Rent Control Update: C.A.R deal reached on recent proposed bills

As a Licensed California Realtor and a fierce advocate for our Landlord and Investor clients, we are always striving for more ways in which we can influence and affect change in our industry. Changes that ensure you continue to

build wealth through your real estate, earning you the freedom to do what you love.

Most recently, we made calls to our local legislators in our Assembly to express concerns about two bills, AB 1481 and AB 1482, that together imposed VERY restrictive regulations on rental property owners.

AB 1482 would have restricted rent increases at 7.5 percent AB 1481 would have expanded "just-cause evictions." On May 30, the California Association of Realtors announced:

Due in large part to your calls to legislators, the California Association of Realtors was able to successfully negotiate a deal with the bills’ authors on amendments that allow C.A.R. to remove its opposition. This compromise strikes a balance between preserving the rights of rental property owners while allowing the protection of at-risk tenants. Of particular concern, small property owners are protected, and the reach of both bills are limited with a sunset date of 2023. These amendments will be made to the bills once they move to the Senate. AB 1482 passed the Assembly last night and AB 1481 is still pending. Here are the amendments that C.A.R. negotiated: Amendments to AB 1481 – “just cause” evictions:

Will only apply to tenancies after 12 months; and
Will limit relocation assistance for “no-fault” evictions to an amount equal to one month of the tenant’s current monthly rent.

Amendments to AB 1482 – Rent cap:

Will increase the cap in the bill from 5% to 7% plus regional CPI. (For example, in Los Angeles the full increase would be 10%); and
Will preserve the right of landlords, through vacancy decontrol, to reset a rent to market rate once a tenant has vacated the unit.

Amendments to both bills: