SB 567 (effective April 2024) strengthened California just-cause eviction rules, particularly owner-move-in requirements. Owner must actually occupy the unit within 90 days and remain 12 continuous months.
Before SB 567, owner-move-in evictions had looser requirements that allowed flexibility in how and when the owner occupied. SB 567 tightened: the owner or qualifying family member (spouse, domestic partner, children, grandchildren, parents, grandparents) must actually move in within 90 days of tenant departure and occupy as primary residence for 12 continuous months.
Failure to comply creates penalty exposure. Substantial remodel eviction rules also tightened.
For LA multifamily sellers who historically used OMI as a flexible exit strategy, SB 567 reduces that flexibility substantially. OMI evictions are now a worse tool than buyouts or Ellis Act for most pre-listing vacancy scenarios.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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