The Tenant Protection Act (TPA) is getting another update in 2024, meaning landlords need to watch their steps when evicting tenants and raising the rent.

The TPA passed in 2019 to require “corporate landlords” to show just cause to evict tenants who have occupied a property for 12 months or longer. It also sets an annual rent cap at the lower of 5% plus the rate of inflation or 10%.

Editor’s note — The applicability of the TPA is comprehensive, covering most multi-unit residential real estate housing in California and those single family residential (SFR) units owned by a REIT, a corporation or an LLC with a corporate member. However, there are numerous exemptions for multiple family units and conditions for SFRs to be excluded.

Read more about who and what type of property the TPA applies to — and about the many exceptions — here: 2020’s Tenant Protection Act.

No fault just cause evictions

Requiring a just cause for eviction makes it far harder for corporate landlords to evict tenants so they can rent out their properties to new tenants at a higher rate.

Just cause evictions notices are of two types, based on whether the tenant is:

  • at fault, called an at fault just cause eviction [CC §1946.2(b)(1)]; or
  • not at fault, called a no fault just cause eviction. [CC §1946.2(b)(2)]

A landlord may perform a no fault just cause eviction when the tenant is being evicted due to no fault of the tenant for any of the following reasons:

  • the landlord or their spouse, domestic partner, children, grandchildren, parents or grandparents intend to occupy the premises;
  • the property is withdrawn from the rental market;
  • the property is unfit for habitation as determined by a government agency and through no fault of the tenant; or
  • the landlord intends to demolish or substantially renovate the property. [CC 1946.2 (b)(2); See RPI Form 569-2 §3]

Under Senate Bill (SB) 567, the allowances for a no fault eviction have narrowed.

Beginning April 1, 2024, the owner or qualifying relative must occupy the property for at least 12 continuous months as the person’s primary residence.

For the landlord’s plans to demolish or substantially renovate the property, the landlord provides the tenant with written notice of the plans, including:

  • a description of the remodel;
  • the expected duration of the repairs or demolition; and
  • a copy of permits required to complete the repairs or demolition. [See RPI Form 569-2]

The landlord’s written notice must also include the following language:

“If the substantial remodel of your unit or demolition of the property as described in this notice of termination is not commenced or completed, the owner must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the owner at the rental rate that was in effect at the time you vacated. You must notify the owner within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the owner of your acceptance of the offer.”

A 60-day notice to vacate must be used to terminate the tenancy of a residential tenant who has resided on the property for 12 months or more. [See RPI Form 569-2; 577-1]

Related article:

2020’s Tenant Protection Act Part I: Just cause eviction

Enforcement of the TPA

The new law also tightens enforcement of no fault just cause eviction practices. Beginning April 1, 2024, a landlord’s violation of just cause eviction laws is liable for up to three times the tenant’s costs to move, and additional fines. The Attorney General, the city attorney or county counsel may bring these actions against the landlord.

Further, any landlord who attempts to violate rent caps set by the TPA is liable for up to three times the amount of any payment demanded or received which exceeds the TPA limits.

Editor’s note — All associated RPI forms will be updated according to the new law in advance of the implementation date of April 1, 2024. Subscribe to our free newsletter, Quilix, to be informed about all form updates as they become available.

Related article:

Attorney General fines landlords for TPA violations