Disclaimer: This document and any information contained herein are provided for informational purposes only and do not constitute legal advice. The author of this document is not an attorney, and the information presented should not be considered as a substitute for professional legal advice.
Assembly Bill No. 2347 (AB 2347), signed into law in 2024, is poised to make a significant change to the way residential rental properties are managed. Small landlords in California will need to understand how this new law may affect their operations.
What is Assembly Bill No. 2347?
AB 2347 amends Sections 1167 and 1170 of the Code of Civil Procedure, effective January 1, 2025. Read the full text here.
Existing law requires a tenant in an eviction case to file a response within 5 business days after the complaint is served on the tenant.
AB 2347 extends the time in which a tenant in an eviction case has to file a response from 5 to 10 business days after the complaint is served on the tenant.
How Will AB 2347 Affect Small Landlords?
This change may have significant implications for small landlords who are pursuing eviction proceedings. Here's how this extended response time could impact landlords, particularly landlords managing a small number of properties:
1. Longer Waiting Period Before Legal Resolution
One of the immediate effects of the extended response period is that small landlords will face a longer waiting time before they can move forward with the legal process, including obtaining a judgment in an eviction case.
2. Impact on Landlord Cash Flow
Extended response times can have a direct impact on cash flow for small landlords, especially those who rely on rental income to cover property-related expenses such as mortgage payments, maintenance, insurance, and property taxes. If a tenant is being evicted for non-payment of rent, the longer the eviction process takes, the longer the landlord may be without income from that unit.
3. Tenant Strategy and Leverage
With 10 business days to respond to an eviction complaint, tenants now have more time to negotiate, delay, seek legal counsel, or explore options such as rental assistance programs, mediation, or filing counterclaims.
4. Increased Management Burden on Small Landlords
Small landlords often have fewer resources to handle extended legal proceedings compared to larger property management firms. With 5 extra business days for tenants to file a response Landlords must be prepared to track the extended timelines, ensure they comply with all legal requirements for notice and filing, and monitor the status of the case. For landlords who self-manage their properties, this means dedicating more time to managing the legal process, potentially at the expense of other property management tasks.
Strategies to Mitigate Delays
Given the impact of this extended response period, small landlords can take several steps to minimize the delays and financial strain caused by the extended timeline:
Consider Pre-Litigation Solutions: Small landlords should explore alternative solutions, such as offering tenants the opportunity to enter into repayment agreements or applying for rental assistance programs before resorting to eviction.
Start the Eviction Process Early: Given the longer timeline, it’s important for landlords to start the eviction process as early as possible, particularly if the tenant is already behind on rent. The sooner the eviction process begins, the sooner the landlord may be able to reclaim the unit, even with the extended response time.
Consult with an Attorney: Small landlords should seek legal advice early in the process to ensure they are following the correct legal steps and to understand how the new timeline impacts their specific case. A real estate attorney can help small landlords navigate the process more effectively.
Partner with a Professional Property Manager: Small landlords often don’t have the time nor the experience to navigate complex Landlord/Tenant conflict. Having an experienced property manager on your side will reduce your stress, time, and cost.
The extension of the tenant response time from 5 to 10 business days under AB 2347 will have a tangible impact on small landlords in California. While the longer response window is designed to provide tenants with more time to prepare their cases, it introduces delays and additional uncertainty for landlords, especially those managing a small number of properties.
Small landlords will need to adjust their expectations for the eviction timeline, be prepared for increased administrative efforts, and additional costs. Taking proactive steps to understand the law, explore alternatives to eviction, and stay organized throughout the legal process can help mitigate some of the challenges that come with these extended timelines.
