New Laws, Procedures for Landlords

By Geoff McIntosh, President

Our legislation session in Sacramento proved very successful for landlords.

Although our lobbyists and consultants fought hard to stop bad legislation – beating back 33 negative bills – there were two bills that passed and were signed into law.

AB 1169 (Torrico) and AB 2210 (Goldberg) will go into effect on January 1, 2007.  Following is a short Q&A that will help you with the implementation of the 60-day notice.

AB 1169 – 60-Day Notice to Terminate Residential Tenancy

On January 1, 2007 the law will require landlords and property managers to give a 60-day notice to terminate a residential tenancy if the tenant has been a tenant for one year or more in a non rent control city or county. The law will be effective for three years unless the Legislature and Governor take action to extend the law.

The following should assist members understanding the implementation of the
new law.

Q. When does the 60-day notice to terminate a residential tenancy go into
effect?

A. January 1, 2007

Q. Does the law apply to existing tenants?

A. Yes.

Q. Does it apply to all residential tenancies?

A. It does NOT apply to rental units in rent control or just cause
communities.

Q. Does it apply to leases?

A. Not during the lease term.

Q. Is there an incentive to have leases under the new law?

A. Absolutely. At the end of the lease, the landlord/ property manager may end the rental accommodation.

Q. Will leases tend to be of short duration?

A. There is a strong likelihood that landlords/ property managers may want to consider shorter duration leases.

Q. Does it affect unlawful detainer actions?

A. No

Q. If I want to terminate a tenancy during the month of January 2007, what
should I do?

A. In order to give a notice that becomes effective 30-days from the date of the notice, you must give the notice this year. For a tenancy that you want to end during any day of the month of January 2007 you must give the notice at least 30 days prior to termination. If you wait until January to give the notice to the tenant that has rented from you for a least one year or more, you will give a 60-day notice to terminate the tenancy.

Q. What is the practical effect of the bill?

A. Landlords and property managers will learn to be better at their business. Work out arrangements will change. Compliance with month-to-month and lease agreements will need to be followed more closely. Business plans may change. Remedial actions on complaints by tenants about other tenants conduct may change.

AB 2210 –  Removal of Illegally Parked Cars

AB 2210 was authored by Jackie Goldberg to crack down on "rogue tow truck drivers". And the bill does crack down on companies that engage in these type of practices which includes drivers that would cruise parking lots to find illegally parked vehicles and immediately tow them to a storage yard and ultimately collect towing and storage yard fees.

In order to be complete in her bill, however, she felt compelled to set new standards for owners of real property. She sought to put a stop to property owners that would simply call a tow truck company and request that a vehicle be removed from designated parking stalls and carports without the property owner or manager being present at the time of the tow. And the bill that was sent to the Governor made it clear that for residential rental complexes of 16 units or more, where under current law a resident property manager must be present, the manager or property owner must be on the property at the time of the tow. The bill should not significantly change, if any change at all should occur, apartment manager standards to remove vehicles in these sets of circumstances.

Where the law will change, is residential rental properties of 15 units or less where there is NOT on site property manager or owner. Tenants must call and request of the property manager or owner that an illegally parked car is in the tenants designated (and posted) parking spot(s).

The property manager and or owner MUST obtain an electronically transmitted request from the tenant that a vehicle is illegally parked in a specific assigned and posted space within 24 hours of the tow and the property manager and or owner must electronically transmit the tenants request to the tow truck company within the following 24 hours.

Failure to obtain the request or failure to obtain the correct information on the request from the tenant within that 24 hour period and/ or failure of the manager or owner to transmit that information to the tow truck company in the next 24 hours will subject the landlord to a $2500 fee and fine and misdemeanor.

Practically speaking, how should the tenant report to the owner?

First, should the landlord or property manager AND tenant have the SAME type of electronic ways to communicate i.e. fax or email, the tenant is to send the email or fax, as the case may be, to the landlord PRIOR TO THE LANDLORD/MANAGER  calling the tow truck company that states the tenant is to: request the removal of an illegally parked car is in his/her assigned space; identify the assigned space number; state the vehicles license plate and make of car; date the request; and state the tenants name and address.

OR

Second, if electronic transmission is not possible, the owner that receives the call from the tenant is to call the tow truck company on the condition that the tenant meet the tow truck company at the property sign the authorization to remove the vehicle and then the tenant can leave the area as he or she chooses. This alternative is not much different that any person that waits for a tow truck to arrive to provide roadside assistance.

The way to avoid the fee, fine and misdemeanor is to NOT call the tow truck driver until the manager and or owner obtain the information from the tenant or to simply change the terms of tenancy for all tenants which removes designated parking places. Mangers and owners should avoid giving a limited agency relationship to tenants that want to supervise the tow. Tow truck drivers have no way of determining the validity of the tenancy and could cause damage to personal and real property during the tow.