How the Ellis Act Works for California Landlords

California landlords who genuinely want to stop renting residential property may have a path forward under the Ellis Act. Unlike an eviction based on unpaid rent, lease violations, or nuisance activity, an Ellis Act eviction is tied to the owner’s decision to withdraw qualifying rental accommodations from the residential rental market. The process can be valuable in heavily regulated cities, but it requires careful planning because state law, local ordinances, relocation obligations, tenant protections, and future-use restrictions may all apply.

Key Takeaways

The California Ellis Act allows qualifying residential property owners to leave the rental business.
An Ellis Act eviction is not intended to remove one selected tenant while keeping other units available for rent.
The withdrawal generally must include all rental accommodations defined by the statute.
The standard withdrawal period is generally 120 days after the notice of intent is delivered to the applicable public entity.
Certain tenants who are at least 62 years old or disabled may qualify for a one-year extension if they meet the occupancy and claim requirements.
Local governments may require forms, filings, relocation assistance, recorded notices, and additional procedural protections.
Returning withdrawn units to the rental market can trigger rent restrictions, former-tenant offer requirements, damages, and local enforcement.
Ellis Act planning should take place before notices are prepared or served.

How the Ellis Act Works for California Landlords

Table of Contents

What Is the California Ellis Act?
When California Landlords May Consider the Ellis Act
Does the Landlord Have to Withdraw Every Rental Unit?
The California Ellis Act Process for Landlords
California Ellis Act Notice Requirements
Ellis Act Relocation Assistance
Local Ellis Act Requirements
What Happens If the Property Is Rented Again?
Selling, Demolishing, or Redeveloping a Withdrawn Property
Risks of an Incorrect Ellis Act Withdrawal
Ellis Act Planning Checklist
Common Ellis Act Mistakes
Frequently Asked Questions
Preparing for an Ellis Act Withdrawal

What Is the California Ellis Act?

The Ellis Act is a California law enacted in 1985 and codified at Government Code Sections 7060 through 7060.7. Its central principle is that a public entity generally cannot compel the owner of residential real property to continue offering rental accommodations for rent or lease.

In practical terms, the law gives certain California landlords a process for leaving the residential rental business. This can be particularly important in jurisdictions with rent control or just-cause eviction ordinances, where an owner may otherwise have limited grounds for terminating a tenancy involving a compliant tenant.

The Ellis Act does not automatically change how the property may be used. Zoning laws, demolition restrictions, affordable housing agreements, subdivision rules, planning requirements, and other land-use controls may continue to apply after the rental units are withdrawn.

What does “going out of the rental business” mean?

Going out of the rental business means the owner is withdrawing the applicable residential accommodations from rent or lease. The owner should have an actual plan to discontinue rental operations, rather than simply creating a temporary vacancy or replacing current occupants with new tenants.

Under Government Code Section 7060.7, the Ellis Act is not intended to allow an owner to withdraw fewer than all the accommodations covered by the statute. This makes an Ellis Act withdrawal fundamentally different from a conventional eviction involving one tenant or one lease.

The withdrawal may need to include occupied units, vacant units, and other rental accommodations located within the covered structure or parcel. The precise scope depends on the configuration of the property.

Is an Ellis Act withdrawal permanent?

The word “permanent” is commonly used when describing an Ellis Act withdrawal, but it can be misleading. The owner must genuinely withdraw the applicable accommodations from rental use. However, California law anticipates that an owner or successor may eventually offer them for rent again.

Returning the accommodations to the rental market can carry significant consequences. Depending on when the units are offered again and which local rules apply, the owner may face:

Restrictions on the rent that may be charged
An obligation to offer the unit to a displaced tenant
Actual or exemplary damages
Local enforcement proceedings
Notice requirements before re-renting
Restrictions that affect a future purchaser

For that reason, an Ellis Act withdrawal should be treated as a serious exit from rental operations, even though it is not necessarily an irreversible land-use decision.

When California Landlords May Consider the Ellis Act

A landlord may consider the Ellis Act when the owner genuinely intends to stop offering the covered property as residential rental housing. Possible plans may include holding the property without renting it, using it for an authorized non-rental purpose, pursuing demolition, or evaluating a redevelopment project.

The Ellis Act may be especially relevant when a property is located in a California city with rent stabilization and just-cause eviction requirements. In those jurisdictions, an owner’s business decision to leave the rental market may be recognized as a permitted basis for terminating tenancies, provided the owner completes the entire state and local process.

However, filing an Ellis Act withdrawal should not be viewed as a quick alternative to addressing a tenant dispute.

Situations the Ellis Act is not designed to address

The Ellis Act is generally not intended for:

Removing one difficult tenant while continuing to rent the other units
Recovering unpaid rent
Addressing a lease violation or nuisance
Temporarily vacating a unit for ordinary repairs
Creating a short vacancy before re-renting at a higher rate
Removing tenants simply because the owner wants to sell the occupied property
Avoiding rent control while continuing the same rental business

Different notices and eviction procedures may be available when the issue involves unpaid rent, lease violations, illegal activity, nuisance, or another recognized ground. The appropriate procedure depends on the facts, the lease, the property, and the local jurisdiction.

Does the Landlord Have to Withdraw Every Rental Unit?

The Ellis Act generally requires the withdrawal of all rental accommodations covered by the applicable statutory definition. An owner ordinarily cannot select one occupied unit for withdrawal while continuing to offer the remaining covered accommodations for rent.

The statutory definition is important. For a detached structure containing four or more residential rental units, the accommodations generally consist of the residential rental units in that structure. For a detached structure containing three or fewer residential rental units, the definition generally includes the rental units in that structure and rental units in other structures located on the same parcel.

As a result, landlords should identify the complete withdrawal scope before preparing an Ellis Act notice. This review may involve:

The number of legal and potentially unpermitted units
Vacant as well as occupied accommodations
Multiple buildings located on one parcel
Accessory dwelling units
Mixed-use properties
Duplexes and triplexes
Separately owned condominium units
Ownership interests involving multiple individuals or entities
Certificates of occupancy and rental registration records

An incorrect assumption about which units must be included can undermine the withdrawal and delay possession.

The California Ellis Act Process for Landlords

There is no single form that completes an Ellis Act eviction throughout California. State law establishes the framework, while local governments may impose additional forms, filing fees, relocation payments, recording requirements, and administrative procedures.

Step 1: Confirm that the property and withdrawal qualify

The landlord should begin by identifying every rental accommodation potentially included in the withdrawal. Property records, rental registrations, certificates of occupancy, leases, tenant ledgers, parcel maps, and title documents may all be relevant.

The owner should also investigate whether the property is subject to:

A local rent stabilization ordinance
Local just-cause protections
The California Tenant Protection Act
Affordable housing restrictions
Recorded covenants
Government financing agreements
Prior Ellis Act filings
Replacement housing requirements
Local demolition or redevelopment controls

The Ellis Act does not necessarily override an owner’s contractual promise to maintain units as rental housing in exchange for a government contribution, subsidy, tax benefit, or other qualifying consideration.

Step 2: Define the intended use after withdrawal

A landlord should have a clear plan for the property before initiating the California Ellis Act process. The intended future use may affect local filing requirements, notice periods, planning approvals, and the overall project timeline.

Possible plans include:

Keeping the accommodations off the rental market
Using one or more units as an owner or family residence, where permitted
Demolishing an existing structure
Constructing a replacement project
Converting the property to an authorized non-rental use
Selling the property after completing the withdrawal

Withdrawal from the rental market does not automatically grant approval for demolition, condominium conversion, redevelopment, or another change of use. Those plans may require separate governmental approval.

Step 3: Identify the correct local agencies

Depending on the property’s location and the owner’s plans, the process may involve one or more of the following:

A housing department
A rent stabilization board
A rent adjustment program
A planning department
A building and safety department
The county recorder
A local relocation assistance program

Filing documents with the wrong office, using outdated forms, or serving tenant notices before completing a required agency filing can create serious procedural problems.

Step 4: Prepare the notice of intent to withdraw

A local government with qualifying rent controls may require an owner to submit a formal notice of intent to withdraw the accommodations from rent or lease. The notice may require information such as:

The property address
The number of accommodations
The occupants of each unit
The rent charged for each unit
The proposed withdrawal date
The owner’s stated purpose
Whether demolition or construction is proposed

Some information provided to the public entity is treated as confidential under the Ellis Act. Owners should nevertheless make sure that every statement is accurate, complete, and consistent with the notices served on occupants.

Step 5: Prepare and serve all tenant documents

The landlord may need to serve more than a notice terminating the tenancy. Depending on the jurisdiction, the required package may include:

The notice terminating the tenancy
Notice that the property is being withdrawn
A copy or summary of the notice filed with the public entity
Information about the withdrawal date
Information about a possible one-year extension
Relocation assistance disclosures
Forms for claiming additional relocation benefits
Information about future re-rental rights
City-specific informational notices

Each document must contain the required information and be served using an authorized method. The landlord should preserve declarations, mailing records, receipts, and other proof of service.

Step 6: Address relocation assistance

Many rent-controlled cities require relocation payments when tenants are displaced through the Ellis Act. The payment may be due when the notice is served, when the filing is submitted, when the tenant vacates, or according to another local schedule.

Owners should verify:

Whether payments are calculated by household, tenant, or unit
Whether enhanced payments apply
The current annual payment amount
The deadline for depositing or paying the money
Whether funds must be placed in escrow
What documentation must accompany the payment

Relocation figures should be checked immediately before notices are prepared because local amounts can change annually.

Step 7: Complete recording and administrative requirements

A city may require a memorandum or notice to be recorded against the property. The recorded document can identify the prior withdrawal and the restrictions that may affect the owner or a successor.

Additional requirements may include:

Filing proof of tenant service
Paying an administrative fee
Reporting extension claims
Recording a withdrawal memorandum
Submitting an updated withdrawal date
Completing a final withdrawal filing
Coordinating demolition or planning applications

Step 8: Maintain a complete withdrawal file

The owner should preserve the entire record after the tenants leave. A complete file may include:

All notices and forms
Proofs of service
Agency-stamped documents
Recorded memoranda
Tenant extension claims
Relocation payment records
Tenant forwarding addresses
Requests for future re-rental offers
Agency correspondence
Planning and demolition documents
Evidence of the property’s use after withdrawal

These records may remain relevant for many years because former-tenant offer requirements and local re-rental restrictions can extend well beyond the move-out date.

California Ellis Act Notice Requirements

The general 120-day period

When the applicable local procedure requires a formal notice of intent, Government Code Section 7060.4 generally defines the withdrawal date as 120 days after the notice is delivered in person or by first-class mail to the public entity.

This means the filing or delivery date can be critical. The period should not be calculated from an informal conversation with the tenant, a preliminary planning application, or an unfiled draft notice.

Tenant termination notices and local filing requirements must be coordinated with the statutory withdrawal date. Landlords should not assume that giving a tenant any generic 120-day notice completes the Ellis Act process.

The one-year extension

A tenant may qualify for an extended withdrawal date when all the statutory conditions are met. The tenant generally must:

Be at least 62 years old or disabled under the applicable definition.
Have occupied the accommodation for at least one year before the owner delivered the notice of intent to the public entity.
Give the owner written notice claiming the extension within 60 days after the notice of intent was delivered to the public entity.

When a qualifying claim is made, the withdrawal date for that tenant is generally extended to one year after delivery of the owner’s notice to the public entity.

The owner must then comply with additional reporting deadlines. California law generally requires the owner to notify the public entity of the tenant’s claim within 30 days after receiving it. The owner may also elect to extend other tenancies within the accommodations and must report that election within the statutory period.

During an extended tenancy, the lease generally continues under the same terms and conditions, subject to lawful adjustments. Both the landlord and the tenant remain responsible for their rental agreement obligations.

Ellis Act Relocation Assistance

The Ellis Act allows local governments to mitigate the effects of tenant displacement. As a result, relocation assistance is frequently imposed through local ordinances rather than through one uniform statewide payment schedule.

The landlord’s obligation may depend on:

The number of tenants in the unit
Household composition
Tenant age
Disability status
The presence of minor children
Household income
Length of occupancy
The date the termination notice is served
Annual inflation adjustments

Payment procedures also vary. One city may require a deposit with its rent board, while another may require installments paid directly to displaced occupants.

Examples of local relocation requirements

The following examples illustrate why landlords must verify the rules for the property’s exact location:

Jurisdiction	Local agency	General notice considerations	Relocation considerations	Other requirements
Los Angeles	Los Angeles Housing Department	LAHD currently identifies a 120-day period for withdrawals not involving demolition and separate timing for qualifying demolition projects	Local relocation assistance generally applies to no-fault evictions	LAHD forms, advance filing, fees, and withdrawal procedures may apply
San Francisco	San Francisco Rent Board	Prescribed notices and Ellis Act filing requirements apply	Rates are adjusted annually and may include additional payments for qualifying tenants	Rent Board filings and recorded documents may apply
Berkeley	Berkeley Rent Board	At least 120 days is generally required, with a possible one-year period for qualifying tenants	Payments are deposited with the Rent Board and adjusted annually	Filing fees, postcards, tenant claim forms, and recording requirements apply
Other California cities	Local housing or rent agency	Requirements vary	Local assistance may or may not apply	Confirm local forms and procedures before serving notices

As of 2026, Berkeley lists a standard relocation payment of $19,413 per household and an additional $6,471 for qualifying households. San Francisco’s published rate for notices served from March 1, 2026, through February 28, 2027, is $11,110.05 per tenant, subject to a $33,330.13 maximum per unit, plus $7,443.90 for each qualifying elderly or disabled tenant. These figures are jurisdiction-specific and should not be treated as statewide amounts.

Local Ellis Act Requirements California Landlords Must Check

The California Ellis Act creates a statewide right, but local implementation can substantially change the practical process. A landlord in Los Angeles may face different forms, timelines, and relocation requirements from an owner in San Francisco, Berkeley, Santa Monica, or another rent-controlled city.

Los Angeles Ellis Act requirements

In the City of Los Angeles, removal of rental units may require advance filing with the Los Angeles Housing Department. The owner may need to serve a Notice to Tenant of Pending Withdrawal and other required forms.

LAHD currently distinguishes between withdrawals that do not involve demolition and certain withdrawals involving demolition for new construction. The agency identifies a 120-day notice period for a non-demolition withdrawal and a six-month notice period for a qualifying demolition-related withdrawal. A qualifying elderly or disabled tenant who has lived in the unit for at least one year may claim the one-year Ellis Act extension within the required 60-day period.

Los Angeles landlords must also evaluate the Rent Stabilization Ordinance, Just Cause Ordinance, tenant relocation requirements, Housing Crisis Act, Resident Protections Ordinance, and any planning rules connected to the proposed project.

San Francisco Ellis Act requirements

San Francisco requires owners to follow local Rent Ordinance requirements in addition to state law. The process may include prescribed termination notices, Rent Board filings, relocation payments, recording requirements, and disclosures concerning the tenants’ rights if the units return to the rental market.

Because San Francisco adjusts relocation rates annually, owners should retrieve the current rate schedule and filing packet shortly before beginning the process.

Berkeley Ellis Act requirements

Berkeley administers Ellis Act withdrawals through its Ellis Implementation Ordinance. The city requires specific filings, tenant forms, relocation deposits, and recorded documents.

Berkeley’s current instructions also warn that filing a notice of intent can limit vacancy rent increases on affected rent-controlled units for five years, even if the notice is later rescinded or the withdrawal is not completed. This is a significant planning consideration for owners who are uncertain about proceeding.

What Happens If the Property Is Rented Again?

The consequences of re-renting depend on how soon the accommodations return to the market and which local controls apply.

Units offered for rent within two years

If the accommodations are offered again for residential rent within two years of withdrawal, Government Code Section 7060.2 authorizes significant consequences.

A displaced tenant may be able to pursue actual and exemplary damages. A qualifying public entity may also institute a civil proceeding. In addition, the owner may have to offer the unit to the displaced tenant if the former tenant properly advised the owner in writing of a desire to receive an offer and supplied a mailing address.

The statute specifies procedures for mailing the re-rental offer and gives the displaced tenant a period in which to accept it.

Rent restrictions during the five-year periods

Where a local rent-control system has properly implemented the Ellis Act provisions, accommodations returned to rental use may be subject to rent restrictions. The restrictions can apply to tenancies commencing during:

The five-year period after the notice of intent was filed, even if the notice was rescinded or the withdrawal was not completed
The five-year period after the accommodations were actually withdrawn

The allowable rent may be based on the lawful rent in effect when the notice of intent was filed, plus permitted annual adjustments.

Former-tenant rights extending up to 10 years

A local public entity may require an owner who re-rents within a period of up to 10 years to first offer the unit to the displaced tenant, provided the tenant complies with the applicable request procedures.

Failing to make a required offer can expose the owner to punitive damages and may not eliminate the obligation to offer the tenancy.

Before advertising, leasing, or allowing another person to occupy a withdrawn unit in exchange for compensation, an owner should review the complete withdrawal file and current local requirements.

Selling, Demolishing, or Redeveloping a Withdrawn Property

Can a landlord sell the property after an Ellis Act withdrawal?

An owner may potentially sell a property after withdrawal, but the sale does not necessarily eliminate the legal consequences of the Ellis Act filing.

Local restrictions may affect a successor in interest when the required notice has been recorded against the property. A buyer may therefore acquire property subject to rent restrictions, former-tenant offer rights, or other continuing obligations.

The owner should account for these restrictions during due diligence, disclosures, negotiations, and preparation of the purchase agreement.

Can the owner demolish the property?

An Ellis Act withdrawal does not itself grant permission to demolish a building. The owner may still need:

Demolition approval
Planning clearance
Environmental review
Replacement housing approval
Building permits
Compliance with local housing replacement rules
Compliance with the Housing Crisis Act

When accommodations are demolished and new rental accommodations are constructed on the same property and offered for rent within five years, Government Code Section 7060.2 permits certain local rent controls to apply to the new accommodations.

Does withdrawal allow condominium conversion?

The Ellis Act does not override local authority regulating condominium conversions, subdivisions, tenancies in common, or changes to nonresidential use. Conversion plans must be evaluated under the city’s separate land-use and subdivision requirements.

Risks of an Incorrect Ellis Act Withdrawal

An incorrectly planned withdrawal can delay possession and expose the owner to substantial costs. Government Code Section 7060.6 expressly allows a tenant in an unlawful detainer case to raise the owner’s failure to comply with the Ellis Act or a valid local implementing ordinance as a defense.

Common risks include:

Serving a notice before completing a required filing
Failing to include every covered accommodation
Using an incorrect withdrawal date
Omitting a vacant unit
Overlooking a qualifying elderly or disabled tenant
Failing to report an extension claim
Using outdated relocation figures
Paying relocation assistance late
Serving an incomplete set of city forms
Failing to record a required memorandum
Advertising a withdrawn unit too soon
Making statements inconsistent with a genuine withdrawal
Assuming a sale eliminates the restrictions
Beginning demolition without separate approval

A procedural mistake may require the owner to restart part or all of the process. It can also create a defense in a possession action or support a later claim for damages.

Ellis Act Planning Checklist for California Landlords

Before filing

Confirm ownership and authority to withdraw the property.
Identify every structure, unit, occupant, and vacancy.
Review leases, rent records, and registration information.
Determine which accommodations must be withdrawn.
Check for prior Ellis Act filings.
Identify the local housing or rent agency.
Review affordable housing agreements and recorded restrictions.
Define the intended use after withdrawal.
Evaluate planning and demolition requirements.
Identify potential one-year extension claims.
Calculate current relocation obligations.
Develop a realistic budget and timeline.

During the withdrawal

Use current state and local forms.
File with the correct public entity.
Confirm the official filing date.
Calculate the withdrawal date correctly.
Serve every required tenant document.
Preserve proof of service.
Track extension claims and reporting deadlines.
Pay or deposit relocation assistance on time.
Complete required recording procedures.
Keep communications consistent with the stated withdrawal.

After the tenants leave

Stop offering the accommodations for rent.
Preserve the complete compliance file.
Track requests from former tenants.
Maintain current forwarding addresses.
Check restrictions before advertising or re-renting.
Notify the applicable agency before returning units to rental use.
Evaluate continuing obligations before selling.
Coordinate any demolition or redevelopment with the appropriate departments.

Common Ellis Act Mistakes by California Rental Property Owners

1. Treating the process as a single-tenant eviction

The Ellis Act generally requires withdrawal of all covered accommodations. It should not be used as a substitute for a tenant-specific eviction.

2. Assuming every tenant receives exactly 120 days

A qualifying tenant who is at least 62 or disabled and has lived in the unit for the required period may claim a one-year extension.

3. Calculating the deadline from the wrong date

The statutory withdrawal date is generally tied to delivery of the notice of intent to the public entity, not merely the day the tenant receives a preliminary document.

4. Forgetting about vacant units

The withdrawal can include vacant accommodations. Omitting them from the filing may create inconsistencies concerning the scope of the owner’s withdrawal.

5. Using generic notices

Cities such as Los Angeles, San Francisco, and Berkeley have local forms and procedures. A general termination notice may not satisfy those requirements.

6. Relying on an outdated relocation amount

Local relocation payments change. The applicable rate may depend on the date the notice is served.

7. Filing before the owner has a firm plan

In some jurisdictions, filing a notice of intent may create continuing rent restrictions even if the withdrawal is later abandoned.

8. Assuming demolition removes every restriction

Demolition requires separate approval, and replacement rental accommodations may remain subject to local housing or rent requirements.

9. Failing to track former tenants

An owner may have to send future rental offers to displaced tenants. Accurate forwarding information and written requests should be retained.

10. Assuming a new owner starts with a clean slate

Recorded notices and statutory restrictions can affect successors. Ellis Act history should be addressed before transferring the property.

Frequently Asked Questions

Can a California landlord use the Ellis Act to remove one tenant?
Generally, the Ellis Act is not designed to remove one selected tenant while the owner continues renting the remaining covered accommodations. The statute requires withdrawal of all accommodations included in the applicable definition.

Is an Ellis Act eviction the same as an owner move-in eviction?
No. An owner move-in eviction is based on the planned occupancy of a particular unit by an owner or qualifying relative. An Ellis Act eviction is based on withdrawing the covered accommodations from the residential rental market. Each procedure has different eligibility, notice, relocation, and future-use requirements.

Does a landlord need to explain why the rental business is ending?
The Ellis Act protects the owner’s right to leave the rental business, but the owner must comply with applicable filing and notice requirements. Local forms may ask about the intended use, especially when demolition or redevelopment is proposed.

Is an Ellis Act withdrawal permanent?
Not necessarily. The owner may later return the accommodations to the rental market, but doing so can trigger damages, rent restrictions, local notices, and former-tenant offer rights.

Can a landlord sell after an Ellis Act withdrawal?
Potentially. However, recorded notices and ongoing restrictions may affect the buyer. A sale does not automatically extinguish re-rental obligations.

Can the landlord demolish the property?
Potentially, but the Ellis Act does not provide demolition approval. Separate planning, environmental, replacement housing, and building requirements may apply.

Are relocation payments the same throughout California?
No. Relocation assistance varies substantially by city and may change annually. Some jurisdictions calculate payments per household, while others calculate them per tenant or unit.

What happens if a tenant claims the one-year extension?
The owner should determine whether the tenant satisfies the age or disability requirement, the one-year occupancy requirement, and the 60-day written claim deadline. The owner must also complete any required notice to the local public entity.

Can a landlord advertise a withdrawn unit for rent?
Advertising a withdrawn unit can be inconsistent with the asserted withdrawal and may trigger re-rental restrictions or disputes concerning the owner’s intent.

How long should Ellis Act records be retained?
Because certain obligations can extend for up to 10 years, landlords should preserve the complete withdrawal file throughout every applicable state and local restriction period.

Preparing for an Ellis Act Withdrawal

The Ellis Act gives California landlords an important right to leave the residential rental business, but exercising that right requires more than serving tenants with a 120-day notice. The owner must identify all covered accommodations, complete the required local filing, address qualifying tenant extensions, pay applicable relocation assistance, and account for restrictions that may continue long after the tenants move.

The most effective approach is to plan the entire withdrawal before the first document is served. That includes reviewing the property’s rental history, local ordinance, intended future use, project timeline, relocation budget, and possible re-rental consequences. Careful preparation helps California landlords avoid preventable delays while preserving the legitimacy of the withdrawal.