RESOURCES / LEGAL UPDATES

90-day notice required when raising rents more than 10%

Under AB 1110, landlords will soon be required to provide 90-day notice to tenants whenever rent increases exceed 10%, essentially giving month-to-month tenants an extra 30 days' heads up, since under existing law, the owner must be afforded 60 days' notice before the effective date of a rent increase north of 10%.

If not already subject to rent regulation, the law will have no impact on tenancies when the rent increase is less than 10% because the 30-day notice requirement remains intact. For landlords who are contemplating a huge rent increase, however, don’t take the check to the bank just yet. We have to give a 90-day notice.

Some astute observers noted that under newfangled state law, rent increases over 10% will be prohibited, so what is the point?

In fact, there is a large stock of housing that is exempt from statewide rent caps and eviction controls. Most notably, buildings with a Certificate of Occupancy less than 15 years old will be exempt. Single-family homes and condos owned by a “natural person” are also generally off-limits. Owner-occupied duplexes are also exempt when you read the statute, but we hasten to say that more restrictive local ordinances may apply. We’ve attempted to reconcile local and state laws in this all-inclusive guide.

Not the first time we’ve seen a longer hourglass

In an earlier alert, we noted that weekends and court holidays will no longer count toward the expiration of three-day notices, thanks to AB 2343, a bill aimed to give tenants more time to respond to a looming eviction. With these and other laws, we can conclude that time is increasingly on the side of tenants.

Of course, Bornstein Law is resolutely on the side of rental property owners and you can count on us for informed guidance in navigating a confusing regulatory regime.