Key Takeaways:
- California has strong tenant protections: Landlords must follow The Tenant Protection Act, the Federal FHA, and all relevant laws governing leases, habitability, rent increases, privacy, security deposits, and evictions.
- Compliance helps avoid legal issues: Local rent control law violations and mistakes with notices, security deposits, or eviction procedures can result in disputes, penalties, and costly delays.
- State and local laws both matter: Many California cities have additional regulations that are stricter than statewide requirements.
- Staying informed protects your investment: Understanding landlord-tenant laws helps landlords reduce risk, remain compliant, and build positive tenant relationships.
Landlording has its perks, no doubt; from recurring passive incomes to tax deductions, and everything in between. That said, it does come with a host of responsibilities, including laws landlords must comply with.
Specifically, as a property owner, it's imperative to familiarize yourself with California law regarding landlord-tenant issues. Understanding it can help you keep legally compliant by knowing what you can and cannot do as a landlord in California.
The following article from [H&M Property Management](/) will address and provide clarity on some common issues that stem from California landlord-tenant law..
Required Landlord Disclosures
Before an owner and a prospective tenant can sign the rental agreement, the owner must provide them with the following disclosures. Written notice is best for disclosures, as they can be referred to by both the owner and residents:
- If there is any use of lead-based paint or asbestos in any of the unit or units rented out. This is specifically required of landlords renting out older units (built before 1978).
- How the tenant is required to report a bed bug infestation to the owner.
- If the residential rental property has any known mold issues.
- The sharing formula for utility bills if renting out a multi-unit building with common utility use.
- If there has been possible methamphetamine or fentanyl contamination in the unit and remediation is yet to be done.
- The tenant’s right to access the sex offender registry for any relevant information.
- Information on any building or land with demolition plans that can affect the tenancy.
- If the building is located within 1 mile of known ordnance location with risk of explosions.
- If someone has died in the unit within the past three years due to non-HIV or AIDS-related complications.
- If there has been application of pesticides in the unit.
- If the unit is located in a known flood zone.
- The details of the smoking policy (if any).
Tenants’ Rights & Responsibilities in California
A renter who has established a lease agreement with an owner in California automatically acquires the following rights, and California tenants also have responsibilities under state law, which offers strong protections for renters, including the right to quiet enjoyment.
- Be provided with the aforementioned disclosures and written notice before establishing a lease agreement with a landlord.
- Report a landlord for unsafe living conditions as required by state and local laws.
- Request the landlord to change the locks at any time during tenancy, if they have been a victim of domestic violence.
- Proper notification before an owner or manager can access their rented premises.
- Fair treatment as per California laws.
- Break the lease for certain justifiable reasons.
- Provide the refund of their security deposit within 21 days after moving out. Also, any deductions must be appropriate and legitimate.
- A just eviction process for possible lease violations.
As for responsibilities, they include the following.
- Keeping the unit clean, sanitary, and habitable.
- Using the fixtures and appliances reasonably and for their intended functions.
- Using the rented premises for its intended purpose, such as living, cooking, and sleeping.
- Making small repairs as per the lease, such as replacing burnt-out bulbs.
- Allowing reasonable landlord entry.
- Providing the landlord with proper notification before lease termination of either a fixed-term or periodic tenancy agreement.
- Not causing unnecessary disruptions or disturbances to other neighbors or renters.
- Abiding by all terms of the lease agreement.
Landlords’ Rights & Responsibilities in California
Under California law, someone becomes a landlord when either of three things take place.
One: if the landlord accepts a payment as rent.
Two: if the landlord has a written agreement with a tenant.
Three: if the landlord makes an oral agreement with a tenant.
Those are the rules. Once any of these things happens, you'll automatically obtain the following rights per California landlord-tenant law:
- Serve eviction notice to a tenant who fails to keep up with the terms of the lease or rental agreement, such as failing to pay rent.
- Not to lease to any applicant who fails to meet fair selection criteria. For example, for failing to meet the minimum income requirements, while avoiding illegal discrimination when screening prospective tenants.
- Enter a tenant's unit to perform crucial duties like responding to an emergency, but routine entry otherwise requires at least 24 hours' written notice.
- Not to renew a tenant's lease for another term for whatever reason, as long as the decision is not retaliatory or discriminatory. However, tenants cannot deny rent simply because their lease is not being renewed.
- Require a security deposit that doesn't exceed the equivalent of one month's rent.
- Require a tenant to pay for any rent due under the lease if they break their lease unjustifiably. In many cases, the tenant may still be obligated to pay for the remainder of the lease term or until a new tenant is found, depending on the law.
When it comes to responsibilities, California landlords must do the following.
- Provide residential tenants with the aforementioned disclosures.
- Provide tenants reasonable notice, such as written notice, at least 24 hours before entry.
- Evict tenants in compliance with the state's eviction process, including strict written procedures, service of a proper eviction notice, and other applicable eviction rules.
- Treat all tenants without discrimination or retaliation, per the California Fair Housing Act. Under California laws landlords must not discriminate against tenants based on protected characteristics such as race, religion, sex, or disability.
- Abide by all state and local laws, including rent control.
- Make a reasonable effort to find another qualified applicant for tenancy if the old tenant breaks their lease without a justified reason.
- Keep the unit habitable for the entire duration of the lease in accordance to rental regulations such as Civil Code § 1941. If a California landlord fails to make serious repairs, tenants may have tenant remedies, including the repair-and-deduct remedy or, in very limited cases, withholding rent.
An Overview of the California Landlord-Tenant Law
The following are additional things to keep in mind when renting out a house or apartment to a tenant in California. Some cities impose additional protections beyond state law on rental housing.
California rental law for residential rental properties includes both statewide rules and local ordinances, and property owners and property managers must check state and local requirements before leasing rental properties.
Security Deposit Rules
California Landlords must follow certain rules if requiring security deposits from tenants.
For one, the limit is generally set to one month's rent, though the small landlord exception can allow landlords who are natural persons (not a corporation or government entity) to charge up to two months' rent.
Two, landlords must only make certain deductions after the tenant moves out.
Those deductions include meeting the costs of unpaid rent and utility bills, for damages exceeding normal wear and tear, and if the lease or rental agreement allows it, to repair or replace fixtures, furnishings, and other personal property.
As for its return to the California tenant, the landlord must do so no later than 21 days after moving out. The landlord must also provide an itemized statement of any deductions.
Rent Increase Rules
Understanding affordable housing and rent control laws at the state and local level is crucial for owners and managers to ensure compliance and avoid potential legal issues.
California's statewide rent control law, AB 1482, also called the Tenant Protection Act, was enacted in 2019.
For many California renters, this law sets a statewide rent cap and annual limits on how much a landlord may raise rent, generally capping increases at 5% plus CPI or 10%, whichever is lower. New construction, some single-family homes, and certain affordable housing may be exempt from this rent cap.
However, if a stricter local rent control ordinances exists, it takes precedence over the state law, and local ordinances may impose stricter rental regulations and additional tenant protection than state law.
For example, in Salinas, properties under rent control will, as of January 1, 2025, be limited to one rent increase per year with a maximum increase of 2.75%. Being aware of and adhering to these local rules helps protect landlords and tenants while promoting fair housing practices, even though not all rental properties follow the same rules.
Additionally, tenants must receive proper written eviction notice at least 30 days in advance under local laws, and increases over 10% require 90 days' written notice. The rent increase must not be used as a form of retaliation or a discriminatory tactic.
Tenants still have a legal obligation to pay at the new rate once the 30-days notice period has passed.
Many eviction protections under the Tenant Protection Act apply after California tenants have lived in the unit for 12 months, and no-fault evictions may require landlords to provide relocation assistance equal to one month's rent or waive the final month's rent.
Fair Housing Laws
The Federal Fair Housing Act requires landlords to treat tenants fairly regardless of certain classes, and fair housing rules and related landlord tenant rules prohibit illegal discrimination in screening, leasing, and eviction decisions.
California includes race, color, sex, disability, nationality, citizenship status, marital status, ancestry, and sexual orientation as protected classes. A landlord incurs legal fees, fines, and damaged reputation when they attempt eviction action on the basis of protected class.
If a landlord plans to evict a California tenant, the landlord must follow strict written eviction procedures and cannot rely on discriminatory reasons.
Conclusion
With this information, you're well-equipped to manage your rental effectively. But, if staying on top of every detail of California landlord tenant law feels challenging, H&M Property Management is here to help. Our team has the experience and resources to support landlords in California.
Contact us to find out how we can assist with your property management needs!
Disclaimer: Please note that the information provided in this legal blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.