Understanding Rent Control in San Diego: Key Regulations for Property Owners
Rent control is an essential regulation that impacts property owners and tenants in real estate San Diego. In simple terms, rent control limits how much landlords can raise rents and establishes specific rules regarding tenant evictions. Below is an overview of the current rent control laws in San Diego.
Rent Increase Regulations
Under current California law, property owners in San Diego real estate can increase rent by 5% plus the Consumer Price Index (CPI). The timing of the rent increase is important:
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If the rent increase occurs before August 1, it is based on the previous year’s CPI.
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If the rent increase occurs after August 2, it is based on the current year’s CPI.
As of April 2020, the San Diego CPI was 4.1%, but the rate fluctuates annually. Staying informed on these changes is crucial for property owners in the San Diego real estate market.
Tenant Eviction Rules Under Rent Control
If a tenant has lived in a property for more than one year, the landlord cannot evict them without “just cause.” Just cause includes violations of the lease agreement or specific conditions outlined in the law, such as:
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Substantial Renovations: If the property requires major renovations that need permits and will take longer than 30 days (cosmetic upgrades do not qualify).
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Owner or Family Occupancy: A landlord can terminate a tenancy if they or an immediate family member intend to occupy the unit.
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Exempt Properties: Properties built less than 15 years ago are not subject to rent control regulations.
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Owner-Occupied Properties: If the property is owner-occupied and has an additional rental unit, and the tenant moved in after the owner established residency, the property is exempt from rent control laws.
How Rent Control Affects Property Owners in San Diego
If you own rental properties in San Diego real estate, navigating rent control laws is essential for long-term success. These laws can impact investment strategies, lease agreements, and tenant management. Understanding how to comply while maximizing your investment is crucial.
For a full breakdown of the law, you can visit the official California Legislative Information website: Click Here.
Working Together for Real Estate Success in San Diego
When managing real estate in San Diego, it’s important to assess both the worst-case scenario and the potential growth of your rental property. With the right approach, landlords can navigate these regulations effectively while maximizing property value.
If you have any questions or need expert guidance on real estate San Diego, we’re here to help you succeed. Contact us today to learn more about how we can help.
You can also find a link to the full outline of the law here: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1947.12.
The information in this blog is for general informational purposes only and should not be your sole basis for financial or investment decisions. While ACI Apartments uses reliable sources for data and analysis, you should verify all information independently. This blog is not a comprehensive report on all changes to local, state, or federal laws affecting property owners and managers. Laws may have changed or been misinterpreted since publication. Always consult legal counsel or a licensed CPA before making decisions. ACI Apartments is not liable for actions taken based on this content.
