2024 California Law Updates that Mean Big Changes for Landlords and Tenants

By Emily Koelsch 

California passed two bills in 2024 that impact Landlords and Tenants. We’ve updated our site with the necessary changes. To help Landlords comply with these new requirements, here’s a summary of the 2024 changes to California Landlord-Tenant laws. 

Assembly Bill 12 – Changes to Security Deposit Regulations

Assembly Bill 12 went into effect on July 1, 2024. It limits security deposits to one month’s rent for furnished and unfurnished rental units. This is a significant change from the previous limit of 2 months’ rent for unfurnished rental units and 3 months’ rent for furnished rental units. 

Bill 12 provides a notable exemption for “Small Landlords.” A “Small Landlord” is defined as a Landlord who: 

• Owns no more than 2 residential rental properties that include no more than 4 dwelling units; and 
• Holds the properties as a natural person, an LLC where all members are natural persons, or as a family trust. 

Landlords who meet this qualification may charge up to 2 months’ rent for the security deposit. 

Any Landlord who qualifies for this exemption and charges 2 months’ rent should provide Tenants with this Exemption Disclosure documenting that they fall into the category of Small Landlord. 

California Senate Bill 567 – Changes to No-Fault Evictions

California Bill 567 went into on April 1, 2024. Here are the notable impacts it has for Landlords: 

No-Fault Just Cause Evictions 

Bill 567 changes the requirements for terminating a Tenancy due to the Landlord moving in and substantial remodels. 

Under California Civil Code § 1946.2, Landlords may not terminate a Tenancy if Tenants have been in a property for at least 12 months without “just cause.” Landlords may terminate a Tenancy for no-fault just cause if: 

• The Landlord or the Landlord’s spouse, domestic partner, children, grandchildren, parents, and/or grandparents intend to occupy the property; 
• The Landlord plans to withdraw the property from the rental market; 
• A government order requiring the Landlord to remove Tenants from the property; or
• Intent to demolish or substantially remodel the property. 

Landlord or Family Member Moving Into the Rental Unit 

As of April 1, 2024, Landlords may only terminate a Tenancy for the owner moving in if: 

• The individual moving in is the owner or the owner’s spouse, domestic partner, child, grandchild, parent, or grandparent. 
• The family member moves in within 90 days of the end of the Tenancy. 
• The family member resides in the rental unit for at least 12 months as a primary residence. 

Landlords who meet these requirements must provide Tenants with a 60-day Notice to Vacate that includes the name and familial relationship of the person moving into the property. 

Landlords who violate this requirement can be subject to monetary damages including treble damages and punitive damages. 

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Substantial Renovations

Bill 567 also sets out new requirements for Landlords who terminate a Tenancy for substantial renovations. 

As of April 1, 2024, to terminate a Tenancy for substantial renovations, Landlords must provide Tenants with a Notice to Vacate that: 

• Includes details about the work being completed, including when it’s starting and how long it will last;
• Attaches all applicable permits; 
• Notifies the Tenants of their right to reoccupy the property if the work isn’t started or completed; and 
• Advises Tenants that they should give the owner their contact information if they’re interested in re-occupying the property after renovations. 

Government authorities can seek injunctive relief and monetary damages against Landlords who violate these provisions. 

Limits on Rent Increases

Bill 567 also states that the current limits on rent increases will be in effect until January 1, 2030. The current statewide rent control limits rent increases in a 12-month period to not more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower. 

Owners who violate the rent control laws are liable to Tenants for damages up to three times the amount that rent payments exceed these limitations. 

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We’ve updated our Lease Builder, forms, and site with these changes. If you have questions or concerns about the new laws, contact our team to learn more. 

You can also log in to your account to access all of our California Property Management Forms.

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