Harbor Property Management – 2024 Insurance and Rental Laws Update: What You Need to Know

Hello Property Owners, Scott from Harbor Property Management here, bringing some relevant information for all of you:

🚨 State Farm Policy Changes 🚨

Starting July 3, 2024, State Farm will not be renewing policies for homeowners with rental properties in California. This includes non-renewal of commercial apartment policies effective August 20, 2024. These decisions stem from financial challenges such as inflation, catastrophe exposure, and stringent regulations in our state.

⚡ Alert: Uninsurable Electric Panels ⚡

Attention is needed regarding certain electrical panels identified as significant safety hazards due to manufacturing defects and design flaws, leading to overheating and arcing. Ensure your properties are not equipped with these risky installations to avoid potential disasters.

🔒 AB 12: Security Deposit Regulations 🔒

Effective June 2024, Assembly Bill 12 brings major changes:

• The maximum security deposit is now limited to one month’s rent for most residential rentals.
• Prohibitions extend to requesting the last month’s rent upfront, pet deposits, and other upfront payments as lease conditions.
• Notably, active U.S. military members are also protected under this bill, ensuring they are not charged more than a month’s rent for a security deposit.

🛑 Section 8 Updates: SB 329 & SB 267 🛑

• SB 329: Introduced by Sen. Holly Mitchell, this law, effective from January 2021, mandates that landlords consider applicants participating in the Section 8 Housing Choice voucher program, making it illegal to deny tenancy based on this criterion.
• SB 267: Effective January 2024, this bill restricts landlords from using a potential renter’s credit history in the application process without providing an option to show alternative proof of rent payment capability, such as government benefits or bank statements.

🔍 SB 721: Mandatory Safety Inspections 🔍

A new mandate under SB-721 requires all properties with structures like decks and balconies to undergo safety inspections before January 1, 2025. These reports must detail the condition of such elements and suggest further inspections if necessary, helping property owners manage maintenance and ensure compliance.

📝 Stay Informed and Compliant 📝

As property owners, staying ahead of these legal changes is crucial for managing your investments effectively and avoiding potential legal hurdles. We at Harbor Property Management are here to assist you in navigating these regulations smoothly.

For any questions or to discuss how these changes directly affect your properties, please don’t hesitate to contact us.

🙏 A huge thank you to all my amazing clients for your trust and partnership.

Best regards,

Scott
Harbor Property Management