On September 11, 2019, the California State Assembly passed the Tenant Protection Act of 2019, also referred to as AB-1482, and sent it to Governor Gavin Newsom for his signature, which has officially been signed as of October 8, 2019. This bill has attracted nationwide attention because of its potentially far-reaching impact on the housing market in the state. For owners of multifamily units, keeping a close eye on the latest property management data is essential to ensure that this new legislation does not cut too deeply into profit margins for their apartment communities.
The Provisions of Assembly Bill 1482
Under the provisions of the bill, tenants will receive added protections against unjustified evictions and will limit increases in rent to just five percent plus the rate of inflation. In recent years, inflation has hovered at around 2.5 percent. This would limit rent increases to about 7.5 percent on an annual basis.
The just-cause portion of the policy requires landlords to list specific reasons for eviction of a tenant. Acceptable reasons include nonpayment of rent, breach of contract or lease agreement, criminal activities, nuisance complaints, subletting the apartment or property in violation of the lease agreement and refusal to allow the landlord or the landlord’s representatives into the apartment or rental unit.
Single-family homes not owned by a corporation and properties less than 15 years old are exempt from the provisions of the Tenant Protection Act. It is expected to go into effect on January 1, 2020 and is subject to a sunset date of 10 years after its implementation, at which time its effects will be evaluated, and a decision will be made on whether to continue this policy.
Preparing for the New Normal
For property owners, acquiring and analyzing the available property management data is more important than ever in providing avenues to optimize profitability. The right multifamily data will provide solid information on the right rental price point for properties in the lead up to the enforcement of the Tenant Protection Act in January of next year. By adjusting rental prices now, it may be possible to reduce the long-term impact of this legislation when it goes into effect in the near future.
The property management data experts at ApartmentData.com will provide you with the targeted market research and marketing options your apartment complex needs to stand out from the crowd and to attract the best tenants in your area. We will keep you in the loop regarding leasing agent data and other factors that could affect your profitability over the short or long term. Call us today at 1-800-595-8730 to request a demonstration of our services for your community. At ApartmentData.com, we are committed to providing the right services at the right time for you.