California has recently ushered in a series of rental law reforms aimed at safeguarding the rights of both tenants and landlords. While not every proposed legislative change has come to fruition, several bills have been greenlit, with the new regulations set to take effect on July 1, 2024. These alterations promise significant shifts in the rental landscape. Let’s delve into the key amendments:
Updated Security Deposit Policy
Commencing July 1, 2024, landlords will be subject to a new security deposit cap, restricted to the equivalent of one month’s rent, irrespective of the unit’s furnishings. However, certain exemptions exist for small landlords, allowing them to charge up to two months’ rent as a security deposit. To qualify for this exception, landlords must own no more than two rental properties totaling four units, and they must either be individuals or members of an LLC comprised solely of individuals.
Extended Validity of Trespass Letters
SB 602, a recent piece of legislation, bolsters landlords’ ability to handle trespassers. In California, landlords grappling with unwanted visitors on their premises can issue a ‘no trespass’ letter, also known as a 602 letter. Formerly, these letters expired after 30 days, but under the updated law, landlords can extend the letter’s validity for up to 12 months. This affords landlords greater flexibility and control over their property.
Storage of Micro-Mobility Devices
A notable adjustment concerns the storage of micro-mobility devices within rental units. Landlords are now prohibited from banning tenants from storing e-bikes and scooters in their apartments. However, these devices must feature batteries approved by the Consumer Product Safety Commission. Alternatively, landlords may request tenants to secure insurance policies for devices lacking approved batteries or opt to provide secure storage options outside the unit.
Enhancements to Just Cause Evictions
Updates to the Tenant Protection Act of 2019 introduce fresh guidelines regarding just cause evictions, particularly concerning situations where a landlord or close family member intends to occupy the unit. The revised law mandates specific notifications to tenants and imposes stricter penalties for landlords found in breach of these regulations.
Email Option for Tenant Screening Fees
Another significant change permits landlords and tenants to utilize email for transmitting screening fee receipts, provided both parties consent and the applicant is willing to share their email address. Previously, landlords were limited to mailing or delivering receipts in person. Additionally, landlords are now obligated to offer an “Ability to Pay” alternative for tenants receiving government subsidies, rather than relying solely on credit checks.
Limitations on Credit History Checks
SB 267 introduces further restrictions on the use of credit history checks for applicants receiving government subsidies like Section 8. Landlords accepting such subsidies cannot conduct credit checks during the application process unless they are open to considering alternative proof of the applicant’s repayment capability, such as government benefits payments or bank statements.
In conclusion, California’s revamped rental laws usher in a new era of tenant and landlord protections. From revised security deposit policies to extended validity for trespass letters, these changes promise to reshape the rental landscape, ensuring greater fairness and transparency for all involved parties.