Completing the Notice of Tenant Rights for Partially Covered Units

Some Berkeley rental units are partially covered by the Rent Stabilization Ordinance (RSO). These units are exempt from rent ceilings but remain subject to other provisions of the law. To stay in compliance, property owners must provide tenants with the official Notice of Tenant Rights for Partially Covered Units at the start of every tenancy.

This form, along with Addendum No. 1: Specific Terms, is one of the lease addenda we receive the most questions about from members. This article explains when the Notice is required, how to complete it, and includes a sample version for a single-family home owned by natural persons.

When the Notice Is Required

Use this form for partially covered units, including:

• New construction (built after 1980).

• Single-family homes or condominiums owned by an individual person.

• Government-owned or subsidized units where state or federal rules preempt local rent ceilings

Do not use this form for fully exempt units, such as Golden Duplexes, or for fully covered units, such as units in multifamily properties.

Step-by-Step Instructions

Step 1: Exemption From Rent Control

Check the box that matches your unit’s exemption:

• Newly constructed rental unit – if the building was completed after 1980.

• Single-family home or condominium owned by an individual person – check this if you are renting out an SFR or condo that you, as a person, own. This exemption does not apply if a corporation, REIT, or LLC own the property.

• Government subsidy or ownership – if the unit is subsidized or government-owned housing.

Step 2: State Rent Cap (AB 1482)

• If the state rent cap applies, mark “do.”

• If it does not apply, mark “do not” and check the correct exemption:

  1. Deed-restricted affordable housing.

  2. Certificate of occupancy issued within the last 15 years.

  3. Single-family home or condo, where tenants have also received the required AB 1482 disclosure.

  4. Owner-occupied duplex (Golden Duplex).

Step 3: Rights That Still Apply

1. Registration
   You must register each new tenancy with the Rent Board and pay the annual registration fee.

2. Security Deposit Interest
   You must pay or credit annual interest on the tenant’s deposit, calculated from November 1 through October 31.

   • Best practice: issue the payment or credit by December 31 to avoid being late.

   • Legal deadline: by January 31 of the following year.

   • If late: If you miss the January 31 deadline, a penalty will apply. The tenant becomes legally entitled to 10% simple annual interest on their deposit (rather than the lower Rent Board interest rate) and may adjust their rent accordingly to reflect that payment.

   • At move-out: If the tenant vacates before October 31, you must provide a prorated interest payment covering the period of tenancy during that interest year.

3. Just Cause for Eviction
   You cannot evict unless you have one of the legal “just cause” reasons. You must also file a copy of the eviction notice with the Rent Board.

4. Tenant Associations
   If your building has more than 10 units, or if you use a property manager, tenants have the right to form an association to meet with you

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Step 4: Provide the Notice Properly

1. Give the completed notice to the tenant when they sign their lease.

2. Keep a copy in your records.

3. Make sure the information you check here matches what you report when you register the unit with the Rent Board.

Sample: Notice of Tenant Rights for a Single-Family Home (owned by an individual person)

Section 1: Why the Unit Is Exempt from Rent Control
☐ Newly constructed rental unit
☑ Single-family home or condo owned by an individual person
☐ Government subsidy or government ownership

Section 2: State Rent Cap (Civil Code § 1947.12)
☑ do NOT apply

Exemption claimed:
☐ Deed-restricted affordable housing
☐ Certificate of occupancy within 15 years
☑ Single-family home or condo, tenant also received AB 1482 notice
☐ Owner-occupied duplex

Section 3: Rights That Still Apply

1. Registration with the Rent Board.

2. Annual security deposit interest payment or credit.

3. Just cause for eviction applies.

4. Right to form a tenant association in larger or professionally managed properties.

Key Takeaway

The Notice of Tenant Rights for Partially Covered Units is not optional. Serving this form at the beginning of the tenancy ensures tenants understand their rights and owners stay in compliance with Berkeley law.

This article is provided for general educational purposes to assist Berkeley housing providers in understanding their obligations. It is not legal advice. For specific guidance on your property or situation, consult qualified legal counsel or contact the Berkeley Rent Stabilization Board.