Exempt property
Renting A Single Family Home – San Jose, CA
Rent Outside-the-box
Renting in California can involve different types of property. From the traditional like renting single family homes, duplexes, and multi-family complexes, to more non-traditional ways like renting in-law units, guesthouse, or a single room. The housing shortage in California has led to landlords to rent any “extra” room they may have.
Landlords who are renting need to know and be compliant of the laws that govern landlords. In San Jose, California, interplay between the Tenant Protection Act of 2019 of California (see, California Rent Control Laws) and the Tenant Protection Ordinance (TPO) of the City of San Jose (see, San Jose Rent Control Laws) set the legal requirements a landlord must follow.
Depending on the type of unit being rented, the legal requirements may vary. But in all cases, if property is being rented, the landlord must Register the Rental with the City of San Jose.
If you are renting any of the following, the rules may differ.
Single Family Home
Landlords of single family homes are exempt from rent-control unless they are an REIT (Real Estate Investment Trust) or a limited liability company in which at least one member is a corporation.
To be exempt from rent control laws, the landlord must disclose to the tenant the follow disclosure/notice:
“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.”
Duplex
A landlord of a duplex is exempt from rent control laws if her or she occupies one of the units as the landlord’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy.
A duplex is a property containing two separate dwelling units within a single structure. Neither unit can be an accessory dwelling unit or a junior accessory dwelling unit.
No disclosure/notice needs to be given.