Your tenant may have special protections under state law, including the fact that you can’t discriminate against them because of their race, color, national origin, or sex. Add to this list not retaliating against someone who complains of habitability issues, or for having a licensed child care business on the premises. A landlord recently paid $80,000 to settle a claim that she was allegedly evicted for using her rented home to care for others’ children.
Anthony Burton helps residential landlords with a wide range of legal issues. One of the most important things we do is prevent problems for our clients, such as facing an illegal discrimination claim. Learn more by calling us at (949) 244-4207.
Four Bedroom House Where Three Adults Live With a Licensed Childcare Business
Mariam Younathan ran a child care business out of her rented Manteca, California, four-bedroom house for eight years, reports KQED. She told the station she’d been a good tenant because she paid rent on time and kept the property in good shape, as it had to be clean and safe for her childcare business.
Younathan said eight families were her clients about two years ago, when she spoke with her then-landlord, Anthony Gonsalves. She needed a couple of appliances fixed. He said they needed to be repaired due to wear caused by children in the house that she cared for. She claims he told her she could stay in the property if she ended her daycare business.
Younathan said she refused and was later served with an eviction notice. She had three months to move and find another home/business location. Younathan filed a complaint alleging illegal housing discrimination with the California Civil Rights Department.
Tenant Purchases Home and Moves Out
Younathan said she tried to relocate. She contacted several people who listed homes for rent. They either didn’t reply or said they wouldn’t allow an in-home day care on their property (which would also violate state law).
Younathan said she needed housing for herself, her daughter, and her 84-year-old father, as well as a place to run her business. Losing her unit not only threatened her housing, but her business and income. Younathan said she endured anxiety and panic attacks due to the eviction. She said she currently sees a therapist for her anxiety.
Younathan retained an attorney and remained in the unit until she bought a house less than a mile away about a year ago. Reopening her business was delayed, and her clients arranged for childcare elsewhere. One took a month off from work to stay home and care for her child. Most of Younathan’s clients have returned, but she’s lost some business.
Landlord Denies Wrongdoing
Gonsalves’ attorney told the station he denies any wrongdoing and agreed to settle the matter to avoid more legal costs. The lawyer says he’s been traumatized by the process, which has caused him economic hardship. Other tenants currently rent the home where Younathan lived.
State Law Covers Landlords, Homeowners Associations, and Local Governments
KQED reports this is one of the first California Civil Rights Department settlements under this six-year-old state law. It prohibits landlords, other housing providers, and homeowners’ associations from refusing to rent to or allow licensed in-home daycare providers. Cities and counties are also banned from imposing business fees or zoning requirements that would prevent the use of property for in-home child care.
The Child Care Law Center in Berkeley reports receiving 81 complaints in the first nine months of 2025 from in-home child care providers alleging discrimination in housing or that they’re subject to illegal requirements imposed by their local governments.
The State Legislature Sought to Increase Available Child Care, Made It Easier for It to Be Located in Rented Homes
Nearly 23 million children ages five and under live in the US, and 71% live in households where both parents work, according to the Bipartisan Policy Center. As of 2019, about 59% of children aged five and younger in the US who were not enrolled in kindergarten were in at least one weekly non-parental care arrangement, according to the National Center for Education Statistics.
Among these children:
- 62% attended a day care center, preschool, or prekindergarten
- 38% were cared for by a relative
- 20% were cared for in a private home by someone not a relative
KQED reports that since 2008, the state has lost nearly 30% of licensed family child care homes. Between 2021 and 2023, the number of family child care homes increased by only 0.3%.
How Does This Law Impact Landlords?
Given the need for childcare, the state legislature made it illegal for landlords to prevent tenants from using homes as childcare businesses. People and businesses renting residential property are bearing some of the costs of creating and continuing private childcare in California.
There could be more wear and tear. There’s greater potential for premises liability as parents and children come and go on properties, not just tenants, their guests, and contractors. If you know your property is being used for a home childcare business, make sure you carry enough liability insurance to cover possible injuries.
Licensed child care operators are just one class of several who could claim you illegally discriminate against them. One thing that sets them apart is that if you (allegedly) illegally evict them, they not only incur the costs of moving and finding another place to live, but if they can’t relocate quickly, you’re closing their business and cutting off their source of income. Given the cost of childcare in the area, your tenant could claim several thousand dollars in lost income for every month they’re not in business, so the financial stakes could be much higher in these cases.
We’re Here to Help
If you have questions about how to treat tenants with licensed day care centers in their units and the limits on what you can do, call the AWB Law PC team at (949) 244-4207 or complete our online contact form today. We can discuss your situation, how California laws may apply, and how we can help.
