Key Takeaways
- Review California and applicable local requirements before listing your rental, including habitability standards, insurance, required disclosures, and lead-based paint obligations.
- Establish written screening criteria and apply them consistently to every applicant while following California rules for screening fees, consumer reports, and fair housing.
- Review your lease annually to ensure rent terms, security deposits, entry procedures, and other provisions reflect current legal requirements.
- Document every stage of the tenancy, from move-in condition reports and maintenance requests to rent payments, notices, and move-out deductions.
This checklist, by H&M Property Management walks California owners through the lifecycle of a rental, from screening to notices and move-out, and highlights the points where mistakes are most common. It is general information, not legal advice.
State and local laws change often, so verify current requirements with a qualified attorney or licensed professional before relying on any point here.
Stage 1: Before You List
- Confirm you can legally rent the property.
- Carry the right insurance.
- Make the home safe and habitable.
- Address lead paint.
- Prepare required disclosures.
Stage 2: Advertising and Fair Housing
Federal and California fair housing laws prohibit discrimination based on many protected characteristics, including religion, race, color, gender identity, sex, sexual orientation, national origin, familial status, disability, source of income, and others.
California specifically prohibits discrimination based on lawful sources of income, including housing vouchers. Describe the property, not the preferred tenant. Use the same standards for every inquiry, and keep records of showings and responses.
Stage 3: Screening
- Publish written criteria.
- Apply the same criteria to every person.
- Get written authorization before running credit and background checks.
- Verify income and employment.
- Contact prior landlords.
- Follow California rules on screening fees.
- Use an individualized approach to criminal history.
- Send an adverse action notice if you deny an applicant based on a consumer report.
- Handle assistance animals properly.
Stage 4: The Lease
A compliant lease should state the parties, the property, the term, the rent and due date, late fee terms, the security deposit, utilities, maintenance responsibilities, pet and smoking policies, occupancy rules, entry procedures, and how notices will be delivered.
California requires or restricts certain provisions, and some commonly used clauses are unenforceable. Do not include provisions that conflict with the law, since they can expose you to liability. Review your lease at least once a year, and update it as the law changes.
Stage 5: Security Deposits
California limits the amount of a security deposit, with the cap established by statute, and sets strict rules for its return.
Generally,the landlord is required to refund the deposit, accompanied by an itemized list of deductions and supporting documentation for certain charges, within a short period following the tenant’s departure from the rental unit.
California also requires or allows an initial inspection before move-out, giving the tenant a chance to fix issues. Landlords may deduct only for specific purposes, such as outstanding rent and cleaning costs required to restore the rental unit to its original condition, and damage beyond normal wear and tear.
Stage 6: Move-In
Complete a detailed inspection with the tenant, document the condition of every room and system, test smoke and carbon monoxide detectors, and give the tenant written information on how to pay rent, request repairs, and reach you in an emergency.
Stage 7: Rent Collection and Late Payments
Collect rent in the manner the lease describes, and provide receipts when required. Late fees must be reasonable and stated in the lease, and California law imposes limits on how they may be calculated. If rent goes unpaid, a proper written notice comes first.
California landlords cannot use self-help such as changing locks or shutting off utilities. Evictions go through the courts, and a defect in the notice can derail a case.
Stage 8: Maintenance and Repairs
Landlords must keep rental property fit for living, respond to repair requests promptly, and avoid retaliation against tenants who exercise their rights. Keep written records and use qualified vendors.
Provide proper written notice before entering, generally 24 hours except in emergencies or other situations the law allows. A written maintenance process, with a clear way for tenants to report problems and a record of every response, is your best protection.
Stage 9: Notices
Common notices include notices to pay rent or quit, notices to perform covenants or quit, notices of entry, notices of rent increase, and notices to terminate a tenancy.
California has statewide rules on just cause for many tenancies and on rent increase limits for many properties, along with specific notice periods.
For each notice, confirm the required content, the notice period, and the delivery method, and keep copies and proof of delivery. If a situation may lead to court, consult an attorney before sending the notice.
Stage 10: Renewals and Rent Changes
Review the tenant's payment history and the home's condition, check the market, and send any renewal offer in writing. If you plan to raise rent, check statewide and local rules on how much and how often rent can increase, and give the required advance notice.
Stage 11: Move-Out
Upon the tenant’s vacating of the rental unit, schedule a final inspection, compare the condition with the move-in report, and document any damage beyond normal wear and tear.
Collect keys, record the forwarding address, and return the deposit with an itemized statement within the legal deadline.
Keep Great Records
A strong file for each tenancy should contain the application, screening results, lease, disclosures, move-in report, rent ledger, maintenance requests, inspection notes, copies of every notice, and all written communication.
If a dispute arises, you can show the complete story quickly. Most landlord-tenant disputes are won or lost on documentation.
Why Many Owners Hand Compliance to a Professional
Keeping up with California law is a full-time job. H&M Property Management was founded in 1962 and has served owners in the region for decades.
We manage leasing, tenant screening, rent collection, maintenance, inspections, and financial reporting for single-family homes, multi-family properties, apartments, and commercial properties, and it also offers real estate investing and buying and selling services.
Ready for peace of mind? Call H&M Property Management at 831-637-6500 to get in touch with a local team today. The office is at 2440 Bert Dr Bldg 100 Ste 101, Hollister, CA 95023.
Frequently Asked Questions
How Often Should I Review My Rental Property’s Compliance Requirements?
For rental property owners in Hollister, this means checking applicable state requirements alongside any relevant local ordinances, building standards, and property-specific obligations.
Review your lease templates, screening procedures, required disclosures, security deposit practices, and notice forms. We also recommend maintaining a compliance calendar so important deadlines and document updates do not get overlooked.
What Records Should I Keep to Protect My Rental Investment?
We recommend maintaining a complete, organized file for every tenancy, including the signed lease, disclosures, application, screening documentation, move-in inspection report, rent ledger, maintenance records, and copies of notices with proof of delivery.
Keep invoices, receipts, photographs, and written communications that support maintenance decisions or security deposit deductions. Store records securely and limit access to authorized individuals, particularly when files contain personal or financial information.
How Can I Reduce the Risk of an Improper Tenant Screening Decision?
We recommend creating written screening criteria before advertising a vacancy and applying the same lawful standards to every applicant. Establish clear procedures for evaluating income, rental history, credit information, and other legally permissible factors relevant to the tenancy.
Obtain required authorization before ordering consumer reports, follow California's application screening fee rules, and provide any required adverse action notices when decisions are based on consumer reports.
How Should I Handle a Rent Increase or Lease Renewal in Hollister?
Before changing rent, determine whether the property is covered by California's Tenant Protection Act, any applicable local rent stabilization rules, or an exemption.
The permitted increase and required notice period depend on the property's circumstances and the type of tenancy. Deliver the notice using a legally permitted method and retain a copy with proof of service.
What Should I Do If a Tenant Stops Paying Rent?
If rent remains unpaid, determine which notice is appropriate for the circumstances and verify its required wording, deadline, and service method before delivering it.
California law generally requires landlords to pursue eviction through the court process rather than attempting to regain possession by changing locks or interrupting utilities. Keep copies of payment records, communications, notices, and proof of service.