WHAT DO RENT CONTROL AND EVICTION CONTROL MEAN
What Do Rent Control and Eviction Control Mean?
Among the most important legal concepts for Landlords to be aware of is the restrictions placed on their rental businesses through Rent Control and Eviction Control. As knowledge is power this article will examine each of these concepts and how they can impact you.
Rent Control and Eviction Control are actually two different sets of laws, often enacted together, that work to limit what Landlords can do with their property.
Rent Control
Rent Control is a law passed by a city that limits a Landlord’s right and ability to raise the rent. Under state law, once a tenancy goes month-to-month a Landlord can issue an unlimited rent increase if they choose to do so. However, in a rent-controlled jurisdiction such as San Francisco or Oakland, if the property is subject to the Rent Control law, the Landlord is limited to a specific increase amount. For example, in San Francisco the allowable increase for the period March 1, 2019 through February 29, 2020 is only 2.6%.
If you perform certain capitol improvements you may be able to pass the costs through to the tenants, but only if you follow a specific process. Adding further complexity is the fact that some units are not covered by Rent Control, and still others are covered but then exempted out of Rent Control under certain circumstances. Before issuing a rent increase, it is critical to consult with counsel to know what your rights are so you don’t issue too large or too small an increase.
Eviction Control
Eviction Control is a law passed by a city that limits a Landlord’s right to terminate a tenancy once it goes month-to-month. Under state law, once a tenant’s fixed term expires a Landlord can issue a termination notice for any or no reason. In an Eviction-Controlled area, the Landlord must have a specific reason, sometimes referred to as a “Just Cause”.
Typically, these are broken down into fault terminations, where the tenants did something wrong like failing to pay rent, and no-fault terminations, where the tenant did nothing wrong but the Landlord needs possession of the unit back, such as for their use as their home. For no-fault evictions, typically a large payment must be made to the tenants to assist them with their relocation. While San Francisco and Oakland have Eviction Control, not all units are subject to Eviction Control. Before issuing a termination notice or concluding that you cannot terminate a tenancy, it is critical to consult with counsel to know your rights.
Most concerning, Rent Control and Eviction Control work together to keep tenants in your unit at artificially low rent rates. A unit covered by both means that you cannot terminate the tenancy (without a “Just Cause”) and cannot issue a fair market increase. These profound restrictions on your property rights make education and consultation with us critical so that you can maximize your investment and avoid costly mistakes.
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