In addition to City of Sacramento's rent control ordinance, for more fun, now we have statewide rent control in California as AB1482 is signed into law...

I have been holding off pushing the "publish" button on this post until California's Governor Gavin Newsom actually signed AB1482 into law, and since he finally did so yesterday, here you go.

California now has a statewide rent control and just cause for eviction. And nearly simultaneously as I wrote about a few weeks ago, the City of Sacramento passed a local rent control ordinance that is essentially rolling out at the same time.

I am not looking forward to the confusion these two parallel rent control programs will cause in and around Sacramento. The provisions in both are similar, yet different. And while I am not an attorney, I imagine that within the city limits of Sacramento where the terms overlap, the higher level of tenant protection will prevail.

AB1482 statewide rent cap limits annual rent increases to 5% + regional CPI (inflation adjustment), applies to newer construction on a rolling 15-year basis, and after tenancy for one year provides for relocation assistance in the amount of one month's rent to terminate a tenancy (this is known as just cause for eviction).

So for example, within the city limits of Sacramento, while single family homes are exempt from the local rent control ordinance, because the statewide rent control applies single family homes owned by larger investors (LLC's owned by corporations, or individuals who own more than 10 properties), some single family homes in the city may be rent controlled by the new state law. Additionally, the state rent cap allowable increase percentage is actually LOWER than the city's...so I imagine the lower of the two will be what goes.

So basically, it's complicated. If you care to read it, here is the bill language for AB1482, as well as the ordinance for the City of Sacramento.

In addition, landlords will be required to provide their tenants a disclosure about their rights under the new ordinance by January 1, 2020. The California Association of REALTORS is coming out with a standard form for this, and I imagine the California Apartment Association will too, among other rental housing organizations...if you have a professional property manager you should inquire to make sure they are ready to be in compliance with this requirement. And if you self-manage your properties, you should perhaps get some legal advice.

If you are thinking about selling an investment property or any tenant occupied property, please connect with me so we can strategize the best way to move forward in compliance with these rent control ordinances.

Regardless of your stance on rent control policies, these are here to stay for a while. The state law sunsets December 31st, 2030, which is more than a decade away...

Relocating to Sacramento? Some of my clients virtually view homes via FaceTime or narrated video before making an offer...

I work with a lot of buyers looking to move to Sacramento from another city or state. Not every home buyer who relocates to Sacramento can easily visit town to view new listings as they come on the market. Since the good homes go quickly, often I will preview properties for out-of-town buyers to see if the property is a fit. Then I can assess if they should rush into town to view it in person.

But not every buyer can do that. Sometimes a seller may be reviewing offers before a buyer can visit. Or in some cases buyers don't live within a couple hours drive of Sacramento.

Recently I helped a client who was relocating from the state of Pennsylvania to Roseville for a new job. They identified a really specific neighborhood where they needed to live -- within the boundaries of a particular school for their children -- and given their price range, very few listings matched their criteria. When one popped onto the market, I'd scope it out for them and if it seemed to be a potential fit, I'd send them a video that I would narrate as I walked through.

While this is not an ideal way to house-hunt, sometimes it is the most practical way to find a home from afar. I think it takes a lot of communication and trust for this sort of arrangement to work. In this case, my buyers closed escrow toady on October 4th and will not see the home until the day they drive up with their u-haul in tow next week. And I am confident they will love their home.

New Listing - 3136 Belden Street, Sacramento, CA 95815

The most adorable 1 bedroom, 1 bathroom, 904sf private cottage in Del Paso Heights awaits a new owner! You will absolutely love this well-maintained gem. Serene, secluded setting on a corner lot with side alley access. Enjoy coffee or a beer on the huge covered front porch! Inside find huge living room and fireplace, remodeled kitchen with granite counters, cute breakfast nook with built-in seating, updated bathroom, indoor laundry room. Huge lot with manicured landscape, sprinklers and drip lines, and lots of sunny space to garden or play! Apple, apricot, and orange trees along with grape vines, with plenty more space makes the perfect spot for your small urban farm! Freshly painted exterior. Detached oversized garage offers lots of storage. RV access, complete with water, sewer, and power hookups. Pest clearance completed August 2019. Located in close proximity to transit, parks, shopping and convenient freeway access. Don't wait! Offered at $225,000. For more photos and information please visit 3136 Belden Street, Sacramento, CA 95815.

City of Sacramento passed a rent control ordinance -- here are the basics...

The City of Sacramento passed a new rent control ordinance last month that will be rolling out very soon. I think there may be confusion among local landlords and tenants alike as this is implemented. This ONLY applies within the city limits of Sacramento, which is a very specific area...there are areas within the unincorporated county of Sacramento where the ordinance will not apply, and there are many residents of those areas who do not realize the difference between city and county jurisdiction. Here is a map of the affected areas:

I think confusion will be highest in areas with Sacramento addresses that are outside of the city limits. For example parts of town such as the Arden / Arcade areas, some parts of Natomas, areas near the Oak Park neighborhood, Rosemont, South Sacramento, Foothill Farms, etc all have Sacramento addresses but are actually located in the unincorporated county though are adjacent to the city limits. Those areas are not affected by this rent control ordinance.

If you have trouble sleeping, you can read the full text of the adopted ordinance here. Here are the highlights of the new ordinance that will be in effect in the coming week:

• Allowable annual rent increase is set at 6% + CPI (inflation adjustment), hard cap not to exceed 10%
• Base rent is set at what the landlord charged as of July 1, 2019
• Only 1 rent increase allowed every 12 months
• Single family homes are exempt
• All units built after February 1, 1995 are exempt
• Just cause for eviction. After 1 year of occupancy, owners may only terminate tenancy for cause (like failure to pay rent or illegal activity), OR may only terminate tenancy with 120-day notice for the following reasons:
• To make substantial repairs (must offer tenant first right to return) 
• Landlord or immediate family moves into the unit 
• Landlord withdraws all of the units in the building from the rental market for at least one year.

The ordinance will sunset on December 31, 2024 unless extended.

For added fun, there is a statewide rent cap bill, AB1482, making its way through the legislature right now. It will be interesting to see if there is the political will to make rent control a statewide policy. We shall know on that one in the next month.

If you are thinking about selling a rental or investment property in the city limits of Sacramento that falls within the jurisdiction of these rent control ordinances, please reach out to me right away so we can strategize how to sell the property in compliance with the ordinance.

New Listing - 6931-6933 Trovita Way, Citrus Heights, CA 95610

Great duplex multi-family income property opportunity awaits you in Citrus Heights! Convenient, high-demand location. The left side unit is 3 bedrooms/2 bathrooms with a 2-car garage, and the right side unit is 2 bedrooms/2 bathrooms with a 1-car garage. These units are a blank canvas for your updating after decades-long tenants. Spacious units flow nicely with lots of living space, open floorplans, big bedrooms, en-suite master bedrooms, ample storage, private/fenced backyards with lots of sunny space to garden or play. Both units have central heat & air and composition roof. Located near shopping, public transportation, parks, and schools. Don't wait! MLS# 19058660. Offered at $405,000. For more photos and information please visit 6931-6933 Trovita Way, Citrus Heights, CA 95610.

Backyard chicken rules within the City of Sacramento

I was asked this week if chickens are allowed at residential properties within the City of Sacramento. I have had several clients who live within the city limits who have had chickens. Chickens can be great for laying fresh eggs or as family pets. Thanks to an ordinance that was passed in 2011, the short answer is -- YES -- chickens are allowed, but of course that comes with plenty of rules to follow. For example:

• Maximum of 3 chickens per parcel
• No roosters allowed
• No slaughtering permitted
• Chickens must be in a coop at all times
• Chickens must have adequate food, water, and ventilation

There are also several requirements relative to the size and location of the chicken coop. And of course the city also requires a permit and fees.

To read the full list of rules per the City of Sacramento website, click here. And you should inquire directly with the city with any questions.

New Listing - 2175 35th Street, Sacramento, CA 95817

Stunning 3 bedroom, 2 bathroom, 1,903sf Med Center area Tudor style home! You will love the classic features and modern amenities in this painstakingly maintained property. Enter through the arched doorway into the formal living room, elegant fireplace with gas insert, inlaid wood floors, built-ins & tray ceilings. Large formal dining room. Updated kitchen features white cabinets, granite counters, tile backsplash, lots of storage, & breakfast counter. Family room off kitchen leads to serene and quiet backyard space with a great deck for entertaining and lots of sunny space to garden or play! Downstairs bedroom and full bathroom. Upstairs find 2 large bedrooms & huge remodeled master bathroom with dual sinks & huge closet! Central heating & air with separate remote-controlled units exclusively for upstairs. Freshly painted interior. Dual pane windows. Quarter basement. Detached garage with secure alley access. Located close to public transportation, UC Davis Med Center, shopping, restaurants, easy access to midtown and downtown, & more! Don't wait! MLS# 19046138. Offered at $599,900. For more photos and information please visit 2175 35th Street, Sacramento, CA 95817.

New Listing - 80 Riverknoll Place, Carmichael CA 95608

Welcome to the private gated Riverwood community in Carmichael. You will love how this 2 bedroom, 2.5 bathroom, approx 2,150sf home is nestled among an amazing tree canopy and lush manicured landscape. Come inside through the formal entry, and you will discover a spacious floorplan featuring a large living room with vaulted ceilings and a cozy fireplace. The living room and adjacent formal dining room look through a sunlit bank of windows to an expansive deck that truly integrate interior living space with the serene exterior. The updated kitchen offers something for everyone with gorgeous views of the outside, eat-in nook, lots of counter prep room and lots of cabinet space. The lower level features dual master suites, each with an ensuite bathroom and an abundance of closet space. All this with ample community amenities such as a pool and spa, and access to the American River and parkway. Close to parks, shopping, and more but in a secluded enclave far from the bustle of everyday life. Don't wait! Offered at $499,900. MLS# 19056380. For more photos and information, please visit 80 Riverknoll Place, Carmichael, CA 95608.