10 new rental laws changes are being implemented in California as of 2024, significantly altering the state's rental market. This represents an important shift for both landlords and tenants in the Golden State, since these legislative changes attempt to address a variety of concerns. We'll break down these new rules in this blog post so you can see exactly what they mean and how they'll impact the rental sector. It is imperative that landlords, managers, and property owners stay up to date on these updates in order to navigate the complexities of California's ever-changing real estate market this year.

SB 567: Just Cause Eviction

A recent amendment to California's Tenant Protection Act of 2019 has introduced stricter conditions for landlords invoking the no-fault just cause eviction policy. Landlords must now give tenants specific advance notices and, if the landlord or their family plan on moving in, do so within 90 days and reside for at least a year. Moreover, property owners face financial penalties for non-compliance with these new stipulations.

AB 12: Security Deposits

Starting July 1, 2024, a significant shift in security deposit requirements will affect California landlords and tenants. Property owners will be restricted to collecting a maximum of one month's rent as a security deposit. An exception to this rule applies to "small property" owners who have no more than two rental properties with a total of four units or fewer, who are still permitted to request up to two months' rent for a security deposit.

SB 712: Micromobility Devices

In a nod to the growing popularity of eco-friendly transportation, California tenants now have the right to store and charge electric scooters and bikes within their apartments, provided the devices' batteries meet Consumer Product Safety Commission or European Product Standards criteria. If these standards aren't met, landlords may mandate that tenants carry insurance for their devices and forbid indoor charging. Furthermore, landlords offering secure, long-term storage solutions have the option to require that these devices be stored on the premises instead.

SB 271: Balcony Inspections

Under SB 271, California enhances the safety of multi-unit properties by requiring professional inspections for all structures with three or more units that include balconies or exterior elements like decks and stairways. Qualified safety inspectors, including those with a general contractor's A, B, or C-5 license, must carry out these checks. The initial deadline is set for January 1, 2025, with follow-up inspections mandated every six years to ensure ongoing safety and compliance.

AB 1418: Nuisance Ordinances and Evictions

This law makes it significantly more difficult to remove problematic renters for bad behavior by forbidding municipal authorities from passing ordinances that permit landlords to do so on the basis of reports to law enforcement, suspected criminal activity, or other alleged nuisance activity.

SB 267: Credit History

This rule forbids landlords from utilizing a tenant's credit history when determining whether to approve them for rent-subsidized housing (like Section 8), without allowing prospective tenants alternate means for proving their ability to pay rent. Verification of income, renting history, and evidence of savings or emergency funds are among more choices.

AB 1620: Renters With Mobility-Related Disabilities

AB 1620 introduces a consideration for California tenants with permanent mobility-related disabilities in rent-controlled apartments. It permits these tenants to move into an accessible unit within the same building or property, provided it's equal or smaller in size, while keeping their existing rental rate and terms. This change isn't a statewide mandate but empowers local jurisdictions to adopt the policy, so its implementation may vary by location. The move is permissible when specific conditions are met, including the necessity of the move for the tenant's disability, the absence of an operational elevator, the availability of a suitable unit under the same ownership, no need for Health and Safety Code renovations, and the assurance that the landlord will receive a fair return, as determined by the local rent control board.

Statewide Rent Control

In reaction to COVID-19, the California Tenant Protections Act of 2019 established statewide rent control. The law, which is effective until January 1, 2030, caps yearly rent increases at 10%, or 5% + local CPI, whichever is less. Even stricter regulations are in place in some jurisdictions, such Los Angeles County and the City of Los Angeles.

City of Los Angeles

Los Angeles' rent-controlled apartments have been experiencing a rent freeze, prohibiting any increase in rents. However, this is set to change beginning February 1, 2024, when property owners will be allowed to implement a 4% rent hike on tenants covered by the City of Los Angeles' rent control law. Additionally, if landlords cover the cost of utilities such as electricity and gas, they are permitted an additional 1% increase per utility. This means that for properties where the owner pays for both electricity and gas, the rent could be raised by as much as 6%.

Unincorporated L.A County

Rent control regulations are unique to many of Los Angeles County's incorporated communities. On the other hand, building owners in unincorporated areas must abide by rules enacted by county elected officials. Rent-controlled unit owners in these unincorporated areas may increase rent by up to 3% as of February 1, 2024.

The introduction of 10 new rental law changes in California in 2024 represents a pivotal update to the state's housing rules. These laws address everything from tenant rights and safety inspections to rent adjustments, highlighting the importance of awareness and compliance for both landlords and tenants. If you have any more questions on how the rental laws will affect your business or investments, reach out to us at info@cbicommercial.com or (310) 943-8530.