SB 436 – The New Rental Housing Killer of 2025


Steve Welty

Issue# 38

March 2025

Happy Saturday, Housing Heroes!

Heads up, if you’ve been ignoring potential changes to eviction law, it’s time to tune in. Senate Bill 436 dubbed the “Last-Minute Rent Payment Bill” could allow tenants to avoid eviction by paying overdue rent right up until the moment of lockout.

This proposal, inspired by similar “right to redeem” measures in other states, aims to prevent avoidable evictions by giving tenants a chance to catch up on rent even after a court rules in favor of removal. However, the bill doesn’t necessarily require tenants to cover a housing provider’s legal fees or other eviction-related costs, which raises concerns to those like us in the rental housing industry.

Here’s what you need to know:

You’d still have to initiate eviction proceedings, but tenants could pay all past-due rent potentially without covering your legal fees—and remain in the unit.

  • Some housing providers fear this will encourage repeat late payments or force them to bear legal costs each time.
  • Proponents argue it prevents unnecessary displacement and homelessness by ensuring renters can stay housed if they come up with the funds.

So, what exactly do you need to do?

First, keep an eye on SB 436’s progress through the legislature. If it passes, you’ll want to update your lease terms and procedures. Most proposals also void any clause that attempts to waive a tenant’s right to redeem, meaning you can’t contract around it. And if your tenants are behind, you may face a more complex eviction process—so budgeting for legal expenses and possibly higher vacancy risk is wise.

My Take

No one enjoys dealing with evictions—they’re stressful for everyone involved. If SB 436 passes, it would mark a big shift in how housing providers handle delinquent rent, turning eviction from a strict deadline into a “pay anytime” scenario. While it may reduce homelessness and help tenants who need more time, it also puts the onus on housing providers to absorb potential legal costs and deal with uncertainty.

If you’re considering multifamily or already own rentals, stay informed. It’s all about balancing empathy for tenants with the reality that rental properties are businesses. If a law like SB 436 can prevent truly unnecessary evictions, great, but be prepared to adapt and possibly seek more robust legal or financial planning.

For now, keep this on your radar. If 2025 brings new legislation, you’ll want to be ready to pivot so you don’t get caught off guard by last-minute rent payments that turn eviction day into just another rent collection day.

Stay proactive, Housing Heroes, and don’t let these potential “rental housing killers” sneak up on you!


🎥 Eviction Rules California (2025 Update): What Every Landlord Needs To Know

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Steve Welty

CEO @ Good Life Property Management

DRE #01744610

5252 Balboa Ave #704, San Diego, California 92117
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The Housing Hero Newsletter By Steve Welty

Passionate about bringing positivity and fresh perspectives to the rental property industry CEO @ Good Life Property Management San Diego and Orange County. Managing over 1,300 units in San Diego and Orange County.

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