California Landlord Tenant Law
Is California a Landlord Friendly State?
According to Rent Cafe, California Landlord Tenant Law tends to favor the tenants.
Caution: some cities have enacted very tenant-friendly laws even though they might be in a state that leans tenant-friendly. Always check your local landlord-tenant laws.
California Landlord-Tenant Law & Resources
Here are links to the most relevant California landlord tenant law:
Resource | Link |
Cal Civ. Code DIVISION 2. Part 2, Title 3, Chapter 1 – Incidents of Ownership | |
Cal Civ. Code DIVISION 3. Part 4, Title 5, Chapter 2 – Hiring of Real Property | |
Cal Civ. Code DIVISION 3. Part 4, Title 5, Chapter 4 – Identification of Property Owners | |
Cal Civ. Code DIVISION 3. Part 4, Title 5, Chapter 5 – Disposition of Personal Property Remaining on Premises at Termination of Tenancy | |
Cal Civ. Code DIVISION 3. Part 4, Title 5, Chapter 6 – Assignment and Sublease | |
Cal Civ. Code DIVISION 3. Part 4, Title 5, Chapter 7 – Use Restrictions | |
Cal Civ. Code DIVISION 3. Part 4, Title 6, Chapter 3, Article 2. Duty to Prospective Purchaser of Real Property (Megan’s Law) | |
Cal Civ. Code DIVISION 3. Part 4, Title 14, Chapter 2, Article 1 – Mortgages In General (Duty to Disclose Notice of Default) | |
Cal. Health & Safety Code – Table of Contents | |
Changes to Rental Property Disclosures in California – American Bar Association | |
Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities – Dept. of Consumer Affairs (PDF) |
Is a Written Rental Agreement Required in California?
Yes. A written rental agreement is required for leases that exceed one year in California. However, it is strongly recommended you formalize all rental agreements of any length.
Want help writing a solid California lease agreement? Get the Landlord’s Guide to Writing Great Leases with over 60 must-have, editable lease clauses designed to protect you and your investments.
California Security Deposit Law
California residential security deposit law is covered by Civil Code 1950.5 of the California landlord tenant law. See the table below for guidance on how to apply the law.
Security Deposit Rule | Statute Description |
Max Security Deposit (SD) Allowed | 2.0 month’s rent (unfurnished units) 3.0 month’s rent (furnished units) • Reduced to 1.0 month (unfurnished) and 2.0 month (furnished) if tenant is a service member (see exception in misc.) |
Written Receipt / Notice Required? | Not Applicable |
Separate Bank Accounts? | Not Applicable |
SD Deductions Allowed | • Default of rent • Damages beyond normal wear and tear caused by tenant, guest or licensee • Cleaning necessary to return the unit back to original cleanliness • To restore, replace, or return personal property if authorized by the agreement |
SD Deduction Itemization | • Itemized list of deductions from initial inspection • Itemized statement and remaining SD delivered to Tenant personally or first-class mail • Must include receipts for expenses over $125, including description and reasonable rate for Landlord’s work |
SD Return Deadline | • 21 days from date tenant vacates |
SD Interest | Not Applicable • 15 or more rent controlled cities do require interest (reference) |
Penalty For Failure To Comply | • 2 times SD + actual damages (§150.5(l)) |
Special Instructions / Miscellaneous | • Can charge higher SD to service member with bad credit or history of property damage or who is one of a group of non-related tenants • “security” means any payment, fee, deposit, or charge except application screening fee • Must inform tenant of right to attend initial inspection (§150.5(f)(1)) • Non-refundable fees not allowed (§150.5(m)) |
California Late Fee Law
Late fees are controversial in California because the relevant statute is vague and case law has been confusing. If you decide to include a late fee in your lease be sure it represents a reasonable estimate of your actual costs (which can include an administrative expense) and it is clear that the tenant agrees it is a reasonable estimate of your actual costs.
Late Fee Maximum | Grace Period Required | Reference |
No statutory maximum but allowed when it is impractical to estimate actual costs and both parties agree. Case law requires late fees to be a reasonable estimate of actual landlord costs (Orozco v. Casimiro, 121 Cal.App.4th Supp. 7) • 5% – 10% suggested as possibly reasonable • Local rent control laws may limit late fees | Not Applicable |
California Landlord's Access to Rental Law
In California, reasonable notice of intent to enter the dwelling is required in writing in many circumstances. Entry can only be during normal business hours. Notice must include the date, approximate time, and purpose of the entry.
The notice may be personally delivered to the tenant, left with someone of a suitable age and discretion at the premises, or, left on, near, or under the usual entry door of the premises in a manner in which a reasonable person would discover the notice.
Reasonable notice is presumed to be 24 hours if personally delivered or 6 days if mailed.
Oral notice is acceptable in the following circumstances:
- For purposes of exhibiting the property to purchasers provided that written notice was given 120 days prior. Twenty-four hour notice is reasonable and must include the date, approximate time, and purpose of the entry. Landlord must leave written evidence of entry inside the unit.
- The tenant and the landlord agree orally to an entry to make agreed repairs or supply agreed services. The agreement shall include the date and approximate time of the entry, which shall be within one week of the agreement.
Notice is not required in the following circumstances:
- To respond to an emergency.
- If the tenant is present and consents to the entry at the time of entry.
- After the tenant has abandoned or surrendered the unit.
California Landlord Notice Requirements
California landlord tenant law requires certain notices to be provided to tenants in a certain timeframe and in a prescribed manner. Below are some of the important landlord notice requirements statewide. Your local jurisdiction may have stricter requirements, especially in Rent Control locations. Please check your local statutes.
Notification Rules | Requirement |
Lease Termination – Fixed | No notice required unless required by the lease |
Lease Termination – Periodic Month to Month | • 30 days notice if any tenant has lived there less than one year • 60 days notice if ALL tenants have lived there for more than one year * NOTE: Tenant only needs 30 days regardless * NOTE: Local laws may require “Just Cause” to terminate the lease |
Lease Termination – Property Sale | 30 days notice required if Landlord has contracted to sell the property to someone who will liver there for at least one year after the tenancy ends AND all the following are true: (1) Escrow has been opened (2) 30-day notice given no later than 120 days after opening escrow (3) No previous 30 or 60-day notice given (4) Rental unit is saleable individually (e.g, SFH, Condo, etc.) |
Rent Increase | • 30 days notice if the rent increase is less than 10 percent of the lowest amount of rent charged during the last 12 months • 60 days notice if the rent increase is more than 10 percent of the lowest amount of rent charged during the last 12 months |
Move Out Initial Inspection | 48 hour prior written notice of the date and time of the inspection • The tenant and landlord may agree to forgo the 48-hour prior written notice by both signing a written waiver |
Non-Payment (Pay or Quit) | 3 day notice (excludes Saturdays, Sundays and other judicial holidays) |
Lease Violation (Cure or Quit) | 3 day notice (excludes Saturdays, Sundays and other judicial holidays) |
Pesticide Use | At least 24 hours prior to application of the pesticide to the dwelling unit, the landlord or authorized agent shall provide the notice to the tenant of the dwelling unit, as well as any tenants in adjacent units |
California Required Lease Disclosures
The following disclosures are required by Federal and California landlord tenant law. Check your local statutes for any additional lease disclosures that may be required.
Disclosure Required – Residential Leases | Reference |
Lead-Based Paint Federal law requires landlords who rent units built before 1978 must disclose all known lead-based paint and lead-based paint hazards in the unit, include a Lead Warning Statement in the lease, and give renters a copy of the EPA’s pamphlet. Must keep lead-based paint disclosure forms for at least three years after the lease of an apartment or other property. | |
Periodic pest control treatments | |
Asbestos | |
Carcinogenic material | |
Illegal controlled substances | |
Methamphetamine contamination | |
Demolition permit | |
Military base or explosives | |
Death in the rental unit | |
Condominium conversion project | |
Basic rules governing security deposit | |
Inventory checklist | |
Renter’s Insurance | |
Rent control | |
Presence of mold | |
Registered sexual offender database – Landlord required to include the following statement: “Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender’s criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.” |
California Rent Control Laws
The Tenant Protection of 2019 introduced Rent Control laws across California. Previously around 47 cities and counties had their own rent control laws. Those remain in effect. If a conflict arises between those local rent control laws and the statewide Tenant Protection Act, then the one that protects the tenant the most prevails.
California Civil Code Section 1947.12 limits annual rent increases as well as total rents charged by a master tenant (someone who rents all or part of the leased premises to a subtenant).
Maximum Allowable Rent Increase
- Rent can only be increased by the lesser of five percent plus the Consumer Price Index for the metro area change or 10% of the monthly gross rent in a 12 month period
- The maximum allowable increase is calculated on the lowest gross rental rent in effect during the previous 12 months (excluding any discounts or incentives)
- Only two increases per year are allowed to reach the maximum allowable increase
- There is no maximum allowable rent
- Initial rent rates are not limited. Landlords can establish a new higher rent with each new tenant. Increases are then subject to the Act.
- Tenants cannot charge subtenants an amount that exceeds the amount of allowable rent under the Protection Act
Rent Control Exemptions
The following are exempt from the Rent Control Provisions of the Tenant Protection Act (§1947.12).
- Special low income housing (§1947.12(d)(1))
- Dormitories for higher education and K-12 (§1947.12(d)(2))
- Housing subject to a public entity’s stricter rent control laws. Note: It’s not clear if local exemptions supersede the Tenant Protection Act. It’s best to consult a local attorney if there is any doubt. (§1947.12(d)(3))
- Housing that has been issued a certificate of occupancy within the previous 15 years. Note: it’s unclear if this means 15 years from the date of the law or if every new construction is allowed a 15 year exemption. (§1947.12(d)(4))
- Individual residential properties (e.g., Single Family Homes, Condos, etc.) owned by natural persons. (§1947.12(d)(5))
- “Natural person” means the property can’t be owned by a REIT, a corporation, or an LLC where any member is a corporation).
- Exemption only applies if the tenants have been provided written notice that the residential real property is exempt from this section using the following statement: “This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
- IMPORTANT: This notice must be in the lease agreement for lease agreements after July 1, 2020.
- Owner-occupied duplexes (not ADUs). (§1947.12(d)(6))
- Tenancies where none of the tenants have resided in the unit for at least twelve months (§1947.12(a)(2))
This law is new and may be subject to local interpretation variations. Consult a local expert if you have any questions.
California Eviction Laws
The Tenant Protection of 2019 also introduced eviction restrictions. California Civil Code Section 1946.2 limits the reasons for terminating tenancies where all tenants have occupied the unit continuously for 12 months. It also applies when an adult tenant is added to the lease and either (1) all tenants have occupied the unit continuously for 12 months or (2) at least one of the tenants has occupied for 24 months or more.
It prohibits a landlord from terminating a lease without Just Cause. The legal Just Causes are divided into “At Fault” and “No Fault” causes.
At Fault Just Causes
- Default in the payment of rent
- A material breach of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure (Unlawful Detainer), including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation
- Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
- Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
- The tenant had a written lease that terminated on or after January 1, 2020, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.
- Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code (Criminal Threats), on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.
- Assigning or subletting the premises in violation of the tenant’s lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
- The tenant’s refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 ( Installation of Water Use Efficiency Improvements) and 1954 (Landlord Access) of this code, and Sections 13113.7 (Fire Protection) and 17926.1 (CO Detectors) of the Health and Safety Code.
- Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure (Summary Proceedings for Obtaining Possession of Real Property in Certain Cases).
- The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.
- When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.
In order to terminate for a curable Just Cause, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.
No Fault Just Causes
- Owner (or certain family members) intends to occupy the residential real property. IMPORTANT: This Just Cause only applies if the tenant agrees, in writing or if a provision of the lease allows the owner to terminate the lease for this reason.
- Withdrawal of the residential real property from the rental market
- Government order to vacate due to habitability, court order, or local ordinance that necessitates vacating the property. NOTE: the tenant is NOT entitled to relocation assistance if any government agency or court finds that the tenant is at fault for the condition or conditions triggering the order or need to vacate
- Owner’s intent to demolish or to substantially remodel the residential real property (includes abatement of hazardous materials).
Relocation Assistance for No Fault Just Causes
Landlords may be required to provide rental assistance for No Fault terminations. The landlord has the option to either (1) provide a direct payment equal to one month’s rent within 15 days of serving notice to terminate the tenancy or (2) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
All notices to terminate for No Fault Just Causes must include the specific cause that forms the basis for termination, as well as the tenant’s rights to relocation assistance including the amount.
If the tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided can be recovered as damages in an action to recover possession.
The relocation assistance required by this section of the California law is credited against any other legally required relocation assistance (i.e., they are not duplicated).
Landlord’s failure to strictly comply with the requirements of this law render the notice to terminate void.
Just Cause Limitation Exemptions
The following properties and accommodations are exempt from the Just Cause Termination Limits of the Tenant Protection Act (§1946.2).
- Certain transient and tourist hotels (§1946.2(e)(1))
- Certain housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, or adult residential facilities. (§194.2(e)(2))
- Dormitories for higher education and K-12 (§1946.2(e)(3))
- Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property. (§1946.2(e)(4))
- Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit. (§1946.2(e)(5))
- Owner-occupied duplexes (not ADUs). (§1946.2(e)(6))
- Housing that has been issued a certificate of occupancy within the previous 15 years. (§1946.2(e)(7))
- Individual residential properties (e.g., Single Family Homes, Condos, etc.) owned by natural persons. (§1946.2(e)(8))
- “Natural person” means the property can’t be owned by a REIT, a corporation, or an LLC where any member is a corporation.
- Exemption only applies if the tenants have been provided written notice that the residential real property is exempt from this section using the following statement: “This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
- IMPORTANT: This notice must be in the lease agreement for lease agreements after July 1, 2020.
- Certain affordable or low income housing. (§1946.2(e)(9))
California Rental Property Registration & Business License Laws
Each city or county in California may have its own laws that govern rental properties. Some jurisdictions require landlords to register their property with the local authorities. These registration rules are usually linked to local rent control laws. Here is a helpful summary of local rent control laws by California city as well.
In addition to registration, some jurisdictions may require you to obtain a business license and/or a certificate of occupancy before placing a rental into service.
Check with your local housing authority to see if your property is subject to these rules.
California Small Claims Court Information
Most landlord-tenant disputes can be settled in California Small Claims courts. Individuals (including sole proprietors) can sue for up to $10,000. Corporations (including LLCs) can only sue for up to $5,000.
However, you can’t file more than two Small Claims actions for more than $2,500 in California during any calendar year. You can still sue for amounts under $2,500 on any actions after the second one, but you will have to wait until the next calendar year to sue if you are seeking more than $2,500 on subsequent lawsuits after the second action.
Covid Update
California has temporarily removed the limit on the dollar amount and number of lawsuits a landlord can file in a calendar year due to Covid related debt. This temporary provision sunsets February 1, 2025. Check with a local legal expert for further guidance.
Write A Strong California Lease Agreement
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Disclaimer
This guide is intended for informational purposes only. Accidental Rental is not providing legal advice. Every situation is unique and local laws vary significantly. You should always seek the advice of a qualified attorney before making any decisions.