Starting in 2026, California landlords must provide a working stove and refrigerator under AB 628. Learn how this impacts leases and habitability rules.
Category
Landlord Tenant
What Happens When a Tenant Moves Out Early? A Landlord’s Guide in California
What happens when a tenant moves out before their lease ends? In California, tenants remain responsible for unpaid rent and re-rental costs—but landlords must make reasonable efforts to find a replacement rather than simply charging the tenant for the full lease term. Under California Civil Code § 1951.2, landlords have a legal duty to mitigate damages by advertising the property, setting a fair market rent, and considering qualified replacement tenants. If a landlord rejects a viable tenant without good reason, the outgoing tenant’s liability may be reduced. A proactive approach can minimize downtime and financial loss for both parties.
Ban on Predatory Real Estate Offers Related to LA Fires Extended Through July 1
Ban on Predatory Real Estate Offers Extended
Governor Newsom has extended through July 1, 2025 the executive order prohibiting unsolicited, undervalued real estate offers to homeowners in firestorm-affected Los Angeles ZIP codes. This crucial protection targets predatory investor behavior aimed at vulnerable property owners still recovering from disaster.
While this new order applies to property sales, it’s important to note that rental price caps and eviction protections remain in effect under earlier executive actions.
📖 Read our full article to learn how these protections impact real estate professionals, landlords, and property owners throughout Southern California.
Forming an LLC to Hold Real Estate in California
Thinking about forming an LLC to hold real estate in California? Discover why LLCs are a powerful tool for privacy, asset protection, estate planning, and tax flexibility—especially for high-value properties in Newport Beach, Costa Mesa, Corona del Mar, and other Orange County coastal communities. This comprehensive guide from Lucas Real Estate Group covers everything from liability and tax benefits to Prop 19 strategies and long-term maintenance considerations.
Attention California LLC Owners: Two Key Tax Reminders You Don’t Want to Miss – 1) Annual $800 Minimum Fee, and 2) Form 568 – Due April 15th
If you own a California LLC — even one with no income or used solely to hold real estate — you’re still required to file Form 568 and pay the $800 minimum annual franchise tax. This blog breaks down the two most critical filing requirements for LLC owners, especially those using an LLC for privacy, rental properties, or estate planning purposes. Don’t risk penalties or suspension — find out what’s due, when, and how to stay compliant.
UPDATE: March 7 2025 Executive Order Further Extends Price Gouging Protections
Governor Gavin Newsom’s Executive Order N-23-25, issued on March 7, 2025, extends rental price gouging protections in Los Angeles County until July 1, 2025. These protections cap rent increases at 10% and prohibit evictions aimed at re-listing properties at higher prices.
However, some properties are now exempt from HUD Fair Market Rent (FMR) calculations—specifically newly constructed units and high-value single-family homes (4+ bedrooms) in select Los Angeles ZIP codes. Importantly, these exemptions do NOT remove the 10% cap on rent increases and do NOT allow landlords to raise prices beyond prior rates if the property was rented or listed in the last year.
For landlords, property managers, and investors in Newport Beach, Costa Mesa, and beyond, these updates carry critical implications for leasing strategies, property valuations, and rental pricing. Orange County remains fully subject to price gouging laws, with no exemptions.
📖 Read our full article to understand how these changes impact your real estate business.
UPDATE: February 2025 Executive Order on Price Gouging Protections
On February 4, 2025, Governor Gavin Newsom issued Executive Order N-17-25, modifying California’s price gouging protections in response to the Los Angeles and Ventura County wildfires. This order expands price gouging restrictions to all rental housing, regardless of lease length, closing a loophole landlords previously used to avoid these rules. Additionally, it temporarily suspends price gouging restrictions for high-value, four-bedroom single-family homes in select high-rent ZIP codes until March 8, 2025. Notably, Orange County remains fully subject to HUD-based rental calculations where applicable. Understanding these updates is critical for landlords and property managers navigating rental pricing in Newport Beach, Costa Mesa, and beyond.
Navigating Showings and Accessing Tenant-Occupied Property: A Landlord’s Guide When Selling Tenant-Occupied Property
Navigating showings and accessing tenant-occupied properties requires a strategic approach. Whether you’re coordinating open houses, dealing with an uncooperative tenant, or considering a cash-for-keys agreement, understanding the legal landscape and best practices can make all the difference. From providing proper notice to leveraging incentives for tenant cooperation, landlords have options to ensure a smooth sales process while staying compliant with California law.
New Screening Fee Regulations for 2025: Can I Still Charge a Screening Fee or Application Fee???
As of January 1, 2025, Assembly Bill 2493 (AB 2493) introduces new requirements for California landlords regarding application screening fees. This law prohibits fees if no rental units are available and mandates refunds for applicants not selected, unless specific criteria are met. Landlords must provide written screening criteria, process applications in order, and issue refunds or credit reports promptly. These changes aim to enhance transparency and fairness in tenant screening. If you own property in Newport Beach or Costa Mesa, Lucas Real Estate can help you navigate these updates and stay compliant.
Navigating Fair Market Rent Calculations During California’s Price Gouging Protections
Under California Penal Code Section 396, rental price increases during a declared state of emergency are limited to 10%, with the base rent determined by prior rental history or fair market rent (FMR) as defined by HUD. If a property hasn’t been rented in the past year, the allowable base rent defaults to 160% of the HUD fair market rent. The choice between county-wide FMRs and Small Area FMRs (SAFMRs) depends on local market conditions, with SAFMRs providing more granular, ZIP code-specific data.
