Rent Control and Illegal Leases

Derek Bok, former President of Harvard University said, "If you think education is expensive, try ignorance." This rings true when it comes to rent control. A California Court of Appeal in Espinoza v. Calva,  ruled that in rent controlled cities until a building official has issued a certificate of occupancy to a landlord, the occupancy is unlawful and thus the lease is an illegal contract. This may mean that the landlord cannot collect past due rent from the tenant (although he can probably still get the tenant evicted).


Regardless, most rent control ordinances forbid a landlord from charging rent until the property is registered with the city. For example, the Los Angeles rent control ordinance section 151.11 states: "A tenant may withhold the payment of any rent otherwise lawfully due and owing . . . until the landlord has . . . ." first procured and served on the tenant or displayed in a conspicuous place a valid written registration statement from the housing department. Once a landlord has done this, "the tenant becomes obligated to pay the current rent and any back rent withheld.