With the real estate market at an all-time high, it is becoming extremely difficult for first time home buyers to purchase a home. Even just being able to save enough money for a down payment could be near impossible for the majority of people. For example, it is estimated that the Median Sales Price in 2021 for Single Family Homes in the Greater Sacramento area was as follows (by County):
El Dorado County: $640,000.00
Placer County: $640,000.00
Sacramento County: $500,000.00
Solano County: $565,000.00
Stanislaus County: $429,900.00
Sutter County: $400,000.00
Yolo County: $572,400.00
Yuba County: $400,000.00
It has been reported that up to 48% of home buyers make a down payment totaling 20% of the home value. If you are buying a home in Sacramento County that is valued at the Median for 2021, that home would cost you $500,000.00. Using the 20% formula, you would need to come up with $100,000.00 as the initial down payment! That does not factor in moving costs, repair costs, home insurance, property taxes, etc.
Thus, while it is a great time to own a house as far as increasing your equity is concerned, being able to afford to buy in this market is becoming a real challenge and for those people, renting is the next option. However, most tenants either don’t know the protections that they actually have. The City of Sacramento initiated the Sacramento Tenant Protection Act to better assist renters and the rights they are given. Below you can find some key information regarding this Act.
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Where can I find the Sacramento Tenant Protection Act?
The Sacramento Tenant Protect Act can be found in Chapter 5.156 of the Sacramento City Code. In that Chapter, the Act is broken up into several sub-sections: Title and Purpose; Definitions; Exemptions; Prohibitions on rent gouging; Annual rent adjustment; notice of rent increase; Hearing on fair rate of return adjustment; Tenant protection program administrative procedures; Tenant protection program fee; Tenant eviction protections; Non-waiver; Failure to comply; Remedies; Annual report; Effective date; Sunset Date.
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What is the purpose of this Act?
5.156.010
The Sacramento Tenant Protection Act is meant to balance two competing points of view. On one hand, it is intended to deliver renters protection from certain rent increases and unjustified evictions. On the other hand, the Act must also give landlords a reasonable and fair rate of return on their investment property.
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What types of properties are covered by this Act?
5.156.030
The following are some examples of types of properties NOT covered by this Act: a rental unit in a hotel or motel; a sorority or fraternity house affiliated with a college or university; a unit in a institutional facility, like a hospital; a transitional housing unit for the homeless; a unit subsidized, operated, or owned by a governmental entity; a unit where the person renting the unit shares a kitchen or bathroom with the actual owner of the unit; a unit built after 02/01/1995; a single dwelling unit in a condominium; a unit where the landlord---or the landlord’s immediate family---use as their primary residence.
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What is a single dwelling unit?
5.156.020
One unit used for dwelling that is located on one lot.
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How often can my landlord adjust my rent?
5.156.040
A landlord is limited to increasing rent to a single time in a 12-month period.
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How much can my landlord increase my rent?
5.156.050
As of the writing of this blog, the max amount a landlord can increase your rent in the City of Sacramento is 9%. Thus, if your current rent is $1,500.00 per month, $135.00 is the max increase the landlord can implement. The tenant does not have the ability to waive this limitation.
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Can the landlord ever bypass the above limitation?
5.156.060
In rare circumstances, the landlord could potentially bypass the above limitations, but under very strict situations. The landlord would have to file a petition to seek a review by a hearing officer. There are certain things the landlord would have to prove to the hearing officer.
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Can the landlord evict me at any time they wish?
If the rental unit is one that is covered by this Act (i.e. Apartment) and the renter has resided in said unit under a lease agreement for more than 12 months (i.e. 12 months + 1 day), the landlord cannot legally evict the renter unless one of the following situations apply (below is just a summary, please refer to the full Act to read the nuances of each situation):
5.156.090
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Failure to pay rent
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Breach in the rental agreement
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Illegal (i.e. criminal) or nuisance type activity
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Failure to provide access to the landlord
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Landlord needs to complete substantial and necessary repairs which would cause a temporary vacancy.
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Owner or owner’s immediate family will be moving in for at least 12 months.
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Removing the rental unit from the rental market.
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Is this Act still valid today?
5.156.140 & 5.156.150
The Act went into effect 30 days after enactment and will remain in effect until 12/31/2024. At that time, the Act will be repealed.
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If I feel, as renter, that my landlord has violated or attempting to violate these rules, who should I contact?
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