C.A.R. has recently released 4 new and newly-revised landlord-tenant forms, including the Application to Lease or Rent (LRA), and Notice of Termination of Tenancy (NTT). 

Background on LRA Revision: The LRA has been updated to help landlords comply with a 2024 new law concerning Section 8 tenants. As background, a new law was already enacted back in 2020 prohibiting residential landlords from refusing to rent because an applicant’s source of income includes Section 8 vouchers or other government rent subsidies. Then another new law was enacted, effective January 1, 2024, that prohibits a landlord from using a Section 8 applicant’s credit history as part of the application process, unless the landlord first offers the applicant the option of providing verifiable “alternative evidence” of the applicant’s ability to pay the tenant’s portion of the total rent. “Alternative evidence” can be, among other things, government benefit payments, pay records, and bank statements. If an applicant elects to provide such “alternative evidence,” the landlord must give the applicant reasonable time to provide that documentation, as well as give reasonable consideration to any documentation received. The landlord is allowed to require written verification of employment, landlord references, and verification of the applicant’s identity. The full text of the new 2024 law is set forth at section 12955(o) of the California Government Code, available at the California Legislative Information website.

LRA’s March 2024 Revision: The LRA has been revised to include a new notice to Section 8 applicants that they have the option of providing “alternative evidence,” as discussed above. The LRA also has a new checkbox for an applicant to use to list the “alternative evidence” to be submitted. These revisions are set off in a box below paragraph 8 of the LRA.

NTT’s March 2024 Revisions: Another new landlord-tenant law came into effect on April 1, 2024 that imposes significantly stricter requirements on landlords who fall under statewide rent control known as The Tenant Protection Act of 2019 (TPA). As a reminder, certain owners of single-family homes and condos, among others, may be exempt from the TPA. But if not exempt, the newly-revised TPA law imposes new restrictions on landlords seeking a just-cause, no-fault eviction for family move-in or substantial remodel. Hence, the NTT has been revised to allow a landlord to attach a new Family Move-In Addendum (NTT-FM) or Substantial Remodel or Demolition Addendum (NTT-RD). The full text of the newly-revised TPA just-cause law is set forth at section 1946.2 of the California Civil Code, available at the California Legislative Information website.

No Property Management: As a BHHSCP agent, you cannot engage in any property management services, such as, but not limited to, completing an NTT form, or counseling clients about terminating tenants. Be advised that the newly-revised TPA law renders void any NTT that violates the TPA. It also imposes harsh monetary penalties on a TPA landlord who wrongfully evicts a tenant.

Copyright© 2024 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of April 8, 2024. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.