CA Landlords Guide to SB 567: No-Fault, Just-Cause Changes

CA SB 567 is a new California law that significantly impacts landlords and tenants by changing the rules around no-fault, just-cause evictions. Under this legislation, landlords are now required to show documentation to support the reasons for the no-fault, just-cause eviction in order to terminate a tenancy. This guide will provide an overview of SB 567, explain what constitutes just cause under the law, and offer tips for navigating these changes as a landlord in California.

What Are No-Fault, Just-Cause Evictions?

No-fault, just-cause California evictions involve several different reasons that allow a landlord to terminate a lease, including:

• The owner is moving back into the rental property.
• The owner is moving a family member or relative into the rental property.
• The owner is taking the property off the rental market.
• The owner is going to undergo a significant renovation of the property.
• The owner is planning on demolishing the property.

What Is the CA Tenant Protection Act?

The CA Tenant Protection Act of 2019, also known as AB 1482, is a California law that provides renters with more stability and protections in the state’s rental housing market. The legislation limits rent increases for certain properties and requires eviction notices under specific circumstances. It also protects tenants against unjust evictions and arbitrary rent hikes, helping to safeguard affordable housing options for Californians. The Tenant Protection Act is designed to address concerns about rising rents and tenant displacement.

What Does SB567 Mean for Landlords?

Under the current law, the landlord did not have to provide any justification or documentation to the tenant when they were notified of a no-fault, just-cause eviction. Under SB 567, which takes effect April 1, 2024, landlords must provide supporting documentation before a no-fault, just-cause eviction. In cases where the lease is being terminated for a no-fault reason, the landlord must also pay relocation expenses.

What Properties Does SB 567 Apply To?

SB 567 exempts specific properties, including most single-family homes, new rental housing, and owner-occupied duplexes. However, landlords must provide a mandatory notice for single-family properties.

What Did SB 567 Do Regarding Rental Laws?

SB 567 was passed to help close current loopholes some landlords used to move tenants out of their properties. For instance, some landlords would use a no-fault reason to evict a tenant, only to turn around and raise the property’s rental rate and rent it to a new tenant willing to pay the higher amount.

What Changed with the Remodel Reason?

The most significant change with the no-fault, just-cause eviction California renovation reason is that landlords must now provide detailed documentation stating what is to be remodeled at the property. The landlord must also allow the existing tenant to reoccupy the property once the renovations have been completed or if they do not occur for some reason. However, in either case, the tenant must inform the landlord of their desire to reoccupy the property.

What Changed with the Owner Move-In Reason?

SB 567 defines who qualifies as an owner and family members. It also added a stipulation that the owner or a family member must move into the property within 90 days after the tenant moves out and occupy the property for at least one year before they can put it back on the rental market.

What Happens if Landlords Fail to Adhere to SB 567?

Landlords can face significant penalties if they fail to adhere to CA SB 567.

Get Help Managing Your Rental Properties in Orange County

Keeping up with changes to rental laws can be overwhelming for landlords. At Genuine Property Management, we keep up with the current laws and regulations to ensure you remain compliant with state and local laws and avoid penalties. Contact us today to learn more about our property management services and how we can help with your Orange County rental properties.