Here Are the New California Rental Laws Taking Effect in 2024

Writen by: on January 3, 2024


California’s 2024 rental laws bring pivotal changes for renters, particularly in accessibility, financial criteria, and security deposit regulations.

Key Takeaways:

  • New California laws in 2024 significantly impact renters, especially those with mobility disabilities and those applying for rent-controlled properties.
  • Renters with mobility issues in rent-controlled buildings can relocate to more accessible units without rent increase.
  • Assembly Bill 1620 limits rent resets in rent-controlled apartments.
  • Senate Bill 267 prohibits credit history use in rental applications, allowing alternative proof of payment capacity.
  • Starting July 1, security deposits for furnished units are capped at one month’s rent.

Now that we are officially into the new year, it’s crucial for future renters to understand the new laws affecting lease agreements in California.

Understadning new 2024 CA rental reforms

California Governor Gavin Newsom signed several bills into law that directly impact future renters. These laws offer enhanced protections, especially for those with permanent mobility disabilities.

One key law, effective from January 1, enables renters with mobility issues to move to a more accessible unit within the same rent-controlled building without facing a rent increase. This law applies to properties with five or more units and modifies the existing Costa-Hawkins Act, which previously allowed landlords to reset rents to market rates for new leases, posing challenges for disabled renters seeking accessible housing.

In addition, Senate Bill 267, effective from the same date, aims to make the rental application process more inclusive. It prohibits the reliance on credit history for applicants of government-subsidized housing, such as Section 8. Instead, it allows potential renters to present alternative evidence of their ability to pay rent, like government benefit payments, pay records, and bank statements.

A significant change coming mid-year, on July 1, is the capping of security deposits. For furnished rental units, the security deposit will be limited to one month’s rent. This cap, however, exempts owners with no more than two rental properties comprising up to four units, who can still request up to two months’ rent as a deposit.

These new regulations, particularly Assembly Bill 1620 and Senate Bill 267, represent a progressive shift in California’s approach to housing laws, focusing on fairness and accessibility for all renters.

What does a landlord need to know about rental laws in 2024?

For landlords managing rent-controlled properties, one critical change is the ability for tenants with mobility issues to relocate to more accessible units without a rent increase. A To B Property Management can assist landlords in understanding these provisions and ensuring compliance.

The introduction of these laws, particularly the capping of security deposits for furnished rental units effective July 1, requires careful navigation. Landlords need to update their leasing agreements accordingly, and tenants should be aware of these changes to understand their financial commitments better.

Why is compliance important?

A To B Property Management provides essential guidance and resources to ensure that both landlords and tenants are well-informed and compliant with these new regulations. Our San Jose property management team is equipped to handle any queries and provide support in adapting to these legislative changes.

California’s 2024 rental laws represent a significant shift in housing legislation, focusing on fairness and accessibility. With A To B Property Management, landlords and tenants can confidently navigate these changes, ensuring legal compliance and fostering a positive landlord-tenant relationship.

You can find more information on Landlord-tenant laws in California here.

Written by

I have been licensed as a real estate agent and loan agent in the State of California since 1985 and started A to B Realty and Property Management on August 1, 1994. We are licensed in California.

We specialize in providing property management services and Real Estate sales for the purchase of residential and commercial properties.

Our most recent success has been working closely with Bank Owned Properties in the management and sale of their assets. We advise on price, condition and needed repairs to ensure maximum return.

After 27 years of experience there is nothing I haven't encountered that I couldn't resolve and you can be sure you will be in good hands!

You can find me on Google+ and facebook or write to me at bob@atobpropertymanagement.com