Greater than 10% Rent Increase Requires 90 Day Notice
Prior to January 1, 2020, California law required landlords to provide tenants with 60 days’ notice if they intended to raise the rent greater than 10 percent within a 12-month period. When Assembly Bill (AB) 1110 went into effect on that date, it changed the notification requirements of landlords from 60 days to 90 days for any double-digit rent increase greater than 10%. This does not include any property excluded from rent caps under California statute AB-1482. Additionally, the new legislation only impacts renters with a month-to-month contract or less and not those with a specified lease term.
Purpose of the New Law
The California Legislature created AB-1110 in response to tight rental markets within the state. By giving tenants a notice of 90 days rather than 60 days for rent increases greater than 10 percent, it provides more time for month-to-month renters to determine if they would like to remain living at the property or look for a new place to rent that may be more affordable for them. Official documentation from the California Legislature clarifies that the intent of AB-1110 is not to create a public policy statement on rental amounts, nor does it intend to institute rent control.
Who Else Does the New Legislation Affect?
Any landlord who rents property for one month or less at a time, including weekly and bi-weekly contracts, must now provide short-term renters with a 90-day notice. The notice must occur in writing, and the landlord should hand it to the tenant directly to ensure that he or she receives it. The new AB-1110 legislation also allows landlords to serve a copy of the notice of rental increase exceeding 10 percent by mail according to the provisions of the Code of Civil Procedure found in Section 1013 of the legislative code.
Notification Requirements for Rent Increases 10 Percent or Less
If the proposed rent increase is 10 percent or less, landlords only need to provide a 30-day notice to all tenants within 12 months before or after the date of the increase. They may deliver the notice in person or by mail, which also requires them to follow the procedures of Section 1013.
In the event the landlord proposes a rent increase of any amount due to a change in the tenant’s family situation or income that requires recertification by a regulation or statute, the notice period is 30 days.
AB-1110 Approval Timeline
California Governor Jerry Brown approved this new piece of legislation regarding notice of double-digit rent increases greater than 10% on October 8, 2019 and filed it with the Secretary of State on the same day. Landlords had a little over two months to notate the change of providing a 90-day notice instead of a 60-day notice and must abide by the new legislation as of January 1, 2020.
The motion received a majority vote but did not go through a fiscal committee or appropriation. AB-1110 amends Section 827 of the current California Civil Code pertaining to notification of rental increases greater than 10 percent.
