Reminder!

This update covers significant legal updates from 2025 that will affect housing providers in the coming year. We cover major laws passed by the California legislature as well as important court decisions and noteworthy local initiatives. California Legislature AB 246: Eviction Protection for Interruption of Social Security Benefits. AB 325: Common Pricing Algorithm Restrictions. AB 414: Updated Procedures for Returning Security Deposits. AB 628: Stove and Refrigerator Added to Habitability Standard. AB 747: Changes to Service of Unlawful Detainer Lawsuit AB 1414: Tenant Right to Opt Out of Internet Plan. AB 1529: Simplification of AB1482 Disclosure Requirement. SB 610: Post-Disaster Obligations for Landlords, and Tenant Right to Return to Repaired Units. AB1248: Ban on Ratio Utility Billing – Not Passed. Notable Court Decisions Eshagian v. Cepeda (C.A. 2nd, June 26, 2025): Invalidated a 3-day pay-or-quit notice for lacking service date and clear deadline. Gogal v. Deng (C.A. 4th, July 22, 2025): Lease caps on attorney fees/costs ($1,000) enforceable, but California Supreme Court has agreed to review decision. Ongoing COVID Eviction Moratorium litigation. Local Initiatives Los Angeles: Immigration Emergency Declaration. Los Angeles: Right to Counsel San Diego: Broad Limits on Rental Fees.

On December 12, 2025, the Los Angeles City Council voted 12-2 to approve an ordinance amending the city's Rent Stabilization Ordinance for the first time in 40 years. The changes will: Limit annual rent increases to between 1% and 4%, depending on inflation. Use 90% of the Consumer Price Index for calculating the annual allowable rent increase. Eliminate the 1%–2% utility pass-through for landlords who pay for gas or electricity. Prohibit rent increases when tenants add dependents. Expand the occupancy exemption in eviction cases involving material lease violations to include dependents of any age. The changes generally apply to most multifamily housing built before Oct. 1, 1978, which account for approximately 60% of multifamily housing inventory in the area. Newer buildings and single-family homes are exempt under the Costa-Hawkins Rental Housing Act, which limits the application of local rent control laws to newer construction and certain property types. The City Council file ( 23-1134 ) has been forwarded to the mayor for approval and it is expected to go into effect mid-January, 30 days after the city clerk posts final approval. Unincorporated areas of Los Angeles County are separately subject to the Rent Stabilization and Tenant Protection Ordinance which was amended in 2024 to switch from a 4% flat cap to a formula to tie increases more closely to inflation while providing stronger tenant protections. Specifically, it limits the annual increase of rent to 60% of the percentage change in the average Consumer Price Index, but no more than a maximum increase of 3%. The county ordinance allows for small property owners (e.g., one property with ≤10 units, or up to three properties totaling ≤10 units countywide plus outside the county) to increase rent by an additional 1% (total of 4%) and luxury unit owners (units with 2 or fewer bedrooms in buildings with 25+ units, where base rent was ≥$4,000/month as of September 11, 2018) to add an extra 2% (total of 5%).

First, the Rental Housing Committee voted on November 20, 2025 to adopt regulations to expand tenant protections against harassment and retaliation. At a study session in March 2025 , the Rental Housing Committee reviewed federal, state and comparable local laws on retaliation. The committee reportedly expressed unanimous support for creating a policy that would define harassment and retaliation, as well as lay out noticing requirements, penalties and remedies. Although state law ( California Civil Code § 1942.5 ) already prohibits a landlord from retaliating against a tenant for exercising their rights, the regulation states examples of "protected activities" and lists several pages of examples of what would be considered "harassment." The regulations also establish a rebuttable presumption that a landlord action is retaliation if it occurs within 180 days of a tenant's protected activity, shifting the burden of proof to the landlord to prove that their action was valid and not connected to a tenant's assertion of their rights. The tenant would also be able to assert a landlord's violation of this regulation as an affirmative defense in an unlawful detainer action by a landlord. Second, the Mountain View City Council approved amendments to the Tenant Relocation Assistance Ordinance (TRAO) on December 9, 2025. The TRAO was first passed in 2010 with the purpose of mitigating impacts experienced by moderate- to very low-income tenants of rental housing who are displaced from their residences due to demolition, remodel, or conversion of their residence. A central change to the ordinance extends the standard temporary relocation period from 90 to 120 days, with up to 60 additional days available when justified. This would provide a total of up to 180 days for temporary displacement before an income-eligible tenant can choose whether to remain in a temporary situation or opt for permanent relocation benefits instead. This change was incorporated in part due to the recognition that construction delays caused by utilities, engineering requirements or unforeseen structural issues often make the previous 90-day limit unworkable. The council also adopted caps on reimbursable moving costs based on the size of the tenant's unit: $1,670 for studios and one-bedroom units, $2,250 for two-bedroom units, and $2,880 for three-bedroom units and larger. The caps are subject to annual review based on the Consumer Price Index. Previous versions did not have this cap, but it was incorporated as it was understood that landlords need clarity and certainty about their exposure for moving expenses. The amended TRAO provisions also provide a "first right of return" to displaced tenants if a rental unit is returned to the market by a landlord, or successor landlord. The landlord must notify the tenant and the city at least 60 days in advance of returning the unit to the market and tenants may elect to return at the same rental rate as was in place at the time of termination with an increase as allowed by annual general adjustments.

The city of Mountain View is considering two major housing policy amendments which could have a significant impact on local rental housing providers. The date and time of the city council meetings are listed below in case you want to attend and make your voices heard. First, the city is considering draft regulations to expand tenant protections against harassment and retaliation. At a study session in March 2025 , the Rental Housing Committee reviewed federal, state and comparable local laws on retaliation. The committee reportedly expressed unanimous support for creating a policy that would define harassment and retaliation, as well as lay out noticing requirements, penalties and remedies. More recently, on October 23, 2025, the Rental Housing Committee reviewed draft regulations . Although state law ( California Civil Code § 1942.5 ) already prohibits a landlord from retaliating against a tenant for exercising their rights, the proposed regulation provides examples of "protected activities" and several pages of examples of what would be considered "harassment." The regulations would also establish a rebuttable presumption that a landlord action is retaliation if it occurs within 180 days of a tenant's protected activity, shifting the burden of proof to the landlord to prove that their action was valid and not connected to a tenant's assertion of their rights. The tenant would also be able to assert a landlord's violation of this regulation as an affirmative defense in an unlawful detainer action by a landlord. The committee is expected to consider a recommendation to adopt the regulations on November 20, 2025 at 6pm at Council Chambers (500 Castro Street) and via video conference. Second, the City Council is considering extensive amendments to the Tenant Relocation Assistance Ordinance (TRAO). The TRAO was first passed in 2010 with the purpose of mitigating impacts experienced by moderate- to very low-income tenants of rental housing who are displaced from their residences due to demolition, remodel, or conversion of their residence. At a meeting on October 28, 2025 , the council held its first reading of the proposed changes . The new version would dramatically increase relocation payments, require landlords to cover moving expenses for all tenants and add new “right of return” provisions for displaced renters. The city council is expected to revisit the proposal on December 9, 2025 at 6:30pm at Council Chambers (500 Castro Street) and via video conference.

The City of San Leandro is considering a residential rent control ordinance and you have the opportunity to share your feedback about it. The draft ordinance is open for public review through September 17, 2025. It is modeled after the City of Alameda's Rent Stabilization Ordinance and is currently written to limit the maximum annual rent increase to 5%. Landlords would also be permitted to file a petition and seek a hearing once in a 12-month period for a "Capital Improvement" or "Fair Return" rent increase beyond the 5% limit. The draft ordinance comes on the heels of the city's Rental Registry Ordinance which was adopted on April 21, 2025 and goes into effect in January 2026. The Rental Registry Ordinance requires residential rental property owners to register rental units and pay program fees annually. There are multiple ways for you to engage with the City Council about the draft ordinance: 1. Join the online community meeting held at 6 to 7:30 p.m. on Thursday, August 28, 2025. Zoom link: https://sanleandro-org.zoom.us/j/82137896920 2. Attend the online stakeholder meeting for housing providers on Thursday, September 4, 2025. If you did not already receive an email notice from the City (or its consultant, Baker Tilly) about the stakeholder meeting, then you can email rentprogram@sanleandro.org or call 510-577-6011 for more information. 3. Attend the in-person community meeting at 6 to 7:30 p.m. on Tuesday, September 9, 2025, at the San Leandro Senior Community Center, 13909 E. 14th Street, San Leandro, California. 4. Share your written comments via email to rentprogram@sanleandro.org . For more information, visit https://www.sanleandro.org/rentprogram.

On June 26, 2025 the California Court of Appeal for the Second District published a ruling that will impact how ALL landlords in California need to prepare and serve their three-day notices to pay or quit. In light of the Eshagian v. Cepeda decision, we are advising that notices include the beginning and end dates of the notice period. This is a conservative approach due to the decision finding the subject notice in the case was defective, in part, because it did not indicate the beginning or the end date of the notice period. Some are of the opinion that stating the service date within the notice is enough to inform the tenant of the notice period. We understand the reasoning for this and it is arguably sufficient. However, we feel that putting specific dates in the notice is a stronger notice. So that is what we are advising you to do. This does require managers to correctly calculate the notice period. To guide you in correctly calculating your notice period we have created an FAQ Sheet which you can download below.

As most landlords already know: within a reasonable time after notification of either party’s intention to terminate the tenancy, or before the end of the lease term, the landlord shall notify the tenant in writing of his or her option... The post Pre Move-Out Initial Inspection appeared first on The Law Offices of Harris & Rosales, LLP.