90 Days’ Notice Required to Increase Rent by More Than 10% For A Residential Dwelling With A Month-to-Month Tenancy
On October 8, 2019, the Governor of California approved Assembly Bill 1110, which lengthens the amount of notice a residential landlord is required to provide a tenant for rent increases greater than 10%. AB 1110 amends California Civil Code Section 827 and takes effect January 1, 2020.
New Notice Requirement
Effective January 1, 2020, this bill requires 90 days’ prior written notice if a landlord of a residential dwelling with a month-to-month tenancy increases the rent by more than 10% of the amount of the rent charged to a tenant annually. In that regard, California Civil Code Section 827, as amended, will provide as follows: “If the proposed rent increase for that tenant is greater than 10 percent of the rental amount charged to that tenant at any time during the 12 months before the effective date of the increase, either in and of itself or when combined with any other rent increases for the 12 months before the effective date of the increase, the notice shall be delivered at least 90 days before the effective date of the increase.”
Exceptions to 90-day Notice Requirement:
- Increases of 10% or Less. If the proposed rent increase for that tenant is 10 percent or less of the rental amount charged to that tenant at any time during the 12 months before the effective date of the increase, the landlord need only give 30 days’ prior written notice before the effective date of the increase.
- Affordable Housing / Recertification. If the proposed rent increase for the tenant is caused by a change in a tenant’s income or family composition as determined by a recertification required by statute or regulation, the landlord need only give 30 days’ prior written notice before the effective date of the increase.
- Longer Notice Required by Law, Agreement or Contract. If a state or federal statute, state or federal regulation, recorded regulatory agreement, or contract provides for a longer period of notice regarding a rent increase, the notice must be given in accordance with the longer period.
The law firm of Wallace, Richardson, Sontag & Le, LLP represents landlords, property management companies, institutional and private lenders, employers and insurance companies throughout the State of California in real estate, business and employment litigation. The information provided herein is for general interest only and should not be relied upon or construed as legal advice.