As a owner of rental property, the State of California passed two laws regarding Eviction Protection and Rent Control Ceilings. All tenants must be notified in writing prior to July 1, 2020.
There are many conditions/restriction to abide by to stay in compliance.
Here are some common questions you need to know:
What do I need to provide to my tenants?
CAR’s new “Rent Cap and Just Cause Addendum” (Form RCJC) – available in December pending approval of the Standard Forms Advisory Committee.
When do I provide it?
It needs to be provided by July 1, 2020 if you did not do so already.
My tenant is month to month. Does that matter?
Yes. For month to month tenants, the addendum should be incorporated into the rental agreement by providing the notice by a change in terms of tenancy. Use Form “Notice of Change in Terms of Tenancy” (Form CTT).
What about leases?
If your tenant is on a lease, then you’ll provide the addendum as a stand-alone notice.
What needs to be done for new or renewed tenants?
For all tenants signing a new lease or rental agreement or a renewed lease or rental agreement after January 1, 2020, the addendum must be included.
What if the tenant whose lease has expired refuses to sign a new rental agreement with the addendum?
If the lease has expired after January 1, 2020, the owner may choose to evict on this basis. Or the owner may simply allow the tenant to go month to month and then incorporate the addendum into the rental agreement by delivery of a notice to change terms of tenancy (Form CTT). Do not, however, sign a new or renewed lease of rental agreement without the addendum.
If the owner is entitled to the exemption for single family properties or condominiums, is it necessary for the box in the exemption paragraph in the RCJC form to be checked?
Yes. If the owner is entitled to the exemption for single family properties or condominiums then the box must be checked. Otherwise it won’t be clear whether the owner has complied with the notice requirement.
Is it necessary for the tenant to sign the RCJC form? What if he or she doesn’t sign?
If the RCJC form is provided as part of a change in terms of tenancy for a month to month tenancy or simply as a notice in a fixed term lease, then the tenant is not required to sign. However, if the RCJC form is being added to the lease directly as an addendum or as part of a new or renewed lease, then of both the signature of the tenant and owner/agent would be necessary.
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Renee 831-801-1646 or John 831-801-4573 .