California

Types of California Simple (Basic) Lease Agreement and Options

Choosing the appropriate lease proves crucial for managing rental properties effectively. In California, rental contracts longer than one year must be in writing as per the Statute of Frauds. While verbal agreements work for shorter terms, written documentation provides recommended clarity for all parties involved in rental relationships.

Standard Fixed-Term Lease Options

A standard lease legally binds landlords and tenants to fixed-term rental arrangements with clearly defined terms and conditions for the rental period.

Month-to-Month Rental Agreement

This contract type automatically renews monthly, allowing either party to terminate with proper notice periods as specified in California rental law.

Commercial Rental Agreement

Commercial leases enable businesses to rent office or retail spaces under specific terms designed for commercial use in California properties.

Room Rental and Sublease Options

Room rental contracts allow principal tenants to rent individual rooms on their leased property to other tenants while maintaining their responsibilities to original landlords.

Sublease contracts permit tenants to rent all or part of their leased property to other parties while retaining responsibility to original landlords under existing rental terms.

Rent-to-Own Options

These specialized rental agreements provide tenants with exclusive options to purchase properties at predetermined prices during their lease terms, combining rental and purchase elements.

Required Disclosure Requirements

California law mandates that landlords provide specific disclosures to tenants in every rental contract to promote transparency and safety. These disclosures help avoid disputes and ensure compliance with state rental laws for all parties involved.

Health and Safety Disclosures

Lead-Based Hazards Disclosure: Rental agreements must include notifications for properties built before 1978 regarding potential lead-based paint hazards.

Carbon Monoxide Detector Notice: Landlords must install detectors and inform tenants of maintenance responsibilities in their contracts.

Mold Disclosure: Property owners must notify tenants of known mold issues and provide state-approved mold guides with their rental documentation.

Asbestos Disclosure: Buildings constructed before 1979 require notifications about asbestos-containing materials in lease documents.

Property Condition and Environmental Risk Disclosures

Flood Hazard Disclosure: Rental contracts must include flood zone notifications when properties are located in designated flood areas.

Illegal Substance Contamination Notice: Tenants must receive notifications if rental properties were previously used for methamphetamine production.

Death Notification Requirements: Lease documents must disclose any unnatural deaths occurring in rental units within the last three years.

Ordnance Location Disclosure: Properties near former military training facilities require specific notifications in rental agreements.

Demolition Intent Notice: Landlords must notify current and prospective tenants about earliest possible scheduled demolition dates.

Rental Terms and Tenant Rights Disclosures

Shared Utilities Disclosure: Rental contracts must explain cost allocation methods when utilities are shared between units.

Foreclosure Notice Requirements: Landlords must disclose if their properties have entered foreclosure processes in lease documents.

Rent Control & Just Cause Addendum (AB 1482): This limits rent increases and requires valid reasons for lease termination in rental agreements.

Megan’s Law Notice: Lease documents must inform tenants about their rights to access California’s sex offender registry.

Additional Required Notices

Bed Bug Addendum: Landlords must provide comprehensive bed bug information with every rental contract.

Pest Control Service Notice: Rental agreements must describe known pests and existing pest control contracts.

Move-In/Move-Out Inspection Checklist: These documents record property conditions before and after lease periods.

Pet Addendum: Specific contract sections grant tenants permission to have pets on rental properties.

Smoking Policy Disclosure: Agreements signed after January 1, 2012, must describe prohibited and limited smoking areas.

Security Deposit Regulations

California law strictly regulates security deposits in rental contracts, including limits on amounts and return requirements.

Maximum Deposit Amounts: For unfurnished premises, rental agreements cannot require security deposits exceeding two months’ rent. Furnished premises allow up to three months’ rent in security deposits.

Return Requirements: Landlords must return security deposits within 21 days of lease termination.

Withholding Rules: Property owners may withhold deposits for unpaid rent or excessive damage, providing itemized repair lists for deductions in rental contracts.

Rent Payment Regulations and Policies

California maintains strict regulations regarding rent payments in rental agreements, including rent control measures and late fee structures.

Rent Payment Laws and Due Dates

Rent becomes due on dates specified in rental contracts. Property owners must clearly outline payment terms and acceptable methods within their lease documents.

California Rent Control Measures

Rent control limits annual rent increases to maximum 5% plus inflation or 10% of previous year’s lowest rent, applicable until 2030 for most rental agreements.

Late Fee Policies and Grace Periods

Landlords may charge reasonable late fees in their contracts, with Los Angeles County suggesting maximum 5% of monthly rent. No grace periods are required, and landlords can issue 3-day notices for late rent payments.

Rent Withholding Rights

Tenants may deduct up to one month’s rent for landlord-caused uninhabitable conditions under California lease agreement provisions.

Price Gouging Protections During Emergencies

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

Rent Cap Enforcement: Any increase over 10% becomes illegal unless it qualifies for specific exceptions outlined in rental contracts.

Repair-Related Increases: Landlords may raise rent beyond caps for substantial improvements, provided costs are distributed over time periods specified in agreements.

Landlord Entry Rights and Access Policies

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

Emergency Entry: Allowed without notice under emergency provisions. Property Showings: Require 24-hour notice as specified in contracts. Maintenance Access: Requires 24-hour notice according to rental terms. Move-Out Inspections: Require 48-hour notice under lease provisions.

Property Repair Responsibilities

Landlord Repair Obligations

When necessary repairs aren’t completed, tenants can use “Repair and Deduct Remedy” to make repairs and deduct costs from rent as allowed by California rental law.

Tenant Maintenance Responsibilities

Tenants must maintain rental units and handle necessary repairs if they neglect duties outlined in their contracts.

Property Abandonment Procedures

When rent exceeds 14 days late, landlords may consider properties abandoned and terminate rental agreements accordingly.

Lease Termination Procedures

California law outlines specific procedures for legally ending rental agreements between landlords and tenants.

Month-to-Month Tenancy Termination: Landlords can terminate with 30-day notice if tenancy lasts less than one year, or 60-day notice for longer tenancies under California regulations.

Unclaimed Property Procedures: Landlords must notify tenants to retrieve belongings within specified timeframes, with unclaimed property potentially sold at auction after lease termination.

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 impose additional local regulations. Property owners should review local laws when drafting California lease agreements to ensure full compliance with municipal requirements.

Key Takeaways for Rental Success

California’s comprehensive rental laws provide extensive protections for both landlords and tenants through detailed requirements. Property owners benefit from clear guidelines for security deposits, rent collection, and tenant screening processes. Tenants enjoy robust protections through mandatory disclosures, rent control measures, and fair repair policies. Understanding these requirements helps both parties create successful rental relationships while maintaining compliance with state and local regulations throughout the tenancy period.

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