Being a landlord can be a never-ending process of looking into ever-changing laws and guidelines that impact how you manage your rental home. Keeping up-to-date on these laws and ensuring you are remaining compliant is essential when it comes to being a great landlord and protecting yourself against legal troubles.
Below we have highlighted a few of the changes that are impacting landlords and property managers in California in 2022:
The COVID Tenant Relief Act (CTRA) is an act we have discussed throughout the COVID-19 pandemic and has been extended numerous times. You can read our previous articles detailing CTRA, here. While most of these new laws or ordinances have passed, there may still be local ordinances that you need to look out for, as a result of changing COVID-19 laws. We recommend that you look into your local laws to determine what will impact you.
Additionally, there is a mobile home rent cap (part of AB 978) which has been extended. This ensures that rent increases will be limited to the lower of 3% plus CPI or 5%, of the lowest gross rent charged in the previous calendar year. This new change has the same expiration date as AB1482, which has a sunset date of January 1, 2030.
AB 838 is a state mandated program that created new obligations on code enforcement agencies. Starting on July 1, 2022, if a city or council is notified of poor living conditions or the presence of hazards in rental units, they must provide an inspection and notify the property owner of any issues requiring attention. This law requires that certified copies of the inspection must be provided to the property owner and the individual who filed the complaint, for free.
Mold disclosures, by January 1 of 2022, must be provided by landlords/property managers to tenants prior to move in or entering a lease agreement, according to Health and Safety Code 26148. This can be provided in writing via a mold booklet. The California Department of Health provides this booklet for free, in English and Spanish, here.
The HUD Interim Rule, also known as an Extension of Time Required Disclosures for Notification of Nonpayment of Rent, allows the HUD to declare an extension of time for nonpayment of rent when there is funding available federally. This extension is a minimum of 30 days. You can learn more about this, by visiting the Federal Register, here.
AB 468 discusses Emotional Support Animals (ESAs), stating that in 2022 there will be additional restrictions placed on those selling ESAs and those in health care that provide verification for the need of an emotional support animal. It also states that health care professionals must follow specific guidelines in order to provide someone with ESA documentation. These guidelines can include an established practitioner/patient relationship for at least 30 days, holding a valid license to practice, and completing a clinical evaluation for the individual who will be the recipient of the ESA documentation. Laws surrounding ESAs can be confusing, and we recommend reaching out to a professional to consult to ensure you are staying compliant with federal, state and local laws.
Criminal background checks have also recently changed, after the California Court of Appeals ruled that a driver’s license number or date of birth cannot be used to electronically search criminal court records. There are already limitations on what you are allowed to inquire about regarding someone’s criminal history, and there will likely be more restrictions in the future.
Finally, the Investigative Consumer Reporting Agencies Act and Applicant Screening now requires landlords to disclose to potential tenants, in writing, that an investigative consumer report will be conducted. These reports can include gathering information about the applicant’s character, reputation, mode of living and more. The property manager or landlord must provide the name and contact information of the agency conducting the report, as well as requiring that the applicant check a specific checkbox to receive a copy of the report.
We recommend that all landlords, especially those who are self-managing, and property managers consult a law firm that specializes in real estate law in an effort to protect themselves, stay up-to-date on current laws, and receive advice specific to their property or situations. If you are looking to learn more about legal updates in 2022, you can visit the 2022 Legislative Update for Residential Landlords and Property Managers, here.
The information in this article was taken from Kimball, Tirey and St. John LLP, and Rincon Property Management does not intend any information in this article to serve as legal advice or input.
