California offers many temptations for both landlords and tenants. Generally, California’s rental laws favor the tenant. But given the demand for housing, weather, diverse cultures and amenities throughout the state, real estate investment remains lucrative. It is important for anyone who owns or is considering residential rental investment to know exactly which California communities have rent controls, including those in Los Angeles and Beverly Hills.
At a Glance:
Late Fees: California residential leases may not contain a preset late fee. There is an exception detailed in the California Consumer Affairs Handbook and explained below.
Security Deposit Limit: Two months for unfurnished and three months for furnished rental units.
Returned Payment Fee Limit: This fee should either be equal to the fee the financial institution charges OR preset in the lease agreement for no more than $25 for the first incidence and $35 for each incidence after.
Notice to Enter: 24 hours unless an emergency. (If the landlord provides pest control services, there are specific procedures to follow before entering the unit for treatment, that can be found in California’s Civil Code §1940.8.)
Late Fee:
Late Fee Limit: California does not permit predetermined late fees, as it is considered a “penalty”. An exception to this would be where circumstances exist that make it difficult to assess the exact cost of a fee. In this case, it is important to be sure that when assessing a fee, it is reasonable. Additionally, it should be kept in mind, the rough calculation of what the actual costs would be.
Security Deposits:
In California any amount taken as a security deposit, no matter how used can total no more than either 2 months’ rent unless the rental is furnished and in that circumstance, 3 months is permitted. Even though there is no written statute or act determining the necessity of a separate bank account for a security deposit in California, it is definitely a good practice! California does NOT allow non-refundable deposits.
As spelled out in California’s Civil Code § 1950.5, the security deposit must be returned within 21 days after the tenant’s move-out (or no earlier than 60 days before the end of a fixed-term lease). The landlord is required to send a statement of any deductions. Receipts or documentation of the work performed must accompany this list when deductions total $126 or more.
Maintenance:
By and large, the landlord must assure that when renting a property to a tenant, that property must be safe and fit to live in. California law states that it must be habitable and anything that makes it uninhabitable falls under the landlord’s responsibility. In California Civil Code, Section 1941, there is a complete list of items that a landlord must comply with or make sure that the property includes.
Eviction:
Notice first! In California the landlord must provide a three-day written notification before eviction. For non-payment of rent, the amount of the rent must be clearly stated in the notice along with the location and phone number of who to give the rent to, in-person payments should list available hours.
A chance to either correct a problem or pay the rent (in circumstances where this is applicable) must be provided for in the notice OR that the tenant vacate the premises.
*IMPORTANT: A landlord should NEVER take matters into their own hands with regards to eviction by shutting off utilities, changing locks, or removing tenant’s personal property. After proper notice is given to the offending tenant, the landlord will go to the courthouse and file the paperwork for eviction.
Notices may be delivered by personal service, substituted service (this means that notice may be personally handed to the tenant at their place of employment or someone other than the landlord may deliver the notice to anyone of “suitable age and discretion”). If all else fails, the landlord may post the notice on the door or nearby the rental property in addition to mailing it.
Required Disclosures:
Lead Paint Pamphlet and statement for any residential rental unit that was built before January 1, 1978.
Megan’s Law
Smoke Alarm Compliance
Carbon Monoxide Detector Compliance
Meth Lab Clean-up Order, as applicable
Military Ordnance Location Ordinance if the landlord has knowledge that a former military ordnance where the ground may contain explosives if it is located within one mile of the rental property.
Gas/Electric Meters when meters are not separated per unit.
There may be additional requirements depending on the location of the rental unit, for instance, rent controlled units may have additional disclosure requirements.
Questions? Ask a California Attorney!
Have questions about California’s landlord-tenant laws? We have you covered. Ask in the box below, to have your questions answered by living, flesh-and-blood attorneys!
DISCLAIMER: Wellspring Financial LLC DBA SparkRental.com is for informational purposes only! Any information, legal or otherwise is provided “as is” without any representations, truth, accuracy, exactness or warranties, expressed or implied. Any data, form, or information provided shall NOT be construed or taken to be legal advice. You must NOT rely on any data, form, or information on this website as an alternative to obtaining sound, legal advice from a licensed or professional legal service provider.
Compare four common investment strategies at a glance with our free cheat sheet.
You're in! Check your email for the cheat sheet and a few other free tools to boot :-)
8 Comments
Beatrice
on September 6, 2018 at 9:07 PM
Is it illegal for a landlord to ask for your current immigration status? Do I have to have a Social Security number for him to run? The state is California.
I have couple, Mr. US citizen, and Ms. resident apian. They got in a fight, he left, Ms’ brother and girlfriend moved in with out my consent, and they they haven’t pay rent. She kept saying I’m moving out on the 15, at the end of the month, now she’s telling me not to contact her because I’m stressing her out!
How do I get them out? I don’t have the name of the couple that moved in. Can I call ICE?
Hi Alethea, you will probably need to file for eviction. Sounds like there are two lease contract breaches: nonpayment of rent and unauthorized occupants moving in.
We are trying to sell a house in CA and we have a tenant with no lease. He has not paid rent since January. We offered him 4K to get out (pay to behave). He didn’t take it. We offered the seller 10K to accept the house with him in it and they verbally accepted and then declined after talking to him. He has been given written notice that we are selling the house and that he must vacate. (that date was yesterday)
I’m out of state, what is the best path forward and estimated cost?
I have a house in California and have tenants. They messaged us about a leak on the outside valve that does not affect water conditions inside the house, a plumber came and did a temporary fix due to apparent different materials that were used when the piping was originally done or previously by the prior owners. They messaged that it is still leaking, the plumber is concerned if he tries to do the major fix it may affect copper going into the house. Do we need to fix the leak to an outside valve with the risk of potentially actually damaging the house and livability further?
Buy Fractional Real Estate with an Investment Club
Every month our Co-Investing Club gets together to vet a passive real estate deal. Our target: 10-12% returns on debt investments, 15%+ returns on equity investments.
Join our next Club meeting and invest alongside us!
Press: We’re Everywhere
$100-250K in Unsecured Credit Lines
Open rotating credit lines as a real estate investor! Get a quote or see how it works:
Denise Supplee is a landlord, property manager, and passive investor in real estate syndications. She's also a champion mom, grandmom and licensed Realtor.
G. Brian Davis is a real estate investor and writer who, along with his wife and daughter, spends most of the year overseas. He loves hiking, travel, exotic wine, and cooking, although not necessarily in that order. He plans to reach financial independence by age 45.
Our goal in building SparkRental? To help other middle-class investors build passive income from real estate, so they can spend more time with the people and passions they love.
Automate Your Rents
Collect rent by credit card or bank transfer, with one-click income & expense reports, and instant late rent notices.
FREE for landlords 😎
Want to create passive income?
We’ll email a series of videos in our free course,
to help you start earning income from rentals.
[mc4wp_form id=”501″]
Privacy Policy: Your info will never be shared or sold to a 3rd party. Even if Dr. Evil offers us 1 million dollars 🙂
Want to earn more from your rentals?
Download our free Ultimate Guide to Higher ROI and be dazzled by the charming wit, disarming frogs and invaluable tips for higher profits and less work.
[mc4wp_form id=”501″]
Free Mini-Course: Passive Income from 2-4 Unit Multifamilies
Ready to build passive income from small multifamily properties?
Over the next week, we'll email you a free series of videos, so enter your best email and let's get started!
You're in! Check your email to confirm, and you can email us directly at support@18.188.234.137 with any questions :-)
Free Webinar: Earn 15-50% on Passive Real Estate Syndications
LIVE masterclass on Tues. 10/25 @ 8pm EST
Your seat is reserved! Check your email to confirm.
Inside a group real estate investment
Here's a quick video breakdown of a past group investment — and how it's performed since our Co-Investing Club invested in it in early 2023.
You got it! Check your email for the link, and some other fun freebies.
Ready to Build Passive Income?
We'll email you the course videos over the next week, so enter your best email!
You're in! Check your email to confirm.
Ditch Your Day Job: Free 8-Video Course
Our brand new course on how to reach financial independence and retire early (FIRE) with rental properties is open for one week from Oct. 23-30!
Is it illegal for a landlord to ask for your current immigration status? Do I have to have a Social Security number for him to run? The state is California.
Asking for a Social Security number for the purpose of tenant screening is legal in California.
what to do if my tenant sells crystal meth and cocaine and his customers bother other tenants
I have couple, Mr. US citizen, and Ms. resident apian. They got in a fight, he left, Ms’ brother and girlfriend moved in with out my consent, and they they haven’t pay rent. She kept saying I’m moving out on the 15, at the end of the month, now she’s telling me not to contact her because I’m stressing her out!
How do I get them out? I don’t have the name of the couple that moved in. Can I call ICE?
Hi Alethea, you will probably need to file for eviction. Sounds like there are two lease contract breaches: nonpayment of rent and unauthorized occupants moving in.
We are trying to sell a house in CA and we have a tenant with no lease. He has not paid rent since January. We offered him 4K to get out (pay to behave). He didn’t take it. We offered the seller 10K to accept the house with him in it and they verbally accepted and then declined after talking to him. He has been given written notice that we are selling the house and that he must vacate. (that date was yesterday)
I’m out of state, what is the best path forward and estimated cost?
It sounds to me like you need to file eviction. It’s a long process in California so I’d start immediately. Best of luck!
I have a house in California and have tenants. They messaged us about a leak on the outside valve that does not affect water conditions inside the house, a plumber came and did a temporary fix due to apparent different materials that were used when the piping was originally done or previously by the prior owners. They messaged that it is still leaking, the plumber is concerned if he tries to do the major fix it may affect copper going into the house. Do we need to fix the leak to an outside valve with the risk of potentially actually damaging the house and livability further?