Mark Rubio introduces new legislation impacting California landlords.

Today, Senator Mark Rubio introduced Senate Bill 373 to the floor. This legislation has a long road in front of it before it passes, but it includes text that impacts unlawful detainer actions. Under the new law, if it passes, credit reporting agencies would be restricted from reporting unlawful detainer actions that settle out of court unless the agreement expressly states that it ought to be reported. This law still permits credit companies to report unlawful detainer actions where the landlord succeeds at court.

This legislation serves as a reminder to landlords who need to have tenants out. Remember that there are sometimes concerns (like a credit report) that can be used to persuade a tenant to avoid legal action. Legal action forms a black mark on the credit record that may impact future rentals or purchases of items that they want and would otherwise deserve due to their hard work and effort.

When attempting to settle disputes with your tenants, remember to consider your alternative dispute resolutions before threatening litigation. It makes your life and the tenant’s life easier.