How to Properly Terminate a Tenancy in California
Understanding how to properly terminate a tenancy in California can be a complex and often misunderstood process. Here at LuxeAlly Real Estate, we want to ensure that both renters and landlords are fully informed about their rights and responsibilities. We often receive numerous calls from both parties who are confused about the proper procedure for issuing a 60-day notice. This guide aims to clarify these rules and help everyone navigate the process smoothly.
At-Fault vs. No-Fault Termination
One of the first questions we often encounter is: “Can a renter be asked to leave?” The answer depends on whether the termination is at-fault or no-fault.
At-Fault Termination
This occurs when the renter has done something wrong, such as not paying rent or engaging in illegal activities like setting up a meth lab. In such cases, a three-day notice can be issued.
No-Fault Termination
Here, the renter has done nothing wrong, but the landlord wants them to leave for various reasons, such as personal use of the property or substantial renovations. Typically, a 60-day notice is required, but it can vary based on the circumstances.
No-Fault Termination Requirements
For a no-fault termination, the renter must be on a month-to-month or periodic tenancy. You cannot issue a no-fault termination if the renter is in the middle of a fixed-term lease. Additionally, local ordinances may have stricter rules than the statewide AB 1482, so it’s crucial to be aware of local regulations before proceeding.
Important Forms and Legal Requirements
The California Association of Realtors has created an updated Notice of Termination of Tenancy form, which incorporates new regulations from SB 567. It’s essential to use this form or ensure your notice includes all required legal language to avoid invalidation.
Cover Page
The cover page includes critical warnings and advice, such as checking for local rent and eviction control ordinances, which might be stricter than state laws. Using an attorney is highly recommended to ensure the process is carried out correctly.
Tenant Protection Act Compliance
Properties subject to the Tenant Protection Act (TPA) of 2019, also known as AB 1482, require specific procedures for terminating a tenancy. If a property is covered by TPA, you must check the relevant box and follow the outlined steps. The TPA dictates that for tenants who have been in possession for a year or longer, a 60-day notice is required. If less than a year, a 30-day notice is sufficient.
Reasons for Termination under TPA
– Compliance with a Government Order: The property must be vacated due to a court or government order.
– Demolition or Substantial Remodel: The property will be demolished or undergo significant renovations. New forms and disclosures are required under SB 567.
– Withdrawal from Rental Market: The landlord intends to remove the property from the rental market.
– Family Move-In: The owner or a direct family member (such as a spouse, parent, or child) will move into the property. Specific disclosures are needed, and proof of the relationship may be requested.
Relocation Assistance
Under the Tenant Protection Act, landlords must provide one month’s rent as relocation assistance or waive the last month’s rent when issuing a no-fault termination notice. Local regulations may require more than the state minimum, so it’s important to check.
Exempt Properties
Properties not subject to the Tenant Protection Act include most single-family homes and condos, owner-occupied duplexes, and newer buildings with a certificate of occupancy issued in the past 15 years. For these properties, no specific reason for termination or relocation assistance is required, but proper notice must still be given.
Delivery of Notice
The notice must be delivered in a specific manner to be valid. It cannot be texted or emailed. The preferred method is personal service—handing the notice directly to the tenant. If that’s not possible, substituted service (giving it to someone else over 18 at the residence) or posting and mailing (leaving a copy at the residence and mailing it) are acceptable alternatives. Proof of delivery is essential, so consider using registered mail for a tracking number.
New Requirements for Family Move-In and Substantial Remodel
Under SB 567, new disclosures are required for family move-in or substantial remodel reasons. The landlord must inform the tenant of the family member’s relationship or provide details about the planned remodel. If the remodel doesn’t happen, the tenant has the right to move back in under the same rent terms, and the landlord must cover relocation costs.
Wrap Up
Terminating a tenancy in California requires careful adherence to legal requirements to ensure the process is fair and valid. LuxeAlly Real Estate is here to help both landlords and renters navigate these rules. If you have any questions or need assistance, please contact us 858.630.8997.