On October 8, 2019 a new statewide rent control law, AB1482 also known as the “Tenant Protection Act of 2019” was passed that, among other things, limits the ability of landlords to raise rents and includes limitations on the ability of landlords to terminate leases. In a previous post we discussed the termination of a tenancy as being either “at-fault” or “no-fault”. Where a termination of a residential tenancy is for reasons that are defined as “no-fault” the owner is required to pay a relocation fee equal to one months rent at the time that the tenancy is terminated, i.e. the time the notice was issued.
The payment of the relocation fee can be accomplished either by waiving the last month’s rent prior to it becoming due, which much be accomplished by written notice, or must be paid directly within fifteen days of the service of the notice.
If the owner fails to “strictly comply” with the relocation payment terms then the notice of the termination of the lease will be considered void. This can be a costly issue for a variety of reasons, including that any keen tenant attorney will dispute the notice of termination, request a dismissal of the case, and make a demand for the tenants’ attorneys fees. Additionally, a failure here is likely to lead to significant delay of a timeline for repossessing a unit.
In the event that a tenant does not vacate after notice and the proper relocation payment it is possible to recapture any waived rent or direct payment as part of a judgment. Further, any relocation payment made under this law is credited against any other relocation assistance required by any other law, for example a local ordinance or a Cost-Hawkins payment.
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.