12/02/2025
California's AB 246 Creates Financial Risk for Mom-and-Pop Rental Owners
Another new California rental law could have profound impacts on Inland Empire property owners - especially mom-and-pop investors who depend on rent to pay their own mortgages.
Assembly Bill 246 - the Social Security Tenant Protection Act – prevents an eviction for non-payment of rent if the resident relies on Social Security benefits, and they can show that their income was interrupted by forces outside their control …. Like, say, a government shutdown that halts or delays government checks.
This law, enacted in October and running through Jan. 20, 2029, covers non-payment of rent only, but the resident must show proof of three factors:
* Their Social Security benefits were terminated, delayed, or reduced.
* The interruption was NO FAULT of their own.
* And the hardship prevented them from paying rent.
If successful, the court must issue a stay of the eviction as long as 14 days AFTER the benefits are restored, up to 6 months. And that’s on top of the 3 to 4 months it took to get to that point.
And in the interim, the property owner still must maintain the home, pay all of their current expenses provided as part of the lease, make repairs when necessary, AND keep paying their own mortgage, insurance and property taxes without the benefit of the rent payments.
Of course we should make sure that people on fixed incomes are protected when politicians or government bureaucracy scrambles their lives. But this law is just another example where politicians create bigger problems than they resolve. In this case, Sacramento is again treating rental property owners like independently wealthy people who can afford to subsidize housing for other people.
Reality is, three-quarters of rental property owners are mom-and-pop investors, not hedge fund-backed mega-corporations. And lawmakers are messing with their retirements!
What’s done is done. But check out our latest video for 6 steps to protect yourself should the recent government shutdown resume in February.
Part 4 of 6: Laws Inland Empire Property Owners Need to Know AboutCalifornia's new AB 246 (The Social Security Tenant Protection Act) created a 6-month evict...