California Rental Laws Changed in 2024: What Landlords Need To Know

The office of California Governor Gavin Newsom signed 56 housing bills into law in 2023, many of which have significant impacts on rental property owners. These laws, coming into effect throughout 2024, introduce changes that will affect how landlords manage their properties and interact with tenants.

In this blog, we’ll explore 5 key legal updates that California landlords should be aware of in 2024, along with a brief overview of what landlords cannot do under these new regulations.

What a Landlord Cannot Do in California in 2024

– Rent Increase Limits: Under the Tenant Protection Act, rent increases for most residential tenants in California are capped at 10% total or 5% + CPI, whichever is lower, over a 12-month period.

– No-Fault Evictions: Landlords cannot evict tenants without cause. This includes situations where the property is being withdrawn from the rental market or used for renovations without clear justification.

– Owner Move-In Restrictions: If a landlord terminates a lease to move into the property, they cannot re-list it on the rental market within 12 months.

– Remodeling Restrictions: If you’re terminating a lease to remodel, landlords must provide detailed renovation plans. Tenants have the right to receive this information in advance.

– Security Deposit Regulations: California landlords are limited to charging no more than one month’s rent as a security deposit for unfurnished properties. The deposit must be returned within 21 days of the tenant vacating, and any deductions must be supported by an itemized list with receipts.

– Credit History Protections: If a rental applicant receives government housing assistance, landlords cannot discriminate based on credit history alone.

– Application Fee Caps: The tenant application fee in California is capped at $62.02 for 2024, adjusted annually for inflation.

– Maintenance and Repairs: Landlords must maintain properties to ensure tenant safety. Tenants may use the “repair and deduct” option if emergency repairs are not addressed, allowing them to fix the problem and deduct the cost from their rent.

– Local Ordinances: State laws and city-specific ordinances override any lease agreements, meaning landlords must comply with both state and local rules, even if their lease states otherwise.

5 Major Changes for Landlords in 2024

Here are five important updates that will affect rental property owners in 2024:

1. Mandatory Rent Reporting (AB 2747): Landlords of buildings with 15 or more units must now give tenants the option to report on-time rent payments to credit bureaus, helping tenants improve their credit scores. Landlords can charge tenants a fee of up to $10 for this service.
2. Domestic Violence Survivor Protections (SB 1065): Survivors of domestic violence now have greater protection. Landlords cannot evict tenants who are survivors, and tenants may break their lease early if needed, with proper documentation.
3. Extended Relocation Assistance (AB 1482): If landlords use a no-fault eviction, such as for substantial renovations, they are required to offer extended relocation assistance or reduce rent during the construction period.
4. Environmental Efficiency Standards (SB 1137): Landlords of newly constructed buildings must now adhere to energy-efficient requirements, including water and energy-saving measures, starting in 2024.
5. Eviction Data Submission (SB 1260): Landlords are now required to submit eviction data to local authorities, increasing transparency and reducing unlawful evictions.

Stay Compliant in 2024 and Beyond

As California’s housing laws continue to evolve, it’s crucial for landlords to stay informed and ensure compliance. These new regulations highlight the importance of keeping up with legal requirements to avoid fines or disputes. 

For stress-free property management and to stay updated on the latest rental laws, trust the experts at Real Property Management Select. We help you navigate these changes with ease, ensuring your properties remain compliant while maximizing your returns.

Keep updated with us for more tips and insights on rental property management and legal updates throughout 2024.