Rental Tips for CA Landlords

 It’s not exactly news that owning rental residential property in California comes with some specific challenges.

Private property rights in the state have seemingly been eroded by regulation, and as such, rental property owners have limited means to fully screen tenants, ask for a rent and security deposit of their choosing, resolve a nuisance, administer management policies, and last but not least, evict a troublesome tenant.1

But potential concerns for landlords don’t end there. In 2012 there were no fewer than 70 legislative bills introduced that directly impacted rental housing. And some significantly limited the activities of landlords.1

More such legislation is expected in 2013 as California legislators continue to focus on rental housing.

Know the Law

Recent reforms can delay evictions and make them more expensive and can lead to an increase in the volume of cases coming before the California courts.1

A press release by The Public Council Law Firm in Los Angeles, CA illustrates the impact of legislation, citing that in Los Angeles, 25 percent of Stanley Mosk Courthouse’s 70,000 Unlawful Detainer cases were filed last year by landlords seeking to terminate rental agreements.2

The increased availability of legal resources, while benefitting the public at large and particularly California’s poorest residents may also mean that landlords could face further delay and expense when evicting a tenant.

Protect Yourself and Your Property and Mitigate Risk

Landlords in California should evaluate how to best protect their property rights and mitigate the financial risk that comes with any rental agreement. So what steps might you take to mitigate risk?

First, establish comprehensive rental standards for properties, and be sure to apply it equally to all potential tenants. Credit history, tenancy history, income and criminal history, to the extent permitted by regulation can be vetted before any tenant signs the dotted line.1

Secondly, consider financial risks, and think about insurance. Property insurance as well as a new rent default insurance should be considered. 

Lastly, California’s eviction process requires strict compliance with the law. If you’re going to court over an eviction, you’ll be in a better position if you carefully follow the law and consult with a lawyer familiar with the requirements of your jurisdiction.

1 Steve Carlson & Associates, Coyle Consulting Group, and The Duringer Law Group, PLC. Presentation: “Risky Business: California’s Persistent Efforts to Regulate Rental Housing.” December, 2012.

2 Public Council Law Center. Press Release: “Los Angeles Legal Groups Receive $8.4 Million to Assist Individuals and Families in Housing Cases.” April 29, 2011