In addition to issues like not receiving rent during the pandemic and being unable to evict tenants, various pro-tenant laws implemented in California have made people increasingly complain that California landlords are finding it harder and harder to operate.
Ms. Chen, a Chinese landlord living in the East Valley area, has been a landlord for over a decade. After experiencing the challenge of not receiving rent during the pandemic, she feels that just one misstep could potentially violate some laws, stating, “There are too many laws in California that restrict landlords.”
Recently, she encountered a tenant who set up a family daycare in the rented house. She said, “They rented the entire place, only saying that a family would be living there. They didn’t inform me that they would be using it for a family daycare. I was the one who found out later. I wasn’t thinking about anything else, mainly concerned about the safety and responsibility issues of having so many children in my property.”
It wasn’t until then that she realized California has a law that prohibits landlords from attempting to prohibit tenants from operating a licensed family daycare or evicting such tenants. Landlords also cannot require tenants to purchase liability insurance. She expressed, “This makes me quite helpless. I have to consult with a lawyer about the previous rental agreement.”
Due to a lack of licensed family daycares, California has established the Fair Housing Act to protect tenants’ rights to operate licensed family daycares.
According to the California Department of Civil Rights, the property used by family daycare service providers can be rented, leased, or owned by themselves.
This law prohibits landlords, homeowner associations (HOAs), and others from discriminating against operators of licensed family daycares. If tenants hold a legal operating license, they do not need landlord permission to operate a family daycare. However, tenants are required by law to provide information to the landlord indicating their intention to provide family daycare services in the rented property.
The California Department of Civil Rights explains that under the protection of the law:
1) Landlords cannot refuse to rent to tenants who plan to legally operate family daycare. If tenants hold a small family daycare license, they can care for a maximum of 6 children; if they hold a large daycare license, they can care for a maximum of 12 children.
2) Landlords cannot raise the rent because tenants plan to legally operate a family daycare.
3) Landlords cannot evict tenants because they legally operate a family daycare.
4) HOAs cannot refuse to sell properties to tenants planning on or already operating a legal family daycare. HOAs also cannot prevent landlords from renting out their private properties due to them being used for operating a legal family daycare.
5) HOAs cannot fine or restrict landlords or tenants operating legal family daycare services.
6) Legal family daycare operators must comply with relevant responsibility requirements, but landlords or HOAs cannot require tenants operating family daycares to purchase liability insurance.
7) Insurance companies cannot cancel policies or refuse to renew them because of a family daycare being operated at the location.
8) All types of residences must allow tenants to legally operate small and large family daycares.
9) City and county governments must treat residences used for legal family daycares equally, not requiring daycare operators to provide zoning permits or business licenses.
10) If someone violates the Fair Housing Act, operators of legal family daycares can file complaints with the California Department of Civil Rights.
Of course, family daycare operators holding valid licenses must also adhere to state regulations on health, safety, and fire standards.
From the landlord’s perspective, Ms. Chen believes, “The law should not only focus on protecting the interests of tenants, but landlords should also have the right to make reasonable choices in selecting tenants. If landlords, for valid reasons, are unwilling to have their property used as a family daycare, they should not be forced to do so.”