New Real Estate Laws in 2018 Property Owners Must Know

A new year means new laws to learn about and make sure you are abiding by! Owning and managing property in California means there are many regulations, laws and penalties that change over the years. Property owners, managers, and landlords should be aware of new changes that happened this year!

Beginning in 2018, there are numerous property laws that property owners need to be aware of, as there have been quite a few changes that could easily affect you and your investments. Our goal is to make sure our clients, friends and families are well informed moving forward to ensure a successful year.  

Here are five of the biggest property laws that were changed or enacted in 2018.


Immigration Status – AB 291

According to California Bill AB 291, landlords are not permitted to influence a tenant to vacate a unit, or attempt to recover possession of the rental on the grounds of a tenant’s immigration status. This includes asking or making any inquiries or ask for documentation regarding the immigration or citizenship status of a tenant, prospective tenant, occupant, or prospective occupant of residential rental property. You also cannot Disclose to anyone else any information regarding or relating to the immigration or citizenship of your tenants. This can be a touchy subject in today’s climate, but it is always important to protect your property investments by making sure you are following the law in every transaction.


Flood Zones – AA 646

With recent winter scares like Oroville Dam and coastal hurricanes, flooding can be at the forefront of many tenants’ minds. According to California Bill AB 646, if a landlord has knowledge of his/ her property located in a flood zone, they are required to disclose this information to tenants of the property. Do you carry flood insurance for your property? That means you have knowledge that your property is in a flood zone.



As of January 1st, 2018, provisions of Proposition 64 regarding the lawful sale and subsequent taxation of recreational marijuana in the state of California went into effect. As a property owner though, you still have the right to ban the usage of marijuana on the property despite the recent legalization of the sale for recreational use. As a private property owner, you have the legal ability to prohibit any actions of marijuana otherwise permitted by the initiative.


Housing in California – AB 678, SB 167, AB 352, SB 35, SB 540, SB 2 and SB 3

Addressing California’s evergrowing housing crisis remains a top priority for California lawmakers. The market is always fluctuating and homeowners, landlords and tenants in California have all felt the tension.  Therefore Governor Brown signed multiple bills into law to address some of the following that may affect property owners and landlords:

  • Financially penalize local governments that arbitrarily deny housing projects in violation of state law. Furthermore, money generated by fines will be placed in a housing trust fund for the construction of affordable housing.
  • Increase the state’s stock of micro-apartments, which usually measure 220 square feet or less that provides cities housing for university students and shelter for homeless individuals.
  • Create a streamlined approval process for projects that meet certain standards under the law.  
  • Create a streamlined approval process to spur housing construction by having cities identify where housing needs to be built and adopting specific, upfront plans and conducting all necessary environmental reviews and public engagement.
  • Establish permanent funding source for affordable housing through a fee of $75 to $225 on recorded documents. Exempted though is residential real estate sales.
  • Place a $4 billion statewide affordable housing bond before voters in the November 2018 election.


In the meantime, have you made sure that you were compliant with real estate laws in 2017? Take a look at our eBook, exclusively for property owners, that informs readers of the six biggest laws for 2017 that you must know as a landlord, property owner and even tenant. Plus, it’s FREE to download!


Contact Aborn Powers today for your property management needs. Our team would be happy to create a property investment plan together while ensuring a seamless experience.

Leave a Comment