Local residential rent and eviction control systems are well known to the landlords and tenants of San Francisco, Oakland, Berkeley and San Jose. Rent control is a local or state law that restricts the maximum rent a residential landlord can charge a tenant to occupy the property. Eviction control limits the landlord's right to evict a tenant.

However, many other cities in California have rent control ordinances. Northern California rent control jurisdictions include: San Francisco, Oakland, San Jose, Berkeley, Campbell, East Palo Alto, Fremont, Hayward and Los Gatos. Additionally, Southern California cities subject to rent control include: Beverly Hills, Los Angeles, Palm Springs, Santa Monica, Thousand Oaks and West Hollywood.

It is worth noting that city rent control ordinances differ significantly and none have exactly the same legal requirements. Below are some common provisions that are often contained in rent control ordinances:

Exemptions: Certain properties are exempt from rent control; such as single family residences or new construction.

Vacancy Decontrol/Recontrol: This provision allows property owners to increase rents to market rate for units that become vacant. However, when the unit becomes reoccupied the unit once again becomes subject to rent control.

Just Cause for Eviction: Under California state law, generally, a landlord may terminate a month-to-month tenancy without cause on 30 days notice. However, when a property is subject to rent control, the landlord's right to terminate the tenancy is limited to certain just cause reasons. The landlord must then state and prove a valid reason under the law for the eviction.

In San Francisco, for example, there are 15 "just cause reasons" to legally terminate a tenancy. Common reasons include:

• Tenant fails to pay rent or habitually makes late payments of rent;
• Tenant breaches the rental agreement/lease;
• Tenant creates a nuisance or substantial interference with other tenant's or landlord's right to quiet use and enjoyment of the property;
• Landlord or an immediate family member seeks occupancy of the property;
• Landlord seeks to perform improvements to the property making the unit uninhabitable temporarily while the property is improved;
• Landlord seeks to conduct substantial rehabilitation to the building; and
• Landlord seeks to "go out of business" by withdrawing units for rent from the market pursuant to the Ellis Act.

Rent Increases: Almost all rent control jurisdictions include restrictions on the amount and circumstances when a landlord can raise the rent. Frequently the increases are tied to a cost of living index and are often far below the market rate. Additional rent increases must be submitted to a rent arbitration board for formal review and approval. Sometimes, the ordinance includes provisions concerning the owner's ability to "pass-through" the cost of capital improvements to the tenant.

Rent Notification/Registration: Some rent control ordinances require property owners to register every new tenancy with a Rent Board and notify a Rent Board of every rent increase or tenant change.

Legal advice should be sought when entering leases, raising rents, requesting a tenant to vacate and performing evictions in compliance with rent control laws. Landlords can be subject to civil and criminal penalties and wrongful eviction lawsuits for failure to comply with state and city rent control laws.

© 2010 Kabak Law Group. This material does not constitute legal advice and is for general informational purposes only. This material may be reproduced for personal use and for non-commercial distribution. All copies must include this copyright notice.