Below are questions asked by rental property owners regarding California and Orange County rent control laws, followed by answers provided by eviction attorney Dennis Block.
Question One: I heard that we can no longer charge a security deposit equal to two months rent. How did this become the law? I do not feel comfortable only charging a deposit equal to one month’s rent. Do you have any suggestions?
Answer One: In a never-ending assault on income property owners, Governor Newsom signed a law limiting a security deposit to one month’s rent. This applies to all residential units in the state of California. There is an exception for small property owners who own a maximum of two rental properties totaling four units. This exception does not apply to tenants who are in the military or if title to the property is held by a corporation or a real estate investment trust.
This law does not take effect until July 1, 2024. Once in effect, it is advisable that all landlords raise their credit standards to offset the lack of protection that they are now having to endure.
Question Two: I own a four unit building in Fullerton, CA. Each of my tenants has a lease that grants them parking under a carport. I am planning to demolish this carport, to rebuild and add two units above the new carport. The tenants will not be able to park on site during the construction process. Am I required to compensate them for the parking if there is free street parking in front of the building? If I must compensate them, is there a way to figure out how much?
Answer Two: You cannot remove an amenity, without giving a corresponding deduction in rent. On that basis, you would have to allow for a reduction of the rent. The amount would be based on the fair market value for parking in your area. If there is sufficient street parking, the fair market value of the parking space would be less.
Question Three: My property is in Buena Park and is subject to Statewide Rent Control. I understand that we are currently able to charge a rent increase equal to 8.8%. In my building, I pay for the electricity and gas. Am I able to charge an additional amount for this added expense or can I hold the tenant responsible for paying their own utilities?
Answer Three: Under AB1482, Statewide Rent Control, you are limited to a rent increase of 8.8%. The law does not allow you to exceed that percentage, even though you are paying for all the supplied utilities. It should be noted that for newly created tenancies, a landlord can hold a tenant responsible for paying these utility costs.
Question Four: We have found traces of termites in our units and have scheduled a termite inspection and treatment. Based on the advice of the pest control company, we have instructed our tenant to keep the windows closed. This was on the basis that termites will not be able to enter through an open window. One tenant is complaining that she will have to use the air conditioner for the entire day, which will increase her electricity bill. This tenant is requesting that she be compensated for this additional expense. Is the landlord obligated to compensate her for this additional cost?
Answer Four: There is no requirement that a landlord reimburse the tenant for this added cost. Your tenant should be grateful that you are taking care of the problem.
Question Five: I have a 12-unit apartment building in the city of Orange. All units are occupied, and I do all the management. I am getting old and would like to employ the services of a resident manager. Am I able to ask a tenant to move to install a manager? Also, would I be required to pay relocation and if so, how much would that be?
Answer Five: Under California law, a building with 16 or more units must have a resident manager. It is optional for a building that has less than 16 units. In this case you are free to have a tenant vacate to install a resident manager. Assuming your building is older than 15 years, and the tenant has been there longer than one year, relocation would have to be paid. Relocation would be equal to one month’s rent.
Question Six: I suspect that my tenant has additional persons living in his unit. This would be in direct violation of the lease agreement. He completely denies that any other person is occupying the unit. I am in the process of installing video surveillance cameras in the common areas of the building. This will clearly determine if other people are occupying this unit. My tenant has approached me and claims that under California law, if one tenant objects to the installation of these cameras, I cannot legally proceed. Is this true?
Answer Six: Tell “Perry Mason” that he better not attempt to become a lawyer. That law does not exist in the state of California. In these times, landlords are encouraged to install video surveillance equipment for the protection of their property and for the safety of their residents.
Question Seven: My tenant is suing me in small claims court for damage to his computer. A flood occurred in his unit as the upstairs tub overflowed and water was pouring into his unit. I really do not believe that I am responsible; clearly it is not my fault that this flood occurred.
Answer Seven: I am in complete agreement with your position. A landlord is only responsible if there is a contractual obligation or if there was negligence on the part of the landlord. In this case, the only one who was negligent was the upstairs tenant. That person should be the subject of the small claims court action. In addition, you should review the terms of your rental agreement. Many rental agreements, including the AOA lease, have a provision requesting that tenants maintain their own personal property insurance, to cover any losses sustained to their personal property. This would further absolve the landlord from any financial responsibility.
Question Eight: I wish to thank the Apartment Owners Association for putting on the Million Dollar Trade show in Long Beach. There is so much to learn, and these events are very helpful. I especially appreciated your seminar, Mr. Block. In your seminar you discussed that a 3-day notice to pay rent or quit must include the number of bedrooms or it would be defective. Is this true for all areas?
Answer Eight: Thank you for your kind words, I too am very thankful to the Apartment Owners Association for putting on these types of events. To answer your question, the number of bedrooms must be included in a 3-day notice, but only for residential properties in the city of Los Angeles and unincorporated areas of Los Angeles. All other jurisdictions do not require this to be included in the notice. It should be noted that I am doing a weekly Zoom meeting where landlords can have their questions answered live! This is every Saturday at 3:00 pm. For more information go to: www.evict123.com/about-3.
Dennis Block, of Dennis P. Block & Associates can be reached for information on landlord/tenant law or evictions at any of the following offices: Los Angeles: 323.938.2868, Encino: 818.986.3147, Inglewood: 310.673.2996, Long Beach: 310.434.5000, Ventura: 805.653.7264, Pasadena: 626.798.1014, Orange: 714.634.8232, San Diego: 619.481.5423 or by visiting www.evict123.com. Now, you can also read Dennis Block on Twitter, www.twitter.com/dennisblock or text him at (818) 570-1557. “Landlord Tenant Radio Weekly Podcasts can be heard at any time at www.EVICT123.com or download the app “EVICT123”.