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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By David Pickron
When it comes time to perform a move-out inspection, it’s critical to engage your four senses, especially smells, to ensure that you don’t miss something that could end up costing you thousands down the line.
“Oh, I had a friend bring her little dog over maybe once or twice while I lived there.” That’s a direct quote from a recently moved-out tenant. Funny thing is, I went to the property the day after she moved out and all of the windows were open … in August … in Phoenix.
As I walked in, I caught the overwhelming odor of what seemed skunky, but I just could not put my finger on it. No wonder she wanted the windows open to air out the place and somehow save her security deposit.
When I asked her if she had been smoking or vaping marijuana, she adamantly denied it. “Did you ever have any pets in the property?” I asked. Refer to the first sentence of this article to see her answer.
I shut the property up and a few days later returned to start the rehab for my next tenants. Sure enough, when I opened the property that had been sealed shut for just a few days, the smell of urine overwhelmed me.
Turns out it was a combination of the urine smell and the smells from a nearby dairy that made me think it was initially marijuana. And just this week I met the carpet guys at the property and to no one’s surprise, when the carpets were pulled up, there were urine stains over every square inch of the carpet and pad. That little dog must have had some kind of bladder for just being there once or twice.
Now before you think I am anti-pet, I’m not. I have three adult Bernedoodles — Wellington, Winston, and Aspen — that bring me pure joy. And I’m not anti-tenant either, as I have multiple short-, mid-, and long-term rental properties that produce a great income and are valued assets. My challenge here lies in the fact that tenants will go to great lengths to avoid any extra expense that comes after they vacate a property.
When it comes time to perform a move-out inspection, it’s critical to engage your senses to ensure that you don’t miss something that could end up costing you thousands down the line. Here’s what I recommend:
No. 1 – SIGHT
If you have copies of photos from the initial move-in inspection, compare those with the current condition of the property. Things like holes in walls are obvious, but do you remember the paint color that was in the property at time of move-in? Or what appliances were there when the tenants took possession? (Was that room really pink with stars on the ceiling?)
If you own multiple properties or if a tenant has been in a home a long time, you may not remember exactly what was in place. I’ve seen tenants break my nicer appliances or fixtures and replace them with cheap ones, hoping I wouldn’t notice. Always, always take pictures of the property before a tenant takes possession so you don’t have to rely on memory.
No. 2 – SMELL
As my story above illustrates, the nose always knows. What I didn’t tell you is a week prior to the tenants moving out, I visited the property and it smelled great. The tenant asked specifically when I would be arriving and dolled the place up with air fresheners.
Quite literally, if it doesn’t pass the smell test, something is likely wrong at the property. To get the best results, turn off the HVAC system for a couple of days and seal the house up. Smells such as cigarette or marijuana smoke, mildew, or pet urine will become more pronounced once the air stops moving.
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No. 3 – SOUND
When I walk into a vacated home, I listen for all types of sounds. Is there an unreported leak somewhere that I can hear, as in the toilet? When the HVAC system turns on, does it sound right? Maybe I should inspect the filter to see why the A/C is struggling. Same goes for dishwashers and washers and dryers. Run all the faucets in the home and listen for any issues that might be related to the plumbing.
No. 4 – TOUCH
During the move-out inspection, I like to feel for things like drywall repairs the homeowner may have completed. Open the cupboards and make sure they glide smoothly. A lot of homes now have stone countertops, and depending on the stone, it may visually hide gouges or cracks caused by homeowner behavior. I also feel with my feet as I walk the property, as unreported water leaks can lead to warped or loose floors that I may not see but can definitely feel.
I teach new landlords all the time about the importance of finding the right tenant to be their “business partner” in maintaining and caring for a property. But even the best tenants can and do create problems for us as housing providers when they move out of our properties. Little things are expected, but when it comes to professionally and effectively managing our portfolios, we have to use everything in our arsenals to protect our assets. Using your senses to sense scents (and other issues) just makes sense.
Speaking of making sense, require a security deposit big enough to cover carpet replacement, as that is usually the biggest replacement item that holds those offending odors.
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By Jonathan Forisha
Renting a Section 8 home can be a tricky situation to navigate. Also known as the Housing Choice Voucher Program, Section 8 is a federal initiative to help low-income families, older adults, and people with disabilities rent homes. There are rules for tenants and landlords to be aware of, and deciding to enter the program could be a complicated proposition.
In this Section 8 rental guide, we’ll dive deep into the ins and outs of this federal assistance program so you can decide if it’s right for you.
Key Insights
- Section 8, otherwise known as the Housing Choice Voucher Program, has existed since 1974 and provides affordable housing options to low-income individuals and families across the United States.
- Section 8 evaluates applicants based on income, the amount of which varies based on where the tenant lives. The government will pay 30%-80% of the rent depending on the tenant’s income level.
- Any landlord can apply to offer Section 8 housing with single-family or multi-family units by contacting the local PHA office and following the application process.
Understanding Section 8 Housing
The Section 8 program was created by Congress in 1974 and is run by the U.S. Department of Housing and Urban Development (HUD). The goal is to make housing more affordable for individuals and families via federal subsidies.
Section 8 eligibility is determined by the total annual income and family size of U.S. citizens and some immigrants based on their status. There are two types of Section 8 housing programs: “project-based” programs, where eligible properties are linked to specific apartment complexes, and voucher programs, where tenants can choose a unit in the private sector and a public housing agency (PHA) pays Section 8 funds directly to the landlord.
Local PHAs — either by state, county, or city — have some flexibility in implementing a Section 8 program, but generally, if an applicant makes less than the median income for the area, they can qualify for the subsidy. The tenant must pay a percentage of their median income as rent, while the Section 8 funds cover the rest.
There are three categories that the program considers:
- Extremely low income: income doesn’t exceed the federal poverty level or 30% of the area’s median income.
- Very low income: income equates to 50% of the area’s median income.
- Low income: income represents 80% of the area’s median income
Median income can vary significantly by location, so check with your local PHA to identify the income level that they recognize.
For landlords, offering Section 8 housing is not required. Landlords can opt into the program for a number of reasons. However, there are some states and counties in which you cannot refuse to accept a Housing Choice Voucher.
In the next section, we’ll review the Section 8 application process for landlords.
How to Become a Section 8 Landlord: Step-by-Step Guide
Interested landlords can visit their local PHA to gather the necessary paperwork and understand the guidelines specific to the community. Generally speaking, Section 8 landlords will need to do the following:
-
- Complete an application, providing personal identification, property details, and the asking rent price.
- Complete a property inspection. The government requires specific property standards to qualify as a Section 8 home, which might be more stringent than if the property were available on the regular housing market.
You can view a complete list of these requirements on the HUD website, but a few areas of focus are:
-
- Working plumbing and sanitary facilities
- No lead-based paint
- A safe and adequate heating system
- No evidence of roach or vermin infestation
If your property passes the inspection and the application is approved, landlords can start accepting tenants who qualify for Section 8 assistance.
Advantages and Disadvantages of Renting a Section 8 Home
For tenants, there are a lot of advantages to Section 8 housing if you qualify. Section 8 benefits provide access to affordable and safe housing for lower-income individuals and families, which would otherwise be unavailable. Renting a Section 8 home allows families to live in safe and desirable neighborhoods that might otherwise be unaffordable.
However, in many areas, the waitlist for Section 8 vouchers can be quite long — as long as 2-3 years in some places due to high demand.
For landlords, becoming a part of the Section 8 housing program can provide a steady and reliable source of qualified applicants vetted by their respective PHA. Not only is the pool of applicants readily available, but tenants often stay for longer periods of time when they’ve found stable and reliable housing.
Additionally, the chances of late or unpaid rent are significantly reduced as the government covers a portion of the rent payment. On the other hand, the inspection process can be burdensome in some cases since it’s significantly more strict than the landlord-tenant laws typically dictate, and correcting issues flagged by a government inspection can be lengthy and expensive.
Also, it’s typical for your first rent payment from the government to be late as you enter the system — but once you’re established in the system, the money you’re owed will come through, and future payments should arrive on time.
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Navigating Section 8 Inspections and Regulations
All Section 8 homes must pass a rigorous inspection to qualify for the program. The U.S. Department of Housing and Urban Development has set a baseline for the Housing Quality Standards (HQS) to ensure all properties are safe, sanitary, and decent.
There are 13 key aspects of housing quality covered by the HQS:
-
-
- Sanitary facilities
- Food preparation and refuse disposal
- Space and security
- Thermal environment
- Illumination and electricity
- Structure and materials
- Interior air quality
- Water supply
- Lead-based paint
- Access
- Site and neighborhood
- Sanitary condition
- Smoke detectors
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After the initial inspection, annual inspections are also required to ensure that landlords and tenants maintain the property in accordance with HQS regulations. Special inspections may also be scheduled if there are complaints from tenants or landlords about the condition of a Section 8 property.
Please visit the HUD website for more information and specific details on the HQS and inspections.
Common Misconceptions About Section 8 Rentals
There are a number of aspects that the public, landlords, and tenants often misunderstand about what Section 8 is and how it works. In this section, we’ll debunk some of the most common misconceptions about renting a Section 8 home.
Section 8 Housing Is Not the Same as Public Housing
Participants in the Section 8 program lease private units, and tenants receive government assistance to pay rent costs. However, the units are privately owned and not owned and operated by the government, unlike public housing.
Section 8 Tenants Must Contribute to a Portion of Their Rent
Tenants who apply for Section 8 housing must be employed and pay a percentage of the rent, depending on income level. The government voucher will cover the remaining 30-80% of the rent, depending on how much the tenant makes.
Section 8 Housing Is Easy to Get
Due to increasing housing costs and stagnant wages in many areas of the country, waiting lists for Section 8 can be incredibly long and slow-moving. Contact your local PHA to check on the waitlist status and for guidance on navigating the process as smoothly as possible.
How TurboTenant Can Help with Section 8 Rentals
For landlords renting their units to Section 8 tenants, TurboTenant is an incredibly powerful tool. TurboTenant is an advanced property management software that can help landlords and tenants stay connected through an easy-to-use platform, complete with messaging capabilities.
While PHA’s handle income verification for Section 8 tenants, TurboTenant features comprehensive tenant screening services to help ensure landlords rent to the most qualified tenants. Once your tenants are moved in, TurboTenant’s maintenance tracking features simplify renter requests, empowering you to tackle everything from routine work to critical repairs. This makes passing the program’s annual inspections a breeze.
Finally, TurboTenant’s financial management and reporting tools uncomplicate tracking payments from your tenants and the government so that you can understand how your investments are performing at a glance.
There are so many ways that TurboTenant can help landlords and tenants for all Section 8 and non-Section 8 rental situations, so sign up for a free account today!
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