Sacramento’s rental landscape is dynamic, shaped by evolving laws and regulations that aim to protect both landlords and tenants. Staying informed about these changes is not only crucial for maintaining a successful rental property business but also for ensuring fair and legal practices. In this blog post, we’ll highlight three important rental laws and updates specific to Sacramento in 2023 that landlords need to be aware of.
1. Tenant Protection and Relief Act Amendments
The Tenant Protection and Relief Act, enacted in 2019, has undergone amendments that directly impact landlords in Sacramento. One of the notable changes is the expansion of rent control measures. While the original act capped rent increases at 5% plus the local rate of inflation, the new amendments have lowered this cap to 3% plus inflation for properties that are 15 years old or older.
Additionally, the amendments include more robust eviction protections. Landlords are now required to provide “just cause” for eviction, meaning that they must have a valid reason, such as non-payment of rent or violation of the lease terms, to initiate eviction proceedings. This emphasizes the importance of thorough tenant screening and clear lease agreements to prevent potential conflicts.
2. Affordable Housing Impact Fee Ordinance
To address the pressing issue of affordable housing in Sacramento, the city has introduced the Affordable Housing Impact Fee Ordinance. Effective from January 2023, this ordinance mandates that developers of market-rate rental properties with 10 or more units pay a fee per square foot to fund affordable housing initiatives. For landlords, this means an increased awareness of potential changes in market dynamics, as the introduction of this fee might impact the supply and demand for rental properties.
Landlords should stay attuned to updates related to this ordinance, as it could indirectly affect property values and rental rates. Additionally, understanding the city’s efforts to increase affordable housing options can foster positive relationships with local authorities and community stakeholders.
3. Energy Efficiency Disclosure Requirements
In a bid to promote energy conservation and sustainability, Sacramento has rolled out energy efficiency disclosure requirements for rental properties. Starting in 2023, landlords are obligated to provide prospective tenants with information about the energy efficiency features of the property, including details about insulation, heating and cooling systems, lighting, and appliances.
Compliance with these disclosure requirements not only ensures adherence to the law but also demonstrates a commitment to environmental responsibility. Landlords can use this opportunity to showcase the advantages of their properties, such as reduced utility bills, improved comfort, and reduced carbon footprint.
In conclusion, keeping up-to-date with Sacramento’s rental laws and updates for 2023 is an integral part of being a responsible and successful landlord. The amendments to the Tenant Protection and Relief Act, the introduction of the Affordable Housing Impact Fee Ordinance, and the energy efficiency disclosure requirements are just a few examples of the changes shaping the rental landscape. By staying informed and adapting your practices accordingly, you can navigate these changes with confidence and ensure a positive rental experience for both you and your tenants.
If you have any questions about your rental property, give us a call at (916) 476-2381 or visit Laurel Buys Houses online today!