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California property managers and landlords are facing three significant legislative developments this session. These bills could significantly change eviction procedures and operational workflows across the state. 

Specifically, lawmakers are considering new rules about providing eviction notices in multiple languages, limiting the types of fees landlords can charge tenants, and temporarily blocking evictions during delays in Social Security payments. These regulations will likely necessitate changes to your operations, planning, and compliance strategies.

The three legislative considerations are focused on:

  • Translation requirements for eviction-related notices
  • Restrictions on rental housing fees
  • Eviction protections during Social Security payment delays

We’ll take a closer look at each of these developments in this article. As you read through these sections, consider how they’ll impact your current practices.

*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 863 – Multilingual Translation of Termination Notices

What the Bill Proposes

California landlords may soon have new responsibilities when serving certain eviction-related notices. Assembly Bill 863 would require notices like the Three-Day Notice to Pay or Quit to be provided in the tenant’s primary language—specifically Spanish, Chinese, Tagalog, Vietnamese, or Korean.

This requirement applies in two situations:

  • If the lease was negotiated initially in one of these languages.
  • If your tenant (or someone speaking for them) has notified you about their primary language preference.

To stay ahead of this potential change, it’s a good idea to start keeping clear records of your tenants’ preferred languages. This proactive step can help you smoothly manage compliance and avoid unnecessary complications.

Notices & Documents Covered

AB 863 specifically addresses eviction-related documents like Three-Day Notices to Pay or Quit and Three-Day Notices to Cure or Quit. It also covers any other termination notices listed under California Code of Civil Procedure § 1161, which includes notices for lease violations and other eviction scenarios. 

There are discussions underway about potentially expanding this requirement to cover court documents, such as complaints and summonses, but this change is still pending.

Compliance Checklist for Property Managers

To ensure you’re prepared, consider the following compliance steps:

  1. Track Tenant Language Preferences
    Document your tenants’ primary language at lease signing, and update these records whenever you’re notified of a change.
  2. Secure Accurate Translations
    Obtain certified translations for required notices through reliable services or third-party providers. Using certified translations can help reduce legal risks and disputes.
  3. Update Your Notice Templates
    Ensure that your current notice templates and processes accommodate the new multilingual requirements. Adjust workflows to streamline the generation and delivery of translated notices promptly.

Operational & Legal Implications

This bill introduces several practical and legal considerations for landlords and property managers. Notices not properly translated could be deemed invalid, delaying eviction processes and potentially forcing landlords to restart proceedings entirely. While these requirements could increase administrative effort and costs, clear and accurate translations can also improve communication and reduce misunderstandings with tenants, potentially reducing conflicts overall.

Current Status & Timeline

AB 863 has already passed the Assembly Judiciary Committee by an 8-3 vote on May 6, 2025. It is now awaiting consideration on the Assembly floor. If approved, the new rules would become effective starting January 1, 2026, giving property managers several months to prepare.

AB 1248 (and Companion SB 681) – Limits on Rental Housing Fees

Core Restrictions

If enacted, starting January 1, 2026, California landlords would face significant new limits on the types of fees they can charge tenants. Under AB 1248 and its companion bill, SB 681, property managers and landlords would only be allowed to collect the following charges:

  • Monthly rent as agreed upon in the lease.
  • A single security deposit.
  • Local fees required by rent stabilization ordinances.
  • Charges for water service, provided it is billed through individual submeters.

While the legislation mentions late fees, it doesn’t clearly authorize their use. As a result, property managers should carefully monitor developments on this issue and be prepared to adjust lease terms and practices accordingly.

Fees That Would Disappear

If AB 1248 becomes law, several common fees currently charged by California landlords could become prohibited. These include fees for utilities allocated through Ratio Utility Billing Systems (RUBS), penalties for bounced checks, and optional charges for amenities such as parking spaces, pet accommodations, extra storage, gyms, laundry facilities, community rooms, or dog-washing stationsAlso, landlords would no longer be permitted to increasy fees during an active tenancy, even if their costs rise significantly.

Practical Impacts for Housing Operators

Landlords and property managers would need to reconsider how they structure leases and manage operational budgets if this legislation passes. Eliminating these fees might lead property managers to raise base rents to cover lost income. The inability to offer à-la-carte services or amenities could also limit flexibility in how properties are marketed and managed. Moreover, landlords would need clear lease terms to explicitly identify permitted charges. Because local governments could implement even stricter fee limits, landlords may face varying compliance requirements depending on their property’s location.

Water & Utility Considerations

One specific challenge relates to water and sewer costs. Under the proposed rules, if submetering individual units isn’t feasible, landlords would no longer be allowed to allocate these utility costs among tenants using RUBS. As a result, property managers would need to either absorb these costs directly or undertake costly infrastructure upgrades to install submeters, requiring careful financial analysis and planning.

Enforcement & Liability

The legislation also includes potentially severe penalties for violations. If enacted, landlords could face minimum statutory damages of $1,000 per incident, and damages could triple if the violation is found to be intentional. The law would also allow tenants who successfully challenge landlords in court to recover attorneys’ fees, increasing landlords’ legal exposure and potentially encouraging more tenant-initiated lawsuits.

Legislative Status

Currently, AB 1248 is awaiting a vote on the Assembly floor after passing the Judiciary Committee on April 22, 2025. The companion bill, SB 681, has cleared the Senate Housing and Judiciary Committees and is now awaiting consideration by the Senate Appropriations Committee. Landlords should monitor these bills closely, as final outcomes could significantly affect property operations and compliance requirements.

AB 246 – Eviction Moratorium During Social Security Benefit Interruptions

Triggering Event

Assembly Bill 246 proposes temporary eviction protections for tenants affected by delays in receiving Social Security payments. If passed, the protections would activate whenever the state declares an official “interruption” of Social Security benefits lasting three calendar days or longer.

Temporary Protections for Tenants

Under AB 246, tenants experiencing hardship due to delayed Social Security checks could avoid eviction by submitting a signed declaration confirming their circumstances. This declaration would halt eviction actions for non-payment of rent. Additionally, the current three-day response period to eviction notices would also be extended to 15 court days during the declared interruption.

Landlords would face certain restrictions during these periods. Specifically, they could not apply partial payments from tenants toward past-due balances without tenant consent, nor could they use tenants’ security deposits to cover unpaid rent during the interruption. These protections would last until Social Security payments resume or for a maximum of six months, whichever comes first, and would remain available until January 20, 2029.

Compliance Steps for Property Managers

Property managers could take proactive steps to manage these potential requirements, including preparing hardship declaration forms in advance for tenants who request them. It would also be prudent to adjust rent-collection and accounting practices to accept and document partial rent payments clearly. Accurate tracking of declared interruption periods and related tenant documentation would be critical to maintaining compliance.

Financial & Operational Considerations

Property managers and landlords may want to plan carefully for the financial impact of this bill, as Social Security delays could create rent collection gaps lasting several months. Effective communication with tenants, particularly those relying on fixed-income programs, would help manage tenant relations during these interruptions. Additionally, landlords might consider establishing or reviewing reserve funds or contingency financing options to handle potential cash-flow disruptions.

Legislative Status

AB 246 advanced from the Assembly Judiciary Committee on April 29, 2025. It is scheduled for a hearing in the Assembly Appropriations Committee in late May. Landlords and property managers should monitor this bill closely, as its passage would necessitate adjustments in eviction management and financial planning strategies.

Key Takeaways

California landlords and property managers should consider proactive measures in response to these legislative proposals. With AB 863, it’s beneficial to establish procedures now for managing multilingual eviction notices, including verifying tenants’ primary languages and sourcing reliable translation services.

Regarding AB 1248 and SB 681, property managers can begin assessing the financial implications if specific tenant fees become prohibited. Reviewing current fee structures and planning how to adjust rental prices or manage cost recovery without these fees would provide a strategic advantage.

AB 246 underscores the importance of being prepared for unexpected rent disruptions due to delays in Social Security payments. Developing clear procedures to handle tenant hardship declarations and adjusting rent-collection policies would help manage cash flow effectively during these periods.

Finally, staying regularly informed about the legislative progress of these bills is crucial. By actively monitoring developments, property managers can ensure that necessary updates to lease agreements, compliance practices, and financial planning are smoothly implemented ahead of any potential January 2026 effective date.

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. 

 

Contact Mehigan Law.