What Does Camarillo's Landlord/Tenant Mediation Rule Mean if You Buy Rental Property?

If you’re considering a larger rental building or mobilehome park in Camarillo, the city’s landlord/tenant mediation chapter belongs on your due diligence list. As posted by the city, Ordinance No. 1187 covers residential rental complexes with five or more units and mobilehome parks with 25 or more spaces. It creates a voluntary, non-binding forum for reviewing proposed rent increases, along with specific notice duties for owners.

The ordinance was adopted on January 12, 2022. The current online codified text could not be verified for later changes, so confirm the current code with the City Clerk’s office at City Hall, 601 Carmen Drive.

This is general information and not legal advice.

Which properties and leases fall under the rule?

The chapter applies based on the property’s unit or space count, while access to mediation also depends on the tenant’s lease.

A “residential rental complex” is any property with five or more residential rental units. A “mobilehome park” means land with 25 or more mobilehome spaces. A smaller rental property does not meet those definitions in Ordinance No. 1187.

An eligible lease is either month-to-month or for a term of 12 months or less. A longer lease can also qualify when its term is set to expire within six months and the rent increase for the new term is not already established under that lease.

That distinction matters when reviewing leases before a purchase. The building may meet the unit threshold, but a particular tenant’s right to request review of a proposed increase depends on whether that tenant has an eligible lease. Mobilehome space rent rules in other cities, such as Hemet, are covered in a separate guide.

What notice duties come with ownership?

An owner must give the city’s mediation notice with every rent increase sent to an existing tenant who has an eligible lease.

The notice explains that Camarillo has a landlord/tenant mediation chapter providing a voluntary, non-binding forum to review rent increases. It also tells tenants that copies are available from City Hall at 601 Carmen Drive or through the city’s website.

A second notice must be posted at the property. It must be at least 8 by 10 inches and placed in the on-site management office. If the property has no on-site management office, the notice goes in a publicly accessible location.

These are operating duties, not simply documents to collect at closing. During a purchase review, you can ask where the posting is kept, what notice accompanies rent increases, and which current leases meet the ordinance’s definition of eligible.

How can a tenant request mediation?

A tenant on an eligible lease may ask the city to review a proposed rent increase by filing a request with the City Clerk.

The request should be filed within 30 calendar days after the tenant receives notice of the proposed increase. The filing location given in the city’s instructions is the City Clerk’s office at City Hall, 601 Carmen Drive.

When a proposed increase will affect a quarter or more of the tenants with non-fixed-term leases during the next 12 months, at least five tenants in similarly situated units or spaces must sign the request. If the increase affects more than a quarter of those tenants, the owner must provide a list of all affected tenants so notice of the mediation can be sent to interested tenants.

The mediator may consolidate requests involving the same complex or park. Camarillo keeps a docket of mediation proceedings, and mediators are randomly selected from a city-maintained list.

What should an owner prepare for mediation?

If an owner agrees to participate, the owner should submit supporting information at least seven days before the mediation.

The ordinance says that information may include actual operating expenses by category for the preceding three years and anticipated expenses for the 12-month period covered by the proposed increase. It may also include the rent schedule for each unit or space for the last three years, other fees and income, vacancy rates for each unit during the preceding three years, and other factors affecting the need for the increase.

A tenant should submit additional information at least seven days before the session. If a noticed party does not appear, the mediator may still conduct the mediation and issue a recommendation.

What can the mediator consider?

The mediator may consider the property’s finances, condition, services, rents, and the owner’s opportunity for a fair and just return.

Ordinance No. 1187 lists property tax increases or decreases, unavoidable changes in operating and maintenance expenses, utility rates, insurance, and government assessments. A purchase can change a property’s tax bill, including through a supplemental property tax bill. Capital improvements may be considered separately from normal repairs. The mediator may also review changes in unit size, deterioration beyond ordinary wear and tear, reduced services, inadequate services, or a failure to comply with applicable housing, health and safety codes.

Other listed factors include federal and state income tax benefits and comparable market rents within Camarillo. The mediator then considers whether the proposed increase is fair, equitable, and necessary for the owner to receive a just and reasonable return on the investment.

One limit is especially relevant to a buyer: the mediator will not support a rent increase solely because a change of ownership caused higher debt-service costs. The same rule applies when refinancing the property results in higher debt-service costs.

What happens after the mediation?

The mediator issues an advisory recommendation, not a binding decision.

A written summary of the recommendation is sent by email to the tenant or tenants and the owner within ten business days after the mediation. A copy also goes to the City Clerk. The parties are encouraged to tell the clerk whether they accept the recommendation, either at the conclusion of mediation or no later than five business days after receiving it.

The City Clerk submits recommendations to the City Council for information purposes only. The ordinance also says the documents, testimony, and recommendation may be subject to disclosure under the Public Records Act.

Using the process is declared a protected right under California Civil Code section 1942.5(c). A tenant cannot be required to waive rights under the chapter, and neither an owner nor a tenant may retaliate against another party for invoking or participating in mediation.

How should a buyer use this in due diligence?

A buyer should review the unit count, lease terms, rent-increase procedures, notices, and supporting property records before setting an operating plan.

Keep the city process separate from state rent law. Camarillo says its forum is not intended to interpret or enforce the Tenant Protection Act of 2019. The city page describes that state law as applying to most apartments and other multifamily buildings with two or more units, while excluding buildings constructed within the past 15 years. State law caps annual increases for covered buildings, so read the statute rather than treating mediation as a local rent cap.

Another California city may handle landlord issues differently, as shown by Anaheim’s tenant protection intake program.

We spoke with someone buying a tenant-occupied Camarillo property who assumed he could handle future disputes entirely through the lease. He had not considered whether the city’s mediation rule would require another step before certain actions could move forward. We reviewed the process so he understood the obligations he would inherit as the new landlord.

The short version

Camarillo’s posted ordinance covers rental complexes with five or more units and mobilehome parks with 25 or more spaces. Owners must provide and post the city’s mediation notice, while eligible tenants may request review of a proposed increase.

The process is voluntary and non-binding. If the owner participates, the ordinance describes records that should be submitted and factors the mediator may consider. A purchase price or refinancing cost alone does not support an increase when it raises debt service.

Before making an offer, check the leases, rent notices, on-site posting, and available operating records. Then factor the property’s current income into your estimate with the home value tool.