Ellis Act Evictions: When Landlords Remove Units from the Rental Market

California Tenant Defense System | Justice Foundation

The Ellis Act is California’s mechanism allowing landlords to “go out of the rental business” by removing all units in a building from the rental market. Ellis Act evictions are among the most significant displacement tools used against long-term tenants in rent-controlled cities — and California law includes specific requirements and tenant protections that apply when a landlord invokes it.

What the Ellis Act Permits

The Ellis Act allows a landlord to evict all tenants in a building by withdrawing all units from the rental market — permanently, or for a specified period. The landlord cannot selectively use the Ellis Act to remove one tenant while retaining others. All units must be withdrawn. The building cannot be re-rented within a specified period (generally five years for all units, ten years before units can be re-rented at market rate under most local ordinances).

Tenant Rights Under Ellis Act Eviction

Tenants facing Ellis Act eviction are entitled to: 120 days notice (or one year for tenants who are elderly (62+) or disabled), relocation assistance required by local ordinance (amounts vary significantly by city — in San Francisco, payments can exceed $10,000 per tenant), and the right of first refusal to re-occupy the unit at the prior rent if the landlord re-rents within the protected period. These protections are automatic and must be asserted proactively — landlords don’t always volunteer the full extent of what they owe.

The Right of Return

If a landlord removes units through the Ellis Act and then re-rents them within the protected period, the displaced tenants have a right to return at their prior rent. This right is valuable — it means your displacement may be temporary, and monitoring the property after you leave is worthwhile. The Justice Foundation kit covers Ellis Act procedures, relocation assistance calculations, and right-of-return monitoring procedures.