Lease Terms in Berkeley After Measure BB: What Happens Now?

Before Measure BB passed, Berkeley rental housing providers had more leverage at the end of a lease term. You could offer a renewal lease term of the same length, and if the tenant declined to sign the renewal addendum, you could require them to vacate at the end of the term. But as of December 20, 2024, that power is gone.

Now, when a fixed-term lease ends, the tenant has the right to remain in the unit unless you have another good cause for termination under Berkeley’s Rent Stabilization and Eviction for Just Cause Ordinance. If no new lease term is signed and the tenant continues to pay rent, the tenancy automatically converts to month-to-month by operation of law.

Auto-Renewal Clauses in the Lease

The standard BPOA lease includes an optional auto-renewal clause that can be selected at the beginning of the tenancy. If selected, the lease will automatically renew for a new fixed term (typically one year) unless the tenant provides written notice of non-renewal.

Under Berkeley Municipal Code Section 13.79.020, if the lease includes an auto-renewal clause, landlords must give tenants a Notice of Intent to Non-Renew for Auto Lease form before the lease expires. To prevent the lease from automatically renewing, the tenant must return this form or provide any written notice at least 30 days before the fixed-term lease ends.

Important Distinction:

The Notice of Intent to Non-Renew (under B.M.C. Section 13.79.020) requires only 30 days’ advance notice from the tenant.

However, this does not override any more extended notice period (for example, 60 days) that the lease may require if the tenant is giving a Notice to Vacate at the end of a fixed-term lease.

Once the lease has transitioned to a month-to-month basis, state law governs, and the required tenant notice to terminate is limited to 30 days.

If the tenant does not submit a valid non-renewal notice before the 30-day deadline, the lease automatically renews for the term specified in the original lease agreement.

Note: BPOA members can download the required Non-Renewal form from the Rental Forms Library.

Negotiating and Executing a Lease Extension

If you prefer to continue with a fixed-term lease, you can offer a lease renewal and extension to your tenant, but you can't require an extension as a condition of continuing the tenancy. BPOA provides two versions of its renewal addendum depending on the unit type:

• For Fully Covered Units (units subject to Rent Control): Use the “Addendum to Renew or Extend Lease – Rent Controlled Unit”
  
  

• For Partially Covered or Exempt Units (not subject to Rent Control): Use the “Addendum to Extend or Renew Lease – Non-Rent Controlled Unit”

Again, refusing to sign an extension does not qualify as just cause to evict. This means you cannot enforce the lease expiration date and require the tenant to vacate. Instead, if the tenants remain in the unit, the lease transitions to month-to-month upon expiration of the fixed term. 

What Does a Lease Extension Do?

A lease extension changes the expiration date of the lease. All other terms, including rent amount, house rules, policies, and conditions, remain unchanged unless explicitly modified in the addendum.

In short: It’s a new end date, but otherwise the same lease.

If you wish to make any other changes, such as increasing rent or updating terms, those changes must be addressed separately, even if they accompany the extension.

Rent Increases and the Lease Extension

For non-rent-controlled units, rent increases must be issued as a separate lawful notice, typically 30 or 90 days in advance, depending on the percentage of the rent increase.

For fully covered units, the BPOA lease and Rent Controlled Addendum include a built-in disclosure noting that the tenant may receive a rent increase during the new term if an Annual General Adjustment (AGA) is properly noticed.

This protects the housing provider’s right to implement the AGA, effective January 1 each year, even during a fixed-term lease.

Important: The AGA increase is not automatic. It still requires:

• Written notice served with proper timing

• Compliance with the lawful rent ceiling

If you want to revise rules, responsibilities, or any other lease conditions, you must use a separate addendum, either a custom-written agreement or a BPOA template (such as a Pet Agreement or Smoking Policy). Tenants must agree to and sign any such changes for them to be valid. You cannot unilaterally impose new lease terms unless there has been a change in the law that mandates notice to all tenancies, including existing ones.

What If the Tenant Only Wants to Stay One More Month?

If your tenant declines a lease extension but wants to remain in the unit briefly after the lease expires, you have two main options:

1. Let the lease convert to month-to-month.
Under Civil Code § 1945, if the tenant remains in possession and you accept rent after the lease has ended, the tenancy automatically converts to month-to-month.

• No new paperwork is required.

• Once the lease converts, the tenant may terminate with just 30 days' notice, even if the expired lease required 60 days.

2. Sign a one-month lease extension.
If you prefer to maintain all terms of the original lease—including the longer notice period—use a lease extension addendum for a single additional month.

• This ensures that the tenant remains bound by all lease conditions during that month, including giving 60 days’ notice to vacate, if required by the lease.

• After that one-month extension ends, however, if no new lease is signed and rent is accepted, the tenancy again transitions to month-to-month, and only 30 days’ notice is required going forward.

💡Tip: If you go this route, be sure your one-month extension addendum explicitly states that all other terms of the lease remain in effect.

What Happens If No New Lease or Extension Is Signed?

If neither party signs a lease extension and there’s no auto-renewal clause in place, the tenancy automatically becomes month-to-month when:

• The lease term ends,

• The tenant remains in the unit, and

• The landlord accepts rent.

This transition occurs by law, with no new lease, signature, or confirmation form required.

From that point forward:

• The tenant can move out with just 30 days' written notice, even if the expired lease required more.

• You cannot require them to sign a new fixed-term lease to stay.

Bottom Line:
Once a fixed-term lease ends and you accept rent without a new agreement in place, the tenancy automatically becomes month-to-month. From that point forward, the tenant can move out with just 30 days’ written notice, even if the expired lease required more.

This is true regardless of what the lease says; once it transitions to month-to-month, state law governs notice requirements.

Two Options if the Tenant Wants to Stay Just One More Month

If your tenant declines a full lease extension but asks to remain for a short period after the lease ends, you have two choices:

1. Allow the Lease to Convert to Month-to-Month

Under California Civil Code § 1945, if:

• The lease has expired,

• The tenant stays in possession, and

• You accept rent,

...then the tenancy automatically becomes month-to-month with no new paperwork required.

Once this happens:

• The tenant may provide only 30 days’ notice to terminate, even if the lease previously required 60 days' notice.

• You cannot require them to sign a new lease to remain in possession.

2. Sign a One-Month Lease Extension

To preserve all the original lease terms—including a longer notice requirement—you may offer a one-month lease extension.

• This maintains the original terms for that additional month (e.g., requiring 60 days’ notice to vacate).

• If no further lease extension is signed and rent is accepted after that one month, the tenancy again converts to month-to-month, and at that point, the tenant is only required to give 30 days’ notice.

💡Tip: If you go this route, make sure the lease extension clearly states that all other lease terms remain unchanged.