Why is getting the rent control status of your unit correct so important?
Navigating the world of rental property management comes with a maze of legal responsibilities—and one of the most critical factors to understand is whether your property is subject to rent control. For landlords, this isn’t just a legal technicality. Rent control can significantly impact how much you can charge for rent, when and how you can increase it, and even your ability to evict tenants. Failing to understand your property’s rent control status can lead to costly legal missteps, compliance issues, and potential tenant disputes.
Why Rent Control Status Matters in Automated Legal Workflows
Joiner’s real estate management platform streamlines critical landlord functions—automating everything from rent increase notices and notices of entry to cure-or-quit and pay-or-quit notices. Each of these documents is generated with built-in legal disclosures tailored to your property’s specific requirements. One key factor that shapes these legal templates? Rent control status. Whether or not a unit is subject to rent control directly impacts what language and requirements must be included in the notices you serve. That’s why accurately identifying rent control status isn’t just important—it’s essential for compliance and avoiding legal risk.
Disclaimer & Legal Guidance
This post is designed to help you assess whether your rental unit falls under rent control by summarizing key aspects of applicable laws. However, it is not a substitute for legal advice. Because rent control regulations vary widely by city and sometimes county —and because a unit not covered by a local ordinance may still fall under California’s statewide rent control and just cause eviction laws (see this post) —it’s important to consult the relevant local statutes or seek advice from a qualified attorney to make a definitive determination.
Joiner partners with BrightWork Law PC, a firm known for delivering efficient, cost-effective legal counsel tailored to the needs of property owners and managers across California. If you are not sure about the status of your unit we recommend that you contact BrightWork or any other law firm.
Petaluma Rent Control and Just Cause Ordinance Applicability
Petaluma, California has implemented a just cause ordinance that includes a required payment of relocation assistance in an amount equal to the lesser of $9,000 or 250% of the monthly rent which can be found here. Although Petaluma does not have a rent stabilization ordinance it should be noted that a unit may still be covered by California law (see California Rent Control and Just Cause Covered Units).
In Petaluma the just cause measure covers (i) any space that has a separate bathroom, kitchen, and living area in a multifamily or multipurpose dwelling; (ii) a room in a single room occupancy residential structure; and (iii) to tenants “in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the Zoning Ordinance, that is hired, rented, or leased to a household within the meaning of California Civil Code Section 1940. This includes any dwelling unit that is actually used for residential purposes, including live-work spaces, whether or not the residential use is legally permitted.”
It should be noted that California Civil Code Section 1940 discusses the leasing of “dwelling units” to people and is fairly broad – as a result a person may lease a commercial space, move into it, and may be protected by Petaluma’s ordinance. Commercial leases in Petaluma should include a restriction on use specifically excluding use as a residential dwelling unit.
The Petaluma ordinance exempts the following properties:
- Transient and tourist occupancies in short term spaces such as hotels and motels where the stay is less than 30 days.
- Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, or an adult residential facility.
- Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
- Residential rental units of property owners that are not (i) a real estate investment trust, as defined in Section 856 of the Internal Revenue Code, or (ii) a corporation, or (iii) a limited liability company in which at least one member is a corporation and that own 3 or fewer such units in the city, and that have provided written notice to the tenants in the rental agreement that the residential property is exempt from this chapter.
- Onsite units used by employees of the landlord, for example, a manager or maintenance workers unit.
- Units shared with the owner – that is the tenant is a roommate of the owner.
- Tenancies of less than 12 months.