Understanding Ellis Act Evictions in California

The Ellis Act is a 1986 California state law allowing landlords to exit the rental business by removing their property from the rental market. While this law provides a legal pathway for landlords to reclaim control of their property, it is governed by strict regulations. If you’re a landlord considering an Ellis Act eviction, it’s crucial to understand the process, requirements, and potential challenges to ensure compliance with the statute.

What Is the Ellis Act?

The Ellis Act was designed to protect landlords who no longer wish to operate rental properties. It allows property owners to withdraw residential rental units from the market entirely, but it cannot be used to selectively evict tenants or to circumvent rent control laws for profit. This means landlords must remove all units in a building from the rental market, not just a few.

The law is particularly relevant in cities with strict rent control ordinances, such as San Francisco, Los Angeles, and Santa Monica, where landlords may face challenges balancing operational costs with capped rental income.

Key Requirements for Ellis Act Evictions

Ellis Act evictions are highly regulated, and landlords must follow specific steps to comply with state and local laws. Here are the primary requirements:

1. Notice to Tenants
   Landlords must provide written notice to all tenants, informing them of the intent to withdraw the property from the rental market. The notice period is typically 120 days, but for tenants who are seniors (62 or older) or disabled, the notice period extends to one year.
2. Filing with Local Authorities
   Landlords must file a formal notice with the local rent board or housing authority, depending on the city. This filing includes details about the property, tenants, and the landlord’s intent to remove the units from the rental market.
3. Relocation Assistance
   Many cities require landlords to pay relocation assistance to displaced tenants. The amount varies by jurisdiction and may depend on factors such as the tenant’s income, age, or disability status. For example, in Los Angeles, relocation payments can range from a few thousand dollars to over $20,000 per unit.
4. Restrictions on Future Use
   Properties withdrawn under the Ellis Act face restrictions on future use. For example, if the property is re-rented within five years, it must comply with the original rent control regulations. Additionally, some cities impose penalties or require landlords to offer the units back to displaced tenants if they return to the rental market.

Best Practices for Landlords

To navigate the Ellis Act process successfully, landlords should consider the following best practices:

1. Consult an Eviction Specialist
   Ellis Act evictions involve intricate legal requirements. Working with an experienced eviction specialist can help ensure compliance and reduce the risk of costly mistakes.
2. Communicate Transparently
   Open and respectful communication with tenants can help mitigate conflict. Provide clear explanations of your intentions and comply with all notice and relocation requirements.
3. Understand Local Laws
   Each city in California may have additional regulations governing Ellis Act evictions. You should familiarize yourself with local ordinances to avoid unexpected challenges.

Conclusion

The Ellis Act provides landlords with a legal pathway to exit the rental business.  However, the process is highly regulated, and failure to comply with state and local laws can result in significant penalties. By understanding the requirements, anticipating challenges, and seeking professional guidance, landlords can navigate Ellis Act evictions responsibly and ethically.

Please contact Lynx Legal with any questions regarding the above, or if you are ready to start a case. We can be reached at 888-441-2355 or info@lynxlegal.com. Our experienced staff is standing by to answer any inquiries and/or complete the intake for your eviction case.