The Tenant Protection Act of 2019 went into effect in January of 2020, and the parts of this law that gained the most attention revolved around rent control and just cause eviction. The legislation prohibits an owner of residential property, during any 12 month period, from increasing the rental rate more than 5 percent plus the cost of living increase, or 10 percent; whichever is lower. It also requires landlords to have a just cause for evicting a tenant – nonpayment of rent, for example.

Right after this was implemented, the COVID-19 pandemic arrived, bringing eviction moratoriums with it and a complete freeze on rental increases in California.

Almost every landlord in San Mateo is feeling the impacts of this law.

California’s Rental Laws are Constantly Shifting

One of the most important things to understand as a San Mateo rental property owner is that things are changing quickly and regularly. The information you get today may be different in a month or even a week. It’s critical that you keep in touch with a San Mateo property manager or follow all the developments as they arise.

Several municipalities have extended the eviction moratorium beyond what the federal CDC moratorium has in place. A number of courts have struck down that federal eviction moratorium, but that doesn’t really apply to rental properties in California because the state laws go further than the federal laws.

San Mateo Landlords and Rent Freezes

Limiting rental increases and freezing them altogether are actions that come from good intentions. No one wants to see a full-blown housing crisis where tenants cannot afford to live anywhere or keep up with high rents while their salaries drop and the economy recovers from the pandemic.

However, there are long term implications that tend to harm landlords more than they help tenants.

There’s no protection against tax increases, for example. Landlords are still going to have to meet their mortgage obligations, pay their insurance premiums, and keep their rental properties habitable and well-maintained. Increasing costs faced by owners have often been offset by rental increases. But now, we’re on a slippery slope where landlords are required to pay more but receive less when they’re renting out a property in San Mateo or the surrounding areas.

What will really help our communities avoid a housing crisis is more inventory. That’s going to benefit everyone rather than just one part of the population. It will also make the rental market more affordable for tenants.

Evictions and Rental Assistance Program

SB 91 extended the statewide eviction moratorium through June 30, 2021.

The law does not forgive any of the overdue rent that your tenants may not be paying. However, those months of unpaid rent cannot be used as a purpose for eviction.

With the most recent stimulus bill, California received $2.6 billion in federal rental assistance, which will fund the State Rental Assistance Program. This program helps California tenants, particularly low-income tenants, who are most at risk for housing instability because of overdue rent. Applications for assistance are open, and either tenants or property owners can apply and qualify for the funds.

Landlords must agree to waive 20 percent of the unpaid rent in order to be eligible to receive government assistance. When you qualify for this funding, you can be eligible for 80 percent of rent reimbursements from the government for any rent that was owed and unpaid between April 1, 2020 and March 31, 2021.

Things are constantly shifting. If you have any questions about how to manage this territory, please contact us at Bayside Management.

Founded in 1982 in Marin County, Bayside Management has expanded to offer full-service San Mateo property management to the entire San Francisco Peninsula. We manage single-family properties, multi-unit complexes, commercial properties, and homeowner associations.