New California Law Extends Eviction Response Time: What It Means for Property Owners

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A new California law, Assembly Bill 2347, signed by Governor Gavin Newsom, doubles the time tenants have to respond to eviction notices from five business days to ten. Set to take effect on January 1, 2025, this change significantly impacts landlords and property owners navigating the state’s challenging rental market.

Here’s what you need to know about how this new law will affect your rights as a landlord and the eviction process overall.

Key Changes and Their Impact on Property Owners

  • Extended Response Window for Tenants:
    • Tenants now have 10 business days instead of 5 to respond to an unlawful detainer notice.
    • This additional time will likely prolong the eviction timeline, leading to potential revenue losses for landlords when tenants delay vacating the property.
  • Potential Increase in Unpaid Rent:
    • The extension means tenants have more opportunity to delay the process, which may lead to more unpaid rent accruing during this period.
    • For landlords already dealing with tenants in arrears, this change could amplify financial strain. Holding a non-paying tenant in place for longer not only increases losses but may also lead to a more challenging process for recovering past due amounts.
  • Delays in Turning Over Rental Units:
    • The longer response time could create delays in regaining possession of properties. These delays could mean more time before units are ready for new tenants.
    • Property owners who count on quick turnovers to keep cash flow stable may see interruptions that complicate financial planning and operational stability.

Concerns Raised by Landlords and Real Estate Attorneys

  • Cost Implications for Property Owners:
    • Daniel Bornstein, a prominent San Francisco real estate attorney, highlights that any extension in the eviction timeline creates more risk of financial loss for owners.
    • Bornstein stresses that while the eviction process is inherently lengthy, adding more days for tenant response piles on additional costs that landlords will ultimately bear, including legal fees, lost rent, and delays in property maintenance.
  • Prolonged Eviction Process:
    • Landlords are concerned about a domino effect—the extended response window is likely to add time to an already complicated eviction process, pushing the average eviction timeline beyond several months.
    • This change in the law compounds issues already present due to slow-moving courts and procedural requirements that often favor tenants.

The Broader Context: How This Law Fits Into Eviction Timelines

  • Comparison with Other Civil Cases:
    • In typical civil suits, defendants have 30 days to respond, but eviction processes in California are specifically designed to be faster to reduce risks to landlords. By increasing the response period for unlawful detainer actions, the balance starts to tilt more toward tenants’ interests.
    • This extended timeline means landlords face similar waiting periods to those found in general civil litigation, despite the immediate financial implications unique to unpaid rent situations.
  • Added Administrative Challenges:
    • The complexities of evictions, especially in areas with a lack of legal infrastructure for landlords, mean that the longer response window could lead to increased administrative burdens. From ensuring that all procedures are properly followed to tracking the elongated timeline, landlords may need to invest in more support services, leading to higher operational costs.

Strategies for Landlords to Mitigate Risks

  • Be Proactive with Tenant Management:
    • With this new law in place, it’s crucial to thoroughly screen tenants to reduce the chances of facing evictions. A proactive approach includes running comprehensive background checks and ensuring that tenant incomes are stable enough to cover rent obligations.
    • Maintaining a good relationship with tenants may also help. Being communicative and flexible (within reason) could make tenants more cooperative if eviction becomes necessary.
  • Review Lease Agreements:
    • Now more than ever, landlords should have their lease agreements reviewed by legal experts. Clear terms around rent payment, breach consequences, and dispute resolution can strengthen your position if issues arise.
  • Legal Counsel for Every Step:
    • Given the changes, having legal support readily available is crucial. Working with an experienced real estate attorney can help you navigate this new landscape, ensuring that you comply with all regulations while also asserting your rights effectively.

What Does This Mean for Property Owners Moving Forward?

  • Financial Planning:
    Landlords will need to plan for longer vacancies and the possibility of carrying the costs of unpaid rent for extended periods. This makes financial planning more complex and emphasizes the need for better cash reserves.
  • Property Access Delays:
    A significant concern is that the increased response time will create delays in getting properties back on the rental market, especially in cases where tenants may not ultimately have a valid defense but are effectively using the time to remain in the property without paying rent.
  • Impact on New Leases: This change could also affect how landlords structure new lease agreements. Adding terms that promote clear communication and payment expectations will be essential to minimize conflicts that lead to prolonged evictions.

California’s rental laws are shifting to address tenant challenges, but these changes can inadvertently create risks for property owners. Landlords must adapt to navigate these evolving regulations effectively. At Davidovich Stone Law Group, we specialize in representing property owners and ensuring you can manage your rental business without unnecessary disruptions. Reach out to us today to discuss your strategies moving forward

Your bottom line is our top priority.

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