10/22/2019

Rent Cap California


























California home prices continue to rise. Our State has the second highest poverty rate in America and growing homeless populations. A couple recent laws were passed which attempt to fix these problems.
The Rent cap bill, AB 1482 made rent control the law of the land in California this month. Landlords can only raise rent for an existing tenant by 5% after inflation. 

 The cap initially applies to California apartments built before 2004. It exempts single-family homes (unless owned by a corporation) and duplexes where the owner lives in one of the units. Buildings constructed in the last 15 years will be folded in on a rolling date, meaning units built in 2006 will be covered in 2021, units built in 2007 will be covered in 2022…

(The rate of inflation is tied to the Consumer Price Index in each metropolitan area)





New laws for granny flats and Accessory Dwelling Unit Laws also passed in 2019. One law addresses home owners that created accessory dwelling units (ADUs) without the required building permits may have the opportunity to bring their ADUs into compliance. For ADUs that were constructed without building permits, local building officials now have the option to inspect an ADU and bring to code. Cities also have newer building codes allowing for a garage unit or tiny house.

What do these trends mean? Housing is tight in California. Homeowners need to find ways to adapt to waves in housing. Real Estate investors need to be ahead of the trends. What do you think is ahead for real estate? 

Rates are at all time lows.

Caroline Gerardo Barbeau   C G
(949) 784- 9699
NMLS 324982
CMG Financial