Author: Hoffman & Forde

Everything You Need to Know About the 2021 Child Tax Credit

Posted on August 5, 2021 by Hoffman & Forde - News

It’s often said that the only two certainties in life are death and taxes; one could probably also add that not only are taxes a certainty, so is Congress’s tendency to make regular changes to tax laws. This year is no different, though. Major adjustments to tax policy are not surprising with a change in presidential administrations and the continued economic hardships caused by COVID-19. One particular change that should be of interest to many households is the Advance Child Tax Credit, which will be limited to the 2021 tax year.

What Is the Child Tax Credit?

The Child Tax Credit is known as a “refundable tax credit” paid to parents for each child under the age of 18. It is refundable because if your overall tax bill is lower than the total amount of the credit, you will receive the remaining balance in the form of a tax return payment. For example, if your total tax for the year was $4,000, and your total Child Tax Credit was $7,200, you would receive a tax return of $3,200.

This is different from deductions, which reduce your income figure (and thus your total tax), and non-refundable tax credits, which can reduce your tax bill to zero but don’t entitle you to a refund. The Child Tax Credit is a very good deal for parents.

What’s Different in 2021?

The tax credit will be different in two important ways. First, the default amount of the credit has been raised from $2,000 per child to $3,600 per child. Second, this year the IRS will be paying 50% of the credit in monthly payments from July to December 2021. The result is that parents will be receiving checks through the end of the year, but the tax credit they receive when filing their tax return in 2022 will be reduced by half.

Who Will Receive the Advance Child Tax Credit?

The Advance Child Tax Credit will go out automatically to anyone who meets the following conditions:

(a) Filed a tax return in 2019 or 2020 OR (b) didn’t file but gave your income information in 2020 to receive an Economic Impact Payment (stimulus check)
Had your main home in the United States for more than half the year, or file jointly with someone who did
Have a child who will be under 18 at the end of 2021 and who has a Social Security number
Have annual income under a certain amount (the amount of the credit goes down starting at $75,000 annual income for single filers, $112,500 for heads of households, and $150,000 for joint filers)

Parents who meet these conditions should receive a monthly check with no further action. If you neither filed a return in 2019 or 2020 nor gave the IRS your information to receive a stimulus check last year, you can still qualify for the Child Tax Credit. You must first either file a normal tax return or a simplified return available on the IRS website.

If you don’t want to receive the advance payments and prefer the larger tax credit when you file your return next year, you must notify the IRS.

Experienced Tax Attorneys in Southern California

State and federal tax policy is constantly changing, and it’s important to have help from a tax expert to make sure you are gaining the maximum benefit and minimizing your tax bill. Schedule a consultation today, and we’ll help you get the most from your Child Tax Credit and other programs.

Lawsuits: Pain and Suffering Damages in California

Posted on July 16, 2021 by Hoffman & Forde - Civil Litigation

Imagine if someone intentionally burned down your house. You would be entitled to recover damages from the person who did it, of course, but how do you calculate the value of your losses? In a lawsuit, can you get damages for your personal pain and suffering?

It’s easy to determine the economic damages—the value of the house, the appliances inside, etc.—but that doesn’t cover the full extent of the harm you’ve suffered. In California, you could also likely recover monetary compensation for non-economic damages, like pain and suffering.

What Are Non-Economic Damages?

Most damages in civil lawsuits are compensatory, meaning they are meant to compensate the plaintiff with money for the losses they’ve suffered (often phrased as “making the plaintiff whole again”) rather than punish the defendant for their bad behavior. Non-economic damages are no exception. They are “subjective, non-monetary losses” for which a jury or judge must determine a monetary value. Non-economic damages include:

Pain
Suffering
Inconvenience
Mental suffering
Emotional distress
Loss of society and companionship
Loss of consortium (being kept from the benefits of a family relationship)
Injury to reputation
Humiliation

Using the burned house example above, you could make an excellent argument for non-economic damages for pain and suffering in a lawsuit. Even if you were not physically injured, losing your home and everything inside (including family photos, cherished keepsakes, etc.) likely caused you severe emotional distress, as well as considerable inconvenience.

As with other damages, a plaintiff must present evidence to demonstrate non-economic losses. Relevant evidence will vary depending on the situation, but it is anything that establishes the existence of the injuries and helps the judge or jury attach a specific monetary value. The evidence could include testimony from medical and mental health experts, family and friends, and you.

Limits on Non-Economic Damages

In California, there are some situations where non-economic damages are limited to a certain amount or prohibited altogether. For example, in medical malpractice cases, they are capped at $250,000, an amount that has remained the same since it was passed into law in 1975. In addition, in traffic accident cases, a plaintiff cannot recover non-economic damages at all if they were uninsured or driving under the influence at the time.

Another important limit is that multiple defendants are not jointly liable for non-economic damages. It means each defendant is only responsible for paying their portion depending on how much they were at fault. For example, if there are two defendants, one who is a millionaire and another who is penniless, and the millionaire is only 1% at fault, they only have to pay 1% of the non-economic damages. There are important exceptions to this rule, such as an employee-employer relationship between the defendants.

Personal Injury Experts in Southern California

Non-economic damages can form a large part of a plaintiff’s claim, but they are very complicated to litigate. Our experienced team of personal injury attorneys can help you prove your case and maximize your recovery. Contact us today to schedule a consultation.

Estate Planning: Irrevocable Trust vs. Wills

Posted on July 5, 2021 by Hoffman & Forde - Estate Planning

There is no one-size-fits-all approach to estate planning. What works well for one person or family might be different for someone else, depending on factors such as the size of their estate, whether they have young children, etc. When deciding on an appropriate estate plan, one of the more common questions people have is about the difference between a will and an irrevocable trust.

Most people already know what a will is—i.e., a written document detailing how a person wants their assets distributed after they die—but they may not be as clear on how a trust works and even less clear about irrevocable trusts. Here is some brief information on what an irrevocable trust is and some of the main benefits and drawbacks of including one as part of your estate plan.

What Is an Irrevocable Trust?

A trust is an agreement to hold and administer property for the benefit of someone else. There are generally three parties involved: a grantor, the person who creates and funds the trust; the trustee, who is legally responsible for managing the trust and its assets; and the beneficiary, the person who receives the benefits of the trust. For example, if a grantor created a trust with an apartment building as its sole asset, a trustee would manage the building and send payments from the rental income (or whatever the terms of the trust dictate) to the beneficiary. A trust can be created by a will when the grantor passes away (known as a testamentary trust) or created while the grantor is still alive (a living trust).

When people talk about irrevocable trusts, they are referring to a type of living trust. It is irrevocable because once created, they take on a life of their own and cannot be changed or revoked without the consent of all the named beneficiaries. In addition, the grantor cannot take assets back from the trust. This is in contrast to a revocable trust, where the grantor retains some control. But it is the inflexibility of the irrevocable trust that gives it some advantages.

The Advantages of an Irrevocable Trust

Living trusts, in general, provide some great benefits for estate planning. Namely, the assets in a living trust avoid the probate process altogether after the grantor dies, and they are not subject to an estate tax. In addition, irrevocable trusts have a few additional benefits precisely because the grantor no longer has any control over the trust property.

First, the income from property in an irrevocable trust is no longer taxable income for the grantor. The grantor of a revocable trust, on the other hand, may be taxed on this income (though they are not taxed from income that goes to a beneficiary). Second, the assets of an irrevocable trust are safe from creditors. If the grantor declares bankruptcy or is required to pay damages from a lawsuit, the trust assets can’t be touched because the grantor no longer owns them.

What is the main disadvantage of an irrevocable trust? There is a clear tradeoff: control vs. the security of the assets. Once created, the grantor cannot change their mind. Anyone considering an irrevocable trust should carefully consider every consequence and obtain legal advice from an attorney.

Evaluate Your Estate-Planning Options

An irrevocable trust is a powerful tool to protect your assets and to provide for those you care about, but they require great care in their implementation. Legal advice from an experienced estate attorney is indispensable when creating the right plan for your specific needs. Contact us today to schedule an appointment.

Can You Get Your Professional License Back After It’s Revoked?

Posted on June 30, 2021 by Hoffman & Forde - Uncategorized

In California, as in other states, professionals in a wide variety of fields are required to hold a license in order to practice their trade. Such professions range from medical doctors to accountants to private investigators. Each has a licensing board or other authority that makes and enforces rules on competence, ethical standards, and more.

If a professional falls afoul of their licensing board for one reason or another, the board may file an accusation of misconduct against them. The professional will then be given a chance to defend themselves in an administrative hearing, often before an administrative law judge (ALJ). If they are found to have committed some sort of misconduct, punishment can include the suspension or even revocation of their license.

Is it possible to get your license back after it’s revoked? The answer is yes, and you have a couple of options.

Petitioning for Reinstatement

Your license can either be revoked with stay or revoked without stay. A revocation with stay is a type of probation. It means the board will hold off on actually revoking your license for a period of time, during which you must fulfill certain requirements (taking educational courses, for example). A revocation without stay, on other hand, is a final judgment, but that doesn’t mean you don’t have any options left.

Most boards allow professionals to petition for reinstatement after some time has passed. This period can vary, but is usually one to three years. At this hearing, you can show that you have resolved the issue which led to the revocation, call fellow professionals as witnesses to vouch for you, and generally convince the board that there will be no further problems. If successful, the board can restore your license and you will be able to practice again.

Appealing the Board’s Decision

You can always appeal a board’s decision if you believe it was mistaken or unfair. Depending on the particular board involved, there may be an internal appeals process, which must first be exhausted. If you have tried everything at the board level, you can appeal its decision to a regular state court.

The court can overrule the board if it lacked jurisdiction, denied you a fair hearing, or abused its discretion. California courts have recognized license revocation as depriving someone of the “fundamental right” to practice their profession, and will look to see if the punishment was too severe for the misconduct. If the board’s decision to revoke is overturned, it may still impose some other punishment, such as probation or suspension.

Learn More About Your Options

If you are facing disciplinary action by a licensing board or your license has already been revoked, your livelihood is at stake and it’s critically important to have assistance from an administrative law attorney. An experienced attorney can help ensure you receive a fair hearing, minimize disciplinary action, and even get your license back.

Our team of administrative law experts practice all across Southern California. Contact us today to schedule a consultation.

Freelancer Laws in California

Posted on June 23, 2021 by Hoffman & Forde - Business Consulting

Whether a worker is designated as an independent contractor or employee has significant consequences both for the employer and the worker. Most of these consequences are financial; employers are not required to pay unemployment insurance, payroll taxes, health benefits, vacation time, and more. In return, ideally, the contractor has more control over their schedule, how they perform the work, and what jobs they take on.

There is little doubt that many businesses have abused this system by miscategorizing employees as independent contractors in order to save money, but efforts at reform have been contentious, especially in California. Industry groups and even some worker groups have fought against legislative changes, arguing that freelancers will lose their independence and jobs will leave the state.

Here is the current state of freelancer laws in California.

The ABC Test

The test for whether a worker should be categorized as an independent contractor or an employee as established by the California Supreme Court in Dynamex Operations West, Inc., and has since been codified and extended by the legislature in Assembly Bill 5. Under this law’s “ABC test,” a worker is presumed to be an employee unless the employer can demonstrate each of the following:

The worker is free from the control and direction of the employer in connection with the performance of the work, both under the contract for the performance of the work and in fact.
The worker performs work that is outside the usual course of the hiring entity’s business.
The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

If all of these do not apply, then the worker should be considered an employee, not an independent contractor.

Exceptions to the ABC Test

Not surprisingly, the law also recognizes quite a few exceptions to the rule stated above. First, there are a number of professions that are exempted. These include physicians, dentists, veterinarians, lawyers, architects, accountants, commercial fishermen, and more.

Also, if the worker provides one of a number of specific “professional services,” the ABC test does not apply. However, this is only true if the worker’s situation meets a variety of requirements, such as a separate business address and the ability to control their own schedule, which serve to establish the worker’s actual independence from the employer.

The law’s exceptions are numerous, and many have their own list of unique requirements that must be individually evaluated.

Prop 22

In November 2020, California voters approved Proposition 22 by ballot initiative, which exempted app-based ridesharing companies from the requirements of AB 5. As a result, drivers for companies such as Uber and Lyft are not considered employees (as they would have been under AB 5), but independent contractors. In exchange, these drivers receive a few additional protections and benefits, though only while “engaged” in work for the companies.

If your business is unsure how to categorize its workers, or if you are a worker and believe you have been wrongly categorized as an independent contractor, contact Hoffman & Forde today for a consultation.

Estate Planning with Digital Assets

Posted on May 25, 2021 by Hoffman & Forde - Estate Planning

Digital assets have grown massively in popularity in recent years. One need only look at the explosion of cryptocurrency and non-fungible token (NFT) trading to understand how much money is being invested in this area. With this growth has also come a new, and sometimes tricky, set of considerations for those trying to plan their estates.

What Are Digital Assets?

A digital asset is a uniquely identifiable property or material that exists only in digital (i.e., nonphysical) form and includes a legal right to use it. The term can be applied to a wide variety of properties. Here are a few common examples of digital assets:

Audio or video files
Internet domain names
Photographs and images
Business data
Software
Cryptocurrency
NFTs

Questions of ownership or other legal interest can be challenging with digital assets, as they are so easily copied. For instance, downloading a logo from a website does not give you any right to use it for your own purposes, much less sell it to someone. Ownership often may be demonstrated by documentation such as a copyright, bill of sale, etc., but sometimes it is almost entirely a question of who has the password, token, or other means of accessing the asset. In terms of estate planning, it is important to establish what it is you actually own and whether it can be transferred to someone else.

Keeping Track of Passwords

One of the biggest problems with transferring digital assets after someone has passed away is surprisingly mundane: no one has the passwords to access them. The assets may be encrypted on a hard drive or server, or may require an online account login, but the decedent never wrote the passwords down anywhere. Sometimes this issue can be resolved by proving the transfer of ownership to, say, the data storage company or email provider, but that is not always possible. Cryptocurrency has become notorious for this problem. There are several examples of investors losing very large amounts of money after misplacing their password.

Therefore, a key aspect of your estate plan should be to keep track of all passwords and store them in a secure location that can be accessed in the event of your death.

Additional Considerations for Digital Assets

For the most part, digital assets are treated like any other property that makes up your estate, but there are a few specialized concerns to keep in mind. The first is that it’s important to document all of these assets. This may apply to any estate property, but it is especially easy for an executor or administrator to overlook digital assets or simply be unaware of their existence. Cryptocurrency trading, for example, is virtually anonymous, so unless you’ve told someone about your holdings no one will know about them.

In fact, cryptocurrencies present a few challenges for estate planning and administration. Despite the name, the IRS considers cryptocurrency to be property, not currency (analogous to company stocks). The value of cryptocurrencies also tends to be rather volatile, potentially creating unexpected tax consequences. It helps to keep regular records tracking the values of these assets.

Southern California Estate Planning Attorneys

Digital assets have created new and potentially lucrative investment opportunities for many people, but making sure these assets are passed on to your successors takes careful planning and organization. Our experienced estate planning attorneys can help make sure these assets end up in the right hands and minimize the tax burden on your estate. Contact our office today to schedule a consultation.

Accessory Dwelling Units in California

Posted on May 17, 2021 by Hoffman & Forde - Uncategorized

Accessory dwelling units (ADUs) go by a few names: an in-law house, granny flat, carriage house, backyard cottage, and more. They are increasingly popular with homeowners looking to provide a living space for family members or to generate monthly rental income.

With a housing crunch affecting much of California, the state government has a strong policy encouraging the construction of ADUs to provide more affordable housing options. Just this year, a new set of laws went into effect that incentivize building ADUs and remove many of the legal barriers that may have stopped homeowners in the past. Here is a quick rundown on accessory dwelling units in California.

What Is an ADU?

An accessory dwelling unit is an independent living space that is added on to an existing property with a single-family dwelling. An ADU can be a detached building, or an area of the original house that has been repurposed as independent living quarters. The latter type is known in California as a Junior Accessory Dwelling Unit (JADU).

State law allows for a maximum ADU size of 1200 square feet or, in the case of a JADU, no more than 50% of the square footage of the original house. For example, if the original house is 2000 square feet, a JADU may not exceed 1000 square feet. Local laws may relax this restriction, however.

Changes in State Law

For a variety of reasons, not all counties and municipalities have been friendly to the idea of allowing homeowners to add an ADU to their property. In order to discourage the practice, local governments could enact restrictive zoning laws, make it difficult to acquire a permit, and more. Similarly, homeowners’ associations could prohibit ADUs via their covenants, conditions, and restrictions (CC&Rs).

New state laws have made it much harder to prevent a homeowner from building an ADU. For example, local governments can only restrict the construction of ADUs based on availability of water and sewer service, and the impact on traffic and public safety. If an ADU permit application has not been acted on within 60 days, it is automatically approved. CC&R’s cannot unreasonably restrict or effectively prohibit the building of an ADU. Homeowners considering adding an ADU should find it much easier now.

Accessory Dwelling Units and Property Taxes

For most homeowners, one of the most important questions is how an ADU will affect their property taxes. The short answer is: it will raise your property tax, but not as much as you might be thinking. The value of the new addition will be added to your overall property value, but it will not trigger a reassessment.

For example, if the assessed value of your property is $200,000, but the actual market value is $500,000, building an ADU valued at $100,000 will bring the total assessed value to $300,000, not $600,000.

Additional Considerations

Besides navigating the new laws, building permits, government incentives, tax implications, and rental agreements, homeowners should also consider creating an LLC to protect their assets. If something goes wrong and a renter takes you to court, all of your assets are potentially at risk; an LLC can help reduce this exposure. It may also help you benefit from more tax deductions.

Think of building an accessory dwelling unit on your property? A consultation with Hoffman & Forde can help you do it faster and more cost-effectively, as well as minimize your legal exposure.

U.S. Immigration Policy Changes Under Biden Administration

Posted on April 30, 2021 by Hoffman & Forde - News

Immigration policy in the United States has been a contentious issue for just about the entirety of the country’s existence. In recent years, under the Obama administration, then the Trump administration, and now President Biden, the government’s position on immigration is about as volatile as it’s ever been. With over 35 million lawful immigrants living in the United States (including naturalized citizens) and some 10 million or more unauthorized immigrants, these policies can have profound consequences for a significant portion of the U.S. population.

The Biden administration has already made a few significant changes to immigration policy via its executive powers, and has outlined legislative initiatives that it supports. Here are some of the highlights.

Deferred Action for Minors

Since 2001, Congress has repeatedly tried and failed to pass some version of the Development, Relief, and Education for Alien Minors (DREAM) Act. This law would allow people who entered the United States illegally as children to attain lawful permanent resident status (a.k.a., a “green card”) and a path to citizenship. President Obama introduced a policy, Deferred Action for Childhood Arrivals (DACA), which achieved essentially the same result by an executive order to suspend deportations in such cases. President Trump attempted to reverse this policy, but was stopped by the Supreme Court.

President Biden has officially reinstated DACA and announced his support for a new DREAM Act to be passed by Congress.

Clearing Backlogs for Family-Based Immigration

U.S. law sets annual caps on immigration by country, and no single country can account for more than 7% of approved immigration visas. For countries with high numbers of immigrants coming to the United States (e.g., China, India, Mexico, and the Philippines), this has led to a massive backlog in processing applications. To give an idea, for unmarried children of U.S. citizens coming from Mexico, the government is currently processing the applications of anyone who submitted theirs in April 1998 or earlier.

Proposed legislation from the Biden administration aims to clear this backlog in a few ways, including raising the annual caps and exempting certain family-based visas from the quotas.

Increased Skilled-Worker Admissions

Under President Trump, denial rates for H-1B skilled worker visas approximately doubled. These visas are generally sought by employers looking for educated, highly specialized labor; they are very common in the tech industry, for example. The Biden administration is currently reviewing the policies that led to this increase. It is expected that acceptance rates for these types of visas will eventually go back up.

Temporary Protected Status

Immigrants from a list of 12 countries (e.g., Somalia, El Salvador, and Yemen) currently experiencing high levels of instability, violence, or other dangerous conditions can be granted a temporary reprieve from deportation, during which they may live and work in the United States. This is known as Temporary Protected Status (TPS). The Biden administration added Venezuela and Myanmar to the TPS list. Though there are relatively few immigrants from Myanmar, there are an estimated 300,000 Venezuelans in the United States who could potentially benefit from this change. TPS status for these two countries is set to expire in September 2022, but can be extended further.

Do you believe you, your family, or your business may be affected by recent changes in immigration policy? Schedule a consultation with Hoffman & Forde to evaluate your situation.

New California Laws in 2021

Posted on April 17, 2021 by Hoffman & Forde - News

California has a long history of trendsetting and experimentation when it comes to its laws. Some may complain about over-regulation, but the state is often ahead of the curve. For example, when California first legalized marijuana for medical use in 1996, it was considered a drastic move; now cannabis is legal in some form in 36 states and the District of Columbia.

Though there were actually fewer laws passed last year than normal, due largely to the pandemic, there are still several important California laws going into effect in 2021. Here are a few of them.

Minimum Wage Increase

Though the federal minimum wage is still stuck at $7.25 per hour, California is going ahead with its planned increase. Starting January 1, 2021, employers with 26 or more employees must pay at least $14 per hour, while employers with 25 or fewer employees must pay at least $13 per hour. At the start of 2022, the rate will increase to $15 and $14 per hour, respectively, and by 2023 even the smaller employers must pay their California employees at least $15 per hour.

Diversity for Boards of Directors

For publicly held corporations whose principal executive office is located in California, existing state law already requires them to have at least one female director on their board (and possibly more, depending on the size of the board). By the end of 2021, these corporations also must have at least one director from an underrepresented community, meaning an “individual who self-identifies as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identifies as gay, lesbian, bisexual, or transgender.” Larger boards will be required to include more such directors by the end of 2022.

Extension of Unpaid Parental Leave

California law already mandated 12 weeks of annual unpaid leave to bond with a new child or care for a family member, if an employee who worked at least 1250 hours in the last 12 months for an employer with at least 50 employees. Effective January 2021, this mandate applies to employers with 5 or more employees, greatly extending the right. Unpaid leave means employers must guarantee the same or a comparable position when the employee returns.

Property Tax Transfers

Californians are no strangers to high property taxes as property values have soared over the years. Normally, a home’s assessed value may only increase by 2% annually until there is a change in ownership, at which point the full property value is reassessed (likely at a much higher figure). There are exemptions for property transfers to close family members, which will not trigger a reassessment of the property’s value.

Proposition 19, narrowly passed in November 2020, limits that exemption for family members. Starting in February 2021, the exemption only applies when a family home is transferred to a child or grandchild and the child or grandchild continues to use it as a family home.

If you think these or other new California laws might affect you, contact Hoffman & Forde today for a consultation.

California Rental Agreement Laws

Posted on March 30, 2021 by Hoffman & Forde - Uncategorized

Rental Agreement Laws

California has some of the most complex landlord-tenant laws in the nation. There are extensive protections for tenants, as well as separate rent-control laws in a number of municipalities such as San Francisco, Los Angeles, Sacramento, and others. Residential rental agreements must clearly communicate the terms of the tenancy and abide by all applicable laws.

Faulty or poorly drafted rental agreements can create all kinds of headaches for landlords and possibly provide an eviction defense for tenants. To minimize problems in the future, we highly recommend that property owners consult with a real estate attorney when creating their rental agreements.

Basic Terms of a Rental Agreement

Every rental agreement for a residential property should include these key terms at the very least:

Names of All the Tenants – It’s also a good idea to include an occupancy limit and identify what happens if additional people come to live on the property without notifying the landlord.

Physical Address of the Property

Rental Period – Identify the time period the lease will last (commonly 6, 12, or 24 months). Also state whether it will become a month-to-month agreement after the initial period expires. Note that, under California law, the tenancy will automatically continue month-to-month if the landlord accepts rental payment.

Rent Amount

Rent Payment Details – Identify when the rent is due, where and to whom it should be paid, the method of payment, and late fees.

Security Deposit Information – In California, the security deposit may not exceed the value of two months’ rent (three months if the property is furnished).

Utilities Payment – Identify which party is responsible for the payment of utilities such as electricity and gas.

Maintenance and Repairs – Identify which party is responsible for maintaining and repairing the property.

Pet Policy – Clearly communicate the policy on pets, including what types of pets are allowed and the responsibilities of the tenant.

Tenant Protection Act

Passed in 2019, the Tenant Protection Act made significant statewide changes to California landlord-tenant law, including adding just-cause termination requirements and restrictions on rent increases. Here is a brief summary of the major changes.

Once a tenant has occupied a property for 12 months or more, the landlord may only terminate the tenancy for “just cause.” Just cause can include failure to pay rent, material breach of rental agreement terms, criminal activity, and more. There also “no-fault” causes to terminate, such as when the owner or the owner’s immediate family wishes to occupy the property.

Under the rent-increase provisions, in any 12-month period a landlord may not increase the rent by more than the rate of inflation (defined by the Consumer Price Index) plus 5%, or a total of 10%, whichever is lower. A number of dwelling types are excluded, such as single-family homes and buildings that are less than 15 years old.

Landlords must disclose these changes in the law to existing and new tenants by written notice or in an addendum to the rental agreement.

Consult a Landlord-Tenant Attorney

In this complex and always-changing legal landscape, it is crucial to have expert advice. Our team of Southern California real estate attorneys can help you draft a rental agreement that makes sure your interests and property are protected. Schedule an appointment today.