AB 828 Update – Learn More About the Move to Cut Rent by 25% In California

If you follow the Californian rental market, you know that there’s been plenty of activity this year on the rent control front thanks to the passage of AB 1482. This rent control measure became law in January, but that hasn’t stopped lawmakers from creating more rent control legislation including the Rental Affordability Act and AB 828.

Sadly, one would think that landlords in California have been through enough with everything that’s been done to impose rent control in this state. If AB 828 is approved, this would mean that the average landlord would be faced with dire economic consequences as any of their tenants could petition the courts to have their rents cut by 25% for one year.

What’s Happening with AB 828?

Right now, AB 828 is still moving forward through the Senate; it’s currently in the Rules Committee and this can mean that bill possibly gets postponed for several weeks while it’s debated.

Even though AB 828 continues to move forward, the California Apartment Association, and other groups that support landlords in California, have voiced their opposition of this bill and have been flooding lawmakers email and voicemail inboxes with messages opposing it.

There’s no denying that if this bill is approved it could bring a wide variety of catastrophic consequences for landlords in the state because landlords would have to absorb the economic losses and this would affect their businesses.

To voice your opposition to this bill, we encourage you to contact our lawmakers today and let them know that passing AB 828 would only further hurt the struggling rental market and make it more difficult for landlords and tenants alike.

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What is AB 828?

With the COVID-19 pandemic having affected everyone in California, lawmakers have been working overtime to create more legislation to protect tenants, including their latest proposal, AB 828.

What is AB 828? If passed, this bill would enable tenants to petition the courts to cut their rents by 25%, and they wouldn’t have to show cause for the rent reduction.

Would Hurt The California Rental Market

There’s no denying that many tenants in California need help with paying their rents because of the simple fact that if a tenant isn’t working, or they recently lost their jobs, they may be unable to pay their rents as before.

The good news is that even though California lawmakers have been drafting legislation to address the problem of rent payments in California, landlords and tenants have already been working together to ensure that tenants can pay their rents and stay in their rental properties.

For example, in a Zoom meeting with Brad Seaman and Justin Isaacs, Jayson Yoss, President of GoldenWest Management confirmed that less than 5% of GWM residents, in the 2nd month of quarantine, have been unable to pay their rents and less than 22% of residents have had to go into a payment plan or require a discount on their leases.

This is excellent news considering the “doom and gloom” being reported in the media on an hourly basis of how Coronavirus is affecting the economy and the rental market.

In the Zoom meeting, Jayson Yoss also confirmed that vacancies at GoldenWest Management are currently at 2%-3% as well. He sees the rental market as remaining “robust” despite the challenges posed by Coronavirus.

Why AB 828 Is Bad for Business

Even though some tenant’s rights groups may support AB 828, the reality is that if the state were to ask a restaurant like McDonald’s or a grocery store like Albertsons to cut their prices by 25%, this move would hurt that business financially and ultimately lead to their closures.

Sadly, when it comes to landlords in California, some lawmakers are under the assumption that landlords can “take it on the chin” and absorb a 25% rent reduction without any problem.

The truth about a rent reduction is that it will be especially harmful to landlords who only own one or more rental properties and rely on the income from rent to cover their expenses.

AB 828 also creates a possible due process violation, or constitutional argument, because it’s also possible that if approved, it would impede a tenant’s ability to enter into an executed contract.

Contact GoldenWest Management

To learn more about AB 828, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

California Rental Market News

There’s no doubt that California landlords have had a rough year in 2020 which started on January 1st when AB 1482, California’s “defacto” rent control bill was passed.

Following AB 1482, came Coronavirus, the deadly virus that’s impacted the entire world and has taken the lives of hundreds of thousands of people worldwide and shut down the California economy.

Sadly, COVID-19 has also been responsible for unprecedented unemployment in California and millions of renters across the state being unable to pay their rents.

With everything that’s happening due to the virus, you’d think that landlords have enough to deal with but, landlords have another issue on the horizon in the form of a new bill that’s been proposed, AB 828.

A row of new townhouses or condominiums.

What Is AB 828?

Proposed by Assemblyman Phil Ting, of San Francisco, if approved, AB 828 would force landlords in the State of California to reduce rents by 25%.

This bill has left every landlord in the state of California scratching their heads because of the obvious fact that AB 1482 already puts robust rent control measures in place so why do we need more legislation that’s only going to adversely impact landlords even more?

If it’s passed, AB 828 would force landlords to reduce rents by 25%, even if a tenant can’t show that they’ve had a financial hardship due to Coronavirus. This bill would also allow the courts to set rents and change agreements that are already in place.

What’s even worse is that under AB 828, nuisance tenants would also be protected by this bill and landlords would not have the ability to do things that they’ve done in the past like file unlawful detainer complaints.

How Can AB 828 Be Stopped?

Thankfully, as long as California is part of the United States, every person who lives in the state has the right to reach out to their elected representatives and have their voice heard.

To stop AB 828, landlords across the state are encouraged to reach out to their elected representatives as soon as possible and do their parts to stop this legislation from being passed.

Contact GoldenWest Management

To learn more about AB 828, or to speak with us about our property management services, contact us today at (866) 545-5303 or click here to connect with us online.