How SB 436 Could Undermine California's Housing Providers
Anthony A. Luna • May 20, 2025
How SB 436 Could Undermine California's Housing Providers
California's proposed SB 436 sounds simple enough: give tenants more time to respond to eviction notices. But when you run property at scale, and with intention, you start to see how well-meaning laws can have unintended consequences.
At Coastline Equity, we're committed to ethical, high-quality housing management. But we’re also honest about the operational realities that legislation like SB 436 can create.
What SB 436 Proposes:
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Extending the notice period for nonpayment of rent from 3 days to 14.
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Requiring landlords to accept third-party rent payments.
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Giving tenants the right to pay in full or show rental assistance proof up until lockout.
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Limiting that right to once per year.
Sounds fair? Here’s what’s actually happening on the ground:
Evictions in California already take 6–9 months. We recently managed one in Long Beach that resulted in more than $55,000 in lost rent, damage, legal fees, and turnover costs — on a single unit.
These costs can’t just be absorbed. They get passed into higher rents, tighter margins, or in many cases, a decision by mom-and-pop landlords to sell.
What happens when they do?
Large hedge funds and institutional buyers step in. Local housing loses its personal touch. Service declines. Rent accelerates.
This is how well-intentioned policy fuels corporate consolidation of neighborhoods.
What Coastline Equity Believes:
We believe in:
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Maintaining balance between tenant rights and housing provider sustainability.
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Operating with integrity and care — even when it’s hard.
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Advocating for policy that works in the real world, not just on paper.
As we outline in Property Management Excellence:
"Our role isn’t just managing properties. It’s managing legacies."
What You Can Do:
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Review your eviction process for compliance and risk.
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Budget for longer delays if SB 436 passes.
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Get involved with advocacy groups fighting for fair and functional housing legislation.
Stay Informed. Stay Ready.
SB 436 may pass, or it may evolve. Either way, Coastline Equity is preparing now — so our clients, tenants, and communities are protected no matter what comes next.
Want to talk with our team about how to prepare your portfolio? Contact us or explore our full suite of management solutions.
More about Coastline Equity
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Property Management Services
Learn MoreOur team will handle all your property needs, offering specialized services such as in-depth inspections, liability management, staff recruitment and training, and round-the-clock maintenance—expert support tailored to the unique requirements of your real estate assets.
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About Us
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Learn MoreOur dedicated team transforms property management challenges into opportunities. From tenant management to streamlined rent collection and proactive maintenance.
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Property Management Excellence
Learn MoreAs a contributing author for Forbes, Anthony A. Luna brings a wealth of expertise and knowledge in the property management industry, real estate sector, and entrepreneurship, providing insights and thought-provoking analysis on a range of topics including property management, industry innovation, and leadership. Anthony has established himself as a leading voice in the business community. Through his contributions to Forbes, Anthony is set to publish his first book, 'Property Management Excellence' in April 2025 with Forbes Books.
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Insights
Learn MoreLearn more about Coastline Equity's property management practices & processes and how we support our clients with education and a growth mindset. Coastline Equity Property Management is your partner as you continue to learn and grow.
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