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Real Estate/Development,
Government

Nov. 7, 2019

Does cannabis activity provide ‘just cause’ for lease termination under California’s new Tenant Protection Act?

While the rent cap applies retroactively to increases on or after March 15, 2019, the just cause requirements are not retroactive and do not take effect until Jan. 1, 2020. As a result, we are seeing mass terminations of month-to-month leases that provided tenants below market rates.

Julie Hamill

Julie Hamill is an attorney with Harris Bricken McVay Sliwoski LLP

Email: julie@harrisbricken.com

California Gov. Gavin Newsom recently signed the Tenant Protection Act of 2019, which caps annual rent increases in California for the next decade. Subject to a number of exceptions, new Civil Code Section 1947.12 prohibits an owner of residential real property from increasing the rental rate by more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, over the course of a 12-month period.

To avoid a ...

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