Tenant Relief Act of 2020

Tenant Relief Act of 2020

Tenant Relief Act of 2020

Under the Tenant Relief Act of 2020, tenants can stay in their homes through January 31, 2021, but need to come up with 25% of the rent. But only for missed rents between September 1, and January 31. What this means is that tenants must pay 25% of rent within that period or lose eviction protection. In other words, they will be open to eviction. As for the remaining 75% of the rent, that is treated as a civil debt, just like the provision for missed rent between March 1 and August 31. This means tenants are still have protection, but this time there is a caveat. With this in mind, we offer some more insight here.

Tenant Relief Act of 2020: Assembly Bill 3088

Assembly Bill 3088 signed by California Gov. Gavin Newsom late Monday, is a measure aimed at helping millions of Californians struggling to pay rent during the COVID-19 Pandemic. Although it is not clear just how many California renters are behind on their rent payments, one thing is clear, by the end of this year a lot of rent will be owed. That being said, as long as tenants pay at least 25% of their rent from now onward, landlords will not be able to evict them. While evictions for missed rents may be frozen until February, tenants will still owe their landlord for any missed rent payments. Meaning, the protection provisions in the bill do not include rent cancellation. 

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How The Tenant Relief Act Works

The main tenant protection provisions in the bill include:

  • Full Protection: any rent missed between March 1 and Aug. 31 will convert to civil debt
    • Although a landlord cannot evict tenants for unpaid rent from March through August 2020
    • They can sue them in small claims court for the debt starting March 1, 2021.
  • Protections (With A Caveat): rents missed between Sept. 1 and Jan. 31 come with a caveat
    • Tenants must pay 25% of rent within that period or else they’ll be open to eviction
    • With the remaining 75% of rent treated as civil debt (similar to the provision for March 1 and August 31).
  • More Time: under the new law landlords must post a 15-day-notice to evict before they go through the court process.

For more on this, please read the AB 3088 – COVID-19 TENANT RELIEF ACT OF 2020.

Protections For Small Landlords

  • Extends the Homeowners’ Bill of Rights’ Anti-foreclosure Protections: to small landlords (1-4 units, non-owner occupied)
    • If the landlord is an individual
    • And, if the tenant moved in prior to March 4, and fails to pay rent due to loss of income.
  • Provides Accountability & Transparency Provisions: to protect small landlord borrowers who request CARES-compliant forbearance.

In Times Like These

In times like these, your ability to be successful is highly dependent on how well you manage your properties and the tenants living in them (or finding a competent property manager to do it for you). For this reason, you may want to consider hiring a property management company to help you.

Whether you are interested in changing property managers, or simply looking to hire a property management company for the first time, we can help. We manage all types of residential rental properties throughout San Diego County including single-family homes, condos, and multifamily properties such as duplex and triplexes, and even small apartment buildings. Let us manage your rental properties, so you can enjoy life! Call us today at (858) 576-2176 to get started!