California Property management and undocumented aliens- California AB 976

California Property management and undocumented aliens- California AB 976

In California, we have many undocumented aliens. Right or wrong as it maybe that they are here, they do work that many others don’t or won’t do. They often bring their culture with them and are a valuable part of California life. Because of cultural differences and a reasonable fear of authorities, many live a cash existence. This has some good and bad consequences, namely they do not establish a credit history, which most landlords rely on in evaluating the decision to rent. The plus side is, they don’t have the credit card debt that most Americans have. As a landlord you have to balance many factors in deciding to rent your property. You want a good quality tenant who is responsible, fiscally and legally.

As a general rule, immigrants tend to have larger families and generally are not the top wage earners of the different racial mix that California has. In California one is generally allowed two adults in a bedroom. Children below age two don’t count in the occupant total. There are reasonable concerns from a landlord’s point of view about a greater wear and tear, and in apartments, a greater use of utilities on higher densities of people. These types of issues can be addressed in the rental deposit and having good documentation. I find clear honest communication of the number of occupants, and their financial situation up front, often clears away many problems that could crop up later.

California law AB 976 enacted at of the beginning of 2008 added another protected class of individual, the undocumented alien. As such “No landlord or any agent of the landlord shall do any of the following:
(1) Make any inquiry regarding or based on the immigration or citizenship status of a tenant, prospective tenant, occupant, or prospective occupant of residential rental property.”

California real estate property managers or landlords of a residential unit cannot inquire about the prospective tenants’ legal status. While there seems to be some disagreement with some federal statutes regarding immigration, this is a California law. California’s legislature seemed to take the position that landlords are not in the business of determining whether a person is a legal alien or not, the federal government is. This would have put an unreasonable burden on landlords to determine the legal status or prospective tenants. This statute does not seem to apply to commercial property though.

The California Department of Consumer Affairs has a guide book that is helpful in understanding general rental guidelines if you are a tenant or landlord. Take a look at it and it may help you as a tenant or as a landlord in having a more harmonious rental relationship.
 
Real estate is usually broken out as residential or commercial. Many Santa Cruz real estate owners rent out their investment properties. Some handle the rental management themselves, other hire professional property managers. For some it is a profitable venture, for others it is a job they do not wish to do. Property managers are a way to handle this aspect of investment property and are a tax deductible expense. Keep in mind when you rent this new law change regarding immigration status as a protected class. If you are thinking of buying a rental property in Santa Cruz or are tired of being a landlord, give me a call at 831-818-7524 or stop by my website at www.propertyinsantacruz.com and contact me there.

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