New CA Laws: AB 246, California’s Social Security Eviction Shield, Puts Riverside CA Rental Owners at Risk

By Brian Bean | November 30, 2025

California’s Social Security Eviction Shield Puts Riverside CA Rental Owners at Risk

California’s Social Security Eviction Shield Puts Riverside CA Rental Owners at Risk

Week 4 of 6: Laws Every Inland Empire Investor Must Know series

Another new California rental law could have serious financial impacts on Inland Empire property owners – especially mom-and-pop investors who depend on rental income to pay their own mortgages.

AB 246, the Social Security Tenant Protection Act, created a new eviction defense that could delay rent collection for up to six months when a resident’s Social Security benefits are interrupted through no fault of their own.

The Details

  • Effective Date: Upon approval, which was in late 2025
  • Effective Until: Jan. 20, 2029
  • Who it protects: Residents whose Social Security benefits are terminated, delayed, or reduced through no fault of their own
  • Eviction stay: Up to 6 months after it gets to court, which could be 3-4 months after an eviction is filed
  • Not rent forgiveness: Resident still owes all back rent and must repay or set up payment plan within 14 days of restoration of benefits
  • Applies to: Non-payment of rent only (not other lease violations)

What Qualifies as “No Fault”?

Examples that might qualify:

  • Federal government shutdowns
  • Social Security Administration errors or delays
  • Computer system failures
  • Wrongful termination of benefits later corrected

Examples that probably would NOT qualify:

  • Failure to recertify benefits on time
  • Unreported income causing benefit reduction
  • Overpayment recovery reduces monthly benefits
  • Any interruption caused by resident’s actions, or inactions

Disclaimer: We are not attorneys and cannot provide legal advice. Consult with your attorney for guidance on your specific situation.

The Financial Impact on Property Owners

Here’s the problem: While the resident gets up to 6 months of eviction delay, the property owner still must:

  • Maintain the property
  • Pay insurance and property taxes
  • Handle all repairs and maintenance
  • Pay the mortgage, property taxes, insurance and all other expenses

All without rental income. For months.

The Reality Ignored

Data shows that 42% of landlords own just ONE rental property. Another 33% own 2-4 units. That means 75% of all rental property owners are mom-and-pop investors – regular people building retirement security, not wealthy corporations.

Many have mortgages on their rental properties. The rental income isn’t luxury money – it’s their retirement account.

Yet lawmakers continue to treat landlords like rich people who should be forced to subsidize the housing expenses of some renters.

What You Can Do Right Now

Regardless of your politics, one thing is clear. State lawmakers are not looking out for your best interests. Or ultimately, for your residents either. Which means it’s up to you. Here are some steps you can take to help protect yourself and your finances.

1. Communicate: If your residents rely on Social Security, open communication now. You have a business relationship with them and you rely on each other. Put yourself in their shoes and be empathetic. Let them know that you are there to assist them if they think they might be in trouble later. But you need to know as soon as possible, before it gets critical. If you’re both communicating with each other and working on solutions together, you are more likely to find good solutions more quickly.

2. Look for the Helpers: Start now looking for rent-assistance programs in your area. Agencies such as the United Way and local non-profits are built specifically to help people who are behind on rent, and sometimes they will pay 3 to 6 months’ rent for your residents.

During COVID, we helped several people find rental assistance, and I can tell you that our residents were so thankful and appreciative. It strengthened their loyalty, and ultimately, they remain among our best residents today. I think it was Teddy Roosevelt who said, “People don’t care how much you know until they know how much you care.”

3. Build Your Reserves: As a rental property owner, you are running a business, but many don’t treat it that way, especially unexpected landlords or mom-and-pop owners with just one property. But time to change that thinking. Because businesses operate for the best, but they plan for the worst.

For rental property owners, you should have a reserve bank account with enough cash to cover 6 to 9 months of all expenses of that property. Example: If your mortgage is 2000 a month, and miscellaneous taxes, insurance, repairs, and expenses are another 500, that means you should have 15,000 to 22,500 in a bank account, just for emergencies or major expenses.

4. Get Landlord Insurance: You may not be aware, but there are insurance policies that are not too expensive that cover 8 to 25 weeks of lost rent in the event of non-payment, among other things.

These policies are typically only available through a property manager – ask yours if they have SureVestor policies available for you. They run $40 to $50 per month and they cover lost rent, malicious damage and a few other scenarios.

5. Find an Attorney Now: If you are in or suspect that you may be headed for non-payment of rent, find a great landlord-tenant attorney in your area and book a consult. It might cost you $300-$400, but it will be the best money you spend.

6. Document Everything: If your resident is having trouble, don’t let it get personal. Do not react emotionally. Maintain professional, factual communication, and document every conversation. Avoid confrontational or accusatory language. And keep records of all notices and responses.

It’s Up to You

Recently, we all endured some financial upheaval that interrupted incomes and created fear for many people. The 44-day government shutdown over passage of a national budget was the longest on record. And the problem hasn’t been solved yet — the shutdown was only paused in November until February. If they haven’t passed a budget, the shutdown could recommence.

This situation showed that politicians are more interested in grandstanding than cooperative governing.

It showed why it’s more important than ever to prepare for a crisis. And more importantly, it showed why it’s crucial that we also look out for each other. … Because no one else will. And In the end, if you are helping your residents solve problems, you’re also solving your own problem at the same time.

And That is a win-win.

Have questions about AB 246 or managing your Inland Empire rental property? Call us directly at 951-314-5402, or check out our information at DreamBigPM.com.

 

Coming Next Week

Next week, in Part 5 of our series on laws for rental owners, we’ll cover tenant protections during a disaster.

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#AB246 #CaliforniaRentalLaws #PropertyManagement #InlandEmpire #RentalProperty #LandlordInsurance #PropertyInvestor #RiversideCA #DreamBigPM

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