Sacramento Report — Legislature’s “LANDLORD” Wordplay, Wit or Weapon?

“A good name is to be chosen rather than great riches…” — Proverbs 22:1

You may be aware that in recent years the California legislature has gone to great lengths to set standards that substantially rebalance the bargaining power of those who pay for possession of residential rental housing. You would be shocked and appalled, however, to discover that the legislature’s secret weapon is preying upon your “good name.”

So, what’s in a name?

A name is an identity, a reputation, a community, or a brand. In today’s current climate, a name has the power to catapult a career to stardom or scorch the earth underneath it, causing its barren demise.

As mentioned in last month’s article, the term “landlord” can be traced back to the feudal system where land owned by a Lord of the Manor was provided to a “tenant” to live and cultivate in exchange for loyalty; the entire system was developed based on class and social rank with a goal of gaining great riches. However, the progress of human beings over a millennium caused the extinction of a feudal governmental system and witnessed the rise of a democratic one.

In California, there are 160 years of law surrounding the terms of “landlords” and “tenants”. Over time even unnecessary or superfluous changes have been made to these terms; in fact, there are approximately 25 different terms used to define the terms “landlord” and “tenant.” Most of these confusing terms are simply the product of inconsistent drafting over the same number of years. Nevertheless, these terms are outdated.

In the past decade, California politics has been reforming definitions of identity by giving them a flavor of neutrality, permitting broad categorization to replace terms now considered offensive with an intent to eliminate antiquated and inequitable rules of law, and to bring the law of this state into harmony with modern conditions.

In fact, the legislature has recognized the term “lessor” as another term that is used instead of “landlord.” Over the past few years, the legislature has in many, but not all cases, replaced the term “landlord” with “lessor” in the Civil Code that focuses on the hiring of real property. Yet, when legislators campaign for reform to benefit the “tenant,” the only term used is “landlord” when describing the inequality between “landlords” and “tenants” — nor any of the borage of terms the law uses to reference a “landlord.”

• Homeowner

• Housing owner • Landlord

• Landlord of a residential dwelling unit

• Lessor

• Owner

• Owner of a residential dwelling unit

By ron Kingston

PAVING COMPANY, INC.

• Asphalt Overlays • Concrete • Paving Stones • New Installations • Petromat Overlays • Curb & Gutters • Seal Coating • Block Walls • Striping

c&cpaving

ADA Experts, Ramps, Signage, Truncated Domes

• Owner of the accommodations

• Owner of residential rental property • Property owner • Rental housing provider

The legislature and local governments have turned the name “landlord” into a sword, wielding it chaotically in its fight for affordable housing in California, by characterizing “landlords” as greedy and/or slumlords. So far, the legislature is doing a fine job at slashing protections for “landlords” in favor of tenants, and in some cases, the wielding has even provided tenants with more bargaining power than “landlords” by passing Assembly Bill 1482, the COVID-19 Tenant Relief Act, and several other legislative measures.

“Landlords” will no longer sit idly by watching their legal protections shrink each and every year because the legislature refuses to address the housing crisis in California in any other way. Enough is enough, California property owners who have made a choice to house other Californian residents are done being bullied by Californian district leaders who have forgotten that they represent all constituents, not just a secular class of constituents. So, now is the time for “landlords” to join the fight to choose a name, a neutral name…a good name. A name that is associated with almost every other sort of contract involving a person who provides a service to another person for payment of that service — a “lessor.”

The silver lining here is that “landlord,” in a sense, was never really a “good name” to begin with because at its genesis the lord of land chose to use his land to gain great riches. Modernly, however, “landlords” take on a critical community responsibility by providing a home more than six million Californians, and many “landlords” have worked tirelessly to build and maintain a healthy and sustaining reputation within their communities.

As such, we are proud to announce that AAOC’s sponsored legislation, Assembly Bill 2503, is on track to be approved as amended, which will take a task of this complexity and properly entrust it to the California Law Revision Commission, given its statutory mandate to, “[e]xamine the…statutes of the state and judicial decisions for the purpose of discovering defects and anachronisms in the law and recommending needed reforms.”

We are on the brink of a brand-new era in residential rental housing, and it begins now!

We hope you will join the cause and help our industry build not only a good name, but a great one.

Ron Kingston is President of California Strategic Advisors and Legislative Advocate for the Apartment Association of Orange County. For questions regarding this article, please call AAOC at (714) 245-9500.