California’s rental laws create a framework for fairness between landlords and tenants. Understanding rental agreement laws helps avoid disputes and ensures compliance. This article outlines key California lease requirements and tenant rights.
Required Disclosures
California law requires disclosures for informed tenant decisions.
For properties built before 1978, landlords must provide an EPA-approved pamphlet on lead-based paint, disclose known lead hazards, and include a lead warning in the lease.1US EPA. Lead-Based Paint Disclosure Rule (Section 1018 of Title X)
Lease agreements must state that information about registered sex offenders is publicly available via a Department of Justice website.2California Legislative Information. California Civil Code Section 2079.10a (Megan’s Law Database Disclosure)
If pesticides are applied to a unit or common area, affected tenants and those in adjacent units need at least 24 hours advance written notice, unless addressing an immediate infestation.
Landlords must provide written disclosure if they know mold exists in a unit that could pose a health threat.
Landlords must disclose if a property is in a known special flood hazard area or an area of potential flooding.
If a landlord has applied for a demolition permit for a rental unit, they must give written notice to prospective tenants before lease signing.
Rental agreements must clearly state the building’s smoking policy, including prohibited areas.
Tenants must receive the owner’s or agent’s name and address, with updates for changes.
If a tenant’s utility meter also serves common areas or other units, this must be disclosed. The law requires either a mutual payment agreement or separate landlord billing.
Landlords must disclose a death in the unit within the past three years if a prospective tenant directly asks. However, deaths from HIV/AIDS or those stigmatizing the property are not disclosed.
Security Deposit Regulations
California rules protect tenants by governing the amount, use, and return of security deposits.
Effective July 1, 2024, the maximum security deposit for most residential properties is one month’s rent.3FindLaw. California Civil Code § 1950.5 (Security Deposits) An exception allows small landlords (owning a maximum of two properties with up to four units total) to collect up to two months’ rent. This exception doesn’t apply to service members, whose deposits are limited (one month’s rent unfurnished, two if furnished). Any payment beyond the application screening fee, including advance last month’s rent, counts as part of the security deposit. Non-refundable security deposits are prohibited; they are tenant property and must be refundable.
Within 21 calendar days after a tenant vacates, the landlord must either return the entire security deposit or provide an itemized written statement listing deductions and reasons.4California Office of the Attorney General. Know Your Rights: Security Deposits If deductions exceed $125, copies of receipts for repair or cleaning charges must be included. If work cannot be completed within 21 days, the landlord can send a good faith estimate, followed by an itemized statement and receipts within 14 days of completion.
A security deposit can be used for:
- Unpaid rent.
- Repairing tenant-caused damages (excluding ordinary wear and tear).
- Cleaning to restore the unit to its initial cleanliness.
- Restoring or replacing the landlord’s personal property if allowed by the agreement and damage is beyond normal wear.
Deposits cannot cover preexisting damages or normal wear and tear.
Tenants have the right to an initial inspection before moving out. After notice to end the tenancy is given, the landlord must inform the tenant in writing of their right to request this inspection. It occurs no earlier than two weeks before the tenancy ends, with at least 48 hours’ written notice from the landlord. The landlord must provide an itemized list of potential deductions. Starting April 1, 2025, landlords must provide photographic evidence for security deposit deductions for repairs or cleaning.5California Apartment Association. New Security Deposit Photo and Rent Reporting Requirements Effective April 2025 For tenancies from July 1, 2025, photos of the unit’s condition at the start of tenancy are also required.
Rent Payment Provisions
The lease specifies when and how rent is due, often the first of the month unless stated otherwise. Modern leases require payment at the start of each rental period (e.g., monthly). Review your lease for the exact due date to avoid penalties.
Landlords and tenants can agree on various rent payment methods. California law requires landlords to accept cash if a tenant requests, providing a written receipt. This applies unless the tenant paid with a bounced check in the last three months; in that case, the landlord can require cash for up to three months, still providing receipts.
Rental agreements or notices must include contact information for property management and an owner/agent authorized for notices, which often covers rent payment. If unspecified, rent is payable at the dwelling or to the landlord/agent.
While state law doesn’t grant automatic grace periods, the agreement may. Without a grace period, rent is late if unpaid by the due date. If the lease allows, landlords may charge a late fee, which must be a reasonable estimate of costs from late payment. Unreasonable fees can be challenged. The lease must state the late fee amount or calculation.
If a tenant’s check bounces, landlords can charge a fee. California law allows recovery of the check amount plus a service charge, capped at $25 for the first bounced check and $35 for subsequent ones to the same payee.
Rent adjustments require specific notice. For month-to-month tenancies, California law requires at least 30 days’ written notice for increases of 10% or less (compared to any rent charged in the prior 12 months).6FindLaw. California Civil Code § 827 (Rent Increase Notice Requirements) Increases over 10% require at least 90 days’ notice. The Tenant Protection Act of 2019 (AB 1482) also limits annual rent increase amounts for many properties.
Lease Renewal and Termination
When a fixed-term lease ends, if neither party gives notice and the landlord accepts rent, it converts to a month-to-month tenancy under the original terms. For a lease to automatically renew for its original term, California law requires the renewal clause to be clearly visible: in at least eight-point boldface type in the lease body and similarly above the tenant’s signature. Without this formatting, such a clause is voidable by the party who didn’t prepare the lease.
For month-to-month tenancies, landlords must give at least 30 days’ written notice if a tenant has lived there less than a year, and 60 days’ notice if one year or more.7FindLaw. California Civil Code § 1946.1 (Termination Notice Periods for Tenancies) Tenants provide 30 days’ notice for month-to-month agreements. Leases can specify shorter notice periods (not less than seven days) if agreed upon initially.
The Tenant Protection Act of 2019 (AB 1482) requires just cause for landlords to terminate tenancies after 12 months of continuous, lawful occupancy.8California Office of the Attorney General. Tenant Protection Act of 2019 (AB 1482) Guidance for Landlords and Property Managers Lease expiration alone is not just cause. Just cause can be at-fault (e.g., non-payment of rent, material lease breach) or no-fault (e.g., owner/family occupancy, property withdrawal from market). No-fault terminations require relocation assistance or a final month’s rent waiver.
Written termination notices must be properly served. California law specifies permissible methods: personal delivery to the tenant; if the tenant is absent, leaving a copy with a suitable person at their home or work and mailing a copy to the tenant’s residence; or if other methods fail, affixing a copy conspicuously on the property and mailing a copy there. Email is not valid for serving termination notices.
California law allows early lease termination without penalty for victims of:
- Domestic violence
- Sexual assault
- Stalking
- Human trafficking
- Elder or dependent adult abuse
The tenant must provide written notice with documentation (e.g., a restraining order or police report) within 180 days of the event. The lease terminates 14 days after this notice, with rent due until then.
It is unlawful for a landlord to retaliate against a tenant for exercising legal rights, like requesting repairs. California law prohibits acts like rent increases, service decreases, or eviction attempts within 180 days of certain tenant actions. Retaliatory eviction attempts may provide a tenant with a defense.
Noncompliance Penalties
If a landlord improperly withholds a security deposit or fails to provide the required itemized statement and receipts within 21 days, the tenant can sue in small claims court. If a court finds the landlord acted in bad faith, they could be liable for up to twice the security deposit amount, plus the improperly withheld sum.
Failure to provide a federally required lead-based paint disclosure for pre-1978 properties can result in substantial EPA fines. Not providing other state-mandated disclosures can undermine the lease or lead to civil liability if a tenant suffers harm.
Landlords face penalties for unlawfully entering a tenant’s dwelling. California law requires reasonable notice (24 hours in writing) before entry, permitted only for reasons like repairs, emergencies, or showing the unit.9FindLaw. California Civil Code § 1954 (Landlord’s Right to Enter Dwelling Unit) Violations may lead to tenant lawsuits for privacy invasion or breach of quiet enjoyment, potentially resulting in monetary damages.
If a landlord, after reasonable notice, doesn’t repair conditions affecting tenant health and safety, tenants have remedies. These include repair and deduct (paying for repairs and deducting costs from rent, limited to one month’s rent, usable twice in 12 months) or abandoning the premises.10FindLaw. California Civil Code § 1942 (Tenant’s Right to Repair and Deduct) Severe unaddressed issues can lead to government agency violations or fines.
Tenants also face penalties. Failure to pay rent can lead to a three-day notice to pay or quit, followed by an eviction lawsuit. If the landlord wins, the tenant must vacate and may owe unpaid rent, court costs, and attorney fees if the lease provides for them. Damaging property beyond normal wear and tear can result in deductions from the security deposit or legal action. Other lease violations can also lead to eviction and financial liabilities.