By Sonal Imbulamure

1. Landlord/Tenant: Unlawful detainer answer time periods extended

Extends the time for a defendant to file a response, such as an answer, from five business days to ten business days after an unlawful detainer complaint and summons is served.

At the same time, this law also shortens the timeline that applies to a type of motion a tenant attorney often files to delay the eviction, called a demurrer, which is a specific category of motion to dismiss the case. AB 2347 will change the timeline for these motions, subjecting them to the same expedited timeline that other motions in unlawful detainer cases follow, which will help reduce delays in the eviction process.

Comment: In 2018, the unlawful detainer law was amended to exclude Saturdays, Sundays and other judicial holidays in counting a three-day notice to pay rent or quit (AB 2343). That same bill also excluded Saturdays and Sundays in counting the five-day answer period after service of an unlawful detainer complaint and summons. That five-day answer period is now 10 days under AB 2347.

Assembly Bill 2347 is codified as Code of Civil Procedure 1167 and 1170. Effective January 1, 2025.  

2. Unlawful Detainer Masking Rules Extended To Mobile Home Park Tenancies

Extends unlawful detainer masking rules to tenancies within a mobile home park.

How the UD masking rules work: For 60 days after an unlawful detainer complaint is filed, only specified persons are allowed access to case records, including the court file, index, and register of actions, for limited civil cases. However, after 60 days access must be given to the public generally if judgment against all defendants has been entered for the plaintiff within 60 days of the filing of the complaint.

Existing law exempts from these requirements records in a case that seeks to terminate a tenancy in a mobile home park if the complaint caption clearly indicates such.

AB 2304 would delete the exemption for access to case records for cases that seek to terminate a tenancy in a mobile home park.

Assembly Bill 2304 is codified as Code of Civil Procedure§1161.2. Effective January 1, 2025.  

3. Landlord/Tenant: Certain tenant rights extended to small commercial tenants

This law extends to small businesses (“qualified commercial tenants”) certain tenancy rights currently applicable to residential tenancies as follows:

• 30 and 90-day notice to increase rent
• 30 and 60-day notice to terminate tenancy and
• Translated copy of the lease if negotiated in specified languages

Additionally, transparency and proportionality are required for fees a landlord may charge a qualified commercial tenant to recover building operating costs.

Application to “qualified commercial tenants”

This law applies to a qualified commercial tenant defined as a tenant of commercial real property that meets both of the following requirements:

1. The tenant is a microenterprise (which generally means that the business has 5 or fewer employees); a restaurant with fewer than 10 employees; or a nonprofit organization with fewer than 20 employees.

AND

2. For month-to-month periodic tenancies or shorter, the tenant has provided the landlord, within the previous 12 months:

• A written notice that the tenant is a qualified commercial tenant and
• A self-attestation regarding the number of employees

For leases or longer periodic tenancies, the tenant has provided the notice and self-attestation before or upon execution of the lease, and annually thereafter.

Senate Bill 1103 is codified as Civil Code§§ 827, 1632, 1946.1 and 1950.9. Effective January 1, 2025.

 

4. Rent Increases: 30 and 90-day notice

For a qualified commercial tenant, for month-to-month tenancies (or a shorter period), rent increases of 10% or less require a 30-day notice. Rent increases of more than 10%, counting all increases within the previous 12 months, require a 90-day notice.

Additionally, landlords of “commercial real property” must include in the notice to increase rent information on the provisions of Civil Code§827(b) re rent increases and qualified commercial tenants.

Senate Bill 1103 is codified as Civil Code§§ 827, 1632, 1946.1 and 1950.9. Effective January 1, 2025.

5. Translated copy of the lease or rental agreement

• For qualified commercial tenants, a translated copy of the lease or rental agreement must be delivered before signing when:
• The agreement is negotiated primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean.

• Entering into a lease or rental agreement on or after January 1, 2025, and
• Covering a non-residential zoned commercial space
• The “own interpreter” exemption does NOT apply

If a translated copy is not provided, the qualified commercial tenant may rescind the lease or rental agreement. Waivers of these rights are void and unenforceable.

Senate Bill 1103 is codified as Civil Code§§ 827, 1632, 1946.1 and 1950.9. Effective January 1, 2025.

6. Presumption of month-to-month renewal

After expiration of the lease, qualified commercial tenancies are presumed to be renewed on a month-to-month basis when the lessor accepts rent from the tenant while the tenant remains in possession when rent is payable monthly.

Senate Bill 1103 is codified as Civil Code§§ 827, 1632, 1946.1 and 1950.9. Effective January 1, 2025.

 

7. 30 and 60-day notices to terminate tenancy without fault

A 30-day notice (at a minimum) to terminate a month-to-month rental without fault is required when a qualified commercial tenant has occupied the property for less than one year. Otherwise, a 60-day notice (at a minimum) is required.

Additionally, a landlord of “commercial real property” must include in the termination notice information on the provisions of Civil Code§1946.1 explaining the above rules.

Senate Bill 1103 is codified as Civil Code§§ 827, 1632, 1946.1 and 1950.9. Effective January 1, 2025.

8. Transparency and proportionality are required for fees a landlord may charge a qualified commercial tenant to recover building operating costs.

SB 1103 prohibits a landlord of a commercial real property from charging a qualified commercial tenant a fee to recover building operating costs unless the costs are allocated proportionately per tenant and the qualified commercial tenant is provided supporting documentation (along with several other conditions that must be met).

• A violation of these provisions may be an affirmative defense in an action to recover possession based on a failure to pay the fee.
• A landlord of a commercial real property who violates these provisions would be liable to a qualified commercial tenant for specified damages including actual, punitive, triple and attorney fees.
• A waiver of these protections is void and unenforceable.
• The district attorney, city attorney, or county counsel are authorized to seek injunctive relief.

Senate Bill 1103 is codified as Civil Code§§ 827, 1632, 1946.1 and 1950.9. Effective January 1, 2025.

 

9. Landlord/Tenant: No charges for notices of termination; Restrictions on charging service members a higher deposit 

Prohibits a landlord from charging a fee for serving or delivering any type of termination notice, such as a notice to pay rent or quit or a no-fault notice of termination. A landlord is also prohibited from charging tenants a fee for paying for rent or a security deposit by check.

If the landlord charges a higher security deposit for service members due to credit factors, a written statement must be provided explaining the reason for the higher amount, along with a provision in the lease regarding the return of the extra security after six months.

Prohibitions against charging for termination notices and payment by check

Prohibits a landlord from charging a fee for serving or delivering any type of termination notice. These would include a notice to pay rent or quit, notice to perform covenant or quit, a non-curable notice to quit, a no-fault notice of termination, or any other type of notice that terminates tenancy. Additionally, a landlord is also prohibited from charging tenants a fee for paying for rent or a security deposit by check.

Service member protections when charging higher than standard or advertised security deposit

On or after April 1, 2025, if a landlord or its agent charges a service member who rents residential property a higher than standard or advertised security due to the credit history, credit score, housing history, or other factor related to the tenant, the landlord shall provide the tenant with a written statement, on or before the date the lease is signed, of the amount of the higher security and an explanation why the higher security amount is being charged.

The additional amount of security shall be returned to the tenant after no more than six months of residency if the tenant is not in arrears for any rent due during that period. The date for return of the additional amount of security shall be included in the lease agreement.

Senate Bill 611 is codified as Civil Code§§ 1946, 1946.1, 1947.3, and 1950.5 and Code of Civil Procedure § 1161. Effective January 1, 2025.

 

10. Landlord/Tenant: Landlord must provide Tenants positive credit reporting of rent payments if requested

Requires residential landlords to offer each tenant obligated on a lease the option of having the tenant’s positive rental payment information reported to at least one nationwide consumer reporting agency.

Exempts small, non-corporate landlords.

Exempts any landlord of a residential rental building that contains 15 or fewer dwelling units, unless that landlord owns more than one residential rental building and is either a real estate investment trust, a corporation, or a limited liability company with at least one member corporation.

Background:

Many Californians who do not possess a robust credit history do have a history of paying rent on time. But that information does not show up on their credit reports and does not help their credit scores. This measure attempts to solve that problem by giving tenants the opportunity to have their positive rental payment information reported to consumer reporting agencies, adding to their credit history.

For leases entered into on and after April 1, 2025, the offer of positive rental payment information reporting must be made at the time of the lease agreement and at least once annually thereafter.

For leases outstanding as of January 1, 2025, the offer of positive rental payment information reporting must be made no later than April 1, 2025, and at least once annually thereafter.

A tenant may submit the tenant’s completed written election of rent reporting at any time after the tenant receives the offer of positive rental payment information reporting from the landlord.

A tenant who elects to have positive rental payment information reported may subsequently request to stop that reporting. However, a tenant who stops positive rental payment information reporting may not elect reporting again for at least 6 months.

A landlord may charge a tenant the lesser of $10 per month or the actual cost to the landlord to provide the service, unless the landlord does not incur any actual cost to provide positive rental payment reporting. A landlord cannot terminate a tenancy on the basis of non-payment of the rent reporting charge.

Assembly Bill 2747 is codified as Civil Code§1954.07. Effective January 1, 2025.

 

11. Landlord/Tenant: Security deposit; Move-in and move-out photos

Requires residential landlords to take move-in, move-out and post-repair and cleaning photos demonstrating deductions.

Deductions for cleaning and damages must be “reasonably necessary” to return property back to its initial condition. Professional carpet cleaning, and the cost of materials and charges for work performed for repairs is specifically cited as subject to this rule.

Move-in, Move-out and post-repair and cleaning photos required:

• Beginning April 1, 2025, the landlord is required to take photographs of the unit within a reasonable time after the possession of the unit is returned to the landlord, but prior to any repairs or cleaning for which the landlord will make a deduction from or claim against the security deposit pursuant to this section and
• The landlord is also required to take photographs of the unit within a reasonable time after such repairs or cleanings are completed.
• For tenancies that begin on or after July 1, 2025, the landlord is required to take photographs of the unit immediately before, or at the inception of, the tenancy.

In returning the itemized statement of deductions, if a deduction is made for repairs or cleaning, the landlord shall

• Provide the photographs including the move-in, move-out and post repair and cleaning photos,
• Along with a written explanation of the cost of the allowable repairs or cleanings.
• The landlord may provide such photographs to the tenant by mail, email, computer flash drive, or by providing a link where the tenant may view the photographs online.
• The landlord shall not be entitled to claim any amount of the security if the landlord, in bad faith, fails to comply with these requirements.

Permissible charges for repairs and carpet cleaning if “reasonably necessary”: The landlord may not claim deductions from the security for damage or defective conditions that preexisted the tenancy or for ordinary wear and tear.

• Claims for materials or supplies and for work performed by a contractor, the landlord, or the landlord’s employee shall be limited to a reasonable amount necessary to restore the premises back to the condition it was in at the inception of the tenancy, exclusive of ordinary wear and tear.
• The landlord shall not require a tenant to pay for or assert a claim against the tenant or the security for, professional carpet cleaning or other professional cleaning services, unless reasonably necessary to return the premises to the condition it was in at the inception of tenancy, exclusive of ordinary wear and tear.

Comment: The security deposit law already included the prohibition against making deductions from the security deposit unless “reasonably necessary” for the purposes specified in the law. These provisions reiterate the “reasonably necessary” prohibition but are now more specific in regard to charges for materials and work and claims for professional carpet cleaning or other professional cleaning services.

Assembly Bill 2801 is codified as Civil Code§1950.5. Effective January 1, 2025.

 

12. Landlord/Tenant: Application screening fee and application process

Prohibits the practice of charging an application fee to a prospective tenant unless the landlord or agent knows or should have known that a unit is available or will be available within a reasonable period of time.

Authorizes a landlord to charge an application fee under limited circumstances: 1) Either the landlord adopts an application screening process whereby all completed applications are considered, as provided in the landlord’s written, disclosed screening criteria, in the order the applications were received, or 2) The landlord agrees to return the fee to any applicant who is not selected for tenancy.

Credit reports must be provided to the applicant if a screening fee is paid, regardless of whether the applicant has requested it.

Application: This law applies to all residential tenancies of more than 30 days.

First, Assembly Bill 2493 prohibits a landlord or their agent from charging an application screening fee when they know or should have known that no rental unit is available at that time or will be available within a reasonable period of time.

Comment: This provision does not prohibit a landlord from placing prospective tenants on a waiting list but prevents the landlord from charging an application fee unless they actually have, or within a reasonable period of time will have, a unit available.

Second, this bill permits a landlord to charge an application fee only if they adhere to either of the following procedures:

1. Either the landlord or their agent returns the entire screening fee to any applicant who is not selected for tenancy, regardless of the reason, within seven days of selecting an applicant for tenancy or within 30 days of when the application was submitted, whichever occurs first.

Or The landlord adopts an application screening process whereby:

• All completed applications are considered, as provided in the landlord’s written, disclosed screening criteria, in the order the applications were received. The screening criteria must be provided with the application.
• The first applicant who meets the landlord’s established screening criteria is approved for tenancy.
• The applicant is not charged an application fee unless their application is actually considered.
• A landlord or agent that inadvertently collects a screening fee does not violate this law as long as a refund is issued within seven days to any applicant whose application is not considered. Or the landlord may offer, as an alternative to a refund, the option of having the screening fee applied to another rental unit being offered by the landlord. However, if a landlord denies an applicant because the applicant does not meet the established, disclosed screening criteria, then the landlord is not required to refund the application fee.

Comment: If the agent or landlord intends to take an application screening fee following criteria 2 above, then this law requires that they adopt a screening criterion in writing and provide it along with the application.

Third, when an applicant has paid an application screening fee, a landlord or their agent is required to provide a copy of the consumer credit report, regardless of whether the applicant has requested it, within seven days of the landlord or agent receiving the report.

Assembly Bill 2493 is codified as California Civil Code§1950.6. Effective January 1, 2025.

     

13. Landlord-Tenant: Expands the law re the landlord’s duty to change the locks upon request of a victim of abuse

Under existing law when a tenant is a victim of abuse, the landlord must change the locks upon written request within 24 hours after receiving appropriate documentation. If the person alleged to have committed the abuse is a tenant in the same dwelling unit, then a court order excluding that person from the dwelling would be necessary. If not, then various types of supporting documentation would be acceptable.

This new law clarifies that the landlord is responsible for the cost of changing the locks; extends the lock change protection to immediate family or household members of a tenant; expands the acceptable supporting documentation of abuse or violence triggering the lock change protection; and prohibits a landlord from taking adverse action against a prospective tenant because of their use of the lock change protection.

Senate Bill 1051 adds to the existing duty of the landlord to change locks upon request as follows:

• Landlord to bear costs: Clarifies that a landlord is responsible for paying the cost of changing the locks which must be done within 24 hours of receiving appropriate documentation. If the landlord does not change the locks within 24 hours, the tenant may do so without the landlord’s permission, regardless of any lease term to the contrary, and the landlord is to reimburse the tenant for that cost within 21 days.
• Immediate family or other household members are protected: Expands the category of eligible tenants to include an immediate family or household member of a tenant so that an immediate family or household member of a tenant, who is the victim of abuse or violence, is entitled to the lock-change protections.
• Expands range of documentation that qualifies: Expands the acceptable supporting documentation substantiating the lock-change request to include documentation from a qualified third party acting in their professional capacity. A form template is written into the law that may be used for this purpose. Additionally, acceptable supporting documentation substantiating the lock-change request includes any other form of documentation that reasonably verifies that the abuse or violence occurred, including, but not limited to, a signed statement from the eligible tenant.
• Tenant Screening: Prohibits a landlord or a landlord’s agent, when screening a prospective tenant, from taking an adverse action (such as denying the rental application) based on the following: a) An allegation that the prospective tenant breached a lease stemming from an act of abuse or violence against the tenant. b) The prospective tenant having previously requested to have their locks changed because of abuse or violence. c) The prospective tenant having been a victim of abuse or violence. d) The prospective tenant, or a guest of the prospective tenant, having previously summoned law enforcement assistance or emergency assistance, as, or on behalf of a victim of abuse, a victim of crime, or an individual in an emergency. Penalties: If a landlord or their agent makes a prohibited adverse action when screening a prospective tenant, they are liable for actual damages, statutory damages between $100 and $5,000, and any other remedy provided by law.

Senate Bill 1051is codified as Civil Code§§1941.6 and 1946.9. Effective January 1, 2025.

 

14. FAIR HOUSING DISCRIMINATION

This law recognizes the concept of intersectionality in civil rights law, meaning, discrimination may be based on a single, individual characteristic or on the basis of a combination of two or more protected characteristics.

For purposes of the Unruh Act and the California Fair Employment and Housing Act discrimination based on specified characteristics is illegal whether based upon

• Any particular characteristic or based on any combination of those characteristics, or
• A perception that the person has any particular characteristic or characteristics within the listed categories or any combination of those characteristics, or
• A perception that the person is associated with a person who has, or is perceived to have, any particular characteristic or characteristics, or any combination of characteristics, within the listed categories.

Purpose of this law: It is the intent of the legislature to recognize the concept of intersectionality in California civil rights laws. Intersectionality is an analytical framework that sets forth that different forms of inequality operate together, exacerbate each other, and can result in amplified forms of prejudice and harm. The provisions of this law are declarative of existing law.

Senate Bill 1137is codified as Civil Code§51, Education Code§§200 and 210.2, and Government Code§§12920 and 12926.

   

15. Fair Housing Discrimination

The Unruh Act, which prohibits discrimination in all business establishments, is expanded to include within the definition of race traits associated with race such as protective hairstyles, including braids, locs and twists.

Existing Law: In 2019 the Fair Employment and Housing Act was amended to prohibit discrimination on the basis of traits historically associated with race, including hair texture and protective hairstyles such as braids, locs and twists. FEHA covers discrimination in the workplace and housing but does not cover business establishments generally.

New Law: The Unruh Act is expanded by defining the term race to include traits associated with race, including, but not limited to, hair texture and protective hairstyles. The Unruh Act entitles all persons to full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever.

Assembly Bill 1815is codified as Civil Code§51, Education Code§212.1 and Government Code§12926. Effective January 1, 2025.

 

16. Contractor exemptions: $500 limit for unlicensed contractor work raised to $1000

The contractors licensing law does not apply when the aggregate contract price for labor, materials, and all other items on a work or operation on one project or undertaking is less than $1000 and the construction does not require a building permit or employing another person to perform, or to assist in performing, the work or operation.

A person who is not licensed pursuant to the contractors licensing law may advertise for construction work or a work of improvement as long as the aggregate contract price for labor, material, and all other items on a project or undertaking is less than$1,000 and the person states in the advertisement that the person is not licensed as a contractor.

This exemption does not apply when the work of construction is only a part of a larger or major operation, whether undertaken by the same or different contractor, or in which a division of the operation is made in contracts of amounts less than $1000 for the purpose of evasion of the licensing law. Neither does the exemption apply to a person who employs another person to perform, or assist in performing, the work or operation.

Assembly Bill 2622 is codified as Business and Professions Code§§7027.2 and 7048. Effective January 1, 2025.

17. ADU AMNESTY LAWS; ADUs: Extends the ADU amnesty law to unpermitted ADUs and junior ADUs built before 2020

Extends the Accessory Dwelling Unit (ADU) amnesty law to unpermitted ADUs and junior accessory dwelling units (ADUs) built before 2020.

Requires cities and counties to provide a clear process for homeowners to obtain permits for their unpermitted ADUs.

AB 2533 prohibits a local agency from denying a permit for an unpermitted accessory dwelling unit or junior accessory dwelling unit that was constructed before January 1, 2020, for various violations (“amnesty”), unless the local agency makes a finding that correcting the violation is necessary to comply with conditions that would otherwise deem a building substandard.

Cities and counties must inform the public about the ADU amnesty rules through public information resources, including permit checklists and the local agency’s internet website, which must include the following:

(1) A checklist of the health and safety violations for which a building would be deemed substandard and therefore the locality could deny a permit.

(2) Informing homeowners that, before submitting an application for a permit, the homeowner may obtain a confidential third-party code inspection from a licensed contractor to determine the unit’s existing condition or potential scope of building improvements before submitting an application for a permit.

A homeowner applying for a permit for a previously unpermitted accessory dwelling unit or junior accessory dwelling unit constructed before January 1, 2020, shall not be required to pay impact fees or connection or capacity charges except when utility infrastructure is required to comply with above mentioned health and safety violations.

Assembly Bill 2533 is codified as Government Code§66332. Effective January 1, 2025.

Should you have any questions or need further clarification on how these changes might impact you, please do not hesitate to contact the author of this article at [email protected].