Isadore Hall IIISACRAMENTO, Calif. /California Newswire/ — The California State Senate today approved SB 761 by Senator Isadore Hall, III (D – South Bay), which would require short-term rental companies to disclose on their website or mobile application that a tenant listing a room or unit for rent may be in violation of their lease and may subject the tenant to legal action, including possible eviction. SB 761 will also require potential hosts to acknowledge this disclosure prior to listing the short term rental online. The measure was approved on a bipartisan vote of 35 to 3.

Over the past few years, there has been significant growth in online companies that allow people to rent a room, apartment or home on a short-term basis. Unlike homeowners, tenants who list their rooms or units create a host of potential problems for the property owner and neighboring tenants, while at the same time, potentially violating their own lease and subjecting the tenant to legal sanctions and possible eviction.

“Short-term rental websites are a great part of the growing sharing economy and a valuable tool for travelers, said Senator Hall. “But properties listed on these sites should be in compliance with laws and contractual agreements that may limit the use of the property to third parties. SB 761 provides tenants with important information about the potential legal risks of listing their room or unit on a short-term rental Web site and will help ensure the long term stability and growth of this segment of the sharing economy.

SB 761 now moves to the State Assembly for further action.

Isadore Hall, III, represents California’s 35th Senate District that includes the communities of Carson, Compton, Gardena, Harbor Gateway, Hawthorne, Inglewood, Lawndale, Lennox, Lynwood, North Long Beach, Rancho Dominguez, Rancho Palos Verdes, San Pedro, South Los Angeles, Torrance, Watts/Willowbrook and Wilmington.