Legal Update - California Outlaws Tenant Eviction Tracking

[Leonard L.]

Landlords in California beware.  The current CA law is that unlawful detainer actions are publicly searchable unless they are resolved within 60 days of the first filing.  If the tenant fights, this easily takes it past 60 days, the court fight shows up on public records, and future landlords will be aware of the fact that this guy applying for your property has an eviction history.  

Under the law that takes effect Jan 1 2017, tenant evictions (called unlawful detainer) cases will no longer be searchable in the majority of cases.  (I won;t go into the limited exceptions here)  The CA legislators felt like it was unfair to the tenant to have disputes with the current landlord impair their right to get credit and future housing, so they made essentially sealed these cases from public view.

This will have two impacts.  First, and most obviously, it will make it a lot harder to screen tenants. Right now, I take felons and bad credit history.  My only ABSOLUTE NO is prior evictions.  Now prior evictions will remain hidden.

But a second impact may prove to be just as damaging to us property owners.  As any attorney, I also litigate Unlawful Detainer actions in court.  In the vast majority of cases today, the tenant settles (whether pay-to-stay or move out)  for one reason - because as part of the settlement, the landlord agrees to seal the case.  His/her history will remain clean.    Now, there will be precious little to motivate a tenant to settle, and eviction cases will become longer, more drawn out, and of course more expensive.  And suffering no consequences, the tenant will be able to do it again and again.

[John Thedford]

Another good reason not to invest in CA! High taxes, state income taxes, overregulation, etc make it difficult for investors in CA as well as other "progressive" states. They do not care if they have a negative impact on investors and may see them more as predators than business people. It is no secret that many businesses move out of CA due to the burdens imposed on them by socialist centered governments. Now I see they have a petition to secede. LOONS!