New Landlord-Tenant Laws Take Effect in California
This article will delve into the latest developments in California’s landlord-tenant laws. As of January 1, more than 890 new laws have come into effect in the state, many of which significantly impact rental housing operations. These changes encompass various aspects of leasing, landlord-tenant relationships, and eviction conditions.
Overview of California’s Housing Legislation
Before we dive into the specifics of the new laws, it’s essential to understand the broader context. A substantial portion of these housing laws was part of a package of 56 bills signed by California Governor Gavin Newsom in early October. These legislative changes aim to address California’s pressing housing issues, including affordability and availability.
Governor Newsom expressed the importance of these bills, stating, “California needs to build more housing and ensure the housing we have is affordable. These 56 bills build on that work, supporting tenants and ensuring cities are held accountable to plan for and permit their fair share of housing.”
Now, let’s explore some of the key changes that have been set in motion.
Security Deposit Caps
One of the most impactful laws for landlords is scheduled to take effect on July 1. Starting from that date, landlords and property owners in California will be restricted from charging more than a single month’s rent as a security deposit. Owners with no more than four units across no more than two properties may request up to two months’ rent as a security deposit.
This change marks a departure from the previous law, which allowed for a limit of two months’ rent for furnished units and three months for unfurnished units. It’s worth noting that apartment industry organizations in California have opposed this bill since its introduction. They argue that further limiting a property owner’s ability to financially cover property damage or unpaid rent is an unfair imposition.
Tenant Eviction Conditions
Another critical law that came into effect on January 1 concerns the eviction of tenants to allow an owner or the owner’s family to move into the unit. Under this law, potential new residents must have at least a 25% stake in the property to evict a tenant for this purpose. If the property is entirely owned by relatives, the new occupant can have less than a 25% stake.
Moreover, the new occupant must move into the unit within 90 days and reside there for at least 12 months. This law aims to strike a balance between tenants’ rights and property owners’ interests.
Additional Housing-Related Laws
In addition to the aforementioned laws, several other housing-related regulations took effect in California this month:
AB 1418 – Law Enforcement Contact
Local governments are now prohibited from imposing penalties on residents or property owners who have contact with law enforcement. This law seeks to protect the rights of individuals in such interactions.
SB 267 – Credit History Restrictions
Property owners are now prohibited from using credit history as a part of the rental application process, unless an alternative is offered. This aims to ensure fair treatment of prospective tenants.
AB 1620 – Rent-Stabilized Properties
Residents with disabilities living in rent-stabilized properties now have the option to move to a more accessible unit within the same property without incurring any change in rent.
AB 1765 – Email Delivery of Screening Fee Receipts
Landlords and rental applicants can now agree to use email for delivering screening fee receipts. This eliminates the need for physical mail, streamlining the process.
SB 602 – Validity of Trespass Letters
The validity of trespass letters, or 602 letters, has been extended from 30 days to 12 months. Property owners can use these letters to inform law enforcement about uninhabited units and clear them of unauthorized occupants without going to court.
SB 712 – Storage of E-Bikes and E-Scooters
Tenants can now store e-bikes or e-scooters inside their units, provided the batteries are approved by the Consumer Product Safety Commission or the European Union’s European Standards. Property owners can require storage in a separate secured area due to fire risks associated with lithium-ion battery malfunctions.
Looking Ahead
In addition to the laws currently in effect, there’s another measure on the horizon. This measure is qualified to go on the 2024 statewide election ballot on November 5. It will ask voters whether or not to repeal the Costa-Hawkins Rental Housing Act, which limits local rent control ordinances in California.
As these new landlord-tenant laws reshape the rental landscape in California, it’s crucial for both landlords and tenants to stay informed and adapt to these changes. These laws represent the state’s ongoing commitment to addressing housing challenges and promoting fairness in the rental market.
Frequently Asked Questions
- When do the security deposit caps for landlords in California take effect?
- The security deposit caps are set to take effect on July 1.
- What is the significance of the 25% stake requirement for tenant eviction for owner or family occupancy?
- This requirement ensures that potential new residents have a substantial connection to the property before eviction can take place.
- Can property owners in California use credit history as part of the rental application process?
- Property owners are prohibited from using credit history in rental applications unless an alternative is offered.
- How long is the validity of trespass letters extended to in California?
- The validity of trespass letters has been extended from 30 days to 12 months.
- What does the measure on the 2024 statewide election ballot aim to address?
- The measure will ask voters whether or not to repeal the Costa-Hawkins Rental Housing Act, which limits local rent control ordinances in California