In 2024, California’s rental market is set to experience significant transformations due to the introduction of 10 new rental laws. These changes are crucial for landlords, property managers, and tenants alike, as they aim to address a range of issues from tenant protections to rent control adjustments. Understanding these updates is essential for successfully navigating the complexities of the California real estate market this year.

Key Legislative Changes and Their Impacts

AB 12

Security Deposit Limitations Effective July 1, 2024, California landlords are limited to collecting a maximum of one month’s rent as a security deposit. However, owners of “small properties” can request up to two months’ rent, provided they own no more than two rental properties totaling four units or less.

AB 1418

Restrictions on Nuisance Ordinance Evictions It is now more challenging to evict tenants for nuisance behavior. Municipalities are prohibited from enacting ordinances that allow eviction based on law enforcement reports, suspected criminal activity, or other alleged nuisances.

AB 1620

Accommodations for Renters with Disabilities Rent-controlled tenants with permanent mobility-related disabilities may now relocate to an accessible unit under the same ownership without changing their rental rate or terms, subject to local jurisdiction adoption and specific conditions.

SB 267

Credit History in Housing Decisions Landlords can no longer use a tenant’s credit history as the sole criterion for determining eligibility for rent-subsidized housing. Alternative verification methods, such as income, rental history, and financial reserves, are encouraged.

SB 271

Mandatory Balcony Inspections This law mandates professional inspections of balconies and external structures in buildings with three or more units, to enhance safety. Inspections must be conducted by qualified professionals by January 1, 2025, with subsequent inspections every six years.

SB 567

Enhanced Protections Under Just Cause Eviction The amendment to the Tenant Protection Act of 2019 imposes stricter requirements for landlords regarding no-fault just cause evictions. Landlords are now obligated to provide detailed advance notices. Additionally, if a landlord or their relatives move into a unit, it must occur within 90 days, and they must reside there for at least a year. Failure to comply incurs financial penalties.

SB 712

Rights for Micromobility Devices Reflecting the surge in eco-friendly transportation, tenants are now allowed to store and charge electric scooters and bikes in their apartments, contingent upon device battery compliance with specific safety standards. Landlords can require insurance for these devices and offer secure storage solutions as an alternative to in-apartment storage.

Rent Control

Statewide Rent Control

The California Tenant Protections Act of 2019, which caps annual rent increases, remains in effect until January 1, 2030. The law limits rent hikes to the lesser of 10% or 5% plus the local CPI.

City of Los Angeles Rent Adjustment

Starting February 1, 2024, a 4% rent increase is permissible for properties under the City’s rent control, with an additional 1% allowed for each utility covered by landlords. This could total up to a 6% increase for utilities-inclusive rentals.

Unincorporated L.A. County Rent Control

In unincorporated areas of Los Angeles County, landlords of rent-controlled units are permitted a rent increase of up to 3% as of February 1, 2024.

Stay Informed and Compliant

These legislative updates reflect California’s ongoing efforts to balance tenant protections with the interests of landlords and property owners. Staying informed about these laws is imperative for anyone involved in the state’s rental market. For further inquiries on how these changes may affect your properties or rental agreements, consider reaching out to a real estate professional or legal advisor specializing in California housing laws.