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Ellis Act

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The Ellis Act is a provision in California Law that provides landlords in California with a legal way to "go out of business" short of selling the property to another landlord. The Ellis Act "was adopted by the California Legislature in 1985 after the California Supreme Court ruled that landlords do not have the right to evict tenants to go out of the business of being a landlord".

Municipalities can regulate the Ellis Act eviction process to some extent. Those that do typically restrict the property from use as a rental property for a period of time and require that it go back under rent control provisions if it is returned to the rental market.