MEMORANDUM-Rent Increase for Tenant in Burbank, California

MEMORANDUM

DATE: November 26, 2024
RE: Rent Increase for Tenant in Burbank, California

Overview

This memorandum outlines the permissible rent increase for a residential property in Burbank, Los Angeles County, California, under the Tenant Protection Act of 2019 (AB 1482) and Burbank Ordinance No. 24-4,014. It also addresses whether tenant characteristics (e.g., having minor children) or tenant hardship affect the landlord’s ability to raise rent and provides guidance on compliance with notice requirements.

Issue

Can the landlord legally raise the rent for a tenant residing in a 4-unit residential building in Burbank, CA, who has lived there for 2 years with three minor children, and by how much? Does Burbank’s local ordinance or tenant characteristics (e.g., minor children or financial hardship) impose any additional restrictions on rent increases?

Background

The landlord intends to raise the rent for a tenant who has continuously occupied a unit for 2 years. The property is subject to the Tenant Protection Act of 2019 (AB 1482) and Burbank Ordinance No. 24-4,014, which govern permissible rent increases and tenant protections.

Under AB 1482:

1. Rent Caps: Annual rent increases are limited to the lower of:
   • 5% plus the percentage change in the Consumer Price Index (CPI), or
   • 10% of the lowest gross rental rate charged during the preceding 12 months (Civil Code § 1947.12).
2. Just Cause Eviction Protections: Tenants are protected from eviction without “just cause” after 12 months of occupancy (Civil Code § 1946.2).

For Los Angeles County, the CPI for 2024 is 3.9%, making the maximum allowable rent increase 8.9% (5% + 3.9%) (California Apartment Association, 2024).

Analysis

1. Applicability of AB 1482 and Burbank Ordinance No. 24-4,014

Tenant Protection Act (AB 1482):

• AB 1482 applies to most residential rental properties in California except:
  • Units built within the last 15 years.
  • Certain owner-occupied properties (e.g., duplexes where the owner resides in one unit).
  • Single-family homes not owned by a corporation or REIT (Civil Code § 1947.12(d)).
• In this case, a 4-unit residential building in Burbank is subject to AB 1482, as it does not fall under the exemptions.

Burbank Ordinance No. 24-4,014:

• This ordinance aligns with AB 1482 rent caps but provides additional protections for tenants, including:
  • Relocation Assistance: For “no-fault just cause” evictions, landlords must provide three months’ rent as relocation assistance (Ordinance No. 24-4,014, §5-4-104(A)).
  • Anti-Retaliation Protections: Landlords cannot evict or retaliate against tenants for exercising their rights (Ordinance No. 24-4,014, §5-4-105).

The rent increase cap of 8.9% under AB 1482 remains applicable and is not altered by Burbank’s ordinance.

2. Rent Increase Calculation

For Los Angeles County in 2024:

• CPI = 3.9% (California Apartment Association, 2024).
• Maximum increase = 5% + CPI = 8.9%.
• The landlord cannot increase rent by 10% as it exceeds the AB 1482 cap.

3. Impact of Tenant Characteristics (Minor Children and Financial Hardship)

• Minor Children: Neither AB 1482 nor Burbank’s ordinance imposes restrictions on rent increases based on the number of children in a household. The presence of minors does not affect the landlord’s ability to raise rent.
• Financial Hardship:
  • AB 1482 does not provide exemptions or restrictions on rent increases due to tenant hardship.
  • Tenants may seek assistance from local housing programs or negotiate with landlords for a phased increase.

4. Notice Requirements

Per Civil Code § 827(b)(2):

• 30-Day Notice: Required for rent increases of 10% or less.
• Delivery Method: Notice must be delivered personally or by mail under Code of Civil Procedure § 1013.
• The notice must include:
  • The new rental amount.
  • The effective date of the increase.
  • A clear explanation of the rent increase.

The landlord must serve a compliant written notice at least 30 days before the increase takes effect.

What “Compliant Written Notice” Implies:

1. Compliant:
   • The notice must meet all legal requirements, including:
     • Timing: Served at least 30 days before the rent increase takes effect (or 35 days if mailed).
     • Content: Clearly state the:
       • Amount of the rent increase.
       • Effective date of the new rent.
       • Total new rent amount after the increase.
     • Delivery Method: Served either:
       • Personally (30 days apply), or
       • By mail, in which case 5 additional calendar days are added.
2. Written:
   • The notice must be in writing (verbal notice is insufficient).
   • It must clearly explain all required details of the rent increase.
3. Statutory Compliance:
   • The notice must follow Civil Code § 827, which governs how and when rent increases can be communicated to tenants.
   • If AB 1482 applies, the notice must also comply with its rent cap provisions.

However, if the lease agreement is silent on how rent increases are handled, Civil Code § 827 automatically applies to govern the process.

The landlord must provide:

• A 30-day written notice for increases of 10% or less.
• A 90-day written notice for increases greater than 10%.

The notice period is 30 days, but when the notice is served by mail, an additional 5 calendar days are added to the required notice period under Code of Civil Procedure § 1013(a). This effectively means:

1. If delivered in person: The notice period is exactly 30 days from the date the tenant receives the notice.
2. If served by mail: The notice period becomes 35 days from the date the notice is mailed.

5. Just Cause Protections

Tenants in occupancy for more than 12 months are protected under AB 1482’s just cause eviction provisions (Civil Code § 1946.2) and Burbank’s ordinance. The landlord cannot evict tenants without a valid reason, and raising rent beyond the legal limit could be seen as a retaliatory act.

Conclusion

The landlord may legally raise the rent by up to 8.9% in compliance with AB 1482 and Burbank’s ordinance. To proceed:

1. Serve a 30-day written notice to the tenant before implementing the increase.
2. Ensure the notice complies with Civil Code § 827 and includes all required information.
3. Do not attempt to raise the rent by 10%, as it exceeds the legal limit.

Tenant characteristics, including the presence of minors, do not impose additional restrictions on the rent increase. If hardship issues arise, tenants may seek assistance from local housing programs or negotiate for phased increases.

Citations and References

1. California Tenant Protection Act of 2019 (AB 1482):
   • Rent Caps: Civil Code § 1947.12 (California Legislative Information).
   • Just Cause Protections: Civil Code § 1946.2 (California Legislative Information).
   • Notice Requirements: Civil Code § 827, and Code of Civil Procedure § 1013(a)
2. Burbank Ordinance No. 24-4,014 (2024):
   • Relocation Assistance: §5-4-104 (Ordinance Text).
   • Anti-Retaliation Protections: §5-4-105 (Ordinance Text).
   • Administrative assistance: housinginfo@burbankca.gov
3. CPI for Los Angeles County (2024):
   • California Apartment Association, CPI Data, June 13, 2024 (CAA Report).