As a San Diego property owner, you are aware that landlord/tenant laws change on a regular basis. If you do not keep up with these changes, you could violate a local law without realizing it.
Even if you use a company that provides property management in San Diego, you should still keep up with changing ordinances. One such new ordinance is the tenant protection update for 2023.
A Summary of the Update to the Tenant Protection Act of 2019
If you or the company you use for property management in San Diego are familiar with AB 1482, you should know that those terms have changed. In April of this year, the San Diego City Council updated its regulations with new legislation that gives tenants expanded rights.
The new law requires landlords to pay relocation costs for tenants in any instance of a no-fault eviction. While California state law requires that landlords pay relocation costs equivalent to one month’s rent for any no-fault eviction, the new San Diego law doubles that amount.
There are additional requirements for cases that involve the no-fault eviction of a disabled individual or a senior over 62 years of age. Such instances require the landlord to pay three times the monthly rate for relocation costs.
San Diego law differs from California state law in the occupancy term required before this protection goes into effect. While state law stipulates that the tenant must have lived in the rental unit for 12 months before they qualify for any relocation payment, San Diego only requires one day of occupancy.
Why Did San Diego Update AB 1482?
It is important to recognize that there are bad actors in the real estate rental industry. Primarily, these consist of property owners who do not use reputable services for property management in San Diego.
Some property owners will evict tenants to make minor updates with the underlying intention of renting the unit for a considerably higher rate. This new update to AB 1482 creates penalties for engaging in this practice.
While some may consider the clause requiring just one day of occupancy to be extreme, this protects tenants against unjust evictions by unethical property owners. The relocation costs serve as both a penalty to the landlord and a means of providing the evicted tenant with the resources they need to obtain a new rental unit elsewhere.
What About Tenants Evicted for Fault?
The new legislation specifically requires that relocation expenses get paid to tenants for no-fault evictions. If a tenant is legally evicted with cause, such as property damage or a failure to pay rent, the landlord does not have to pay any relocation expenses.
Another update to the law added the requirement that landlords must notify their tenants of the eviction and give them time to fix the damage or pay the rent. Your renters will be aware of this stipulation because you are also required to give any new tenants a copy of the Tenant Protection Guide and supply existing tenants with a copy within 90 days.
Potential Consequences of These Changes
There is no denying that the new tenant protection legislation will raise the costs for San Diego property owners. While large real estate investment corporations can handle these extra costs, the financial consequences for individual property owners could have disastrous effects.
Individual property owners do not have the resources to cover these relocation costs, which may force them to sell their rental property. As a result, there will be fewer rental units on the market within a short period. This could potentially drive up rental rates throughout San Diego.
Another problem this poses for property owners of all types is that renovations will become more complicated. Landlords will want to avoid the high relocation costs, which means they may put off necessary repairs and updates. In addition to leading to poor property maintenance, this could create safety hazards for tenants.
Protect Yourself with Preparation
The new no-fault eviction ordinance can subject you to significant financial costs if you do not plan ahead. If you want to remodel or update your rental property, the ideal time to do so is while the unit is vacant. Otherwise, you should try to complete the necessary repairs while it is occupied. This will save you from having to pay high relocation costs.
