Understanding AB 1482: The Tenant Protection Act of 2019

If you're a renter or landlord in California, you've likely heard about Assembly Bill 1482, but you might be wondering what it really means for you. AB 1482, also known as the Tenant Protection Act of 2019, was signed into law with the intention of providing a measure of stability and predictability to tenants while ensuring landlords can still make a fair return on their investment. Let's break down what this bill is all about.

What is AB 1482?

The Tenant Protection Act was designed to address the housing affordability crisis that has been a growing concern in California. Effective as of January 1, 2020, this statewide rent control measure limits rent increases and adds just-cause eviction protections for tenants.

Rent Increases

Under AB 1482, annual rent increases are capped at 5% plus the local rate of inflation, or 10%, whichever is lower. This doesn't apply retroactively, so the baseline rent is considered the rent as of March 15, 2019. The cap doesn't apply to apartments built within the last 15 years, single-family homes (unless owned by corporations or REITs), duplexes where the owner lives in one of the units, and a few other exceptions.

Just-Cause Eviction Protections

The Act also requires landlords to provide a just cause for evicting tenants who have resided in a unit for longer than 12 months. Just causes are divided into two categories: "at-fault" and "no-fault." At-fault causes include nonpayment of rent, criminal activity, or breach of the lease terms. No-fault causes can be things like the owner intending to occupy the property or withdrawing it from the rental market.

If a tenant is evicted for a no-fault just cause, the landlord must provide relocation assistance, which can include one month's rent or a direct payment.

What AB 1482 Means for Tenants and Landlords

For tenants, AB 1482 brings a level of security. Renters can now expect more predictable rent increases that align with the general cost of living. They also receive greater protection from being evicted without a significant reason.

For landlords, the Act means adjusting how rent increases are handled and ensuring that any evictions meet the just-cause requirements. While this might seem restrictive, the aim is to balance the scales a little more fairly between landlords and tenants, ensuring that property owners can still profit without displacing renters without cause.

The Bigger Picture

The passing of AB 1482 is part of a larger conversation about housing in California and across the United States. While it's not a solution to the housing shortage or the high cost of living in many California cities, it is a step towards more stability for the millions of Californians who rent.

Final Thoughts

Whether AB 1482 will have its intended effect remains to be seen, and it’s not without its critics. However, understanding the law is crucial for both tenants and landlords to navigate their rights and responsibilities successfully. As the housing market continues to evolve, so too will the laws that govern it, and staying informed is the best strategy for all involved.

As real estate professionals, part of our job is to keep you updated on how these changes affect you. As of publishing, this is the data we have access to.

Please note that AB 1482 is subject to changes and interpretations, and it would be advisable to consult with a legal expert for the most current and personalized information.