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Stay Updated: AB 246 and Its Potential Impact on LA County

Writer's picture: Strategic GrowthStrategic Growth

As a reliable property management company, we are dedicated to keeping our clients updated on legislative changes that may impact rental properties. Assembly Bill 246 (AB 246), proposed by Governor Gavin Newsom, is scheduled for a vote in the Assembly on February 15, 2025. Here’s what you need to know.


What Is AB 246?

AB 246 aims to temporarily stop rent increases during emergencies or challenging economic periods. It’s designed to help tenants facing financial hardship while ensuring landlords have clear guidelines to follow.


Who Does It Affect?

  • Tenants: Those experiencing financial difficulty due to emergencies like natural disasters or pandemics.

  • Landlords: Owners of rental properties, except:

    • Units built in the last 15 years.

    • Single-family homes owned by individuals (not corporations).

    • Owner-occupied duplexes.


If passed, AB 246 will temporarily implement stricter rent control measures in Los Angeles County for 12 months. Key points include:

  • Rent Freeze: Rents will be frozen at the levels charged on January 7, 2025.

  • Vacancy Control: Units rented or offered for rent within the last year must remain at the rental rates paid by prior tenants.

  • Enforcement: The district attorney will oversee compliance, with penalties of up to $10,000 for violations.

  • Duration: These controls will last for 12 months following the declared state of emergency.

  • Immediate Implementation: If approved, the bill will take effect immediately as an urgency statute.


Key Points for Landlords

As property managers, we prioritize staying compliant while supporting our clients. Here’s what landlords need to know:

  1. Compliance Is Crucial

    • Rent increases during the freeze are not allowed.

    • Landlords may need to provide documentation to prove compliance.

  2. Financial Impacts

    • Revenue growth may slow temporarily, so it’s essential to budget accordingly.

  3. Avoid Penalties

    • Violating the freeze can result in fines or legal action. Partnering with an experienced property management team can help you navigate these rules seamlessly.


What Tenants Should Know

AB 246 is designed to give tenants peace of mind during tough times. Here’s how it helps:

  1. No Rent Increases

    • Tenants won’t see their rent go up during the freeze period.

  2. Protection Against Eviction

    • Tenants can’t be evicted for not paying rent increases during this time.

  3. Eligibility Requirements

    • Tenants need to show proof of financial hardship to benefit from the freeze.


How Strategic Growth Real Estate Can Help

Navigating new laws like AB 246 can be overwhelming, but that’s where we come in. As your property management partner, we:

  • Stay Updated: We monitor legislative changes to ensure your properties remain compliant.

  • Support Communication: We help explain these changes to tenants, fostering trust and transparency.

  • Protect Your Interests: We work with you to minimize financial impacts while ensuring legal compliance.


Stay Ahead of the Curve

AB 246 reflects California’s ongoing efforts to balance tenant protections with landlord rights. While it’s still being discussed, it’s essential to be prepared.

If you have questions or need assistance managing your properties during these changes, we’re here to help. Reach out to our team for expert guidance and support.


Let’s navigate these changes together!


- Strategic Growth Real Estate



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