California lawmakers approve cap on rent increases

California is on the brink of state wide rent control, but property managers say it may not be good for landlords or their renters.

Assembly members voted 46-22 for Assembly Bill 1482 by Assemblymember David Chiu (D-San Francisco), which would limit annual rent increases at 5% plus inflation.

“You’ll see regular increases where lots of landlords haven’t been increasing their rent on a regular basis,” Audrey Wardwell with 36 North Properties said.

California is on the brink of state wide rent control, but property managers say it may not be good for landlords or their renters.

Assembly members voted 46-22 for Assembly Bill 1482 by Assemblymember David Chiu (D-San Francisco), which would limit annual rent increases at 5% plus inflation.

The rent cap has been a goal for governor Gavin Newsom, and supporters say this will help keep renters in their home during a state wide housing crisis.

For the first time, landlords will have to give a just cause for eviction. That would include not paying rent on time or a breach of the lease.

Landlords who want to do substantial renovations would now have to pay the tenants’ relocation, equal to a months pay.

“That will ultimately turn people to investing in different areas, cashing out or things like that,” Wardwell said.

The cap expires in 2030 and would not apply to housing built within the last 15 years and single-family homes not owned by corporations or trusts. Also, exempt are duplexes where the owner lives in one unit.

The rent cap has been a goal for governor Gavin Newsom, and supporters say this will help keep renters in their home during a state wide housing crisis.

For the first time, landlords will have to give a just cause for eviction. That would include not paying rent on time or a breach of the lease.

Landlords who want to do substantial renovations would now have to pay the tenants’ relocation, equal to a months pay.

“That will ultimately turn people to investing in different areas, cashing out or things like that,” Wardwell said.

The cap expires in 2030 and would not apply to housing built within the last 15 years and single-family homes not owned by corporations or trusts. Also, exempt are duplexes where the owner lives in one unit.