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on today's meet Kevin Report we're talking about rent control at yes I'm coming to you from Austin Texas because our next in-person real estate investing crash course is here in Austin Texas on Saturday September 14th next stops by the way are going to be Miami a San Francisco Charlotte and Vegas can't wait to see you there but for now let's talk about what California just passed in terms of rent control and what you could learn no matter where you are a landlord an aspiring landlord and real estate investor or you're a tenant and want to know if this is good or bad for you hint I think it's bad for tenants so what just happened well California passed Assembly Bill 1482 which mandates state a wide a rent control you'll be able to extract some lessons from this no matter what state you're in or country for that matter so what exactly is statewide rent control well basically unless you already have rent control you now have a rent control and the basics of the law are this you can no longer raise the rent on a tenant more than five percent per year plus the cost of inflation so if inflation is 2 percent that means you could no longer raise rent more than 7 percent off whatever you had agreed upon previously now there's a cap at 10 percent the second part of the law is you can no longer terminate a tenant without cause see it used to be that if you didn't want rental property more you didn't want a 10 anymore you wanted to sell real estate all you had to do was wait until the lease expired and you generally gave your tenant a 30 or 60 day notice to move and they're out of there then you could go sell your vacant real estate that is of course if you wanted to sell the property vacant for most single-family houses and condos it makes sense to sell those vacant they tend to get higher values multi-family usually want to keep your tenants in place anyway but there's some important considerations for multi-family as well so in terms of termination though here's how the new law works if you want to get a tenant out you either get a tenant out through cos or without cause means the tenant failed some kind of obligation they didn't pay rent or they didn't follow the rules of the contract now even if the tenant breaks a rule it doesn't automatically mean six months later you get to kick him out and you don't have to follow the new rules if a tenant breaks a rule of the contract I believe and check with your attorney and your real estate advisers and I believe you have to give them a three day notice to basically cure or quit immediately otherwise you kind of lose that default right so for tenants this is going to mean it's very important to keep an eye on every term of your contract and make sure you're following all of the specific terms so you don't lose your new protections which we're going to talk about if those are good or bad in just a moment so so far we have two parts to this new rule we have a cap on how much rent can go up every single year and...
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Rent control is a government program that places a limit on the amount that a landlord can demand for leasing a home or for renewing a lease.
What is the difference between a lease and rental agreement?
Rental agreements are very similar to lease agreements. The biggest difference between lease agreements and rental agreements lies in the length of the contract. Unlike a long-term lease agreement, a rental agreement provides tenancy for a shorter period of time usually 30 days.
Is a rental agreement the same as a lease?
Often, the terms lease agreement and rental agreement are used interchangeably to mean the same thing. But the terms can refer to two distinct types of agreements. Both leases and rental agreements are contracts that are legally binding. But each serves a very different purpose.
What is an agreement to lease?
An Agreement for Lease is a contract between the Landlord and Tenant agreeing to enter into a Lease at some point in the future. An Agreement for Lease is usually agreed when the Tenant cannot immediately occupy the Land.
Is leasing better than renting?
The decision to lease vs. rent really depends on what you need. If the asset is integral to your business, and you need it there all the time then leasing is your best option. ... Renting may cost more over that short term period but the total cost to you will be lower since you won't have the asset for many years.
How does lease agreement work?
A lease has a set term, such as six months or a year, during which the tenant agrees to rent the property. During that time (also known as the duration of the lease), the tenant and the landlord must adhere to the agreement. ... Leases are suitable for landlords who want to lock in a tenant for a set period of time.
What does it mean to be on a lease?
Written or implied contract by which an owner (the lessor) of a specific asset (such as a parcel of land, building, equipment, or machinery) grants a second party (the lessee) the right to its exclusive possession and use for a specific period and under specified conditions, in return for specified periodic rental or ...
What does it mean when the lease is up?
When you lease a property the agreement is for a fixed term (period of time). When it is “up” it means that that term is over: your time has run out. “Up” is generally used to mean that a period of time has expired.
What does a 12-month lease mean?
A lease is typically for a specific term for a specific total amount of money. For example, a 12-month lease at $1000/month, is a lease for $12,000 at term. If you break the lease after 7 months, you would still owe the landlord $5000. A month-to-month lease at $1000/month is simply that. A lease for a total of $1000.
What does lease term mean?
Lease Term Definition. Defined as the period of time in which a contracted lease is in place, lease term establishes the time period to both the lessee and lessor. ... Additionally, a lease can cover either material or non-material property.
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