California Rental Law Changes for 2024
The New California Rental Law Changes in 2024: What You Need to Know
Information Provided by Lotus West Properties, a Los Angeles Property Management Company
In response to the ongoing statewide housing affordability crisis, California is set to roll out significant rental law changes in 2024. Spearheaded by Governor Gavin Newsom, these legislative updates aim to provide increased stability and protection for tenants while balancing landlords' needs to manage their properties effectively.
The current homelessness crisis in California has changed the housing laws this year, but they are not expected to come into force immediately. In 2023, Governor Gavin Newsom signed legislation that would be in force from 2024, including evicted homeowners. Mike Nemeth, the spokesperson for California apartment associations, said lease agreements would change depending upon the date they are in effect and the date you have leased out the property.
Summary: California Rental Law Changes 2024
- Eviction Rules Adjustment (SB 567)
- Security Deposit Regulations (AB 12)
- Credit History in Rental Applications
- Protections Against Discrimination and Harassment
- Accessibility for Disabled Renters
- Protection Against Illegal Occupancy
- Enhanced Tenant Protections and Rights
- Empty Home Tax in San Francisco
Key Changes in 2024 Rental Laws:
Eviction Rules Adjustment (SB 567)
Starting April 2024, "no-fault" eviction rules are tightening. Landlords must provide more detailed notices for evictions related to substantial remodels or for owner/family member move-ins. Notably, the property must be occupied by the owner or their family for at least 12 months post-eviction.
Impact: This change aims to protect tenants from unjust evictions, ensuring that landlords adhere to stricter criteria.
Security Deposit Regulations (AB 12)
Effective July 2024, security deposits are capped at one month's rent for unfurnished and two months for furnished units.
Actionable Advice: Landlords should review and adjust their lease agreements to comply with this new cap, while tenants should be aware of their rights to challenge excessive security deposit demands.
Credit History and Rental Applications
New regulations restrict the use of credit history in evaluating rental applications, particularly for applicants with government rental subsidies.
What This Means: This opens doors for more individuals to secure housing, promoting a fairer application process.
Enhanced Protections Against Discrimination and Harassment
Strengthened laws now offer more robust protections against tenant discrimination and harassment, including protections for calling emergency services without fear of eviction.
Landlord Tip: Ensure all property management staff are trained on these new protections to avoid legal pitfalls.
Accessibility for Disabled Renters
Laws have been updated to facilitate easier relocation for renters with mobility disabilities to more accessible units without facing rent hikes.
Recommendation: Property owners should proactively identify and make available such units to comply with this law and support tenant needs.
Why the Shift in Laws?
California's evolving rental laws reflect a commitment to addressing housing affordability, tenant rights, and landlord responsibilities in a state with a significant homeless population. These laws aim to foster a more stable and equitable housing market by enhancing tenant protections and clarifying landlords' obligations.
Preparing for the Changes: Tips for Landlords and Tenants
Landlords:
- Review and Update Lease Agreements: Ensure your leases reflect the latest legal requirements, particularly around eviction notices and security deposits.
- Properly Educate Yourself and Your Team: Stay informed about your responsibilities under the new laws to avoid costly violations.
- Adopt Technology Solutions: Consider property management software to streamline compliance with security deposit returns and maintenance requests.
Tenants:
- Know Your Rights: Familiarize yourself with the new protections against eviction and discrimination.
- Document Communications: Keep records of any notices or communications with your landlord, especially regarding eviction notices or security deposit disputes.
- Seek Legal Advice: If you think your legal rights have been violated, consult a legal professional or tenant rights organization.
California Legislative Changes
The recent and upcoming new housing bills changing California's rental laws, particularly those affecting Los Angeles, significantly impact landlords and tenants, emphasizing the importance of professional property management. These changes aim to offer tenants more stability and protection, increasing the complexity of property management for landlords. Understanding these laws is crucial for property owners to navigate the evolving landscape effectively and to ensure compliance while maintaining profitability.
Critical Eviction Rules Changes in California Rental Laws for 2024:
Eviction Rules Adjustment (SB 567): This law modifies the conditions under which "no-fault" evictions can occur, especially for substantial remodels and owner/family member move-ins. It mandates detailed requirements for eviction notices and stipulates that owners or their family members must occupy the unit for at least 12 months following the eviction.
Eviction Regulations and Tenant Protections: Amendments to the Tenant Protection Act have tightened requirements for no-fault evictions and added penalties for violations. This includes specific notice requirements from landlords to tenants and the imposition of penalties against rental property owners who fail to follow these laws.
Eviction Rules Overhaul: Senate Bill 567, effective April 2024, revises "no-fault" eviction criteria, including for substantial remodels and owner/family member move-ins. Landlords must now provide detailed notices, comply with specific occupancy requirements, and face penalties for non-compliance. This law aims to close loopholes previously exploited to evict tenants unjustly.
Changes to no-fault eviction rules will affect owner move-ins and remodels
The California Tenant Protection Act was updated in 2019 and will change rules regarding eviction and cancellation. As early as April 2024, a more detailed application for a new lease must be submitted if the tenant wishes to move out. If you want to reoccupy a house as a landlord, you should move in after a resident leaves. If you stay for a minimum of 12 months, you can rent the house. This is also true of the family members of the homeowners — spouses, parents, children, and grandchildren.
How do new state laws change evictions?
Two new law changes have impacted California evictions. The bill currently changes the requirements for terminating tenancies under the premise of no-fault cause. Beginning April 1, landlord borrowers may not rent the property if no other vacant rooms are available in the home. The landlord may legally expel the tenants if no available space has been provided.
How Security Deposit Regulations Have Changed in California in 2024
Security Deposit Regulations (AB 12): Security deposits are now capped at one month's rent for unfurnished units and two months for furnished units. The law also specifies a shorter timeframe for returning these deposits to tenants, increasing the operational demands on landlords to comply with these rules.
Assembly Bill 12, effective July 1, 2024, caps security deposits at one month's rent, regardless of whether a unit is furnished or unfurnished. Owners of up to two rental properties comprising up to four units can request up to two months' rent as a security deposit.
Security Deposit Cap: From July 2024, security deposits will be capped at one month's rent for furnished and unfurnished units. This change is intended to make move-in costs more affordable for renters across the state.
How does the new California law limit security deposit costs?
On October 10, Gov. Newsom approved Assembly Bill 12, which prevents landlords from charging rents as security deposits twice as often. In California, renters will no longer be required for leases signed before July 1. The maximum owed will not exceed $1000. The new law does not change lease agreements with existing tenants.
Security deposits are now capped at one month's rent.
Assembly Bill 12 Amendments take effect July 1, 2024. In July 2024, bonds for security services will be limited by monthly rent. Previous laws allowed up to three months of lease collection as a bond, compared to a typical first payment period before rent. Rents soaring across the nation meant the rent was not redeemed. If your annual rental costs are $2,500, you can expect a moving fee of up to $5,000 in cash and first-month rent. These caps apply to occupied or unfinished homes.
What Changes in Discrimination and Harassment Have Been Made
Protections Against Discrimination and Harassment: New laws also strengthen protections against tenant discrimination and harassment, including measures to prevent evictions without cause and regulations ensuring tenants can contact emergency services without fear of eviction. This includes a ban on discrimination against Section 8 voucher holders and tenants with particular criminal histories, aiming to make housing more accessible and fair.
Enhanced Tenant Protection and Rights
Enhanced Tenant Protections and Rights: Additional tenant protections include more rigorous requirements for "just cause" in evictions, expanded relocation assistance for tenants evicted without fault, and limitations on landlords' ability to increase rent. These measures significantly impact property management strategies, emphasizing the importance of legal compliance and efficient management practices.
Eviction Regulations and Tenant Protections: Amendments to the Tenant Protection Act have tightened requirements for no-fault evictions and added penalties for violations. This includes specific notice requirements from landlords to tenants and the imposition of penalties against rental property owners who fail to follow these laws.
Why Property Owners Should Consider Professional Property Management:
Given these legal complexities, a reputable property management company like Lotus West can be invaluable for property owners in California, especially in Los Angeles. Here's why:
Expertise and Compliance: Professional property managers know state and local regulations. They ensure properties are managed legally and efficiently, reducing the risk of costly legal mistakes.
Efficient Operations: With in-house experts and streamlined processes, property management companies can handle tenant screening, evictions, and maintenance more efficiently than individual landlords, often resulting in cost savings.
Enhanced Tenant Satisfaction: By ensuring properties are well-maintained and tenant issues are addressed promptly, property managers can improve tenant retention rates, contributing to long-term profitability.
Risk Mitigation: Professional management helps mitigate the risks associated with eviction processes, security deposit disputes, and compliance with new tenant protection laws, offering property owners peace of mind.
California's evolving rental laws underscore the value of engaging a professional property management firm to navigate the complexities, ensure compliance, and optimize rental property profitability.
FAQs on California Rental Law Changes
Q: Can landlords still perform credit checks on applicants? A: Yes, but they cannot use an applicant's credit history as a basis for rejection if the applicant receives a government rental subsidy. The applicant can provide alternative evidence of financial stability.
Q: What could happen if a landlord violates the new eviction laws? A: Landlords face stricter penalties for non-compliance, including potential fines and requirements for evicted tenants to reoccupy the property under certain conditions.
Q: How do the changes affect rent control? A: While these updates don't directly alter rent control laws, they complement existing regulations by protecting tenants from unjust evictions and financial burdens.
Q: What is the new rent control law in California in 2024?
California's rental law landscape in 2024 has introduced several significant changes that impact tenants and landlords statewide. Here are the changes you need to know:
-
- Micromobility Devices Storage: A new law permits tenants to store micromobility devices (e.g., e-bikes, e-scooters) in their rental units, provided the batteries meet specific safety standards. Landlords can require insurance for these devices and mandate outdoor storage if secure, long-term storage is provided.
- Enhanced Accessibility for Renters with Mobility Disabilities: Under the new stipulations of AB 1620, renters facing mobility challenges in rent-controlled buildings can relocate to more accessible units without experiencing a rent hike. This pivotal update marks a substantial advancement in promoting equitable housing, ensuring that individuals with mobility disabilities can live comfortably and safely, further aligning with the broader objective of fair housing for all tenants.
- Credit History in Rental Applications: Senate Bill 267 prohibits using a person's credit history in the rental application process if they have a government rental subsidy, allowing applicants to provide alternative evidence of their ability to pay rent.
- Credit History Discrimination: Senate Bill 267 prohibits landlords from using a person's credit history in rental applications if the applicant receives a government rental subsidy, promoting a more inclusive application process.
- Prevention of Credit History Discrimination: New screening laws prevent discrimination based on credit history for applicants receiving government rental subsidies, requiring landlords to consider alternative evidence of the ability to pay rent.
- Protection Against Illegal Occupancy: Legislation effective from January 1, 2024, strengthens homeowners' ability to remove trespassers from vacant properties by allowing homeowners to alert law enforcement of an uninhabited property, facilitating easier removal of illegal occupants.
- San Francisco's Empty Home Tax Initiative: Beginning in 2024, San Francisco will implement a new tax on property owners with three or more units vacant for over six months. The tax will range from $2,500 to $5,000 for each empty unit, and penalties will increase annually. This measure aims to motivate property owners to utilize vacant properties and support affordable housing initiatives by funding them through the collected taxes. This proactive approach seeks to reduce the number of vacant homes and address the city's housing shortage.
Governor Newsome also signed an extensive housing package to streamline new housing construction, protect tenants, and keep housing affordable. This package included laws focusing on planning and zoning for housing development projects, accessory dwelling units, unbundled parking, and protections for veterans.
California continues implementing robust tenant protections and rent control measures to address housing affordability issues. Significant emphasis is placed on enhancing accessibility for renters with disabilities and protecting tenant rights.
What is the new California tenant law?
The new California tenant laws for 2024 bring about several significant changes aimed at enhancing tenant protections, making housing more accessible, and regulating landlord practices more strictly. Here is a breakdown of the legal changes you need to know:
Protection Against Illegal Occupancy: To address concerns about trespassing and squatting, homeowners can now alert local law enforcement about uninhabited properties to facilitate the removal of illegal occupants without needing to go through court. This law takes effect in January 2024.
These changes are part of a broader legislative effort to address housing affordability and tenant rights in California, reflecting a progressive shift towards more equitable housing policies. Understanding these new laws is crucial for landlords and tenants to navigate the rental landscape effectively.
Q: What is the eviction moratorium in California in 2024?
In 2024, California does not have a statewide eviction moratorium similar to those implemented during the COVID-19 pandemic, as it greatly affected the rental market and made property owners rethink. However, specific eviction rules and changes have been enacted to regulate and clarify the eviction process, primarily focusing on "no-fault" evictions and providing protections under certain conditions.
One significant legislative change is Senate Bill 567, which amends the California Tenant Protection Act of 2019 to modify rules around two specific "no-fault" eviction scenarios: substantial remodels of rental units and owner or member move-ins. This bill, effective April 1, 2024, requires more detailed notices from landlords and sets restrictions on re-renting if compliance still needs to be met, including mandatory residency durations for owners or their family members moving into a unit. It also introduces penalties for landlords who do not comply with these provisions.
While these changes do not constitute a moratorium, they provide added layers of protection for tenants by closing loopholes previously used by landlords to evict tenants without cause. This move is part of California's ongoing efforts to balance the rights and responsibilities of landlords and tenants in the state's tight and competitive housing market.
For the eviction process, landlords must follow a defined timeline and steps, from serving the initial notice to the potential court hearing and eventual eviction if the landlord prevails. The process ensures fairness and allows both parties to present their case. Specifically, tenants are given a specific timeline to respond to notices and court actions, and there are provisions for how and when a landlord can regain possession of a property.
Both tenants and landlords in California need to be aware of these rules and any local ordinances that may offer additional protections or regulations beyond state law. Consult a legal professional or regional housing authority for the most current and applicable information.
Q: What is the California Apartment Association?
The California Apartment Association (CAA) is the nation's largest statewide organization representing rental home and apartment community owners, investors, developers, managers, and suppliers. With a staff based in Sacramento and various strategic locations across California, the CAA has advocated for rental housing providers for over 80 years. It offers public affairs, education, and customer service services to promote ethical practices within the rental housing industry. The CAA stands against racism, hatred, intolerance, and violence, working to unite rental-housing professionals under a familiar voice for better industry standards.
Conclusion
California's landlords, tenants, and municipal authorities must be informed about the recent legislation affecting residential and commercial rental regulations. These changes are poised to influence the statewide rental sector significantly, and the impact of these new regulations on the affordability of housing in California remains to be seen.
As California gears up for these sweeping rental law changes in 2024, landlords and tenants must proactively understand and adapt to these updates. The goal is to create a more stable, fair, and accessible housing market for all Californians. Engaging with a professional property management company or seeking legal advice can provide additional support and clarity for those navigating these changes.
For further information and resources on California rental laws, consider visiting the following websites:
By staying informed and prepared, landlords and tenants can navigate these changes successfully, contributing to a healthier, more equitable housing environment in California.
Citations
https://martinezlawcenter.com/new-rental-laws-in-california-2024/
https://caanet.org/whats-new-in-rental-housing-law-for-2024/
https://belonghome.com/blog/california-rental-law-changes
https://atobpropertymanagement.com/guide-to-2024-new-california-rental-laws/
https://newsroom.courts.ca.gov/news/when-does-californias-security-deposit-cap-start-here-are-8-new-renter-laws-know
https://www.attorneydavid.com/blog/sb-567-new-eviction-rules-coming-to-california-in-2024/