Steve Welty

Issue# 45

April 2025

Happy Saturday, Housing Heroes!

I wanted to update you regarding a new bill that could impact how we operate as housing providers. Assembly Bill 1248 (AB 1248), introduced by Assemblymember Matt Haney (D‑San Francisco) and backed by Attorney General Rob Bonta, is gaining traction and it’s important we stay informed on how this could affect us.

What’s the Deal with AB 1248?

AB 1248 proposes major changes to how housing providers can structure rental charges. It aims to bundle nearly all housing-related costs into the rent, heavily restrict the use of separate fees, and add new compliance requirements for utility billing and rent application. Here’s a breakdown of the key points:

Housing providers would be required to include all housing services in the advertised rent price, effectively banning most separate or add-on fees for services like pest control, trash collection, and utilities.

For existing leases signed before 2026, landlords can only continue charging fees that were disclosed at the start of tenancy - no new or increased fees allowed.

New strict rules for RUBS (Ratio Utility Billing Systems), requiring transparency and limiting what can be passed through to tenants.

Rent payments must be applied first to current rent, then back rent, then fees, protecting tenants from late fee stacking.

Reducing housing services (like amenities or maintenance) would be considered an illegal rent increase under the bill.

Tenants would have four years to bring civil actions against landlords for violations, with penalties including actual damages, triple damages, and attorney’s fees.

Why This Matters

If passed, AB 1248 could:

Force higher base rents to cover all services, reducing flexibility for tenants and landlords alike.
Tie your hands on adjusting for rising utility, maintenance, or operational costs outside of rent caps.
Expose you to significant liability, even for small mistakes, with triple damages and attorney’s fees on the table.
Discourage “mom and pop” landlords who already provide affordable housing options from staying in the business.
Open the door to even more local restrictions, since AB 1248 does not preempt cities from imposing even tougher regulations.

For the full bill text, you can review it here.

Thanks for staying informed and standing strong in support of responsible housing providers like yourself. I’ll keep you posted on any major developments!

🎥 Squatter-Proof Your Property: Prevention + Legal Steps

Have questions about managing your property?

Our team proudly serves San Diego, Orange, and Riverside Counties. Schedule a call with us today, and let’s chat about how we can guide you through every step of your property management journey.

Schedule a call