California landlords and property managers face a rapidly changing environment of new policies and laws that impact evictions, tenant credit reporting, and building regulations. Three major laws—AB 1482, AB 2747, and AB 209—are at the center of current considerations and debates, each posing challenges for rental housing providers.
Issue Synopsis
- AB 1482 – Evictions Under Fire
Landlords argue that California’s rent control and “just cause” eviction laws make it harder to remove problem tenants. A Sacramento landlord advocacy group warns that the law emboldens squatters and non-paying renters, increasing property owners’ financial risks. - AB 2747 – New Credit Reporting Mandate
A new law will require many landlords to offer tenants the option to report on-time rent payments to credit bureaus. While this policy helps tenants build credit, landlords must navigate compliance requirements that vary based on property type and ownership structure. - AB 209 – Costly Cooling Requirements
State lawmakers are considering strict temperature regulations for rental units, requiring landlords to keep indoor temperatures below 82°F. Tenant advocates argue the measure is essential for health and safety, while rental housing providers fear the high costs of retrofitting older buildings.
These laws could impact eviction timelines, financial planning, and regulatory compliance. Below, we explain what landlords and property managers need to know and how to prepare for potential changes.
*This article is for educational purposes only and does not constitute legal advice. Educating yourself is very important and will streamline and reduce your legal risk. However, seeking professional legal counsel consolidates your efforts and pre-emptively ensures compliance whenever issues inevitably arise.
AB 1482: Squatter Lockout Group Criticizes AB 1482
Background of AB 1482
Enacted in 2019, AB 1482, known as the Tenant Protection Act, aims to protect California tenants from excessive rent hikes and unjust evictions. The law caps annual rent increases at 5% plus the local cost of living adjustment or 10%, whichever is lower. It also requires landlords to provide a “just cause” for evictions, offering renters more stability.
Recent Criticisms
On February 13, 2025, the Squatter Lockout Group, a Sacramento-based organization that assists property owners with evictions, publicly criticized AB 1482. The group argues that the law has unintentionally prolonged eviction processes, increasing financial strain on property owners. According to the group, the “just cause” requirement and the risk of tenant lawsuits have led to extended legal battles. As a result, non-paying tenants and squatters allegedly remain in units longer, reducing available housing and worsening California’s housing crisis.
Impact on Property Managers and Landlords
AB 1482’s procedural requirements, including mandatory relocation assistance and extended court processes, have made evictions more challenging. These complexities may discourage property owners from remaining in the rental market, potentially reducing housing availability. Property managers and landlords must now navigate these regulations carefully, adapting their operational and legal strategies to comply with the law.
AB 2747: New Rent Reporting Law Explained
Overview of AB 2747
Starting January 1, 2025, AB 2747 requires California landlords to offer tenants the option to report on-time rent payments to at least one nationwide consumer reporting agency (CRA). This initiative helps tenants build credit through consistent rent payments.
Applicability
The law applies to properties with 16 or more units. It also covers properties with 15 or fewer units if they are corporately owned and the owner holds more than one residential rental property. Individual owners of smaller properties are generally exempt. For example, an individual owning multiple single-family homes is not subject to this law, but a corporation owning two single-family homes is.
Implementation Requirements
Landlords must offer rent reporting under the following conditions:
- New Tenancies (Starting April 1, 2025): The offer must be made when signing the lease.
- Existing Tenancies (Leases Signed Before April 1, 2025): The offer must be extended by April 1, 2025.
Tenants can accept or decline this option. If a tenant opts in, all roommates or co-tenants must be included in the reporting. Tenants can later discontinue the service by submitting a written request.
Impact on Property Managers and Landlords
This law allows tenants to improve their credit scores but adds responsibilities for landlords. Property managers must set up systems to report payments accurately and manage tenant preferences. This process may require working with third-party services or credit bureaus, increasing administrative tasks and costs. However, offering rent reporting could encourage timely payments, benefiting both landlords and tenants.
AB 209: Proposed Cooling Requirements Explained
Introduction to AB 209
AB 209 addresses the growing concern of extreme heat in residential housing. In early 2025, the California Department of Housing and Community Development (HCD) submitted a report to the Legislature recommending a maximum indoor temperature of 82°F for the state’s 14.6 million residential units. This proposal aims to protect residents from heat-related health risks.
Proposed Standards and Recommendations
HCD’s recommendations include:
- Cooling Systems: All rental housing units must have cooling systems that maintain indoor temperatures at or below 82°F.
- New Construction Design: Encouraging features like cool roofs, reflective walls, and shaded landscaping to lower indoor temperatures naturally.
- Incentive Programs: Proposing financial assistance to help property owners retrofit existing buildings with cooling systems without passing costs to tenants.
Concerns and Implications
While the proposal prioritizes tenant health, property owners and managers have raised concerns:
- Financial Burden: Retrofitting older buildings, especially those with outdated electrical systems, could be costly.
- Operational Challenges: Compliance may increase maintenance responsibilities and complicate property management.
- Potential Rent Increases: To offset costs, landlords may consider raising rents, affecting housing affordability.
The Legislature has yet to decide on these recommendations, but property managers and landlords should prepare for potential regulatory changes.
Key Takeaways
California’s evolving rental laws continue to reshape landlord-tenant relationships, adding new regulatory and financial challenges for property owners.
- AB 1482 has made evictions more complex, with landlords struggling against prolonged legal battles and rising financial risks.
- AB 2747 introduces mandatory rent payment reporting options. These options require landlords to adjust their compliance strategies and potentially improve tenant credit scores.
- AB 209 proposes strict cooling requirements, which could impose costly upgrades on landlords and impact rental affordability.
Mehigan Law – Professional Eviction Legal Services
Mehigan Law has served California’s property management and independent landlord communities for over 45 years. We take pride in our ability to give your business and each case the personal attention it deserves.
We understand that every business and property environment is different. Each requires a thorough understanding of the unique challenges and needs to manage eviction compliance successfully. We consider all overlapping layers of legal jurisdiction and help you efficiently navigate disruptions to normal business operations.