How can the new law for homeowners in California affect you?

California is one of the most expensive states to live in in the U.S. because of its steep property prices. Forbes ranked it the second state with the highest average home prices, trailing only Hawaii.

Few people could afford to purchase homes in California last year, and more than 50% of tenants used over a third of their salary to pay for rent. This state of housing insecurity has left tenants in a condition of vulnerability.

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How can the new law for homeowners in California affect you?

A new law that took effect this month offers a level of protection to renters. SB 567, also known as the Homelessness Prevention Act, strengthens the Tenant Protection Act of 2019 which capped rent increases at 10%. The new law builds on the eviction protections of the older one.

The bill makes it more difficult for landlords to carry out so-called “renovictions”, where they evict tenants to do some major remodeling on the premises. Under prior guidelines, property owners simply informed tenants that they were being evicted because there was going to be considerable renovation taking place, or there were plans to demolish the property.

The new rule requires landlords to furnish the renter with documents related to the renovation, such as the required permits, the description of the remodel, and the expected duration of the project.

Another aspect of SB 567 that protects tenants is that it makes it harder for landlords to evict renters under the pretext that they or members of their family are moving into the property, only to rent it to someone else. Now, the intent to occupy the home comes with a definite set of guidelines and restrictions, such as the timeline for moving in, and non-compliance can warrant hefty penalties.