A salesperson in California is helping a landlord client understand the Costa-Hawkins Rental Housing Act. Under Costa-Hawkins (Civil Code §1954.53), what right does a California landlord have when a tenant voluntarily vacates a rent-controlled apartment?
Correct Answer
A) The landlord may set the initial rent for the next tenant at market rate, regardless of the previous tenant's rent
Under the Costa-Hawkins Rental Housing Act (Civil Code §1954.53), California landlords have the right to establish the initial rental rate for a new tenancy when the previous tenant has voluntarily vacated. This is known as vacancy decontrol. The landlord may set the rent at market rate for the incoming tenant, even in cities with local rent control ordinances.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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