Burt M. Polson - Commercial Real Estate Broker

Guiding you through the real estate part of your life™

Commercial Sales, Leasing, and Consulting

Private Equity Real Estate Funds

New Landlord Tenant Laws In Effect for 2011

Being an active commercial broker and property manager working with tenants is an on-going part of my business.  I am not an lawyer, but knowing the laws is part of what separates the professional real estate advisors from the others.  Here is a summary of the new laws on the books.

By the way, today being January 31 is the final day you as an investment property owner should have filed a 1099 for any vendor you paid in 2010 in excess of $600.  If you used me for your property management this is a service I handle for you.

New Landlord-Tenant laws for 2011:

Tenant protection for domestic violence victims - SB 782  (eff. Jan. 1, 2011)
A residential landlord cannot terminate or fail to renew a tenancy based on domestic violence against the tenant or tenant's household members as specified.  This law applies if the person restrained from contact with the tenant by court order or named in a police report is not also a tenant of the same dwelling unit.  If the protected tenant subsequently allows the person restrained to visit the property, or the landlord reasonably believes the person restrained poses a physical threat to others or to quiet possession by other tenants, the landlord may serve a three-day notice to correct or quit.  To further ensure safe housing for domestic violence victims, this law also requires that, for leases entered into after January 1, 2011, a landlord changes the exterior locks of a protected tenant's dwelling unit within 24 hours after the tenant provides a written request and supporting court or police documentation as specified.
Adds Sections 1941.5 and 1941.6 to the Civil Code, and adds Section 1161.3 to the Code of Civil Procedure. 

Unlawful detainer of commercial tenantAB 1263  (eff. Jan. 1, 2011)
This law changes the method of serving an unlawful detainer notice on a commercial tenant.  The law provides that service on a commercial tenant can be made by any of the following methods: 
(1) delivering a copy to the tenant personally,
(2) leaving a copy with some person of suitable age and discretion at the property and sending a copy through the mail, as specified, or
(3) by affixing a copy in a conspicuous place on the property and sending a copy through the mail, as specified.
Amends Section 1162 of the CA Code of Civil Procedure.

Prohibits general release of court records in foreclosure-related eviction unless landlord prevails; New cover page with Notice to Quit to tenants after a foreclosureSB 1149  (eff. Jan., 1, 2011)
This law authorizes a court clerk to allow access to court records of eviction proceedings involving residential property that has been sold in foreclosure if 60 days have elapsed since the complaint was filed and judgment was entered against all the defendants (tenants).
This law also requires, until Jan. 1, 2013, that any Notice to Quit served to a tenant of residential property within one year after a foreclosure sale include a separate cover sheet containing an additional notice to tenants (statutory language in Section 1161c(b) and (c)).
Amends Sections 1161.2 and 1166 and adds Section 1161c of the CA Code of Civil Procedure.

Unlawful renting of residential dwellingAB 1800  (eff. Jan. 1, 2011)
Existing law makes it a misdemeanor for a person to claim ownership or take possession of someone else's residential property for the purpose of renting or leasing it to another without the consent of the owner.  This law increases the penalties for this offense to a maximum of $2,500 or imprisonment in a county jail not exceeding one year or by both.
Amends Section 602.9 of the CA Penal Code. 

Landlords to report payments of $600 or more on IRS Form 1099H.R. 5297 (Section 2101(h))  (Small Business Jobs and Credit Act of 2010) (eff. Jan. 1, 2011)
H.R. 5297 includes an expansion of the 1099 reporting related to a trade or business. Under existing law only those real estate professionals engaged in property management-type businesses have been required to file Form 1099. This new federal law extends the Form 1099 requirement to any person who receives rental income. This requirement would apply to any landlord (including a small investor), rather than only those who are in the business of managing property.  Starting Jan. 1, 2011, any person who receives rental income must provide a Form 1099 for all payments of $600 or more made to service providers such as plumbers, carpenters, yard services and repair people. The purchase of goods is not included within the reporting requirement. The Form 1099 is provided to the IRS and to the service provider. The new requirement applies to both residential and commercial property.

An ACRES Real Estate Services, Inc. Company