Santa Ana’s Rent Stabilization and Just Cause Eviction Ordinance (RSO) has brought about significant changes in the city’s rental landscape. This ordinance, which affects most rental units including apartments, houses, and mobile homes, aims to protect tenants from exorbitant rent hikes and unfair evictions. For landlords, understanding and complying with this ordinance is crucial to avoid potential legal issues.
Key Provisions Impacting Landlords:
- Rent Stabilization: One of the cornerstones of the RSO is the regulation of rent increases. Landlords are limited to annual increases of 3% or 80% of the change in the Consumer Price Index, whichever is less. This provision aims to prevent dramatic rent hikes that could displace tenants. It’s essential for landlords to stay abreast of the current allowable increase, which is announced by the city each year.
- Just Cause Eviction: After a tenant has lawfully occupied a rental unit for 30 days, landlords must have a valid reason, or “just cause,” to terminate the tenancy. The ordinance outlines specific “at fault” and “no-fault” reasons for eviction.
o At-fault just cause includes tenant-related issues like non-payment of rent, material lease violations, nuisance or waste, and criminal activity.
o No-fault just cause includes situations like the landlord’s intent to occupy the unit, withdrawal of the property from the rental market, or substantial remodeling. Understanding these distinctions is vital for landlords to ensure their eviction actions are lawful. - Capital Improvement Pass-Through: The RSO recognizes that landlords may need to make significant improvements to their properties. To alleviate the financial burden, landlords can petition for a rent increase to recover costs associated with capital improvements. These improvements must have a useful life of at least five years and include major repairs or additions like roofing, plumbing, or electrical system upgrades.
- No-Fault Eviction Relocation Assistance: In situations where landlords terminate a tenancy for no-fault reasons, they may be required to provide relocation assistance to tenants. This assistance can be in the form of a direct payment or a waiver of rent for the final months of the tenancy. The amount of assistance is typically equal to three months of the tenant’s rent.
Compliance and Best Practices:
- Meticulous Record Keeping: Maintaining detailed records of rent increases, notices to tenants, and maintenance activities is paramount for demonstrating compliance with the RSO. Accurate record keeping can be invaluable in potential disputes or legal proceedings.
- Seek Legal Counsel: Navigating the complexities of the RSO can be challenging. Consulting with an attorney specializing in landlord-tenant law is highly recommended to ensure your practices are in line with the ordinance.
- Utilize City Resources: The City of Santa Ana provides resources on its Rent Stabilization Program webpage, including the full text of the ordinance, FAQs, and contact information for assistance. Staying informed about any updates or changes to the RSO is crucial.
By understanding and adhering to the provisions of Santa Ana’s Rent Stabilization and Just Cause Eviction Ordinance, landlords can protect their interests while maintaining a fair and lawful rental environment.
