California Legal Updates: Property Investors Should Know

By Elyssa Matson Jones

California continues to introduce important changes affecting investment property owners. Key updates include the extended deadline for SB 721 balcony inspections, current rules under the Tenant Protection Act (AB 1482), and provisions for reusable tenant screening reports (AB 2559). Staying informed helps landlords remain compliant and protect their investments.

Proactive compliance with evolving laws safeguards your properties and ensures smooth operations for years to come.

SB 721: Balcony Bill Deadline Extended to January 1, 2026

Originally passed in 2018, SB 721 requires safety inspections of exterior elevated elements (such as balconies, decks, and walkways) in multifamily buildings with 3 or more units to prevent risks like dry rot or structural failure.

What's New?

AB 2579 (signed September 2024) extends the initial inspection deadline from January 1, 2025, to January 1, 2026. Inspections must then occur every 6 years. If your property was inspected within 3 years before January 1, 2019, no new inspection may be needed until 2026.

Read the full updated code text: AB 2579 / SB 721 Amendments.

Inspection Requirements

• Applies to multifamily buildings with 3 or more units.
• Must be performed by a licensed architect, engineer, or certified contractor.
• Repairs required within 120 days (or 15 days for immediate life-safety hazards).

Why It Matters: Non-compliance can lead to fines, liability, or forced repairs. Schedule inspections now to avoid last-minute rushes.

For more details, see our previous post: SB 721 Compliance Steps.

Current Tenant Protection Act (AB 1482) Rent Caps

Note: SB 466 (proposed rent control expansion) failed to pass in the 2023-2024 session and is not law. Current rules under AB 1482 (Tenant Protection Act of 2019) apply statewide to most non-exempt properties.

Rent increases are capped at 5% + regional CPI (max 10%) per year. As of August 2025–July 2026, this is approximately 6.3% in many areas (e.g., 5% + 1.3% CPI), though it varies by county—check local CPI for your property.

Properties Covered (Non-Exempt):

• Multi-unit properties (more than one unit on a parcel).
• Properties owned by corporations, REITs, or certain LLCs.

Common Exemptions: Single-family homes/condos (if individually owned), new construction (generally post-2005+), duplexes with owner-occupied unit, senior/student housing.

Always confirm exemption status with a professional. Use CAR Form RCJC for tenant notices.

AB 2559: Reusable Tenant Screening Reports

Effective since 2022, AB 2559 allows tenants to purchase a reusable screening report (prepared within 30 days) that can be shared with multiple landlords, reducing repeated fees.

Impact on Owners: Acceptance is optional. If accepted, landlords cannot charge access/application fees for the report. Local rules may offer stronger tenant protections.

Report Requirements:

• Tenant name, contact info, prior address, employment verification.
• Eviction/criminal history (per laws).
• Validity date clearly stated.

Read the full text: AB 2559.

Steps to Stay Compliant

1. Schedule Inspections Now: Book licensed inspectors for SB 721 early to beat demand near the 2026 deadline.
2. Notify Tenants: Use proper forms (e.g., RCJC) to disclose exempt/non-exempt status under AB 1482.
3. Stay Informed: Monitor state/local changes and partner with experts like EJ Properties.

If you're managing compliance challenges or need help optimizing your rentals, EJ Properties offers tailored solutions.

Related Reading

• SB 721 Compliance Steps for Property Owners – Detailed guide to balcony inspection requirements.
• California Security Deposit Limits: Understanding AB12 – Recent tenant deposit updates.
• Proposition 33 Impact: Costa-Hawkins Protections – Broader rent control context.