California lawmakers keep making the same mistakes when it comes to rental housing. Their new "renters’ rights" laws, aimed at helping tenants, are actually just another headache for landlords. While the stated intention may be to protect tenants and stabilize housing costs, these laws are burdening small-scale landlords and threatening the very foundation of property rights.
Let’s start with SB 567, which severely limits when owners can ask tenants to vacate the property. Previously, landlords had the flexibility to terminate tenancy once a lease ended, especially if they needed the property for personal use or family reasons. But now, SB 567 requires landlords or family members to reside in the unit for at least a year before selling or listing it again. This not only restricts property owners' rights but also adds unnecessary hurdles in reclaiming their own property.
The repercussions of SB 567 are significant. Small landlords, who rely on rental income for financial stability, may opt to withdraw their properties from the rental market altogether. People who rent out a property for additional income but also value the freedom to use it for personal reasons are left with few viable options. It's a lose-lose situation for both landlords and tenants.
Then there’s AB 12, which caps security deposits at just one month’s rent. While supporters argue this promotes equity, it overlooks the fact that larger security deposits serve as a safety net for landlords, especially when renting to tenants with less-than-perfect credit or inconsistent income. By removing this buffer, landlords may become more selective, favoring tenants with higher incomes and established credit histories. This exacerbates housing inequality rather than addressing it.
The narrative behind these new laws paints landlords as corporate giants, capable of absorbing government-imposed burdens. However, the reality is far from it. These interventions only add to the already high rents and housing shortages in California, further exacerbating the crisis.
Lawmakers need to recognize that restricting landlords’ rights and imposing arbitrary regulations will not solve the underlying issues. If decades of rent control have failed to lower prices, why would these new laws be any different? It’s time to acknowledge that a different approach is needed.
The key to stabilizing rents lies in increasing housing supply, which requires incentivizing small property owners to participate in the rental market. Instead of burdening landlords with restrictive regulations, lawmakers should focus on reducing costs and risks associated with renting out properties. Repealing laws that restrict landlords’ rights after a lease has ended would encourage more individuals to enter the rental market, thereby expanding the housing stock. And let's stop saying tenants have a right to someone else's property. It's time to focus on real solutions, or we'll never fix the housing crisis.
Melissa Melendez, a former California State Senator and Assemblymember, is now Executive Director of the California Chapter of the America First Policy Institute.