Burbank enacted the Burbank Tenant Protection Ordinance on September 12, 2023. It extends tenant protections set forth by the California Tenant Protection Act of 2019, Assembly Bill 1482 (AB 1482) that took effect January 1, 2020. As a landlord in Burbank, understanding these local and state rental regulations is important if you plan on remodeling your rental units. Here’s how these changes impact you and why choosing RentalHouse Property Management ensures your rental business remains profitable and compliant.
Key Provisions of Assembly Bill 1482
1. Just Cause for Eviction:
AB 1482 mandates that landlords cannot terminate tenancies without “just cause.” This includes both at-fault and no-fault reasons, where the landlord must clearly justify the reasons for eviction.
Some of the most common at-fault reasons for evictions are:
- Failure to pay rent
- Lease violations
- Criminal activity in the home
- Excessive damage to the property
- Failure to permit a landlord to enter with cause
See HERE for a complete list.
2. Rent Control:
AB1482 limits rent increases over the course of any 12-month period to 5% plus the percentage change in the cost of living or 10%, whichever is lower. See HERE for an easy to use calculator.
3. Exemptions in Rent Stabilization:
The rent stabilization rules under AB 1482 do not apply when a new tenancy begins, and no tenant from the prior tenancy remains. This gives landlords flexibility in setting initial rent prices.
4. Permission for Substantial Remodels:
AB 1482 explicitly allows landlords to evict tenants to perform substantial remodels. Such remodels include significant modifications of structural, electrical, plumbing, or mechanical systems that require permits, or where hazardous materials like lead paint or asbestos must be abated. These actions must be such that they cannot be safely done with tenants in place and require the tenants to vacate for at least 30 days. If so, the eviction is permanent and the tenant does not have return rights after the work is complete. The landlord does, however, have to pay relocation fees to the tenant. See the section below on Relocation Assistance.
5. Limits on Substantial Rehabilitation:
The law clarifies that merely cosmetic improvements do not qualify as grounds for eviction under the substantial remodel justifications. Cosmetic upgrades include painting, decorating, and minor repairs, or any other tasks that can be completed safely while the residential property remains occupied. Only more invasive and significant renovations allow for eviction and potential rent adjustments post-renovation.
6. Raising Rents Post-Remodel:
Post substantial remodeling, landlords are permitted to reset rents above the caps established by AB 1482, offering a pathway to increase investment returns once improvements are made. When the remodeled vacant unit is offered for lease again, the landlord can set the rental rate to any amount they choose. Contact us for help determining market rental rates.
7. Local Enhancements by Burbank:
In cases where local jurisdictions, like the City of Burbank, enact more protective regulations than AB 1482, these local ordinances take precedence. The Burbank Tenant Protection Ordinance enhances several aspects of AB 1482, particularly around eviction processes and required tenant relocation assistance. While AB 1482 requires relocation assistance equivalent to one month’s rent, the Burbank Tenant Protection Ordinance increases relocation assistance to three month’s rent.
How the Burbank Tenant Protection Ordinance Modifies AB 1482
Enhanced Eviction Requirements:
A landlord cannot end a lease due to plans to demolish or extensively renovate the property until the following conditions are met. Also, the following conditions must be met before the tenant is given a written eviction notice for a justified reason under this law.
The owner must have obtained all necessary permits:
- Substantial renovation permits from the City of Burbank
- Demolition permits for tearing down the building
- Any permits required for the removal of hazardous materials from appropriate local, state, or federal agencies
Furthermore, the tenant must be given copies of all relevant permits for building, demolition, and hazardous material removal. Additionally, the tenant must receive a written description detailing the work to be done, explaining why it cannot be safely done while the tenant is living there, and why the work cannot be completed within a 30-day period. The tenancy can be terminated with a 30, 60, or 90-day termination notice depending on how long the tenant has occupied the unit and a few other considerations. Contact us if you are unsure which form to use.
Increased Relocation Assistance Obligations:
For no-fault evictions related to substantial remodeling, landlords must now provide significantly increased relocation assistance, equal to at least three months of the tenant’s current rent.
Landlords must choose one of the following actions, regardless of the tenant’s income:
- Provide relocation assistance to the tenant through a direct payment.
- Formally waive the rent payment for the last three months of the tenancy in writing before it is due.
The owner is also required to inform the tenant about their right to either relocation assistance or a rent waiver. If the owner chooses to waive the final three month’s rent, they must specify the amount being waived and confirm that no rent is due for those months.
The value of the relocation assistance or rent waiver must be equivalent to three month’s rent at the rental rate when the termination notice was issued. Any relocation assistance must be given within 15 calendar days of the notice being served.
If the tenant does not vacate the property following the termination period, the owner can reclaim the value of any relocation assistance or rent waiver as damages in a lawsuit to regain possession of the property.
Consequences of Non-Compliance:
If the owner does not fully adhere to these requirements, any eviction notice issued will be considered invalid and can be used as a legal defense in any eviction proceedings. Compliance isn’t just about following laws; it’s about safeguarding your investments against potential disputes and financial liabilities.
In situations where the landlord does in good faith follow the law and the tenant simply refuses to vacate the unit, the landlord has the option to pursue an eviction or negotiate a higher relocation assistance dollar amount.
Why Choose RentalHouse Property Management?
RentalHouse Property Management specializes in managing the complexities of property management in Burbank, ensuring compliance with the latest legal changes while maximizing your rental income. Our expert team manages tenant communications, oversees legal compliance, and ensures all procedural requirements are met efficiently.
Disclaimer
The information on this webpage is not meant to be legal advice and is intended for educational purposes only. The laws change frequently and this webpage may not be updated to reflect current rules. Do not rely on the information on this webpage when making legal decisions. Consult with legal counsel regarding your particular case before taking any action.