Avoid Costly Legal Risks | Property Management Compliance in California

If you own or operate a multifamily property in California, compliance is non-negotiable. Managing leases without managing legal exposure can lead to significant financial and reputational damage. In high-regulation markets—especially Los Angeles, Orange County, and Long Beach—it’s critical to follow state and local rules under the Tenant Protection Act (AB 1482) and local ordinances.

At BFPM Inc., our team is frequently asked to correct non-compliance issues that could have been avoided with a proactive compliance strategy. Here are the most frequent risk areas—and how a qualified property manager prevents them.

1. AB 1482 Compliance: Common Rent Increase Violations

The Tenant Protection Act imposes strict limits on rent increases: CPI-based caps, required notice timing, and exemptions.

Frequent violations we observe:

• Rent increase notices with missing or wrong details
• Misinterpreting which units are exempt (e.g., newer buildings or single-family homes under certain conditions)
• Failing to track CPI changes accurately

How we help:

• Calendar rent cap deadlines, CPI changes, and notice periods
• Properly document exemptions (e.g., “built 2019, under 15 units”)
• Issue legally compliant notices using up-to-date forms and verification

This ensures your rent adjustments comply with AB 1482 in California, including Los Angeles, Orange County, and Long Beach.

2. Eviction Legal Risks Post‑2025: Notice Accuracy Matters

California’s “just cause” eviction requirements remain in effect through 2025 and may be extended.

Risk triggers include:

• Notices issued without legal review or missing key elements
• Incomplete documentation of resident violations
• Staff unaware of varying rules across jurisdictions

What we do:

• Review every eviction notice in accordance with city-specific rules
• Maintain standardized violation logs and resident communications
• Train staff regularly on changes in local ordinances—from Pasadena to Long Beach

By entrusting eviction protocols to trained professionals, owners in Orange County and beyond stay legally protected.

3. Fair Housing: Avoiding Unintentional Discrimination

Fair housing compliance extends far beyond avoiding intentional discrimination.

Frequent pitfalls:

• Inconsistent screening processes or undocumented pre-qualifications
• Subjective or vague reasoning in application reviews
• Varying communication styles that lead to allegations of bias

Our solution:

• Follow a standardized screening process with objective criteria like credit score thresholds
• Maintain full records of application outcomes and reasons
• Train leasing staff on federal and state fair housing laws for consistent, respectful communication

These practices significantly reduce legal risk and protect property owners and applicants alike.

4. Required Disclosures & Inspections: Avoid Overlooked Rules

California landlords must comply with a range of disclosures and inspection requirements or face penalties.

Commonly missed disclosures:

• Mold, lead-based paint, pest control
• Seismic retrofit status
• Functionality checks for smoke and carbon monoxide detectors

Our compliance measures:

• Maintain a checklist for every unit and building to verify compliance
• Coordinate inspection schedules and track completion records
• Issue documented disclosures to residents (e.g., carbon monoxide alarm verification forms)

Proactively meeting these requirements guards against regulatory fines and resident claims.

5. Why Property Management Compliance Must Be Core

Legal exposure in California multi-family real estate—especially in Los Angeles, Orange County, and Long Beach—is a material risk. However, an experienced property manager can effectively manage it.

At BFPM Inc., our services include:

• AB 1482 rent control and lease auditing
• Documentation and notice tracking
• Streamlined eviction oversight
• Objective, documented Fair Housing procedures
• Compliance tracking for all required inspections and disclosures

With these systems in place, you reduce legal exposure, preserve income, and protect the long‑term value of your assets.

Request Your Free Legal Risk Audit

Whether you manage a 16-unit complex in Anaheim or a 50-unit property in West LA, a legal audit is essential. Our free audit includes:

• Assessment of local and state compliance gaps
• Review of AB 1482 and local rent cap ordinances
• Identification of liability exposures in eviction and screening
• Step-by-step action plan to fix issues

Contact us at BFPM Inc. to schedule your audit.