Sacramento Report

by Debra Carton

Beginning January 1, 2002, a new California law requires residential rental property owners or their agents to provide specific written information to tenants about where and how rent payments are to be made. Most owners will find that they already provide this information to their tenants and few, if any, changes will be necessary in order to comply. HereÕs an overview.

Form of Rental Payments: Under the new law, rental property owners must inform their tenants in writing about the form or forms in which rent payments are to be made. If an agent of the owner fails to provide the required information, then rent may be made by cash, check, money order, or in any form previously accepted by the owner or the owner's agent. In other words, owners must accept all forms of legal tender unless they notify the tenant that a particular form is unacceptable. (Note that despite this new law, landlord/tenant attorneys have provided conflicting advice about what types of rental payments the owner must accept. Some legal experts believe owners must accept all forms of legal tender. Make sure you design a policy with your legal counsel that you believe best fits this new law and your existing practices.)

Telephone Number: The new law also requires that owners provide tenants with a telephone number at which the service of documents and rent payments may be made. The language of this law is not clear and is inconsistent with other portions of the law. The intent appears to be, however, for owners to provide a telephone number of the place where legal documents may be served and/or rent payments may be made.

If you currently require the mailing of rental payments to a post office box, you can still do so. However, if you do not allow rental payments to be made in person, then it is conclusively presumed that the tenant's mailing of any rent or notice to the owner at the name and address provided means the notice or rent is deemed received by the owner on the date postmarked if the tenant can show proof of mailing to the name and address provided by the owner.

Bank Accounts: While it is not a common practice, the new law does provide an option for owners who wish to give tenants the number of an account at a financial institution into which rent payments may be deposited, and the name and street address of the institution, provided it is located within five miles of the rental property. The owner may also provide information to the tenant that would enable the tenant to establish an electronic funds transfer procedure for paying the rent. This information can be provided instead of the owner or agentÕs telephone number and address.

Copies of the Lease: This new law also specifically requires owners or their agents to provide a copy of the rental agreement or lease to the tenant within 15 days of its execution by the tenant. Also, upon request by the tenant, once each calendar year the owner or the owner's agent must provide an additional copy to the tenant within 15 days. If the owner does not have a copy of the rental agreement or lease, the owner must instead furnish the tenant with a written statement that contains all the information required by the new law.

Three-Day Notices: The law requires that each time you serve a tenant with a Three-Day Notice to Pay or Quit, that you provide information to the tenant about where and how to pay the rent. The California Apartment Association (CAA) will update its forms to ensure that they comply with this new law. As a member of the CAA, free forms are available at the Online Services section of CAA’s Web site. More information about this new law and a copy of the actual text of the law is available.

The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. Debra L. Carlton is the Vice President ofÊPolicy and Research for the California Apartment Association and is CAA's chief lobbyist. © Copyright 2002.