tenant has been placed in the unit for 12 months. Read along to see what tenants and landlords should know about this legislation.
What is the new California Tenant Law?
California Civil Code Section 1946.2 prohibits landlords from terminating tenancy without "just cause" once a tenant has continuously and lawfully occupied the rental unit for 12 months. Just cause can be broken into two categories:
At-Fault Just Cause Eviction: This includes violations like non-payment of rent, breach of the lease agreement, subletting violations, refusing entry to the landlord, using the rental for unlawful purposes, criminal activity on property grounds, causing damage beyond normal wear and tear, and disruptive behavior that violates the quiet enjoyment clause.
No-Fault Just Cause Eviction: This covers situations where the tenant is not at fault but the landlord has legal cause to end the lease. This includes a landlord or close family member moving into the property, taking the unit off the rental market, complying with a governmental order, and intent to demolish or substantially remodel.
Who Does the New Just Cause Eviction Ordinance Protect?
The new local ordinance protects both the landlord and the tenant, as it prevents tenants from violating the rental agreement and encourages California landlords to comply with state law. It benefits both parties differently but ultimately leads to smoother business and transitions.
How It Protects Landlords
Reclaiming the Rental Property as Primary Residence
The eviction ordinance allows landlords to evict an existing tenant to move in, which also applies to the property owner's immediate family members like their spouse, domestic partner, children, grandchildren, parents, or grandparents. However, the intended occupant will have to do so within 90 days after the tenant vacates, and must use the property as principal residence for 12 months. Otherwise, the tenant can reclaim the rental unit.
Withdrawing the Listing from the Rental Market
If the owner intends to exit the rental business and remove their rental property from the market, they won't be violating any local laws by evicting the tenants residing in the rentals. That is provided that you go through the proper procedures per eviction law.
Plans to Demolish or Substantially Remodel the Property
The property owner will have the legal option to demolish the real estate property without having to worry about waiting for a lease to end. This also applies when the landlord aims to do a substantial remodel of the space wherein tenants cannot safely remain on the premises for at least 30 consecutive days.
How It Protects Tenants
Relocation Assistance is Guaranteed
When the owner provides a mandatory written termination notice for a no-fault eviction, they are also required to offer a relocation assistance payment or waive the upcoming month's rent. As per the California government, the amount for the relocation assistance will be equivalent to one month's rent. The assistance must be given within 15 calendar days after the notice is issued.
Reclaiming Rental Units
A no-fault eviction in which the landlord makes the rental housing their primary home is only final should the owner move in within the given timeframe after they evict a tenant. If not, the landlord is required to offer the same rental unit to the tenant at the same rent and lease terms, as well as reimburse them for moving expenses in excess of the relocation assistance.
Prohibited Eviction Without Tenant Acknowledgement
If the lease is entered on or after July 1, 2020, no-fault evictions are only valid if the tenant agrees to the termination and puts it in writing. If the tenancy is for a mobile home, this rule applies to any leases beginning after July 1st, 2022.
Just note that this rule can be ignored if a provision in the lease agreement states that the landlord is allowed to evict the tenant to turn the mobile home into their personal property.
Tenure Rights for the Rental Unit
Tenants receive new protections against arbitrary evictions under the new law. As long as they occupy the unit lawfully, and commit no lease violations, they gain tenure rights after 12 months of continuous occupancy. The new law also specifies remedies tenants can pursue if a landlord violates the just cause requirements, including punitive damages.
When a Tenant Notice Should Be Issued Before the Eviction Process
The landlord must also provide a proper written notice before a just cause eviction. For unpaid rent, the tenant must be given three (3) days to correct the mistake. For other at-fault reasons like refusal of lawful entry or criminal activity, they are given 3-30 days' notice, depending on the severity. For no-fault evictions, tenants should be notified 60 days prior. When the tenant fails to comply after the eviction notice has been provided, the landlord may issue a termination notice.
Related Provisions Under the Tenant Protection Act of 2019
Rent Increases
The Tenant Protection Act of 2019 allows the landlord to evict a tenant in the event of a rent breach. Furthermore, it also states that in any 12-month period, California landlords cannot issue rent increases by more than 5% plus the increase in the published Consumer Price Index for the tenant’s geographic region, or 10%, whichever is less as per the law.
Exemptions for Withdrawals from the Rental Market
- Transients and tourist hotels
- Affordable housing for very low, low, and moderate-income households
- Housing accommodations for a non-profit hospital
- Single-family homes owned by a real estate investment trust or a corporation
- Religious facilities
- Extended care facilities
- Licensed residential care facility for the elderly
- Dormitories owned by an institution for education
- Units that share the same bathroom and kitchen facilities as the owner's principal residence
- A unit in a single structure where the owner already occupies the other unit provided that neither unit is an accessory or junior dwelling unit
Eviction Protections
When the landlord still starts the eviction process to terminate tenancy while the protections apply, they may face legal consequences. State and local laws state that the tenant may bring enforcement actions and is entitled to actual damages, fees for legal assistance, and up to three times the damages if the owner acted willfully or with oppression, fraud, or malice.
Hiring a Property Manager for Legal Help
Navigating the rental industry without the proper legal knowledge can be dangerous. Hiring a professional who knows about the Tenant Protection Act, the new just cause eviction ordinance, and other related laws can help a landlord evict tenants without a hitch.
Harland Property Management's extensive services include meticulous tenant screening to prevent at-fault just-cause evictions from your residential properties. Contact us to discover how we can help you with your rental business.
