- For the first 12 months of occupancy, a landlord may terminate the tenancy without cause with a 30-day notice.
- After the first 12 months of occupancy, a landlord may only evict a tenant for cause, by using an existing tenant-based reason or by using one of the four new landlord-based reasons.
- After the first 12 months of occupancy, the fixed-term lease will automatically roll over to month-to-month unless the landlord has a tenant or landlord-based reason to terminate.
- Three-strikes rule: A fixed-term lease might not automatically roll over at the end of the fixed term per landlord discretion if the tenant has violated the terms of the rental agreement three separate times during 12 months, with written warnings for each violation given contemporaneously with the violation.
Annual Rent Increase
- Landlords cannot increase rent by more than 7% + consumer price index in 12 months.
- Maintains current law regarding rent increases: prohibits rent increases in the first year of month-to-month tenancy and requirement that landlords give a 90-day notice of rent increases after that.
- New Construction: A landlord may increase the rent above 7% +CPI in 12 months if the certificate of occupancy was issued less than 15 years ago.
- New Tenancy: If the previous tenant vacated the unit voluntarily or their tenancy was otherwise terminated in compliance with other applicable laws, the landlord may reset the rent on the new tenancy without limitation.
- Subsidized Housing: If the landlord is providing reduced rent to the tenant as part of a federal, state, or local program or subsidy.
If a prior tenancy was terminated for cause or initiated by the tenant, the landlord can reset rents without any limitations. However, if a prior tenancy was terminated within the first year without cause, then the landlord cannot raise the rent for the subsequent tenant over the SB 608 limit.