California

Types of California Lease Agreements

Choosing the appropriate lease agreement is crucial for managing rental properties. In California, leases longer than one year must be in writing as per the Statute of Frauds. While verbal agreements are permitted for shorter terms, a written lease is recommended for clarity.

Standard Lease Agreement

Legally binds a landlord and tenant to a fixed-term rental arrangement.

Month-to-Month Rental Agreement

Automatically renews on a monthly basis, allowing either party to terminate with proper notice.

Commercial Lease Agreement

Enables a business to rent office or retail spaces.

Room Rental Agreement

Allows a principal tenant to rent an individual room on their leased property to another tenant.

Sublease Agreement

Permits a tenant to rent all or part of their leased property to another party while retaining responsibility to the original landlord.

Rent-to-Own Lease Agreement

Provides tenants with an exclusive option to purchase a property at a predetermined price.

Required Lease Disclosures

California law mandates that landlords provide specific disclosures to tenants to promote transparency and safety. These disclosures help avoid disputes and ensure compliance with state rental laws.

Health and Safety Disclosures

• Disclosure of Lead-Based Hazards: Required for properties built before 1978.
• Carbon Monoxide Detector Notice: Landlords must install detectors and inform tenants of their maintenance responsibilities.
• Mold Disclosure: Landlords must notify tenants of known mold and provide a state-approved mold guide.
• Asbestos Disclosure: Required for buildings built before 1979, notifying tenants of any asbestos-containing materials.

Property Condition and Environmental Risks

• Flood Hazard Disclosure: Required if the property is in a flood zone.
• Notice of Illegal Substance Contamination: Tenants must be informed if the rental was used for methamphetamine production.
• Notice of Death in Rental Unit: Tenants must be notified of any unnatural death in a unit within the last three years.
• Disclosure of Ordnance Location: Required if the property is near a former military training facility.
• Notice of Intent to Demolish: Landlords must notify current and prospective tenants of the earliest possible date for scheduled demolition.

Rental Terms and Tenant Rights

• Disclosure of Shared Utilities: Landlords must explain cost allocation if utilities are shared between units.
• Notice of Foreclosure: Landlords must disclose if their property has entered the foreclosure process.
• Rent Control & Just Cause Addendum (AB 1482): Limits rent increases and requires valid reasons to terminate a lease.
• Megan’s Law Notice: Informs tenants about their right to access California’s sex offender registry.

Additional Lease-Specific Notices

• Bed Bug Addendum: Landlords must provide information about bed bugs.
• Notice of Pest Control / Periodic Pest Control Service: Must describe known pests and pest control contracts.
• Move-In/Move-Out Inspection Checklist: Documents the property’s condition before and after the lease.
• Pet Addendum: Grants tenants permission to have a pet.
• Smoking Policy Disclosure: Must describe prohibited and limited smoking areas for agreements signed after January 1, 2012.
• Pool and Hot Tub Notice: Tenants must be informed about proper use if a pool or jacuzzi is present.
• Satellite Dish & Antenna Addendum: Allows tenants to install a satellite dish.

Security Deposit

California law regulates security deposits, including limits on amounts and return requirements.

• Maximum Amount: For unfurnished premises, security deposits cannot exceed two months’ rent; for furnished premises, up to three months’ rent is allowed.
• Returning Requirements: Landlords must return the security deposit within 21 days of lease termination.
• Withholding Rules: Landlords may withhold deposits for unpaid rent or excessive damage, providing itemized repair lists for deductions.

Rent Payments

California has strict regulations regarding rent payments, including rent control and late fees.

• Laws: Rent is due on the date specified in the lease.
• Rent Control: Limits annual rent increases to a maximum of 5% plus inflation or 10% of the previous year’s lowest rent, applicable until 2030.
• Late Fees and Grace Period: Landlords may charge reasonable late fees, with Los Angeles County suggesting a maximum of 5% of monthly rent. No grace period is required, and landlords can issue a 3-day notice for late rent.
• Withholding Rent: Tenants may deduct up to one month’s rent for landlord-caused uninhabitable conditions.

Price Gouging Protections

California enforces laws against price gouging during emergencies, prohibiting rental price increases exceeding 10% following an emergency declaration.

• Rent Cap Enforcement: Any increase over 10% is illegal unless it qualifies for an exception.
• Repair-Related Increases: Landlords may raise rent beyond the cap for substantial improvements, provided costs are distributed over time.
• Covered Rental Agreements: Price gouging rules primarily apply to leases of one year or less.

Landlord Right of Entry

California law specifies when and how landlords can enter rental units, requiring proper notice in most cases.

• Emergency Entry: Allowed without notice.
• Showing the Property: Requires 24-hour notice.
• Maintenance: Requires 24-hour notice.
• Move-Out Inspection: Requires 48-hour notice.
• Keys, Locks, and Security: Landlords cannot change locks to deny tenant access.

Property Repairs

Landlords and tenants have specific responsibilities regarding property maintenance.

• Landlord Responsibilities: If necessary repairs are not made, tenants can use the “Repair and Deduct Remedy” to make repairs and deduct costs from rent.
• Tenant Repairs: Tenants must maintain the rental unit and are responsible for necessary repairs if they neglect this duty.
• Abandonment: If rent is over 14 days late, the landlord may consider the property abandoned and terminate the lease.

Terminating a Lease

California law outlines the procedures for legally ending a lease.

• Month-to-Month Tenancy: Landlords can terminate with a 30-day notice if the tenancy is less than a year old, or a 60-day notice if it has lasted a year or more.
• Unclaimed Property: Landlords must notify tenants to retrieve belongings within specified timeframes, with unclaimed property potentially sold at auction.

City-Specific Considerations

While this documentation covers state-wide requirements, major cities like Los Angeles, San Diego, San Jose, San Francisco, Fresno, Long Beach, and Sacramento may have additional local regulations. It is advisable to review local laws when drafting lease agreements to ensure full compliance.

Statutes

• Civ. Code §§ 1950.5(f) – [Operative 7/1/2024] Security for rental agreement
• Civ. Code §§ 1950.5 – Security Deposit Maximum, Non-Refundable Fees, Deadline for Returning Security Deposit
• Civ. Code §§ 1947 – Rent is Due
• Civ. Code §§ 1947.3(1-2) – Payment Methods
• Civ. Code §§ 827(b)(2-3) – Rent Increase Notice
• Civ. Code §§ 1950.6(b) – Application Fees
• Civ. Code §§ 1942(a) – Tenant Allowed to Repair and Deduct Rent
• Civ. Code §§ 1951.2 – Recovery by lessor upon breach of lease and abandonment of property by lessee
• Civ. Code §§ 1946 – Renewal of hiring for term not specified by parties
• Civ. Code §§ 1946.1 – Notice of intention terminate hiring for term not specified by parties
• Civ. Code §§ 1954a – Entry of dwelling by landlord
• Civ. Code §§ 1954b – Entry of dwelling by landlord
• Civ. Code §§ 789.3a – Acts by landlord with intent to terminate occupancy
• Civ. Code §§ 789.3b(1) – Acts by landlord with intent to terminate occupancy
• Civ. Code §§ 789.3d – Acts by landlord with intent to terminate occupancy
• Civ. Code §§ 1954.602 – Duty of landlord
• Civ. Code §§ 1962(4) – Obligations of owner or party signing rental agreement or lease on behalf of owner
• Civ. Code §§ 1940.9 – Disclosure that tenant’s gas and electric meter serves area outside tenant’s dwelling unit
• Civ. Code §§ 1950.6(b) – Application Fees
• Civ. Code §§ 1940.7 – Notice of actual knowledge of former federal or state ordnance locations in neighborhood area
• Civ. Code §§ 2079.10a – Notice as to database of person required to register as to sex offenders
• Civ. Code §§ 1940.8 – Copy of notice provided by registered structural pest control company
• Civ. Code §§ 1947.5 – Prohibition of smoking of cigarettes or other tobacco products
• Civ. Code §§ 1941.5 – Changing locks of protected tenant’s dwelling unit upon request of protected tenant
• Civ. Code §§ 1941.6 – Changing locks of protected tenant’s dwelling unit upon request of protected tenant
• Civ. Code §§ 1946.7(d) – Notice by victim of domestic violence, sexual assault, stalking, human trafficking, elder abuse, and certain other crimes of intent to terminate
• Civ. Code §§ 1942.5 – Retaliation by lessor against lessee for exercising rights under chapter
• Civ. Code §§ 1965 – Generally
• Civ. Procedure Code §§ 1161.3 – Acts against tenant or tenant’s household member constituting domestic violence
• Civ. Procedure Code §§ 1161.3 – Acts against tenant or tenant’s household member constituting domestic violence
• Civ. Procedure Code §§ 1161(2) – [Operative 2/1/2025] When tenant for term less than life guilty of unlawful detainer
• Civ. Procedure Code §§ 1161(3) – [Operative 2/1/2025] When tenant for term less than life guilty of unlawful detainer
• Cal. Civ. Code § 1719 – Obligations Imposed by Law
• Cal. Civ. Code § 1940.8.5(b)(1)(A)(B)(C) –  Notice to Tenants for Pesticide Use
• Cal. Civ. Code § 1940.8.5(d)(2)(b)(iii) – Electronic Notices Allowed
• Cal. Civ. Code § 1941.1 – Landlord’s Duties
• Cal. Civ. Code § 1941.2 – Tenant’s Duties
• Cal. Civ. Code § 1927 – Quiet Enjoyment
• Cal. Civ. Code § 1995.230 – Subleasing
• Health & Safety Code §§ 26147 – Disclosure by residential landlords
• Business and Professional Code §§ 8538 – Written notice to owner and tenant of premises