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The following are the new laws that took effect January 1, 2003:
Notices
- If tenant has lived in the premises for one year or longer—serve a 60-Day Notice
- If tenant has lived in the premises for under one year—serve a 30-Day Notice
- Exceptions to above dictate that a 30-Day Notice can be served if all the following
are true: a) the owner has the property up for sale, b) the notice is given no more
than 120 days after escrow has started, c) no other notice of termination has been
previously given, d) the property is a single-family dwelling, and e) the potential
buyer is an individual and plans to live in the property for at least 1 year. - Upon termination by either the owner or the resident, owner must notify the
resident of his or her right to an initial inspection (see below).
Security Deposit
If the deposit is not returned within the 21-day period (or 14 days if this is what lease states) and the resident can prove bad faith, the resident could be awarded punitive damages up to two times the amount of the deposit. Additionally, the owner has the burden of proof to show that the deductions were reasonable.
Notice to Enter Dwelling
Owner may serve the resident a Notice to Enter Dwelling by mail; however, the notice must be mailed 6 days prior to the intended date of entry.
Fee Increases
The court is increasing the filing fee for the Unlawful Detainer Complaint as follows:
- Filing Fee: $122.30 when rent demanded is $10,000 or less
- Filing Fee: $130.00 when rent demanded is $10,000, but less than $25,000
- Filing Fee: $227.50 when rent demanded is over $25,000
Summary of AB 2330
Anti-Harassment of Tenants/Security Deposit Reform
Strengthens the law against evicting tenants for retaliation.
Presently the law prohibits landlords from evicting tenants in a "retaliatory" fashion-that is, doing things which may be legal but which the landlord does not like, such as running a home-based business from the premises. AB 2330 better prevents retaliatory evictions.
Allows tenants more time to pay high security deposits.
AB 2330 provides that if the landlord requires a security deposit greater than one month's rent, the tenant may pay in installments over a period of six to eleven months.
Allow tenants who lose employment to use security deposit as one month's rent.
Tenants of one year or longer and who paid more than one month's security deposit may use additional security deposit funds on an emergency basis. Tenant must have applied for unemployment benefits. Tenant then may pay security deposit back in 6 to11 installments.
Landlord now has two instead of three weeks to return security deposits.
Until now, landlords have had three weeks to return security deposits and provide accounting of how deposit was used when tenant moves out. Now the landlord has two weeks, so the tenant has funds to apply and pay for new dwellings faster.
Landlords must do walk-through inspection prior to move out and provide estimate of deductions.
AB 2330 gives tenants a better idea of what funds from security deposit they will receive back, and what they need to fix in order to get entire deposit back. This is also designed to prevent any disagreements about condition of the unit that may affect security deposit.
Provides for annual interest payments on security deposits.
Presently California tenancy laws provide no right to interest on security deposits. AB 2330 stipulates landlords must pay 1% less than previous year's Federal Reserve Discount Rate as the amount of interest on security deposits.
Bases the penalty for illegally withholding security deposit on the amount of deposit.
Current law stipulates that if a tenant wins a small claims court case against landlord, proving bad faith as regards return of the security deposit, he or she receives $600. AB 2330 stiffens this to double the amount of the security deposit.
