“An eviction can cost you $60,000 or more in LA County—sometimes the smartest move is knowing when to negotiate.” – Patti Widget

The Apartment Association, California Southern Cities (AACSC) was proud to host property management consultant Patti Widget for our February General Membership Meeting. Patti delivered a powerful and practical presentation on the legal and operational challenges facing housing providers in California today, equipping members with strategies to stay compliant, reduce risk, and protect their investments.

Key Legislative Updates

Patti opened the session with an overview of new and emerging laws that every housing provider must understand:

  • First-Come, First-Served Applications: Landlords must now process rental applications in the order received and document why an applicant is denied.
  • Positive Rent Reporting (AB 2747): Properties with 16 or more units must offer tenants the option to have rent reported to credit bureaus. This does not apply to smaller property owners.
  • Third-Party Payments: Housing providers must accept federally backed third-party funds (like Section 8) for move-in costs.

Eviction Costs & Alternatives

One of Patti’s most striking insights was on the soaring costs of evictions in Los Angeles County—which can exceed $60,000 per case.

“Housing providers must weigh whether eviction is truly the best option—or whether alternatives like ‘Cash for Keys’ can save money, time, and stress.”

She stressed the importance of documenting any tenant negotiations and using attorney-drafted agreements to protect against future claims.

Bed Bugs, Fires, and Documentation

Bed bug disclosures remain a serious compliance issue. Patti warned that the increase in fires across the region has fueled infestations due to the donation and circulation of contaminated furniture.

Housing providers should:

  • Provide tenants with a bed bug disclosure form at lease signing.
  • Document all inspections and certifications.
  • Work with licensed pest control providers to minimize liability.

Managing properties under multiple LLCs is not always a safeguard—it can actually increase exposure if not structured properly.

Patti encouraged members to:

  • Maintain transparency in entity structures.
  • Work with experienced real estate attorneys to evaluate holdings.
  • Carry robust unlawful eviction insurance coverage to mitigate lawsuits.

Insurance Considerations

Patti strongly recommended that all housing providers review their insurance policies to ensure they include unlawful eviction coverage. Without it, a single lawsuit could result in devastating financial loss.

Top Questions Answered

The Q&A portion brought real-world concerns to the forefront. Here are a few highlights:

  • Can FICO scores be used as a screening criterion for Section 8 tenants? ❌
    No. Decisions must focus on ability to pay and rental history.
  • Do the new credit reporting laws apply to small house providers? ❌
    No. Only properties with 16+ units are affected.
  • How do I terminate a fixed-term lease in LA County? ✅ Serve a notice of non-renewal. Relocation fees may also apply depending on local ordinance.
  • Must I accept third-party funds for move-in costs? ✅
    Yes, if federally backed (e.g., Section 8). Not required for other local programs.
  • How can I protect my personal assets? ✅ Avoid multiple LLC entanglements, maintain comprehensive insurance, and consult an attorney before restructuring.

Final Takeaways

Patti’s presentation underscored the increasing complexity of property management in California. From heightened eviction costs to evolving fair housing rules, housing providers must stay proactive, educated, and well-documented to protect their assets.

✔️ Document applications and screen tenants consistently.
✔️ Consider alternatives like Cash for Keys before pursuing costly evictions.
✔️ Always provide disclosures—especially for bed bugs and habitability issues.
✔️ Avoid risky LLC structures; consult legal experts.
✔️ Add unlawful eviction coverage to your insurance policy.

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