California’s current housing crisis has been developing over decades. Recent bills passed by the state legislature and signed into law by Governor Gavin Newsom are aimed at tackling housing problems in the state. In these bills, reforms were made to landlord-tenant laws that clarify their rights and protections.
What remains unclear is how landlords can safely deal with tenants who are growing cannabis or running a dispensary on their properties. Disputes of this nature are best handled by a Los Angeles landlord eviction lawyer, who understands the laws and can guide landlords on what actions to take.
What is the Tenant Protection Act of 2019?
Among the new housing laws signed into law is California Assembly Bill 1482, also known as the Tenant Protection Act of 2019. This law implemented statewide rent control and established just cause requirements for the termination of tenancy.
Rent Control
The bill prohibits the owners of residential real properties from increasing the rent for a unit or dwelling by more than 5% plus any change in the cost of living percentage within 12 months. Rental increases and cost of living percentage changes aren’t allowed to exceed 10% in the same time frame. It also prohibits property owners from increasing rental rates more than twice in 12 months. This rent control law is in place until January 1, 2030.
Certain types of properties are exempt from this law, including:
- Housing restricted by deed or regulatory restrictions placed by government agencies
- Higher education dormitories
- Housing with a certificate of occupancy issued in the past 15 years
- Housing subject to rent control by a public entity
Just Cause Terminations and Evictions
California now requires just cause to terminate a residential lease agreement once a tenant has occupied the property for at least 12 months and lived there continuously during that time. Just cause termination includes at-fault and no-fault causes.
At-fault just cause is used when the actions of your tenant are the cause for termination of the lease or eviction from your property. Examples of at-fault just cause include:
- Tenants defaulting on rental payment
- Tenants breaking the terms of your lease agreement or violating provisions added to the lease agreement after receiving written notice to make corrections
- Committing waste as defined in California’s Civil Code of Procedure
- If your tenant commits or permits the commission of a nuisance
- Tenants engaging in criminal activity on the property, including any common area spaces
- Tenants engaging in or threatening criminal activity off of the property, including against any owner or agent of the property
- Using the property for unlawful purposes
- Tenants that refuse to allow property owners to enter the property
- Subletting the rental unit in violation of the lease agreement
- Employees or agents refusing to vacate the property after their termination as an agent or employee
In cases of no-fault just cause, the reasons for termination are not the tenant’s fault. They often revolve around changes made to the property, such as:
- When the property owner or their spouse, domestic partner, children, or other close relatives intend to occupy the property
- When a residential real property is withdrawn from the rental market
- When the property will be undergoing extensive remodeling or there are plans to demolish it
- When the owner is complying with government agency orders or a local ordinance, require the property be vacated
In cases of just cause with a fixable violation, owners or landlords must first notify the tenant of the violation and give them the opportunity to correct it before issuing a notice to terminate. Using no-fault just cause termination, landlords are required by this law to pay for tenant relocation or waive payment of rent for their last month.
Just Cause and Cannabis
In California, it’s not uncommon for landlords to rent property to marijuana dispensaries. They may also rent residential properties to individuals who grow or sell their own marijuana from their rental unit. While some landlords permit this activity, others would prefer it not occur on their property.
Under the Tenant Protection Act of 2019, just cause can only be used to evict tenants if they violate the law. Current laws permit adults 21 and older to purchase, possess, transport, or give away up to 28.5 grams of marijuana without compensation. This law allows tenants to grow and harvest up to 6 marijuana plants.
To comply with just cause termination, landlords who do not want tenants growing or selling marijuana on their property must write these terms into their lease agreement. If a tenant does not abide by the terms, they will violate their lease. This gives landlords just cause for evicting the tenant.
What New Laws Means for Landlords
While the passage of 18 new bills aimed to boost housing production is an answer to some of California’s housing crises, it does little to address problems caused by marijuana. Landlords of residential and commercial real estate properties must contend with state and federal marijuana laws while protecting their property without infringing on their tenants’ rights.
It’s legal to rent property to marijuana dispensaries in California, but local ordinances and entities regulate where they and other businesses are allowed to operate. Individuals in California also have the right to use marijuana for medical and recreational reasons.
The best defense a landlord has against tenants growing marijuana on their property is eviction. An eviction lawyer works with landlords to handle the legal termination of a lease agreement.
How Marinaccio Law Can Help
Medical marijuana dispensary landlords must keep track of laws and zoning requirements for every property they manage, which can be confusing and time-consuming. Disputes between tenants and landlords due to marijuana are also complex.
If you’re a landlord who needs help handling tenancy issues related to marijuana, consider hiring Marinaccio Law. Our attorneys represent landlords during disputes and evictions. We’ll work with you to develop legal eviction solutions to your problems. Contact us today for a consultation of your case.
