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As with all things in real estate, regulations and standards are always changing, especially here in California where we have traditionally led the charge (along with New York) on real estate related legal evolutions. This, of course, includes rental laws and practices as well. This year California had a pretty big shake up regarding tenant rights, and that is just the beginning of a series of adjustments that we'll see over the next few years. So if you or someone you know owns an income property (rental, business, etc) make sure they're aware of California's ever-changing legal landscape detailed below!
Key Changes That Took Effect in 2024
Senate Bill 567
This bill changes the rules by which California property owners may remove tenants in certain instances. Effectively, this new law directly impacts two sets of property owners:
- Property owners and their close family members (i.e. spouse, domestic partner, children, grandchildren, parents, or grandparents) who plan to move into an occupied/leased property before the expiration of the lease term with the tenant.
- “Fix and flip” investors planning on substantially remodeling or rebuilding an occupied/leased property for resale.
Assembly Bill 12, Security Deposit
Landlords are permitted to ask for security deposits equivalent to one month’s rent for both furnished and unfurnished dwellings. This is a notable shift given that under the current existing law, landlords can charge up to two months’ rent for an unfurnished dwelling and three months’ rent for a furnished one. This law does not take effect until July 1, 2024, allowing landlords time to make any necessary adjustments to their practices given this new approach on the security deposit amount.
Key Changes Taking Effect in 2025
Assembly Bill 2493, Tenant Screening
Application Order: Landlords must accept applications in the chronological order they are received, meaning, as long as you meet the rental applications requirements, it's first come first serve. Applicants must also be provided written application criteria upon request. Security Deposits: Photos must be taken at the start and end of tenancies and after cleaning/repairs and these photos must be shared with the tenant.
Assembly Bill 2347, Unlawful Detainer (Eviction) Process
Tenants now have 10 business days (up from 5) to respond to an eviction complaint.
Senate Bill 721, Balcony Inspections
Inspections for exterior elevated elements (EEEs), such as balconies and decks in buildings with three or more units
Potential Changes to Take Effect in 2026
Proposed Assembly Bill 2216
Currently a spot bill with details to be fleshed out in the coming months. The intention is to bar property owners from asking about pets on applications, prohibit additional monthly fees for pet owners — or “pet rent” — and limit pet deposits. The legislation, which is sponsored by the Humane Society of the United States, is aimed at solving the issue of an overabundance of tenants with pets and a shortage of landlords willing to accept them.
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