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

By Brian Bean | November 30, 2025

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

What AB 246 Blocks, and What It Doesn’t

By BRIAN BEAN
Rental Home Advocate | Property Manager | Real Estate Broker

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.

Related Articles:

 

Full Transcript

Transcript of the video above — Brian Bean, Broker/Owner and Rental Home Advocate, Dream Big Property Management. CA DRE #01346382 and #01226870. Lightly edited for readability.

Another new California rental law could have profound impacts on Inland Empire property owners, especially mom-and-pop investors who depend upon rent to pay their own mortgages.

Hi, I’m Brian Bean with Dream Big Property Management here in Riverside, California. This is part four of our six-part series on new laws that California rental property owners should be aware of. Today we’re talking about Assembly Bill 246, the Social Security Tenant Protection Act, and what you need to know to help protect you and your finances.

AB 246 was approved this year and begins January 1st, 2026. This new law 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, such as the 44-day debacle that we just came out of, and which incidentally is really just paused and lurking until the end of January.

According to this new law, this eviction shield applies for non-payment of rent only, not for breaches of any other sort, and only if the resident can show three things. One, Social Security benefits were terminated, delayed, or reduced. Two, the interruption was no fault of their own. And three, the hardship prevented them from paying rent.

So what might qualify as no fault? Well, how about a federal government shutdown that disrupts payments, or Social Security Administration errors or processing delays, computer problems, federal system failures, or maybe even wrongful termination of benefits that’s later corrected.

These examples might be less likely to qualify as no fault: the resident failed to timely recertify their benefits; unreported income caused a benefit reduction later; maybe recovery of benefits because the resident was overpaid in the past. Really, any interruption caused by the resident’s actions or inactions.

Disclaimer: we are not attorneys. We are not qualified to give legal advice. Consult with your legal adviser for guidance on your particular situation.

Now, according to this new law, if the resident can affirmatively prove their points, the court must issue a stay or delay of the eviction. And that delay can be as long as 14 days after the benefits are restored, up to six months. And that’s on top of the three to four months it took to get to that point.

Also, according to the law, the resident still owes all the back rent. This is not rent forgiveness. But within 14 days of getting their benefits back, they must either pay all of the past-due rent in full or negotiate a mutually agreed-upon plan with the property owner. If they comply, the eviction gets dismissed. If they don’t comply, then the eviction can proceed.

In the interim, the property owner still must maintain the home. They must pay all of their current expenses provided as part of the lease. They have to make repairs when necessary, and they’ve got to keep paying their own mortgage, insurance, and property taxes without the benefit of the rent payment.

On the one hand, it’s good to think about these situations in advance and make sure that people who are on fixed income are protected when politicians or government bureaucracy turn on the blender and basically indiscriminately scramble their lives. But on the other hand, this law is just another example, especially in California, 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. But the reality is about four out of 10 rental property owners in this country own just a single rental property, according to a recent property management industry report from the National Association of Rental Property Managers. And another third own just two to four properties. That means three-quarters of all rental property owners are true mom-and-pop investors, many with home mortgages attached to those homes. This is their retirement account, not their Lambo money.

Putting in place laws like AB 246 without similar protections for affected property owners is just plain political malfeasance. So contact your state representative and let them know how you feel about it.

And in the meantime, let’s talk about steps you can take to prevent problems should we be right back in the same situation when the shutdown pause ends on January 31st.

Step one, communicate. If your residents rely on Social Security income, they are probably already nervous about the future budget deadline. 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 you’re working on solutions together, you are much more likely to find good resolution more quickly.

Step two, look for the helpers. Start now looking for rental assistance programs in your area. Agencies such as the United Way and local nonprofits are built specifically to help people who are behind on rent. Sometimes they will pay three to six 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, so appreciative. It strengthened their loyalty, and ultimately today they remain among our best residents. I think it was Teddy Roosevelt who said, “People don’t care how much you know until they know how much you care.”

Step three, build your reserves. This is just smart investor stuff. Now, as a rental property owner, you are running a business, but a lot of you don’t treat it that way — especially accidental landlords or mom-and-pop owners with just one property. But it’s time to change your 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 six to nine months of all expenses of that property. Here’s an example. If your mortgage is $2,000 a month, and miscellaneous taxes, insurance, repairs, and other expenses are another $500, that means you should have $15,000 to $22,500 in a bank account just for emergencies or major expenses. I know this is not easy, but you’re going to thank us for it later. Your stress levels, by the way, shrink dramatically when you have the funds to cover the bills, even if the rent is late next month.

Step four, consider landlord insurance. You may not be aware, but there are insurance policies that are not too expensive, and they 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 management company. Ask yours if they have the SureVestor policy available for you. They run about $40 to $50 per month, and they cover lost rent, malicious damage, and a few other scenarios.

Step five, seek legal help. If you are in, or you 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 or $400, but it will be the best money you spend.

Step six, continue to communicate professionally. If your resident is having trouble, don’t let it get personal. Do not react emotionally. Maintain professional, factual communication. Document every conversation. Avoid confrontational or accusatory language. And keep records of all notices and responses.

Set a goal to tackle all six of these steps and you will be on your way to protecting your investment and your mental well-being when something bad happens to you, your property, or your resident.

Recently, we endured one of those situations: the 44-day government shutdown over passage of a national budget. It showed that politicians are more interested in grandstanding than cooperative governing. Unfortunately, all of us are beneficiaries of their chaos. Case in point: this is why it’s more important today than ever to prepare for a crisis. And probably even more important that we also look out for each other, because no one else will. And in the end, if you’re helping your residents solve problems, you’re also solving your own problem at the same time. And a win-win is always the best ending.

Next week, in part five of our series on new rental property laws, we’ll dig into tenant protections after a disaster.

If you have questions about anything you’ve heard here today, call me directly at 951-314-5402. I’m happy to share. You can also find valuable information on our website, dreambigpm.com. And as always, if you found the information you heard here today useful, please do us a favor: like and subscribe, so that we can help others just like you. Don’t be accidental about your future. Be intentional to your success.

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