The Ellis Act is a California state law that allows landlords to exit the rental market and evict tenants if the landlord intends to either demolish the rental property or withdraw it from the rental market entirely. This law was enacted in 1985 as a response to the increasing number of landlords who wanted to leave the rental business due to various reasons such as retirement, financial difficulties, or changing investment strategies.

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      Here's a breakdown of the key points related to the Ellis Act:

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• Purpose: The primary purpose of the Ellis Act is to provide landlords with a legal mechanism to "go out of business" as rental property providers.

• Eviction Process: Landlords who wish to use the Ellis Act to evict their tenants must follow specific procedures outlined in the law. This typically involves providing tenants with a notice of eviction, allowing them a certain amount of time to vacate the premises.

• Tenant Rights: Tenants who are evicted under the Ellis Act are entitled to certain rights, including relocation assistance payments from the landlord and the right to a specified notice period before eviction.

• Limits on Re-Renting: After withdrawing the property from the rental market under the Ellis Act, landlords are generally prohibited from re-renting the units for a specified period, typically five years in California.

• Exemptions: Certain types of rental properties may be exempt from the Ellis Act, such as newly constructed units or properties subject to affordable housing agreements.

• Legal Protections: Tenants facing eviction under the Ellis Act have legal rights and protections, including the right to challenge the eviction in court if they believe the landlord is not complying with the law or is acting in bad faith.

• Overall, the Ellis Act is a significant piece of legislation that balances the rights of landlords to exit the rental market with the protections afforded to tenants facing eviction. It's essential for tenants to understand their rights under this law to ensure a fair and legal process is followed in cases of eviction. This type of eviction is considered a no-fault eviction. See our page on Evictions for more clarification around the two main types of eviction, at-fault and no-fault.

Click here for a PDF of Ellis Act provisions

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