By passage of SB 567 and AB 12, California has further revised the code sections related to the Tenants Protection Act to broaden protections for tenants.

SB 567 went into effect on April 1, 2024, and made changes to a few of the no-fault causes under Civil Code Section 1946.2, as well as altered the damages available for a tenant when a housing provider violates the protections provided for within the bill. The two sets of housing providers affected includes:

1. property owners and their close family members who plan to move into an occupied/leased property before the expiration of the lease term with the tenant; and
2. “fix and flip” investors planning on substantially remodeling or rebuilding an occupied/leased property for resale.

The bill also increased the damages available to tenants if a housing provider violates the tenant’s rights concerning this bill, allowing tenants to demand up to three times the damages amount, as well as punitive damages and attorney’s fees and costs.

For housing providers who want to utilize an owner move-in as a no-fault cause, they must now move into the unit within 90 days and remain for at least 12 continuous months, using the unit as their primary residence.

For housing providers who want to utilize remodeling as a no-fault cause, they must now provide the tenant with not only valid notice of termination, but a description of the remodel to be performed, the expected duration, and a copy of the permits required to perform the work.

Tenants whose rights have been violated under this new bill are now entitled to demand damages up to three times the actual damages amount, punitive damages, and attorney’s fees/costs. This new change is significant as many leases cap attorney fee recovery, if at all available, at $1,000. Now, tenants are able to recoup their fees as provided by statute, overriding the terms of the lease.

AB 12 goes into effect July 1, 2024, and makes changes to the rules surrounding security deposits for residential tenancies. Beginning July 1, 2024, most housing providers (with limited exceptions) are prohibited from demanding a security deposit of more than one month’s rent.

There is an exemption from the security deposit limit for what the law describes as “small housing providers”. Housing providers are exempt from the one month’s rent limitation so long as they 1) are a natural person or a limited liability company wherein the members are natural persons; and 2) own no more than 2 residential rental properties that collectively include no more than 4 dwelling units offered for rent.

While the changes provided by AB 12 and SB 567 are significant, this is likely not the last set of bills to be passed related to residential tenancies. Should you have any questions about your obligations as a landlord, or rights as a tenant, do not hesitate to contact qualified legal counsel to answer your questions.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.