In 2019 California passed a new statewide rent control law the Tenant Protection Act of 2019 (“TPA”). Where the TPA applies to a residential property it does not allow the eviction of tenants except under certain circumstances, such protections referred to as “Just Cause Protections”. For a discussion of whether the Just Cause Protections apply read this post.
The Tenant Protection Act contains many provisions that add complexity and cost to residential property leasing. It requires an updating of all lease agreements to comply with the law or to maintain exemptions to it that could cause costs. Additionally, it provides for relocation payments to certain tenants upon certain types of termination of the tenancy and restricts the ability of landlords to raise rents.
Assuming the Just Cause Protections apply to a residential unit there are only a handful of reasons that a tenant can have their tenancy terminated. These are enumerated in Civil Code 1946.2(b) and are grouped into two categories: “at-fault” and “no-fault”. If the eviction is “at-fault” then no relocation payment is required, if it is a “no-fault” eviction then a relocation payment may be necessary.
Tenant “At Fault”
The categories for a “for cause” termination include: failure to pay rent; breach of a “material term of the lease” after notice and right to cure (a discussion of what a “material term” is can be found here CC1161(3)); causing “nuisance” or damage (a discussion of what rises to the level of “nuisance” or is sufficient damage can be found here CC1161(4); criminal activity onsite and a criminal threat directed at the owner or their agent; assigning or subletting the premises in violation of the lease; refusal to allow the owner entry; using the premise for unlawful purposes; failure to vacate after legal right elapses; failure to vacate after agreement to do so in writing.
“No Cause” Evictions
There are a number of categories for “no-cause” termination of a tenancy which will be discussed in more detail below, however, they include the following: owner or owner family move-ins; withdrawal of the property from the rental market; any order issued by a governmental agency or ordinance that requires the unit to be vacated; when the property is to be demolished or substantially remodeled.
Owner or Family Move In
One of the most likely reasons to terminate a tenancy that is allowed under the TPA is where the property will be occupied by the owner, their spouse, domestic partner, children, grandchildren, parents, or grandparents. Unfortunately, this list of family members is exhaustive and does not include any additional relations. It should be noted that in order to use this exemption it must be included as a right in any lease entered into after July 1, 2020, as a result all residential leases should be updated to include such a provision in order to include flexibility for landlords or potential future owners.
Lease Updating and Tenant Relationship Management
Every landlord should update their lease forms and other tenant documents, failure to do so could cause a landlord to lose their exempt status and cost them or future owners additional cost and complexity. If would need assistance updating leases or managing tenant relations feel free to contact Brightwork Law or call (925) 257-2942.