With a year like 2020 behind us and the vaccine being administered to 3.1 million Americans each day, there seems to be a light at end of the tunnel. For landlords in California, this sentiment particularly rang true after November 3, 2020, when Proposition 21 (Also known by many as Proposition 10 – 2.0) was defeated by a nearly 20-point margin. For landlords this was a huge victory, seeing that Assembly Bill 1482 had recently gone into effect January 1, 2020 and it was beginning to seem like owning rental properties was some sort of unspoken crime and California was out to punish landlords by enacting an even more stringent form of rent control.

Although Proposition 21 was defeated and subsequently provided relief to landlords, there has been rising concern around a new assembly bill that could potentially drag out legitimate eviction cases and rack up legal bills for rental housing providers in California, where the back rent owed accounts for more than a quarter of all back rent owed nationwide. For landlords in California who are already suffering through months of unpaid rent due to the statewide eviction moratorium, a bill like AB 1487 could have drastic consequences.

AB 1487 by Assemblyman Jesse Gabriel would create a “Homeless Prevention Fund” for free eviction legal services. Funded by the Legal Services Trust Fund Commission, grants would be allocated to non-profit organizations and local governments that have shown they can provide legal services for eviction protection.

With many landlords relying on their tenants to pay rent so that they can in turn pay their mortgage and support their own living expenses, we could see a wave of landlords lose their rental properties due to AB 1487 dragging out eviction cases and leaving landlords with no choice but to sell. Landlords and tenants are often seemingly paired in perpetual battle; however, my experience has been the opposite. Many of our own clients often go above and beyond to make sure their tenants are taken care of whether that is by reducing rent, offering free rent, or forgiving a portion of rent until they’re able to get back on their feet. We have seen these scenarios firsthand, unlike what is shown in the media to influence the passing of such bills, by painting landlords as wealthy, money hungry tycoons who only care about making a profit.

With AB 1487 expected to be debated on the assembly floor in the coming weeks, we hope to spread awareness and keep clients and landlords alike informed by providing up to date information that will help them make informed decisions around their own investments. Please reach out should you have any questions about today’s market. We aim to be a trusted resource and are always happy to be of service.