New California Rental Laws in 2024
In 2024, California witnessed the implementation of a set of rental laws that significantly impact property owners and investors. We have outlined these new regulations, providing a quick breakdown. It's crucial to note that the information provided is not legal advice. For a more comprehensive understanding, property owners and investors should refer to the full text or seek guidance from a legal professional.
This breakdown specifically focuses on state laws, excluding county and city regulations. It provides a targeted overview of the legislative changes at the state level, ensuring a clear distinction from local ordinances that may vary.
New California Rental Laws
SB 567 - This law makes changes to the Tenant Protection Act of 2019 by modifying aspects of the "no-fault just cause" policy. Currently, property owners can remove tenants if they want to move in or make substantial renovations to the property. The new law requires the following:
1. Provide advanced notices to the tenant
2. If a property owner is planning to move in, they must do so within 90 days of the tenant’s departure and stay for at least 12 months.
AB 12 - Property owners who have three or more rental properties could only collect up to one month's rent as a security deposit.
SB 712 - Tenants are allowed to store and charge electric scooters and electric bikes in their apartments if the battery is approved by the Consumer Product Safety Commission or the European Product Standards. If the battery does not meet these standards, the property owner can require the tenants to have insurance for the device or prohibit the tenant from charging them inside the unit.
SB 271 - Mandates professional safety inspections for all properties with three or more units that have balconies or exterior elevated elements. The inspections must be performed by a qualified safety inspector - a general contractor with an A, B, or C-5 license classification. The deadline for the first inspection is January 1, 2025. recurring inspections will happen every six years.
AB 1418 - Prohibits local authorities from enacting regulations that allow property owners to evict tenants based on calls to law enforcement, suspected criminal activity or other alleged nuisance.
SB 267 - Prohibits property owners from considering credit history when evaluating residents for rent-subsidized housing without allowing prospective tenants alternate means for proving their ability to pay rent. Alternate options may include income verification, rental history, and proof of savings or emergency funds.
AB 1620 - Property owners must allow tenants with permanent mobility-related disabilities who live in rent-controlled units to move into an accessible unit that is comparable in size or smaller than their current unit while retaining their current rental rate and terms.
What it Means for Investors
While we are not legal professionals, it is crucial to recognize the significance of staying well-informed about the introduced regulations. Just as we recommend consulting market experts for investment decisions, we strongly advise seeking the counsel of a legal professional to gain a comprehensive understanding of the laws. Being aware of these new regulations is essential for better-informed and prepared decision-making in the ever-evolving landscape of the investment real estate market.
The Azucena Take provides an inside look into the investment real estate market using the research done by Marcus & Millichap.