The m2m tenant presumably has lived there for MORE than 12 months, so based on AB1482 "no-fault eviction" legislation, you cannot simply give notice to vacate.

@John Underwood  I read what I believe to be the new SC legislation. 

If it’s like socialized medicine, it just a matter of when the leftist control both the executive and legislative branches.  

Should I create an LLC in another state, like one that has an LLC friendly legislation?

Among the top reasons, I would recommend understanding what different price points look like in different areas along with taxes, legislation, population/economic growth, affordability & rental demand. 

Not to mention other pieces of legislation that make being a landlord in CA not the most ideal. 

This legislative session introduced a lot of changes besides this one.

I’m curious to know how you guys keep up to date and on top of possible local legislation arising in the future, imposing restrictions on short term rentals within the municipality?

It is my humble opinion that the legislator who wrote the law (he represents tenants exclusively), was building a business for himself and trying to create an industry for attorney's to represent tenants.

Who knows what could be coming next in terms of legislations.