Understanding SB567 for Landlords

California's ever-evolving rental laws have been a topic of concern for both landlords and tenants, especially in prime rental property locations such as in Ventura County, California. As a landlord, ensuring you are in the loop about these changes is crucial for maintaining a successful rental property business. Senate Bill 567 (SB567), introduces new provisions that directly impact landlords and their rental properties. In this article, we will explore these changes and help landlords understand what to expect.

Effective Date

SB 567 is set to become effective on April 1, 2024. This means that landlords must prepare for these changes and adjust their rental property management practices accordingly.

Extended Tenant Protections

One of the key aspects of SB567 is the extension of tenant protections. Existing law stipulates that after a tenant has continuously and lawfully occupied a residential property for 12 months, the owner cannot terminate the tenancy without just cause. Just causes are typically related to tenant behavior, such as lease violations or failure to pay rent. However, SB 567 introduces changes specifically related to "no-fault" just causes, which do not result from tenant misconduct.

• Intent to Occupy: With the new law, if a landlord intends to occupy the rental property, either themselves or through family members, they are now required to occupy it as their primary residence for a minimum of 12 continuous months. This means that landlords who previously sought to reclaim their property for personal use will now have to commit to a more extended period of occupancy.
• Withdrawal from Rental Market: If a landlord decides to withdraw the rental units from the market, they must follow specific procedures outlined in the bill. This ensures that rental units are not withdrawn without due consideration and notification.
• Substantial Remodel or Demolition: In the case of substantial remodel or demolition, landlords must provide tenants with detailed written notices that include information about the remodel or demolition, expected durations, and copies of the necessary permits. This process aims to create transparency and help tenants make informed decisions about their housing situation.

Enforcement Mechanisms

SB567 introduces new enforcement mechanisms to ensure compliance with these provisions. Landlords who fail to adhere to the law may face significant consequences, including financial penalties and legal actions. It is in a landlord’s best interest to seek professional help or consult a legal real estate professional. 

If an owner attempts to recover possession of a rental unit in violation of the new provisions, they may be held liable in a civil action for damages. Tenants can potentially receive up to three times the actual damages in addition to punitive damages.

Rent Control Adjustments

SB 567 introduces additional constraints. Landlords who demand, accept, receive, or retain any payment of rent in excess of the maximum allowable rent increase could face civil actions from their tenants. If found to have acted willfully or with oppression, fraud, or malice, landlords may be liable for damages of up to three times the amount by which they exceeded the maximum allowable rent.

What Landlords Should Expect

Landlords in California should be prepared for these legislative changes and the resulting shifts in the rental market. Here are some practical steps to consider:

• Education: Stay informed about the specifics of SB 567. Understand the new provisions and how they affect your rental properties.
• Communication: Open and honest communication with tenants is vital. Make sure to provide required notices as outlined in the bill and address any tenant concerns.
• Documentation: Keep detailed records of your occupancy, rent increases, and any substantial remodel or demolition plans.
• Legal Consultation: If in doubt, consult with a legal professional who specializes in landlord-tenant law. They can help you navigate the complexities of the new regulations.
• Financial Planning: Consider the potential impact of penalties for non-compliance. Adjust your financial planning to account for any legal expenses or damages you may have to pay.

While SB 567 introduces new challenges for California landlords, By understanding and complying with the new provisions, landlords can continue to thrive in the dynamic California rental market while promoting positive landlord-tenant relationships.

If you are interested in learning more about what working with a property management company would look like, reach out to us today!