Welcome to Landlord Center
Property Management Resources for Landlords
Tips, Tricks, Tools & Time-Savers from Real Property Managers
- NEW 2023 RESIDENT MANAGER LAWS: For your protection, you should have a new, updated, written, legal Resident Manager Agreement containing all NEW LAWS.
- L.A. CITY COUNCIL ENDS LOCAL EMERGENCY: The end date for the local emergency is on February 1, 2023 and also ends the city’s eviction moratorium and rent increase freeze. Renters will have up to twelve months to repay deferred rent owed depending on when the rental debt was accrued. The city’s rent increase freeze will end on February 1, 2024 – one year after this end date.
- CITIES WITH NEW RENT CONTROLS: Fairfax, Bell Gardens, Pasadena, Pomona and Antioch
- CITIES STRENGTHENING RENT CONTROLS:
- Oakland – Expands just-cause protections
- Richmond – Tightens existing rent control increases
- Santa Monica -Tightens existing rent control increases
- SB 721, and SB 326: BALCONY INSPECTION LAW: For multifamily housing, condominiums and buildings with more than three dwelling units. The first inspections AND any ensuing repairs require completion by January 1, 2025. Property owners have until January 1, 2025, to complete and file the inspection report. Re-inspection is required every six (6) years.
- SB 1383 – MANDATORY STATEWIDE WASTE COLLECTION: This bill requires multifamily apartments of five or more units to have a system for their residents by 2025 to collect their organic waste (like food scraps) and have it transported to a compost facility.
- RENT INCREASE NOTICES: Rental increase of more than 10% now requires a 90-day notice rather than 60-day notice.
- NEW SANTA ANA NOTICES: Property owners are required to provide written notice of the Ordinance and tenants’ rights at the commencement of a lease or as part of any notice to increase rent. The notice shall be written in the language that the Owner and Tenant used to negotiate the terms of the Tenancy (e.g., Spanish, Chinese, Tagalog, Vietnamese, and Korean), as well as in English and in a form prescribed by the City. Notices in English can be found on our website – www.aoausa.com. Notices in other languages can be found at the following website: https://tinyurl.com/mr362tmw.
- SB 329 -SECTION 8 APPLICANTS: Housing Discrimination prohibits landlords from discriminating against tenants who rely on housing assistance paid directly to landlords, such as a Section 8 voucher, to help them pay the rent. All Section 8 applicants MUST be considered. You may no longer advertise or state that you do not accept Section 8.
- NEW RENTAL AGREEMENTS FORMS: Be sure to use newest updated Rental Agreement/and or Lease which is available to our clients.
- REQUIRED FLOOD DISCLOSURE FORM: Remember to include a copy of the Flood Disclosure form with all new rental agreements.
- REQUIRED BEDBUG FORM: Information on Bedbugs must always be included with all new rental agreements.
- RESIDENT MANAGER HOURS: Be sure to have your resident manager report their hours in writing to you on a weekly basis.
- NEW 3-DAY NOTICE to PAY RENT: Always serve in a timely fashion – immediately – the day after rent is due. Any grace period given in your lease only refers to late fees, not when rent is due. Remember, weekends and judicial holidays can no longer be included or counted in the 3-day response period.
- AB 468 – EMOTIONAL SUPPORT ANIMALS -This bill became effective Jan. of last year and prohibits a licensed physician from providing documentation about an individual’s need for an emotional support animal without establishing a relationship with the individual for at least 30 days. Also, the physician must complete an in-person clinical evaluation of the individual who requests the emotional support animal. Be sure to get proper documentation from applicants and/or current tenants..
- FAIR HOUSING POSTER: Federal Fair Housing law requires every property with four or more units to have a fair housing poster displayed in a conspicuous location on the property. It must be a minimum of 11 x 14 inches to be in compliance. If you don’t have one posted.
- SMOKE/CO DETECTORS: Have your smoke and carbon monoxide detectors checked every six months. At that time, also inspect your units regularly for plumbing leaks and other needed repairs; preventative maintenance saves you money.
- RENTAL QUALIFICATION FORM: Standardize and write down your rental criteria requirements to avoid discrimination lawsuits. This should be given to each new applicant with your application to rent. A simple, fillable form of a criteria list has been designed for your convenience.
- SCREENING FEE RECEIPT: Rental housing providers must provide an itemized receipt when collecting an application screening fee.
- RUN TENANT SCREENING REPORTS: Search credit, eviction and criminal reports on all of your prospective renters.
- MOVE-IN/MOVE-OUT: Always conduct enter and exit checklist inspections. Take pictures of your unit before move-in and upon move-out. As they say … pictures are worth a thousand words – especially in court.
- SUPPORT THE INDUSTRY: Always obtain competitive bids to cut expenses and make sure repairs are done right the first time.
- Consider accepting pets to your rent pool – many responsible pet owners make great tenants.
- Call Real Property Management for Commercial Brokerage BEFORE you buy or sell an apartment building. Our professional agents have been serving our members’ needs for over 35 years.
- REQUIRED AB 2330 WALK-THROUGH (Move-Out) – Be sure to offer your vacating tenant the required AB2330 Walk-Through “pre-inspection” no sooner than two weeks prior to the move-out date.
- SECURITY DEPOSIT REFUNDS: Send back security deposits within the 21 day legal time frame, including the necessary receipts/invoices for each item when deductions total over $125.00.
2025 Privacy Law Highlights
California’s surveillance laws are strict and require property owners and managers to balance security with individual privacy, especially as new regulations take effect in 2025.
2025 Privacy Law Highlights
- AB 1355 (California Location Privacy Act): Restricts how camera location data is stored and shared, mandates the deletion of certain footage (like facial recognition and license plates) within 30 days, and requires signage if recording extends beyond property lines.
- Workplace Accountability Acts (AB 1331 & WAA): For employers, these laws require 14 days’ written notice and visible signs before introducing new monitoring, limit surveillance to legitimate business purposes, and ban monitoring in “off-duty” zones (like break rooms and cafeterias).
Balancing Security and Privacy
- Video Recordings: Allowed in public or common areas (entrances, lobbies, parking lots) but prohibited in areas with a “reasonable expectation of privacy” (living spaces, bathrooms, private patios). Covert or hidden cameras in private spaces are illegal (Penal Code §647).
- Audio Recordings: California is a two-party consent state. Recording private conversations without the consent of all parties is illegal (Penal Code §632) and generally inadmissible in court. Surveillance devices should have audio disabled.
Compliance and Penalties
- Signage: While not always required, posting clear, visible notices and including privacy language in leases are best practices for managing privacy expectations and reducing disputes.
- Installation: Many cities and counties require permits. Commercial or public property systems require a State Contractors License for installation.
- Penalties: Violations can result in severe consequences, including criminal penalties of up to $2,500 and 1 year in jail, and civil penalties of up to $3,000 per violation, plus legal fees.
Best Practices for Security Camera Use
Always place cameras to avoid capturing the interior of private residences, work with licensed installers, and set data retention policies (e.g., 30–90 days for general footage) while promptly deleting unnecessary data as required by law.
New Laws for Housing Providers (2025)
AB2801 (effective July 1, 2025)
AB 2801 aims to enhance transparency and fairness in the rental relationship. Effective July 1, 2025, the legislation will ensure that tenants have clear evidence of any issues leading to security deposit deductions.
One of its goals is to prevent arbitrary or unjustified charges. To achieve this end, effective April 1, 2025, AB 2801 requires rental property owners to take photos of the rental unit before or at the start of the tenancy,
AB2747 (effective April 1, 2025)
Credit scores are designed to reflect the good and the bad of a person’s financial history. Millions of renters around the state are paying their rent on time yet never see a positive impact on their credit scores. AB 2747 requires owners to allow renters to opt into positive rent reporting for their credit scores but does not impact small property owners since it only applies to buildings with more than 15 units.
SB611 (effective April 1, 2025)
SB611 changes three things that owners need to be aware of:
- Bans owners from charging tenants for termination notices such as 3-day pay or quit notices
- Requires owners to allow tenants to pay rent and security deposits by at least on form other than cash or electronic funds transfer.
- Address owners who require more than one times the rent for security in any form for military service members.
SB 1037 (effective January 1, 2025)
SB 1037 explicitly seeks to help address the statewide housing shortage by addressing local governments’ “delay and at times, even refusal, to undertake required actions to encourage, promote, and facilitate the development of housing.”
Currently, if a municipality fails to adhere to the state’s housing laws, the Attorney General must file a lawsuit, and only after a judge rules a municipality is out of compliance with the housing laws can the Attorney General seek civil penalties against the municipality, which do not begin to accrue until 60 days after the judge’s ruling.
By design, this was to allow local governments sufficient time to comply before any monetary penalties are issued.
SB1037 will allow the Attorney General to seek penalties starting on the date the housing law violation began, thereby providing a stronger disincentive for local municipalities to disregard state housing requirements.
Los Angeles Rent Stabilization Ordinance (LARSO)
Landlords of properties located within the City of Los Angeles that are subject to the Los Angeles Rent Stabilization Ordinance (LARSO), also known as Rent Control, are required to pay tenants interest on their security deposits, under specific regulations.
Property owners in Pasadena are required to pay interest on security deposits to the Tenants. The 2024 security deposit interest rate is 0.41%. Property
Recently, tenant attorneys have increasingly and successfully used landlords’ non-compliance with these security deposit interest requirements as a defense in eviction proceedings. This is now a common tactic and no longer a rare occurrence. To protect your interests and avoid jeopardizing eviction actions, I strongly recommend that you review and update your security deposit interest procedures to ensure full compliance with the applicable law.
There are two key compliance issues:
- Determining the Correct Interest Rate: The required interest rate is set annually by each City.
- Proper Method and Timing of Payment: This is where many landlords inadvertently fail to comply. The most common mistake is waiting until the end of the tenancy to calculate and pay the accumulated interest along with the security deposit refund. This approach does not satisfy the requirements of LAMC Section 151.06.02.
Here is a direct citation from the Los Angeles Municipal Code, LAMC Section 151.06.02
“Interest shall begin accruing on November 1, 1990, on a monthly basis. A tenant shall be given the unpaid accrued interest in the form of either a direct payment or a credit against the tenant’s rent. The landlord shall choose between these two methods of payment and notify the tenant in writing of his or her choice. The landlord may elect to pay the accrued interest on a monthly or yearly basis.”
Recommendations
- Ensure your security deposit interest payments are made either monthly or annually, as required.
- Decide whether to pay interest directly or as a rent credit and provide written notice to your tenants of your chosen method.
- For new tenancies, include this notice in your lease agreements. For existing tenants, issue a written notice or letter informing them of your chosen method.
- If you are in arrears on paying security deposit interest, be sure to get caught up as soon as possible.
Failure to comply with these requirements can result in the loss of eviction cases and other legal complications.
Santa Monica City Council Passes Avalanche of New Owner Restrictions
- Housing Status as a Protected Classification (SMMC 4.28.030(a), (b), (c)): Discrimination based on housing status, including homelessness or lack of rental history, is strictly prohibited.
- Permanent Relocation for Economic Displacement (SMMC 4.36.020(a)(5))
- Additional Reasons for Permanent Relocation Fees (SMMC 4.56.020)
- Permanent Relocation for Other Reasons (SMMC 4.36.010(a)(6)-(8))
- Expansion of Buyout Code to Non-Rent Controlled Units (SMMC 4.57)
- Minimum Buyout Amount Requirement and Defense for Non-Registration (SMMC 4.57.020(b)(7), (c)(3))
- New Disclosure Language (SMMC 4.57.020(b)(7), (8))
- Evictions Based on Bad Faith Excessive Rent Increases (SMMC 4.27.090)
- Prohibited Activities (SMMC 4.56.020(a), (k), (m), (n))
- Potential Penalties (SMMC 4.56.040(c))
- Section 8 Discrimination (SMMC 4.28.030(i))
HOAs – New Laws & Cases (2023)
published by Adams Sterling PLC
AB 572. Assessment Limitation. Beginning 1-1-25, new associations with affordable housing are limited to assessment increases for affordable housing to 5% + cost of living, not to exceed 10% greater than the preceding regular assessment.
AB 648. Virtual Meetings. Beginning 1-1-24, associations can hold virtual without the need for a physical location, provided the notice of meeting contains technical instructions, access to technical assistance, provide a phone option, and the board takes roll call votes. Meetings where member votes are tabulated must designate a physical location.
AB 648. ADUs Into Condos. Local agencies can adopt ordinances to allow owners to convert their ADUs into condominiums (with association approval), which can then be sold separately from the main dwelling.
AB 1458. Adjourned Meeting Quorum. If an association cannot meet a quorum to elect directors, members can adjourn the meeting for at least 20 days, and the quorum is reduced to 20% (unless the bylaws provide for a lower quorum).
AB 1572. Potable Water. Beginning 1-1-29, associations cannot use potable water to irrigate nonfunctional turf, which is defined as turf enclosed to permanently preclude human access for recreation, and turf in street rights-of-way and parking lots.
AB 1764. Election Term Limits. If term limits are in place, an incumbent director must step down when termed out. If a nominee for the board is disqualified, existing directors must comply with the same requirements when the directors are up for election.
SB 71. Small Claims Court. Going into the new year, small claims limits will be raised from $10,000 to $12,500 if brought by a natural person. They go from $5,000 to $6,250 if brought by companies (such as associations). The bill also increases the limit on the amount in controversy for limited civil actions from $25,000 to $35,000.
Lender Guidelines. Fannie Mae and Freddie Mac issued new lender guidelines that impact most condominium developments in California. They require more documentation regarding insurance, building inspections, deferred maintenance, and structural safety issues.
Corporate Transparency Act. Beginning January 1, 2025, associations with less than $5 million in gross receipts and fewer than 20 full-time employees will need to file the names of their directors, their birth dates, home addresses, and driver’s license information with the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.
Regional Housing Needs Assessment (RHNA)
Here in California, we have a state law that mandates local governments to conduct a Regional Housing Needs Assessment (RHNA) – you might hear the acronym pronounced as “reena”. Cities often talk about their RHNA goals and meeting their affordable housing objectives, but how does this work?
CryptoCurrency and Down Payments
According to a Redfin report, one in nine first-time homebuyers (11.6 percent) surveyed in the fourth quarter said selling cryptocurrency helped them save for a down payment.
Redfin commissioned a survey of 1,500 residents planning to buy or sell a home in the next 12 months. Surging home prices are leading to larger down payments, so some buyers are finding non-traditional ways to cover the cost and compete with other bidders.
Download PDF – Courtesy of Provident Title
California Tax Increase Proposal
Assembly Bill 1400, an estimated $163 billion measure, is poised to create a single-payer health care system for all California residents regardless of immigration status.
A proposed constitutional amendment (Assembly Constitutional Amendment 77) would increase taxes by $72,250 per household, roughly doubling the state’s already high tax collections, to fund the single-payer healthcare system. California businesses may also be looking at an increase in the unemployment tax.
Download PDF – Courtesy of Provident Title
Rising Rates May Not Slow Home Sales
Potential existing home sales decreased to a 6.26 million seasonally adjusted annualized rate (SAAR), a 0.3 percent month-over-month decrease, according to the November First American potential home sales model. That’s a 79.5 percent increase from the market potential low point reached in February 1993.
The market potential for existing home sales increased 7.2 percent year-over-year, a gain of 422,000 SAAR sales, outperforming its potential by 9.4 percent, or an estimated 586,000 SAAR sales.
Download PDF – Courtesy of Provident Title
