Navigating Tenant Laws: Differences Between Single-Family Homes and Multi-Unit Buildings in Orange County, California

Legal Framework: State vs. Local Regulations

Statewide Regulations:

• Tenant Protection Act (AB 1482): This law sets a cap on annual rent increases (5% plus the change in CPI or 10%, whichever is lower) for most rental properties. However, it excludes:
  • Single-family homes not owned by a corporation or real estate investment trust.
  • Housing built within the last 15 years.
  • Duplexes where the owner occupies one of the units.
• Just Cause Eviction: Post-lease, landlords need a justified reason to evict tenants, regardless of property type, after the tenant has lived there for at least 12 months.

Local Regulations:

• Santa Ana: Has its own rent control ordinance, which might apply stricter rules to multi-unit buildings within the city limits.
• Other Cities: While no other city in Orange County has rent control, local ordinances might still influence other aspects like maintenance codes or tenant rights.

1. Rent Control and Increases

Single-Family Homes:

• Exemption from AB 1482: If owned by an individual or small-scale investor, single-family homes are generally exempt from rent control, allowing for potentially higher or more flexible rent increases.
• Notice for Increase: Landlords must still provide 30 days’ notice for rent increases under 10% and 60 days for increases over 10%, as per California Civil Code.

Multi-Unit Buildings:

• Subject to AB 1482: Unless very recently constructed, these properties are subject to rent increase caps.
• Local Control: In Santa Ana and Costa Mesa, even stricter controls might apply, further limiting rent increases.
• Notice Requirements: Same as single-family homes regarding the notice period for rent increases.

2. Security Deposits

Single-Family Homes:

• Deposit Limits: Landlords can charge up to two months’ rent for an unfurnished unit and three months for a furnished one.

Multi-Unit Buildings:

• Same Rules Apply: but the management of security deposits in larger buildings might involve more formal procedures, especially if managed by a property management company.

3. Maintenance and Repairs

Single-Family Homes:

• Habitability: Landlords must ensure the property is habitable, with functioning utilities, safe structures, and pest-free conditions.
• Repairs: Repair requests should be handled in a “reasonable” time, with tenants potentially able to withhold rent or repair and deduct if landlords fail to act.

Multi-Unit Buildings:

• Additional Regulations: Multi-unit buildings might be subject to stricter local ordinances regarding maintenance, especially in common areas like hallways or amenities.
• Emergency Repairs: With more tenants, the urgency for repairs, particularly in shared spaces, can be higher, influencing what’s considered “reasonable” time.

4. Tenant Privacy and Landlord Entry

Single-Family Homes:

• 24-Hour Notice: Landlords must give 24 hours’ notice before entering except in emergencies, for agreed-upon showings, or if the tenant has abandoned the property.

Multi-Unit Buildings:

• Same Rules Apply: However, the frequency and purpose of entry might be higher due to shared maintenance or inspections of common areas, leading to different tenant expectations and experiences.

5. Evictions

Single-Family Homes:

• Just Cause: After a year of tenancy, landlords need a valid reason for eviction, like non-payment of rent or lease violation.
• Owner Move-In: If the landlord or their family plans to move in, this can be a just cause for eviction, but specific criteria must be met.

Multi-Unit Buildings:

• Ellis Act: This state law allows landlords to go out of the rental business entirely, potentially evicting all tenants, though with significant notice and relocation assistance requirements.
• Just Cause: Similar to single-family homes, but the scale of operations can lead to different eviction scenarios, especially in large complexes.

6. Tenant Rights and Responsibilities

Single-Family Homes:

• Quiet Enjoyment: Tenants have the right to undisturbed use of the property, but disputes often relate to noise from adjacent properties.
• Subletting: Must be addressed in the lease agreement; without explicit permission, it might be prohibited.

Multi-Unit Buildings:

• Community Living: Tenants might have additional rights or responsibilities related to common areas, noise, and community behavior.
• Subletting: Often managed more stringently due to the impact on other residents, with clear rules or prohibitions in the lease.

7. Discrimination and Fair Housing

• Equal Application: Both types of properties must adhere to federal, state, and local fair housing laws, prohibiting discrimination based on race, religion, sex, national origin, disability, familial status, or other protected classes.
• Multi-Unit Considerations: In larger buildings, ensuring compliance with accessibility standards for people with disabilities can be more complex.

8. Lease Termination

Single-Family Homes:

• Month-to-Month: After the initial lease term, both parties can end the tenancy with 30 or 60 days’ notice, depending on how long the tenant has resided there.
• Fixed-Term Leases: End at the lease term unless renewed or terminated early by agreement or legal cause.

Multi-Unit Buildings:

• Conversion of Leases: Often, there’s a higher likelihood of converting fixed-term leases to month-to-month to manage tenant turnover more fluidly.
• Group Dynamics: Ending tenancy in multi-unit settings might involve coordinating with multiple tenants if under a joint lease.

9. Special Considerations in Orange County

• Coastal Areas: Properties near the beach might have unique considerations regarding noise, privacy, and maintenance due to the environment and tourist activity.
• Economic Diversity: With a wide range of economic backgrounds, landlords must be mindful of how laws apply to different tenant demographics.
• Tenant Education: Given the complexity of tenant laws, both landlords and tenants benefit from understanding their rights and responsibilities, potentially through local workshops or legal aid.

Conclusion