What Should Landlords Know about the April 1, 2024, California Tenant Protection Law?

What Should Landlords Know about the April 1, 2024, California Tenant Protection Law?

  • The CREM Group
  • 03/27/24


Both tenants and landlords in California need to be mindful of the new law: the Tenant Protection Act of 2019 (TPA) will be replaced by the provisions of SB 567, which will become law as of April 1, 2024. The new regulation will combine mobile home and residential tenants’ protections into a single code and introduce two amendments to current state law regarding no-fault tenancy terminations (evictions).

The law also addresses how landlords must handle gross rental rate increases.

The legislated SB 357 is dense and lengthy (about 12,000 words) and needs careful legal interpretation by both tenants and landlords, who each need to understand their rights and responsibilities. This article only highlights the main changes. Always check the details with your attorney if you are a lessor or lessee.

No-fault Tenancy Termination

The new law amplifies and enlarges two aspects of no-fault tenancy termination. One explains how substantial remodels are handled, and the other deals with owner move-in provisions.

Substantial Remodels

  • Owner landlords retain the right to end tenancies for substantial remodeling. However, with the new law, tenants are allowed to review the remodeling plan in detail to see the extent of the renovation.
  • The owner must not only provide the design detail but also inform the tenant of their rights to re-occupancy if the remodel doesn’t work or isn’t completed.

Owner Move-in Provisions

Sometimes, life changes may force a landlord to ask their tenants to leave. That is their right, but the new law says the owner (or their family members) must:

  • Move in within 90 days of the tenant’s departure, and
  • Live in the unit for at least twelve months after that.

The new law must be read carefully, as it contains dense language about what constitutes a family member/entity that can “legally” move into the rented space.

At-Fault Tenancy Terminations

The April 1, 2024, version of the law does not change any of the at-fault reasons for which a tenant can be evicted. Examples include default in rent payment, a material breach of lease terms, a violation of a lease provision after being issued a written notice to correct it, criminal activity, committing, maintaining, or permitting a nuisance, and so forth. The goal of SB 567 is to clarify the remodeling and owner move-in provisions and delineate gross rental rate increase procedures.

The Gross Rental Rate Increases

Section 3 of SB 567 amends Section 1947.12 of the Civil Code and discusses rent caps and gross rental rate increases in the minutest of detail. It bears extra careful reading and interpretation. For example, “…an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase.” Some properties are exempt. Even the word “owner” and the CPI areas are subdivided in the document. The topic is covered in its entirety here and it’s definitely not for the faint of heart.

Landlord Compliance Penalties

Under SB 567, non-compliant landlords can face penalties. To avoid problems, it’s best for landlords to know all the sections of the law. Tenants are also advised to know their rights and responsibilities, and seeking real estate attorneys’ counsel as either lessor or lessee provides extra protection. The CREM Group is well aware of this upcoming law and can answer questions, while still working with specialists as the law finds its footing in California vast real estate market. 

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