California 2020 Rent Control Exemption - Owner Occupied Duplex

California 2020 Rent Control Exemption - Owner Occupied Duplex

Member since 2018 · 1 post · 0 votes

Hi!

I'm buying a duplex in South Los Angeles and I'll be living in one of the units. The tenant-occupied unit is paying 1050 for a 2 bedroom + 1 bath. I've been reading up on rent control and I see that according to new laws, I can only raise the rent up to 8% max to account for the 5% increase and inflation. 
Today, I just stumbled across an article that says I would be exempt from rent control since the duplex will be owner-occupied. Is anyone able to confirm this?

The tenants currently paying way below market rate but I want to figure out my best option between either raising the rent with the current tenants or going through the proper channels to remove them. 

Thanks!

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  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y

    Owner-occupied duplexes are, in fact, exempt from the new law. Here’s some FAQ on the new law that you might find helpful: 

    https://a17.asmdc.org/issue/ab-1482-frequently-asked-questions

  • Las Vegas, NV · Member since 2017 · 43 posts · 33 votes
    6y

    Duplex is only exempt if you lived there before the tenant moved in. In this case you're out of luck.

  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    6y

    @Ebony Bryant

    You are in the City of LA. Look up and understand the Rent stabilization ordinance (RSO) and what it applies to. That duplex likely falls under it. I don't think you want to deal with tenants rights on a duplex. I usually advise house hacking a SFH or only buying duplexes that are delivered vacant.

  • Rental Property Investor · Los Angeles · Member since 2020 · 27 posts · 7 votes
    5y

    I've also read this in some places, but I'm having trouble locating the explicit law.

    @Ebony Bryant, did you ever find the official literature?

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