October 19th, 2020 at 2:08 pm

Multiple Choice Question: Under the new California COVID-19 Tenant Relief Act, can a residential landlord terminate the tenancy of an existing tenant? Pick the best answer:

A. Yes.
B. Yes, if the property is a single-family home or condo.
C. Yes, if the landlord has a just cause reason.
D. No. 

Answer: Answer A is not the best answer. Starting September 1, 2020, the new COVID-19 Tenant Relief Act generally prohibits residential landlords from terminating tenancies absent a “just cause” reason as specified. This prohibition applies to both month-to-month tenants, and tenants who are at the end of a fixed-term lease. The prohibition shall expire on January 31, 2021 unless the law is extended.

Answer B is wrong. It’s true that single-family homes and condos were generally exempt from the California Statewide Rent Control law that went into effect on January 1, 2020 (or before the pandemic). However, this exemption was largely eliminated 8 months later by the passage of the COVID-19 Tenant Relief Act effective September 1, 2020.

Answer C is the best answer. Under the new COVID-19 Tenant Relief Act, a residential landlord must generally have an acceptable “just cause” reason to terminate a tenancy. A handy list of the “just cause” reasons 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 landlord’s intent to owner-occupy or substantially remodel the property. The landlord, however, can only terminate to substantially remodel if needed to meet basic habitability standards.

Practice Tip: As a reminder, our company does not engage in providing property management services to clients, and agents cannot give legal advice anyway. If your clients have eviction questions, advise them to consult with their own attorney or eviction service. You can also give your client a copy of the C.A.R. Q&A on the COVID Tenant Relief Act (password-protected for C.A.R. members only).

Stay Tuned Next Week: In addition to the “just cause” reasons discussed above, next week’s Legal Tip will address the limited circumstances under which residential landlords can evict tenants when selling their home to an owner-occupying buyer.

-Thank you to Connie McKibban (Monarch Beach Office) for suggesting this week’s legal tip.

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 19, 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.

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