California’s Requirements for Evictions Based on a Substantial Remodel of the Rental Unit

The California Tenant Protection Act allows landlords to evict tenants because the landlord wants to “substantially remodel” the unit.  This article discusses the requirements for a successful eviction action on this ground.  In short, the TPA (as amended by SB 567) requires a high degree of transparency from landlords when terminating a tenancy based on making substantial renovations to the unit. 

What Qualifies as a “Substantial Remodel”?

The TPA defines substantially remodel” as making a “substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos…that requires the tenant to vacate the residential real property for at least 30 days.” The TPA specifically excludes from this definition “Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated ….  California Civil Code § 1946.2(b)(2)(D)(ii).

What are the Notice Requirements?

If a contemplated remodel will displace the tenant, the owner must give a 60-day notice.  Under SB-567 specific language must be included in the termination notice stating the work to be performed and acknowledging the tenant’s right to reoccupy the property if the work isn’t started or fails to be completed.  In addition, owners must provide the tenant with copies of any required permits at the same time the termination notice is served.

Finally, the tenant must be informed that if he or she wishes to reoccupy the unit after the remodel is completed, they must tell the landlord and provide updated contact information.  If the remodel does not take place for any reason, the landlord must inform the previous tenant(s) with the intent of giving them the opportunity to reoccupy the rental home. 

If the tenant is given proper notice, accompanied with permits and a clear explanation of the “scope of work,” the tenant is required to vacate within 60 days.  If the tenant refuses, the landlord can pursue an unlawful detainer action to have the tenant forcibly removed from the premises.   

What are the Penalties for Noncompliance?

SB-567 added significant penalties to the TPA if owners fail to comply with the law. Landlords in violation, whether intentionally or unintentionally, face the possibility of being liable for actual damages, attorney’s fees, and potentially treble damages for willful violations. The window for tenants to pursue legal action for violations has been extended to up to three years, which creates a long period of liability for landlords.

Is a Relocation Assistance Payment Required?

Tenants are entitled to one month’s rent in relocation expense if they are evicted based on an intent to substantially remodel the unit.  Alternatively, the landlord can waive last month’s rent. 

Which Properties are Exempt?

Most single-family homes, condominiums, and new buildings are exempt from statewide rent and eviction controls.  Also, the protections afforded under this state law only apply when the tenant has been in occupancy for at least 12 months. 

Please contact our office with any questions regarding evictions based on a landlord’s plan to substantially remodel a rental unit.  We can be reached at 888-441-2355 or info@lynxlegal.com.  Our experienced staff is standing by to answer any inquiries or to start your case if you are ready to proceed.