May 2025 Blog

📬 May 2025 Property Management Newsletter
From Pacific Grove Property Management, Inc.

🔍 Legislative Watch: Urgent Proposals Affecti Property Owners

As your dedicated property management team, we remain committed to keeping you informed about proposed legislation that could significantly impact your investment properties. This month’s update highlights three critical issues—and how you can help protect your property rights.

🚨 1 AB 1157 – Major Expansion of Rent Control

Status: Pending Committee Review

AB 1157, introduced by Assemblymember Ash Kalra, proposes the most extensive changes yet to the Tenant Protection Act (AB 1482):

  • Reduces the annual rent increase cap to 2% plus CPI, with a maximum cap of 5%—a significant drop from the current 10%.
  • Eliminates existing exemptions for single-family homes and condominiums, even if owned by individuals.
  • Makes AB 1482’s protections permanent, removing the 2030 sunset clause.

🏛️ Our Position: We strongly oppose this bill due to its chilling effect on housing development, private investment, and the viability of small-scale rental operations.

đź“Ł Take Action: We urge you to contact your local legislators and express your opposition. Resources and updates are available through California Apartment Association (CAA).

🧾 2. SB 789 – Commercial Vacancy Tax Proposal

Status: Introduced

SB 789 would impose a $5 per square foot annual penalty on commercial spaces that remain vacant for more than 182 days per year, regardless of market or economic conditions.

  • Applies to retail, office, and shopping centers.
  • Exemptions are narrow—covering only limited scenarios like natural disasters or active permitting.
  • Risks further destabilizing commercial leasing efforts during market downturns.

🏛️ Our Position: This measure is short-sighted and punitive to owners managing through economic challenges.

đź“Ł Take Action: Commercial owners should follow developments via the California Business Properties Association (CBPA) and submit formal opposition where possible.

đź“ť 3. Owner Action Required: AB 2747 & AB 12 Compliance

In April, we sent an email requesting confirmation of your property’s ownership structure (individual, trust, LLC, etc.). This is essential to determine your responsibilities under two new laws:

  • AB 2747: Requires rent reporting to credit bureaus for tenants—mandatory if you own more than one residential unit (based on total holdings).
  • AB 12: Limits security deposits to 1x rent for landlords with multiple properties, and 2x rent for those with only one residential unit.

✅ If you haven’t yet replied, please contact us as soon as possible. Without this information, we cannot ensure full compliance with these new requirements.

We sincerely thank the many owners who have already responded.

🛠️ Resident Benefit Package – Now Active

As part of our service updates, we’ve launched a Resident Benefit Package through Second Nature, which includes:

  • Positive rent payment credit reporting – helping tenants build credit while fulfilling AB 2747 requirements.
  • Furnace filter delivery every 6 months – reducing maintenance issues and improving HVAC performance.

For properties with hard-to-access crawlspace furnaces, we may schedule a handyman visit instead of tenant replacement.

🏡 Final Thoughts

Legislative change is happening fast, and compliance is no longer optional—it’s essential. Your engagement, both in advocacy and in providing timely information, helps us manage your property legally, efficiently, and profitably.

If you have ques need assistance reaching your representatives, we’re here to help.

Warm regards,
Pacific Grove Property Management, Inc.

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