Today, I bring you crucial information about Senate Bill 567 (SB 567) known as the Homelessness Prevention Act, and its implications for your properties. As a property management company, we strive to keep you informed about the latest legislative changes that can impact your rental properties. SB 567 has recently been approved by the California Senate and is about to go in front of the California State Assembly. Please let your California assembly person know your opinion on this bill.
Please note that while we provide valuable insights, we are not legal professionals, so it is always advisable to consult an attorney for personalized guidance.
SB 567, the Homeless Prevention Act, in California if passed will expand tenant protections and enforce regulations surrounding no-fault just cause evictions. This legislation builds upon the foundations laid by Assembly Bill 1482, and as responsible property owners, it is vital to let your voice be heard. This bill will reduce your rights to evict your tenants.
Strengthening No-Fault Just Cause Evictions
SB 567 will impose stricter conditions for no-fault just-cause evictions. For instance, if you plan to remove a tenant from your property based on your intent to occupy your property, it must be occupied by you or your immediate family members as the primary residence within 90 days and for a minimum of 12 continuous months. This requirement aims to prevent fraudulent evictions and provides tenants with greater stability.
Withdrawing Rental Units from the Market
The bill addresses situations where property owners choose to withdraw rental units from the market using no-fault just cause evictions. It will be mandatory that all rental units within a property be withdrawn from the rental market to ensure comprehensive protection for tenants. Notice of termination of tenancy must be given at least 120 days before the termination date. This provision discourages the selective removal of units and promotes homelessness for all.
Recording Notice with the County Recorder
Before withdrawing all rental units at a residential property, SB 567 will require property owners to record a notice with the county recorder. This notice must include essential details such as a description of the property, the relevant vacancy dates, and the name of the property’s record owner. It is important to comply with this requirement, as failure to do so will result in non-compliance penalties.
Tenant Displacement and Substantial Remodeling
In cases where a tenant is displaced due to substantial remodeling, SB 567 introduces additional obligations for property owners. If passed, it will be necessary to provide written notice to the tenant, including detailed information about the repairs to be completed, the expected duration of the remodeling, copies of permits required for the repairs, and the option to reoccupy the unit following repairs. This notice must also contain the following statement: “If the needed repairs are not completed on your unit, the owner must offer you the opportunity to return to your unit with a rental agreement containing the same terms as your original rental agreement at the same rental rate.” They state that complying with these requirements fosters transparency and ensures that tenants are well-informed about the remodeling process.
Enforcement and Liability
SB 567 introduces new enforcement mechanisms to address violations of its provisions. Property owners who attempt to recover possession of a rental unit in material violation of the law could face liability in civil actions brought by tenants. The damages awarded in such cases may range from the actual damage to up to three times the actual damages. Additionally, punitive damages may be imposed to discourage non-compliance. The bill also grants the state and local government jurisdiction to seek injunctive relief against non-compliant landlords.
Please be cautious with these laws if they are approved. There is still time to let our objections be heard. Staying informed about legislative updates is crucial to maintaining compliance and ensuring the smooth operation of your rental properties. SB 567, the Homeless Prevention Act, introduces important regulations regarding no-fault just-cause evictions.
As property management and landlords in the state of California, we need to make our voice heard by the California State Assembly that this is going too far. The few people who abuse their tenants are not going to comply, and this punishes those of us who are responsible, by increasing the reporting that is required.
We, at Your Home Imagined, Inc., are here if you need help navigating the complex world of being a landlord in the state of California.
May your cash flow always be positive.
