You Might Have a Hard Time Selling Your Rental in the Near Future

Things are going to change for property owners who are currently renting out their properties to tenants. 

Currently, the Ellis Act, which is a provision in California Law (Government Code section 7060-7060.7) that provides property owners in the state of California a legal way to go out of the rental market business, is being amended and a new bill is being processed to be passed. 

The new bill, AB 854 would require the landowner to own the property for 5 years before evicting their tenants. 

Varying opinions arise from this amendment. This bill would both protect renters from serial evictors and at the same time, give property owners a difficult time to transition with the future imposition of limitations. 

Watch the report of ABC10 here. 

This bill was introduced by Bay Area Democratic Assemblymember Alex Lee and he said that this is a part of a three-pronged approach to solving the housing crisis. 

California Association of REALTORS® (C.A.R.) reported that the State Assembly may be taking action on AB 854 this week.  They have mobilized REALTORS® in some Assembly Districts to contact their legislators. None of the Assembly members who represent the Bay East communities are part of this mobilization so far. 

What are your thoughts on these possible changes? 

We'd love to discuss your options in light of this upcoming change in our state. If you have any questions regarding selling your property, give us a call at 925-415-0835. 

If you want to read the whole bill, click here.