It's hard to keep track of all the proposed laws that go before the California legislature in a single year. If you are a home owner, an investor or a landlord, you might be interested in some of the Assembly Bills that did not pass in 2022. Obviously, there are many details contained in each bill so I'm just giving you a brief summary of a few that could affect California property owners. Here you go...
AB 2527: This bill would prohibit landlords from using credit reports while screening prospective tenants. It would also ban property owners from asking about anything that would be included in a report, such as payment history or evictions.
AB 2469: This bill would require the Department Housing and Community Development in the Business, Consumer Services, and Housing Agency to develop and maintain a rental registry online portal designed to collect specified information related to housing and make that information available to the public. This bill would require a landlord to submit a rental registry form when a lease is initiated, altered, or terminated, under penalty of perjury.
AB 1771: This bill would, for taxable years beginning on or after January 1, 2023, impose an additional 25% tax on that portion of a qualified taxpayer's net capital gain from the sale or exchange of a qualified asset, as defined. The bill would reduce those taxes depending on how many years has passed since the qualified taxpayer's initial purchase of the qualified asset.
AB 2710: This bill would require an owner of residential real property that is occupied by a tenant or a multifamily residential property to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would provide each qualified entity with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified entity with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property. There are some exemptions.
As an investor or landlord, staying on top of state and local laws is essential and hiring professionals to manage properties or litigate tenant claims may be necessary. Always do your homework before you buy and remember the principle of "caveat emptor!" Buyer beware!