Summary: Under California’s statewide COVID-19 Tenant Relief Act of 2020, a residential landlord is generally prohibited from terminating a tenant (who is a natural person) absent a “just cause” reason, or in limited circumstances, when selling the property if certain conditions are met. This prohibition against terminating tenancies applies to a month-to-month tenant, or even a fixed-term tenant who is at the end of the lease term. This prohibition came into effect on September 1, 2020, and is scheduled to expire on January 31, 2021 unless the law is extended. 

What are Just Cause Reasons? A handy list of the “just cause” reasons for a residential landlord to terminate a tenancy is set forth in C.A.R.’s Rent Cap and Just Cause Addendum (RCJC), except that the landlord cannot evict for nonpayment of COVID rental debt as defined. The RCJC sets forth 11 enumerated “at-fault” reasons, such as the tenant’s breach of the lease terms. The RCJC also provides 4 “no-fault” reasons, such as the owner’s intent to occupy the property, withdraw the premises from the rental market, or substantially remodel the property. The landlord, however, can only terminate to substantially remodel if needed to meet basic habitability standards.

Limited Exemption for Sale of Property: Aside from a “just cause” reason as discussed above, California state law allows certain landlords selling their property to terminate a tenancy. To fall under this exemption, a landlord must satisfy all of the following 7 requirements:

1. Property is a single-family home or condominium.

2. Owner has entered into a contract for sale.

3. Buyer intends to occupy the property.

4. Owner is not a corporation, LLC with a corporate member, or Real Estate Investment Trust (REIT).

5. Owner has given the tenant the C.A.R. Rent Cap and Just Cause Addendum (RCJC), as also required under California’s Statewide Rent Control law that came into effect on January 1, 2020.

6. Eviction under California state law is not superseded by federal law. Effective September 4, 2020, the federal Center for Disease Control and Prevention (CDC) issued a nationwide order generally halting evictions of residential tenants until December 31, 2020. The CDC Order does not apply in any state or local area with an eviction moratorium with the same or greater public-health protection. It is not clear if California state law is preempted by federal law in this instance. However, the CDC Order only protects tenants with an annual 2020 income of $99,000 or less (or $198,000 if filing a joint tax return) who cannot pay the full rent as documented by a CDC COVID-19 Tenant Declaration (C.A.R. Form CDC-TD). Hence, federal preemption should generally not be a concern for a landlord terminating a tenant with an annual 2020 income over $99,000 (or $198,000 if filing a joint return). More information about the CDC Order (including FAQs) is available from the CDC website.

7. Eviction under California state law is not superseded by local law. Some cities or counties may have stricter eviction moratoriums as compared to California state law.

Resources: Berkshire Hathaway HomeServices California Properties does not provide landlord-tenant property management services to clients, and our agents cannot give legal advice to clients. Clients with eviction questions should consult with their own attorney or eviction service. Agents may, however, give a client a copy of the C.A.R. Q&A on the COVID Tenant Relief Act (password-protected for C.A.R. members only). The full text of the COVID Tenant Relief Act (Assembly Bill 3088) is available from the California Legislative Information website.

Copyright© 2020 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of October 26, 2020. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.