BIG Changes! 2024 Law Update - Quick Guide for California Landlords and Tenants

New year, new laws, BIG changes! This quick 2024 guide for California landlords and California tenants covers some of the new regulations that you need to know...unlike years past, 2024 has some big changes for California renters and landlords when it comes to legislation. In October of 2023, there were 56 housing related bills signed into law by the governor. We are going to run through three important ones in this quick guide for California renters and landlords. And be sure to stick around to the end where we run through a recent Quick Real Estate Quiz we did on whether a landlord can charge extra for an Emotional Support Animal. Do you know the answer? Hey there, Christian Walsh, real estate agent with WIRE Associates. We have been helping renters and landlords understand their rights before things go wrong.

Three important things before we get started. One is we have a link to all the legislation below so that you can read it yourself. We encourage you to do that. Two, don't forget these are statewide laws. You have to do the research to see whether there are local landlord tenant regulations at the county level or your local city level. And number three, don't forget we can't give tax or legal advice, but for the most honest and up to date real estate advice, subscribe to this channel.

California Security Deposits - AB 12

Let's dive into the big changes to security deposits in the state of California coming July 1st, 2024, thanks to AB 12 This is the law a lot of people are used to, especially if you're watching this video before July 1st, 2024. What this shows is that if a unit is unfurnished, a landlord is able to collect up to two months worth of rent for the deposit .If it's furnished, it could be up to three months worth of rent. There is a change if you're a service member and it's unfurnished. Only one month's rent can be collected. And then if it's furnished, only two months for a service member could be collected. And how about for a person with a service animal or an Emotional Support Animal? No additional deposit. And that's a hint at the quiz at the end.

And how about July 1st, 2024 and later in the state of California for a security deposit? Well, you can see right here, it will be one month's rent for security deposit, whether the unit's furnished or unfurnished, or whether there's a service member renting the unit out, it will need to be one month's rent or less in the state of California. And again, nothing extra for a service animal or an Emotional Support Animal.

Now in AB 12, there is an exception for certain landlords. And these are people who own no more than two residential properties. And then in within those two residential properties, no more than four dwelling units can be offered for rent. That landlord will be able to collect two months rent in certain cases, whether the unit's unfurnished or furnished, but for a service member, it will remain one month's rent. And still nothing extra for service animals or Emotional Support Animals. So that is the big change that's coming July 1st, 2024. And later, thanks to AB 12 security deposits will be dramatically changed in the state of California.

Tenant Protection Act Changes - SB 567

2024 brings big changes to the Tenant Protection Act, also known as AB 1482, thanks to SB 567. Now this will go into effect on April Fool's Day 2024, not a joke. We've done deeper dives into the Tenant Protection Act. We have a ton of content on that. this will share some of the differences that start April 1st, 2024. And of course, we'll do content to remind you as we get closer. So the exemptions will not change. Properties that are currently exempt from AB 1482, that will stay in place. The change in SB 567 are related to properties that are not exempt from AB 1482, properties that are subject to AB 1482.

So there's two big changes and one is related to owner move-in or family move-in. Under AB 1482. Before April 1st, 2024, one month's relocation assistance was owed, proper notice was given. Now, what will be coming as of April 1st, 2024, same thing, one month relocation assistance, but the notice will change. There will be new language on there, and the landlord will have to actually share who the family member is, give their information and how they're related. They're going to have to have certain language on there, and we've covered that in our other videos. Whoever moves in will also have to stay a minimum of 12 months. If the occupant, whether it's the owner or the family of the owner, does not stay 12 consecutive months, then the landlord has to let the previous tenant know, give them the option to move in at the previous rent and pay their moving expenses. So big changes for this particular portion of property subject to AB 1482.

Next for properties subject to AB 1482, April 1st, 2024 and later. If a landlord is going to remodel or demolish the property previously, again, it was just one month's relocation, had to give proper notice. The notice was the same for any of the no fault reasons, there wasn't a crazy difference. Now, the landlord, in order to take advantage of the remodel or demolition, is going to have to pull permits ahead of time all throughout the state of California. Some areas had enacted this locally, for example, L. A. City, but now throughout the state of California, in order to take advantage of the no fault termination to remodel or demolish for a property subject to AB 1482, the landlord will have to give the permit over to the tenant, when serving the 60 day notice, they're also going to still owe that one month's relocation assistance. There's going to be new language for the notice that will need to be on there in order for that notice to be proper. And we did a deeper dive on that.

And one more big change that we find due to SB 567 is that AB 1482, the Tenant Protection Act, finally has some teeth. What do we mean by teeth? Before April 1st, 2024, if a landlord didn't follow the appropriate procedure on the rent increases or the notice to terminate tenancy, there really wasn't much of a penalty. The tenant could fight back on a notice that wasn't valid. But now there are teeth to the Tenant Protection Act. Any landlord can be subject to civil action for damages that can add up. So that's a quick look at some of the changes to the Tenant Protection Act in 2024.

And don't forget we're real estate agents based in Southern California. Before you even think of buying or selling real estate, make sure you reach out to us first.

Section 8 and Housing Vouchers - SB267

Another big change that landlords and tenants in California need to know is related to Section 8 and other voucher programs. Remember that since 2020, California legislation has prevented a landlord from discriminating against Section 8 vouchers and other vouchers as sources of income. Before that law in 2020, landlords could simply say, we are not going to accept Section 8 tenants. That is not the case anymore. And this new legislation in 2024 known as SB 267 adds another layer of protection for voucher holders. Typically, a voucher program requires that a tenant pays anywhere from 20% to 30% of the monthly rent on their own. The landlord will only be allowed to screen for that portion of the income, and furthermore, the tenant is able to use something other than a credit report to prove that they're able to pay that 20% to 30%. That is another big change in the state of California, making it easier for renters to use housing vouchers.

Can a landlord charge for an Emotional Support Animal (ESA)?

Thanks for sticking around for the Real Estate Quick Quiz that we ran on our community channel. Can a landlord charge extra for an Emotional Support animal, whether it's a deposit or extra rent? And the correct answer is no. A landlord cannot charge either an extra deposit or rent. And 69% of voters, both landlords and renters, knew that was the correct answer, but 31% didn't. So hopefully you found this helpful. It's a good reminder for both renters and landlords that for an ESA and for a service animal, they aren't pets. So you can't charge pet rent or a pet deposit. And we'll have more content coming on this. Thanks for tuning in. This has been Christian Walsh, real estate agent with WIRE Associates, and we can't wait to hear from you.

Legislation we discuss:

📌 AB 12 - Security deposits 👉  https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB12

📌 SB 567 - Tenant Protection Act Changes 👉 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB567

📌 SB 329 - since 2020, voucher cannot be discriminated against as a “source of income” 👉 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB329

📌 SB 267 - vouchers and credit history 👉 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB267

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