The California Legislature passed multiple laws last year related to renters that are now in effect. These are some of the most impactful changes that you should know about if you are a renter in California.
Just Cause Evictions (CA Civil Code 1946.2, SB567):
Previously, the law allowed a landlord to use the following “no-fault” just cause reasons for terminating a tenancy: owner moving back into the property, or owner’s spouse, domestic partner, children, grandparents, parent or grandchildren moving into the property; withdrawal of the property from the rental market; compliance with a government order or code; intent to demolish or substantially remodel the property. There was no requirement the landlord prove any of these events happened or recourse for displaced tenants if the stated events did not happen.
The April 1, 2024 change now requires landlords to provide documentation to support their just cause reasons to confirm the owner or relative moved into the property, the property was withdrawn from the rental market, a government code or order forced the eviction, or the property is being demolished or substantially remodeled. It also imposes penalties against rental property owners who fail to follow the law. Landlords are legally required to contact the former tenants and give them the opportunity to move back in.
Security Deposits (CA Civil Code Section 1950.5, AB12):
Effective July 1, 2024, security deposits are capped at one month’s rent for either furnished or unfurnished units. Previously, landlords were permitted to charge an amount equal to two months of rent for an unfurnished unit, and an amount equal to three months of rent for a furnished unit. Landlords could also charge the first month’s rent, which means that total move-in costs could’ve been as much as three months’ worth of rent.
The only exception to that rule is if a landlord owns no more than two rental dwellings that contain no more than a total of 4 units.
Still, if you are a military service member, landlords cannot charge more than the value equal to one month’s rent, plus first month’s rent regardless of the status of the owner of the rental property.
Electric scooters, bikes, and micromobility devices (CA Civil Code Section 1940.41, SB 712)
As electric scooters and bikes become a more common mode of transportation for California residents, this bill ensures that renters can store and charge such devices in their rented properties, so long as the devices meet certain safety criteria.
The device batteries must be approved by the Consumer Product Safety Commission or the European Product Standards. If they aren’t, the landlord can require the tenant to get insurance for the device and can stop the tenant from plugging it in inside the rental unit. If the landlord offers a secure place to store the device outside the unit, they can require the tenant to keep it there.
Under this law, renters can store and charge up to one personal micromobility device in their dwelling unit for each person occupying the unit, subject to the safety requirements.
Credit checks for renters with government rental subsidies like Section 8 (CA Civil Code Section 12955, SB 267)
Per the California Fair Employment and Housing Act (FEHA) In instances where a government subsidy is involved, landlords are limited to the use of financial or income standards to assess the eligibility of a prospective tenant to that portion of the rent that is to be paid by the tenant. The government subsidy portion if the rent may not be included.
In addition, landlords cannot use a person’s credit history during the rental application process without giving the applicant a chance to provide other proof of their ability to pay their portion of the rent. This proof can include things like government benefit payments, pay records, and bank statements. If the applicant chooses to provide this alternative evidence, the landlord must give them enough time to do so and must reasonably consider this evidence instead of the credit history when deciding whether to rent to the applicant.