New Rental Property Regulations in Los Angeles – Effective December 2024

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Los Angeles is implementing significant changes to rental property regulations starting December 2024. These updates are aimed at expanding tenant protections and addressing the housing crisis while presenting new challenges for property owners. Here’s everything landlords need to know about these changes and how to navigate them effectively.

Key Changes for Los Angeles Property Owners

1. Annual Fee per Unit

  • Owners of non-Rent Stabilization Ordinance (RSO) properties must now pay an annual fee of $31.05 per unit.
  • This fee is allocated to enforce tenant protection measures, signaling a shift towards broader oversight of all rental properties in Los Angeles.

2. Just-Cause Evictions Expanded

  • Just-cause eviction rules now apply to all rental properties, including single-family homes and Accessory Dwelling Units (ADUs).
  • Valid reasons for eviction (14 just-cause categories) include:
    • Nonpayment of rent.
    • Damage or nuisance behavior that affects the property or neighbors.
    • Owner move-in, where the landlord intends to use the property as their primary residence.
    • Substantial renovations or conversions into affordable housing units.

3. Mandatory Relocation Fees

  • Landlords must compensate tenants in specific eviction scenarios, such as renovations or property conversions.
  • Relocation fees range from $9,200 to $27,500, depending on the tenant’s circumstances, including:
    • Length of tenancy.
    • Tenant vulnerability, such as age (senior citizens) or disability.

4. Extension of Protections

  • Historically, just-cause eviction laws applied only to RSO properties.
  • Now, these protections extend to properties that were previously exempt, including single-family rentals and newer developments.

Why These Changes?

Los Angeles faces ongoing challenges with housing shortages and homelessness. The City Council has justified these measures as necessary to stabilize rental housing while addressing the long-term fallout from the pandemic.

Post-pandemic, temporary renter protections like eviction moratoriums have expired. These new regulations are seen as a way to ensure continued tenant stability and prevent displacement during a critical housing crisis.

How These Regulations Impact Property Owners

For landlords, these changes could mean:

  • Higher operating costs due to annual fees and potential relocation payouts.
  • Increased administrative burden to comply with just-cause eviction requirements.
  • Reduced flexibility in managing tenant turnover, particularly for properties that were historically exempt.

Navigating these changes requires careful planning, compliance with legal standards, and a clear understanding of your rights as a landlord.

What’s Next for Los Angeles Rental Properties?

As Los Angeles continues to tighten regulations, property owners must stay informed and proactive. Whether you’re managing single-family homes or multifamily units, compliance with these new rules is essential to avoid penalties and maintain positive tenant relationships.

Need Help Managing Your Los Angeles Rental Property?

At Real Property Management Select, we specialize in helping property owners across California navigate complex regulations, including these new rental laws. Our expert team provides end-to-end property management services in Sacramento, Roseville, Concord, Fairfield, and beyond.

💬 Contact us today to learn how we can help you adapt to these changes while maximizing your rental investments.

Prop 34 Passes: Elevating California Housing Standards for Landlords and Renters 

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At Real Property Management Select, proudly serving Sacramento, Roseville, Concord, and Fairfield, we are dedicated to helping property owners and landlords stay ahead of regulatory changes that shape California’s housing market. The passage of Proposition 34 marks a significant milestone in ensuring accountability, transparency, and ethical practices within the housing sector. This measure is not only a win for tenants but also for landlords striving to provide high-quality, trustworthy rental experiences.  

 

Understanding Proposition 34

Proposition 34, passed by California voters in the November 2024 election, focuses on bringing greater oversight and accountability to the housing market. Its primary aim is to ensure that funds earmarked for public benefit, particularly housing and healthcare initiatives, are utilized effectively. By eliminating mismanagement of public dollars, Prop 34 fosters a more equitable environment where trust and efficiency take center stage.  

In the past, lack of oversight allowed for instances of financial misuse, where public funds were diverted toward unrelated projects, creating inefficiencies and undermining public trust. Prop 34 addresses this by instituting rigorous financial oversight, ensuring that every dollar benefits the communities and purposes for which it was intended.  

 

What Does Prop 34 Mean for Landlords and Property Owners?

  1. Improved Trust in the Market

The increased accountability introduced by Prop 34 reassures tenants and investors alike. For landlords, this translates to a more stable rental market, where tenant concerns are addressed proactively, and confidence in the housing sector is restored.  

  1. Clearer Compliance Guidelines

The proposition introduces transparent guidelines for the use of funds and housing practices, making it easier for landlords to navigate compliance requirements. Staying on the right side of the law protects property owners from potential fines or reputational damage.  

  1. Encouragement for Ethical Practices

With tighter regulations and oversight, Prop 34 promotes fairness and ethical management across the housing sector. Landlords who already prioritize ethical practices stand to benefit, as the overall standard of competition improves.  

  1. Strengthening Local Economies  

Accountability in housing initiatives ensures that funds are funneled back into communities. For example, investments in affordable housing projects create opportunities for landlords to expand their portfolios, while also addressing housing shortages in areas like Sacramento, Fairfield, Roseville, and Concord.  

 

Challenges to Be Aware Of

While Prop 34 creates opportunities, landlords must also prepare for the changes it brings. Increased oversight may lead to additional reporting requirements and closer scrutiny of financial practices. It’s essential to work with knowledgeable property management experts who can help you navigate these adjustments seamlessly.  

At Real Property Management Select, we offer tailored guidance to ensure your rental properties remain compliant while maximizing profitability.  

 

How Prop 34 Supports Sacramento and Surrounding Areas

Sacramento and its neighboring cities, such as Concord and Roseville, have faced unique housing challenges, from affordability crises to fluctuating renter demand. By ensuring that funds are used as intended, Prop 34 supports local development projects, potentially increasing the availability of affordable housing and boosting market stability.  

This is especially significant in areas like Sacramento, where public infrastructure and housing initiatives often overlap. For property owners, this creates opportunities to invest in a growing market while contributing to the overall well-being of the community.  

 

Why Stay Informed About Housing Legislation?

For landlords, understanding new regulations like Prop 34 is critical to success in California’s competitive housing market. Legislative changes can impact everything from tenant relationships to property values and investment opportunities.  

At Real Property Management Select, we pride ourselves on being a trusted resource for property owners across Sacramento, Roseville, Concord, and Fairfield. We stay ahead of the latest regulations so you can focus on running your business confidently.  

If you’re ready to take the next step in optimizing your rental property portfolio while staying compliant with California’s evolving laws, Real Property Management Select is here to help.

Top 5 Legal Pitfalls Every California Landlord Should Avoid in 2025

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As we move into 2025, California landlords must stay updated on the latest regulations to avoid potential legal pitfalls that can impact their rental business. At Real Property Management Select, serving areas like Roseville, Concord, Fairfield, and Sacramento, we understand the challenges landlords face with California’s evolving laws. Here are the top five legal pitfalls California landlords should watch for in the upcoming year.

 

  1. Failing to Comply with Rent Control Laws

California’s Tenant Protection Act (AB 1482) limits rent increases for many properties. Landlords can only raise rent up to 5% plus the local inflation rate, with a maximum cap of 10% annually. For landlords who oversee multiple units, failing to adhere to these limits can result in fines, tenant disputes, and even legal action. Additionally, local jurisdictions may have their own rent control ordinances that supersede state laws, adding complexity for landlords operating across cities. 

Tip: If you’re managing properties in Sacramento or Concord, review both state and local rent control laws before issuing any rent increases. Real Property Management Select can help ensure you’re in full compliance.

 

  1. Neglecting Proper Disclosure Requirements

In California, landlords are required to disclose certain information to tenants at the beginning of a lease term. This includes the presence of any environmental hazards (like lead-based paint in older homes), the existence of any shared utilities, and recent bed bug incidents. Failing to provide accurate disclosures can result in legal action and financial penalties. 

Tip: Create a checklist of all required disclosures and confirm they are included in your lease agreements. For landlords in Roseville, Concord, and surrounding areas, keeping track of these requirements is crucial for protecting your business. 

 

  1. Mismanaging Security Deposits

California law mandates that landlords cannot charge more than two months’ rent for an unfurnished property and three months for a furnished one. When a tenant moves out, landlords must return the security deposit within 21 days, providing an itemized list if deductions are made. Any discrepancies or delays in handling security deposits can lead to tenant complaints and even lawsuits.

Tip: Keep meticulous records of all charges and inspections related to security deposits. In areas with higher tenant turnover, like Fairfield and Sacramento, a clear security deposit process helps maintain positive relationships and avoid disputes.

 

  1. Inadequate Handling of Maintenance and Repairs

Under California’s implied warranty of habitability, landlords are legally obligated to maintain rental units in a livable condition. This includes prompt attention to issues like plumbing, heating, and electrical systems. Failure to make timely repairs can result in tenants exercising their “repair and deduct” rights, or in serious cases, filing a lawsuit.

Tip: Set up a responsive maintenance system that allows tenants to easily report issues. Real Property Management Select offers a streamlined process for handling maintenance requests across our service areas, so landlords can meet their obligations and keep tenants satisfied.

 

  1. Overlooking Eviction Process Regulations

California has strict laws governing the eviction process, especially since the passage of the COVID-19 Tenant Relief Act. Landlords must have a valid reason, or “just cause,” for eviction, and they must follow specific notice and filing procedures. Attempting to evict a tenant without proper cause or documentation can lead to legal repercussions, fines, and delays.

Tip: Before initiating any eviction proceedings, consult with a property management professional or legal advisor. Real Property Management Select can guide landlords through each step of the eviction process to ensure compliance.

 

Stay Legally Compliant with Real Property Management Select

Managing properties in California requires a solid understanding of tenant rights and landlord obligations. At Real Property Management Select, we specialize in navigating these complex regulations for landlords in Sacramento, Roseville, Concord, and Fairfield. Partnering with us means you can avoid costly legal pitfalls and focus on growing your investment.

Stay compliant and stress-free—trust Real Property Management Select to handle the details.

Feel free to reach out to us for a consultation or explore our services further!