California is known for being one of the most tenant-friendly states in the U.S., with a complex set of regulations that landlords must follow. Failing to comply with these laws can result in severe penalties for landlords, making it crucial to stay informed. Among the most significant regulations is the Tenant Protection Act (AB1482), a law that landlords in Riverside, and across California, must be particularly mindful of to avoid costly mistakes.
What is the Tenant Protection Act of 2019 (AB1482)?
For the sake of simplicity, the Tenant Protection Act of 2019, shall be referred to as “AB1482”. AB1482 is an incredibly long document that has a lot of legal jargon most people don’t fully understand. So, in order to combat this, I am going to list the important parts of AB1482, in terms of what the law is actually about, then I am going to simplify and break it down piece by piece.
“1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:
(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.
(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.”
After a tenant occupies a home for a year, a landlord in Riverside may not terminate the lease, unless they have “just-cause”. Just-cause can either be “at-fault” or “no fault”. As defined in AB1482, Just-cause can be any one of the following things:
At-Fault Just-Cause:
Failure to follow the lease: This includes not paying rent, breaking important lease terms (even after being warned), illegally subletting, or refusing to sign a similar new lease after it expires.
Damaging the property or causing problems: Serious property damage, creating a nuisance, or using the property for illegal purposes.
Criminal activity: Committing crimes or making threats on the property (including shared spaces) or directed at the landlord or their agent, even if off-site.
Blocking legal access: Refusing to let the landlord enter the property when legally allowed (for inspections, repairs, etc.).
Employee or move-out issues: Not vacating after being terminated from a job tied to the rental, or not moving out after giving written notice or agreeing in writing to leave.
No-Fault Just Cause:
Owner move-in: The landlord (or their close family member) plans to move into the unit. For leases signed after July 1, 2020, this must be allowed in the lease or agreed to in writing by the tenant.
Taking the property off the rental market entirely.
Government or court orders: The unit must be vacated due to safety, habitability issues, or a local ordinance.
Note: If the tenant caused the issue, they aren’t entitled to relocation help.
Major renovations or demolition: The landlord plans to demolish or substantially remodel the unit in a way that:
Requires permits,
Can’t be done safely with the tenant in place, and
Requires the tenant to move out for at least 30 days.
Cosmetic upgrades like painting or decorating do not qualify.
“(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.”
Before a landlord in Riverside can issue a notice to end the lease, the landlord must provide a 3-day cure or quit notice. If the tenant fails to cure the issue, the landlord has the right to serve a 3-day quit notice to end the lease.
“(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenant’s income, at the owner’s option, do one of the following:
(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).
(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenant’s right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.
(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenant’s rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.
(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.
(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.
(4) An owner’s failure to strictly comply with this subdivision shall render the notice of termination void.”
If a landlord in Riverside issues a No-Fault Just Cause notice to end the lease, the landlord is therefore required to first notify the tenant of their right to relocation assistance and then provide one of two options: Either waive the last month of rent (before the rent is actually due), or assist the tenant by providing a relocation payment of one month’s rent. This payment would need to be provided within 15 calendar days after serving the notice.
“1947.12. (a) (1) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.”
Landlords in Riverside are not allowed to raise the rent more than 5% + the % change in the cost of living, or 10%... whichever is lower. Riverside landlords are also not allowed to raise the rent more than once a calendar year.
How Does the Tenant Protection Act of 2019 (AB1482) Affect Riverside Landlords?
Now that we have broken down every single piece of legislation that the AB1482 introduced in 2019, we can talk about how it actually can affect Riverside landlords in your day-to-day lives.
The biggest impact from AB1482 is the rent caps that were introduced. Today, it is common practice for landlords to raise rent (ONLY to the market value of the home) by about 10% each year. Given the cost of living has increased egregiously since 2019, it is less common for landlords to use the cost of living calculation. It is incredibly important to research the market value of your rental property thoroughly before and during the time of tenancy. When it comes time for the yearly increase (if applicable), it is always important to complete a rental analysis of your property, and attach that to the notice of rent being raised.
At-fault and No-fault just cause evictions and terminations are now more complex for landlords, and a lot more stressful for those with no experience as a landlord. It is highly recommended that you conduct research before terminating your lease, to see whether or not you may owe relocation costs to your tenants.
As for cure-or-quit notices, make sure to find a notice that suits your needs. If you want to use / see a template that I found online, click here.
Who is Exempt from the Tenant Protection Act of 2019 (AB1482)?
Now that we have talked about what AB1482 actually is, and how it affects landlords in Riverside, let’s take a moment to talk about who the law doesn’t affect, moreso, who is exempt from AB1482. The legislature states,
“1946.2 (e) This section shall not apply to the following types of residential real properties or residential circumstances:
(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.
(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
(5) Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
(6) A duplex in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy.
(7) Housing that has been issued a certificate of occupancy within the previous 15 years.
(8) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is a corporation.
(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:
‘This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.’
(ii) For a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii) For any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.
(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).”
This portion of AB1482 is referencing the very first section, which relates to Just-cause terminations. What the legislature is saying is that properties in Riverside that are either short-term rentals such as hotels, housing in nonprofit hospitals or religious facilities, college dorms, or homes where the tenant shares a kitchen or bathroom with the homeowner are exempt from the Tenant Protection Act of 2019. Single-family homes and duplexes are also exempt if the owner lives on the property and rents out no more than two units. Properties built within the last 15 years are excluded, as are single-family homes or condos that are individually owned—as long as the owner is not a corporation, real estate investment trust (REIT), or certain types of LLCs, and the tenant receives a written notice stating the exemption in the lease.
"1947.12 (d) This section shall not apply to the following residential real properties:
(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2) Dormitories constructed and maintained in connection with any higher education institution within the state for use and occupancy by students in attendance at the institution.
(3) Housing subject to rent or price control through a public entity’s valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
(4) Housing that has been issued a certificate of occupancy within the previous 15 years.
(5) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is a corporation.
(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:
'This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (c)(5) and 1946.2 (e)(7) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.'
(ii) For a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii) For a tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.
(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.
(6) A duplex in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy."
What this means is Rent control limits under AB 1482 do not apply to certain types of properties. These include government-subsidized affordable housing, student dorms, properties already under local rent control that’s stricter than the state law, and any building issued a certificate of occupancy within the last 15 years. Single-family homes and condos that are individually owned (not by a corporation, REIT, or certain LLCs) are also exempt—but only if the tenant is properly notified in the lease. Duplexes are exempt too, as long as the owner lived in one of the units at the start of the tenancy and still lives there.
How Can Landlords in Riverside Stay Compliant With The Tenant Protection Act of 2019 (AB1482)?
AB1482 provides notifications that must be sent to your tenants even if you are exempt from the legislature. These are the notifications that you must send:
For those who are subject to the Tenant Protection Act of 2019:
“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.”
For those who are exempt from the Tenant Protection Act of 2019:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (c)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
These notices must be either in the lease, or a signed addendum and written in a 12-point font.
There are a few more great ways to stay compliant with AB1482, however none of it will matter unless you stay diligent. By researching the laws in Riverside as much as possible, you set yourself up for success as a landlord, both legally, and profit-wise.
Another way to stay compliant with AB1482 would be by keeping rent at market value. It is highly recommended that landlords in the Riverside area make sure to keep their rental properties at market value, no more, and no less. In order to ensure that your home is at market value, you can fill out a rental analysis, such as the one here.
The next and final way to stay completely compliant with AB1482 would be to hire a property management company. While it is completely optional for landlords to do, it is highly recommended in California. Legal compliance is incredibly important, and all property management companies in the Riverside area currently offer some sort of legal compliance service, where they guarantee to comply with all laws and ordinances in the Riverside area. If you are interested in learning more about hiring a property management company, click here.
Final Thoughts:
The Tenant Protection Act of 2019 is so vital for landlords in Riverside to understand. Most of the time, if you were to ask anyone in the rental space, they would say that this is the biggest bill signed in the past few years. Hence why this blog post was so long… If you are interested in scheduling a free 30-minute consultation with a professional property management company, click here. If you have any further questions about AB1482, or want to learn more about any other laws in California, feel free to contact me at jarrett@pmiriverside.com.
