Rent Control Changes for 2020
Filed under: Real Estate Market
Did you know that there is rent control in our area? This program puts a limit on the amount that a landlord can increase the monthly rental charges for their tenants. When the lease or contract is up, it is common for landlords to increase the amount that will be paid in the next year. But this program puts a cap on the increases, helping to protect renters from unreasonable rent increases each year.
New Rent Control Laws in 2020
As of the beginning of 2020, there are new laws in place that effectively set up rent control for the state of California. It’s important that everyone knows about these updates to ensure that updated rental contracts fall within the guidelines.
Basically, a landlord cannot raise rent more than 5% above and beyond the current rent, year-over-year. Plus, they can add in whatever local inflation is. For example, if inflation is about 3%, it’s added to the allowed 5% to get a total of an 8% increase in rent, year-over-year.
Rent Control: Who it Applies To
This is good information for both landlords and tenants, so everyone now knows the rules of the game. Landlords need to know their limitations with the newly negotiated contract for the upcoming year. Tenants need to know their rights so that a landlord doesn’t charge more than they are legally allowed to.
In the beginning rent control might not seem like much of an issue to worry about. But when it comes time for re-negotiating the rental contract, both the landlord and renter needs to know the allowable requirements for the new terms. The benefit of rent control is that the rent remains affordable, even if the market rates in the area are increasing quickly each year.
If you need more information on rent control, or you are looking for real estate advice in Temecula, then contact me any time. I’m happy to assist with anything you need! You can reach me by calling, texting, or emailing me with details about the services you need: (951) 473-0390 or [email protected].