New California Bill Could Allow Tenants to Avoid Eviction by Paying Rent at the Last Minute

California lawmakers are considering a new bill that could significantly impact rental housing providers by allowing tenants to halt eviction proceedings at any stage if they pay overdue rent or provide proof of approved rental assistance.

Overview of SB 436

Senate Bill 436, introduced by Sen. Aisha Wahab (D-Hayward), proposes changes that would require courts to dismiss eviction cases if tenants either:

• Pay all outstanding rent, including any additional accrued rent.
• Submit proof that rental assistance has been approved.

This provision would apply both before and after a court judgment, meaning that tenants could effectively stop the eviction process at any time before the final lockout by the sheriff. Additionally, the bill mandates that landlords include a new notice in three-day eviction warnings, informing tenants of their right to avoid eviction by settling past-due rent.

Potential Impact on Rental Housing Providers

Current law allows courts to use discretion in delaying evictions for tenants facing hardship. However, SB 436 does not require tenants to prove hardship or limit how often they can invoke this provision. This raises concerns that:

• Tenants may repeatedly delay rent payments without facing eviction consequences.
• Property owners could face financial strain from unpaid rent and extended legal battles.
• Eviction processes could become more costly and time-consuming, making it harder for rental housing providers to reclaim their properties.

For many housing providers, the eviction process is already a last resort after months of nonpayment. By allowing tenants to avoid eviction even after a court ruling, this bill could increase financial risks for rental property owners and disrupt the stability of the rental market.

Legislative Outlook

The proposed bill has sparked debate among property owners, tenant advocates, and lawmakers. Supporters argue that it would provide renters with a final opportunity to avoid homelessness, while opponents highlight the potential for abuse and financial harm to small housing providers.

As this bill moves through the legislative process, it is critical for rental property owners to stay informed and prepared for potential changes.

Stay updated on the latest legislative developments and how they could impact your rental business.