2024 New California Landlord/Tenant Law

In the ever-evolving landscape of California's real estate sector, staying informed about the latest legislative changes is paramount for landlords and tenants. As we enter 2024, a new set of landlord-tenant laws comes into play, reshaping the dynamics of rental relationships across the state. From rent control measures to tenant protections and evolving eviction policies, this blog post we prepared for you covers some of California's 2024 landlord-tenant laws.

• Security deposits are limited to one month’s rent:

AB 12, beginning July 1, 2024, prohibits a landlord from demanding or receiving a Security Deposit of more than one month's rent.

For a rental agreement for a residential property, the security deposit must be equal to one month’s rent, regardless of whether the residential property is furnished or unfurnished.

There is an exception for small landlords, defined as a natural person or LLC who owns no more than two residential properties with no more than four units offered for rent. This small landlord exception does not apply if the prospective tenant is a service member.

Landlords who currently hold a security deposit or demand or collect a security deposit over one month’s rent before July 1, 2024, may continue to retain the security even if it is more than one month’s rent.

• Tenants may keep bicycles, e-bikes, and other “micromobility” transport devices in their units.

SB 712 prevents landlords from prohibiting tenants from owning personal micro-mobility devices. Also, it prevents landlords from banning the storage and recharging of personal micro-mobility devices in their dwelling units if the devices meet specific criteria as follows:

An electric motor does not power them, or they  comply with specific safety standards for e-bikes and e-scooters or

Failing compliance with such safety standards, the tenant has insurance covering the device's storage within the unit.

Batteries for e-bikes should comply with either the UL 2849 standard, recognized by the United States Consumer Product Safety Commission, or the EN 15194 European Standard for electrically powered assisted cycles. On the other hand, E-scooters need to align with the UL 2272 standard from the U.S. or the EN 17128 European Standard for personal light-electric vehicles.

However, landlords can provide tenants with exterior “secure, long-term storage” for their devices. If such storage is offered without charge, landlords can prohibit the in-unit storage of these devices.

A landlord is not required to modify or approve a tenant’s request to alter a rental dwelling unit to store a micromobility device inside of the dwelling unit. A landlord may prohibit repairing or maintaining batteries and motors of personal micromobility devices within a dwelling unit. A landlord can require a tenant to store a personal micromobility device in compliance with the applicable fire code.

• The landlord must offer “ability to pay” in lieu of reliance on credit history and reports in assessing a tenant’s rental application when a prospective tenant is receiving a government rent subsidy such as a Section 8 rental voucher.

SB 267 makes it unlawful, in instances where there is a government rent subsidy, for a landlord to use a person’s credit history as part of the application process for a rental accommodation without offering the applicant the option, at the applicant’s discretion, of providing lawful, verifiable alternative evidence of reasonable ability to pay the portion of the rent to be paid by the tenant, including, but not limited to, government benefit payments, pay records, and bank statements.

 When so offered, the applicant may provide alternative evidence of reasonable ability to pay.

In this case, the landlord must:

1. Provide the applicant reasonable time to respond with that alternative evidence and
2. Reasonably consider that alternative evidence in lieu of the person’s credit history in determining whether to offer the rental accommodation to the applicant.

 Nonetheless, the landlord may still request information or documentation to verify employment, request landlord references, or verify a person's identity.

• Tenant Protection Act: Tightens up requirements for no-fault evictions; adds damages, penalties, attorney fees and enforcement mechanisms for violations

SB 567 This law tightens up the requirements for a landlord to terminate a tenancy under the Tenant Protection Act (i.e., California statewide rent cap and just cause eviction law) for no-fault evictions based upon owner move-in or substantial remodeling. Effective April 1, 2024.