The Landlord Must Accept Third-Party Rent Payments

Landlords who resist accepting rent payments from a third party (someone who is not on the lease) should know that they must now accept that payment if the tenant also provides an acknowledgement that such a payment is not a basis for creating a new tenancy. This will be some comfort to a tenant who has to tap a friend for emergency assistance or even a relative who on a regular basis subsidizes the rent. Until Assembly Bill 2219 the landlord could refuse that payment. The state has you covered!

Effective January 1, 2019 pursuant to AB 2219 the landlord must accept a rent payment from a third party not on the lease so long as a disclosure is provided to the landlord by the third-party rent payer. That disclosure is very straightforward according to the language suggested in the relevant Civil Code subsection 1947.3(a)(3):

I, [insert name of third party], state as follows:
I am not currently a tenant of the premises located at [insert address of premises].
I acknowledge that acceptance of the rent payment I am offering for the premises does not create a new tenancy.

Simply sign and date the acknowledgment and there should be no problem paying the rent with a third-party payment.

The law has been in effect for five years and so by now landlords should be aware that accepting a third-party payment with a disclosure by law will not create a new tenancy or allow the third-party to later claim occupancy. But tenants, too, should be aware of the law and the necessary disclosure because there are times when we need a quick helping hand from a friend or family member. We don’t want the landlord to belatedly flag the third-party payment and then also slap the tenant with a late fee.

If the landlord does balk at a third-party payment, simply provide them with this handy printable PDF of subsection 1947.3(a)(3) of the Civil Code.

We were reminded of AB 2219 when we heard from a resident who supplements his elderly parent’s rent each month. But for the first time, a new management company flagged the payment because it was not from the named tenant. The misunderstanding could have been avoided if the management company was aware of the law and simply asked the for a signed acknowledgment.

State Assembly Bill No. 2219 was authored in 2018 by state assembly member Phil Ting who represents parts of San Francisco and San Mateo County. The legislation passed the legislature and was signed into law by the governor that August. It is one of a number of laws enacted in California in recent years to rein-in arbitrary or capricious landlord practices and to give tenants a leg-up in a difficult housing market.

New California Legislation Helps Tenants!

Consider these laws that took effect in 2024:

• Assembly Bill 1620 which allows certain disabled tenants to move to a first-floor apartment in a building without an elevator while keeping same rent-controlled rent.
• Senate Bill 712 allows tenants to keep up to one bicycle or an e-bike, scooter or similar motor transportation device in the apartment where the latter can be charged.
• Assembly Bill 12 starting July 1, 2024, will limit security deposits to one month’s rent (instead of the current two month’s rent) unless the landlord is natural person or a limited liability company in which all members are natural persons; AND that landlord owns no more than two residential rental properties that collectively include no more than four units for rent (call this the ‘mom-and-pop’ exemption).
• Senate Bill 71 would increase the dollar limit in Small Claims court from $10,000 to $12,500 which should be a help to tenants who have to turn to court to extract the deposit from an unscrupulous landlord.

Additional Resources

Civil Code subsection 1947.3(a)(3) (third-party rent payments

Printable Civil Code subsection 1947.3(a)(3) (third-party rent payments)