California has passed several new laws for 2024 that landlords must be aware of to remain compliant and ensure they manage their properties effectively. We’re here to break down the  most significant changes and how they could impact you as a property owner. 

1. Expansion of Rent Control Measures

California has been incrementally strengthening rent control regulations, and 2024 is no exception. Under the updated rules, the California Tenant Protection Act (AB 1482) has seen its rent caps tightened. Now, landlords can only increase rent by a maximum of 7% plus the local rate of inflation, with an overall cap of 10% annually, down from the previous 15%. This change applies to all properties covered under AB 1482, including most apartment buildings and multi-family dwellings built before 2005. If you own a SFR as an individual or a personal trust,  you should be exempt from these caps. Keep in mind: when higher rent increases are given, it requires more notice to your tenant(s)!

2. Just Cause Eviction Protections

The Just Cause for Eviction Ordinance has been further solidified with stricter requirements in 2024 with Senate Bill SB 567. Now, landlords must provide a more detailed explanation when evicting a tenant for "no-fault" reasons, such as owner move-in or substantial renovations. Additionally, the required relocation assistance for tenants facing no-fault evictions has been increased, mandating landlords to cover one or more month’s rent at the current market rate in their city. 

We went into more detail on this in a past blog post - check it out for more details and ensure you’ve notified your tenant if you’re exempt from this ordinance to avoid penalties and fees later! 

3. Security Deposit Limits

California updated AB 12 Civil Code Section 1950.5 for 2024 that limits the maximum security deposit to 1 month’s rent*. Previously it was capped at 2 month’s rent for unfurnished rental properties. This applies to all lease agreements signed after July 1st, 2024. Note: this INCLUDES a pet deposit - total deposits need to not exceed 1 month’s rent. And as far as pets go, keep an eye out for Assembly Bill 2216 in 2025 regarding the future of pets and rentals. 

*There are some exemptions for smaller landlords. 

So, what now?

For landlords, staying compliant means regularly reviewing and updating rental agreements, maintaining open communication with tenants, and seeking legal counsel when in doubt. The changes in 2024 may require some adjustments, contracts addendums, etc. 

Do you have questions about your rental property or how these laws will affect your current leases? Heritage Coast is here to help! Send us an email at Hello@HeritageCoastHomes.com or give us a call at 714-472-3492 to get answers to your questions.