As your partner in property management, I want to keep you fully informed of major legislative changes so you’re always ahead of the curve. One of the most relevant recent developments is Assembly Bill 246 (AB 246), which was signed into law on October 6, 2025 (an urgency statute) and is effective immediately.
Here’s a breakdown of what it does—and what you, as a property owner, need to know.
Key Provisions
- AB 246 enacts the Social Security Tenant Protection Act of 2025.
- Until January 20, 2029, the law allows a tenant to assert what it calls “Social Security hardship” as an affirmative defense in an unlawful‑detainer (eviction) action based on nonpayment of rent.
- “Social Security hardship” is defined as a loss of income due to a delay, termination or reduction of benefits from the Social Security Administration (SSA) that is through no fault of the tenant.
- If a tenant successfully proves hardship, the court must stay (pause) the unlawful‑detainer proceeding (i.e., cannot proceed with eviction immediately) until:
- the tenant’s Social Security benefits are restored + 14 days, or
- up to 6 months from the start of the benefit interruption, whichever comes first.
- The tenant is not relieved of the obligation to pay past‑due rent. Within 14 days of restoration of benefits they must either pay the back‑rent in full or enter a mutually agreed payment plan with the owner.
- The law requires notices and tailored “3‑day” demand notices for rent due during a declared benefit interruption; if those notices don’t comply with the new form/requirements, they may be void and not support eviction.
What this means for you as an owner and for ReLISTO’s role
- Increased legal complexity in eviction proceedings.
Because of AB 246, if a tenant claims their inability to pay rent is directly due to an interruption of SSA benefits, an eviction for nonpayment becomes more complicated. The law triggers protections during a “declared Social Security benefit payment interruption.” That means we must properly monitor notices, ensure our demand letters comply with any new requirements, and be prepared for potential stays in unlawful‑detainer actions.
➤ As your property manager, ReLISTO will handle that compliance burden: drafting or reviewing notices, tracking any SSA‑related claims, and coordinating with counsel when needed.
- Watch for triggers: benefit payment interruptions.
The law is specifically triggered during a declared Social Security benefit payment interruption, which the bill defines as a disruption of SSA payments of 3 or more calendar days beyond scheduled disbursement.
➤ While benefit interruptions are not common, as of this writing, we are currently experiencing shut down of the Federal Government. For our clients who have SSA tenants this law means we must be alert to any federal or SSA announcements of delay, and document if a tenant claims such an interruption.
- Tenant obligation remains; backlog risk remains.
It’s important to emphasize: the law doesn’t forgive rent. The tenant must pay past‑due rent or enter into a plan once benefits restore. The property owner’s right to rent is still intact. The difference is the eviction procedure is delayed or suspended under certain circumstances.
➤ From a management perspective, we will continue documenting rental debt, communicating with tenants, and working quickly to address defaults. At the same time, we’ll incorporate the new procedural timeline into our tracking.
- Procedure for demand notices must change.
AB 246 requires that during an interruption, notices for covered rental debt must include a declaration of Social Security‑related financial distress, and inform the tenant of their right under the Act. If a notice fails to comply, it may be void and cannot support an unlawful‑detainer judgment.
➤ If SSI benefits are interrupted, we will update our 3-day notices (and other related demand documents) accordingly. This is part of the standard compliance service we provide to all properties under ReLISTO management.
Risk Management Isn’t Optional—It’s What We Do
Assembly Bill 246 introduces a new legal defense for tenants, and with that comes more complexity for landlords. But here’s the thing: when you work with ReLISTO, you’re not navigating it alone.
We’ve already dialed in the risk management protocols to protect your investment. That means:
- Maintaining clear, detailed records of rent payment history, defaults, notices, and tenant communications.
- Responding quickly and consistently to any nonpayment—so there’s no ambiguity or delay that could weaken your position.
- Collaborating with our legal team to assess any tenant claim of Social Security hardship and prepare a strategic response.
In short, we’re already doing what the law now demands. While AB 246 may catch some owners off guard, ReLISTO clients can be confident that if enacted—we will be ahead of it.
The Good News
- As of today, there has been no declared cessation or delay in Social Security benefits. That means AB 246 has not yet been triggered, and landlords are not currently required to serve special notices under this law.
- If your tenant is late on rent, you may proceed as you normally would—with your standard 3-day notice to pay or quit, following existing protocols.
- ReLISTO will continue to monitor developments closely. If the situation changes, we’ll notify our clients who may be impacted and be ready with compliant templates and procedures to protect your interests.
- Until then, stay the course—and know that ReLISTO has you covered.
About ReLISTO
ReLISTO is a full-service property management and leasing brokerage based in San Francisco, California. We specialize in residential property solutions for independent landlords, HOAs, and portfolio owners throughout the Bay Area. Our services include tenant placement, lease execution, regulatory compliance, and ongoing property management—delivered with a focus on professionalism, risk mitigation, and proactive service.
With decades of combined experience and a deep understanding of California’s evolving rental landscape, ReLISTO is committed to protecting our clients’ investments and providing tenants with quality housing experiences. Whether you’re seeking long-term management or simply need help leasing your unit, ReLISTO is your trusted partner in rental real estate.
