Lease

What do you guys use for your standard lease in California?

I have been using Nolo’s version and adding some sections as needed. I’m not sure if it’s good or not so something I been using…

Do you mind sharing yours?

FixedLease - sample.pdf (404.9 KB)

No one can share or provide advice?

@manch @hanera @Elt1 @harriet @acre
@Terri @Roy321

Not a bad one, but you need now to add an addendum to disclose whether the unit is protected by AB 1482 and a brief summary of the AB itself. I expect that sites like NOLO will provide this addendum soon.

All new leases need to include it, and you need to get all your existing tenants notified as well (with their counter signature). The deadline to notify the existing tenants is 7/1/2020. I think all new leases starting 1/1/2020 need to include the addendum.

I have heard that if a landlord fails to disclose to an existing tenant, a normally unprotected unit like a SFR becomes protected.

I have further heard that if you fail to notify an existing tenant of a protected unit (apartment) about AB 1482, then you lose the right to increase the rent at all.

3 Likes

Are you leases getting to over 7, 8, 9 pages long now too?

Thanks for the reminder. I found this (it might be posted elsewhere before): AB 1482 Frequently Asked Questions | Official Website - Assemblymember David Chiu Representing the 17th California Assembly District

Q. What kind of notices are tenants required to receive about the rent cap?

A. All tenants in units covered by the bill must receive a notice explaining the just cause and rent cap protections. For a tenancy existing prior to July 1, 2020, this notice must be provided in writing to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement. For any tenancy commenced or renewed on or after July 1, 2020, this notice must be provided as an addendum to the lease or rental agreement, or as a written notice signed by the tenant with a copy provided to the tenant. The notice language must read:

“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.”

In addition, an owner claiming an exemption under the single-family home or condo exemption must provide a written notice to the tenant. For a tenancy existing before July 1, 2020, this notice may be provided in the rental agreement. For any tenancy commenced or renewed on or after July 1, 2020, this notice must be provided in the rental agreement. If the owner does not provide the required notice, then the property is NOT exempt from just cause or the rent cap. The notice language must read:

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

3 Likes

Do you guys do a separate Rules attachment/addendum to your lease or is everything written into the lease?

(following, but I’m not a landlord, so no advice)

Thank you for your response.

We have pages of pages of text for stock investments and other topics but when I ask an actual real estate question, there’s no love. :slightly_frowning_face:

I’m just trying to do a little better and hope to learn from all of you.

1 Like

What about an ADU of a non-owner occupied SFR? Is that exempt too?

I can’t tell after going through the FAQ.

my understanding is that it is exempt.
A duplex where the owner occupies one of the 2 units is exempt as well.

It has to be the owner’s primary residence though, using the unit as storage probably does not fly.

1 Like

In this case, it’s not a primary residence so it’s probably not exempt.

That’s fine. I don’t mind working with Rent control and Just Cause but I just need to understand it!

Standard CAR contract.

1 Like

Can confirm the Nolo lease includes the right exemption clause.

:+1:

1 Like

I just saw this thread, good thing too cause one of my leases is coming up.

@manch - Did the form just add the below text as a condition/clause?

This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

Just signed a new lease last week and I used CAR form. Their 12/19 revision has “Rent Cap and Just Cause” addendum. 3 pages long and in the last page there is check box if the property is exempted. Both landlord and tenant has to sign the addendum

Yes the Nolo form has that exact same phrase.

CAR forms might be better but they are only available to realtors. Maybe we should bribe @Boolean

:thinking:

Oh one cool thing about Nolo form is that they include the clause about interests payment on security deposit. They let you choose in a drop down box the city of your rental. If yours is in Berkeley they include the right amount. For me it’s “All the Others” as San Jose landlords don’t need to pay interests.

I actually did not know landlords have to pay interests in cities like Berkeley.

1 Like

I use the 5 pager Nolo lease but I also have a separate 3 page addendum for “rules and regulations.”

This is just FYI, normally it is fine to use.

I used car forms once, but when I handed-over to property manager, he informed me that it is copy-righted and restricted to realtors (or other related paid service).

Nowadays, I use my own non-CAR forms, like the one posted by caiguycaiguy.

Unfortunately, I face all such legal issues in real estate !

2 Likes