Key Features
- Legal Clarity and Enforcability. If a dispute or misunderstanding arises, a written lease provides a clear document for either party to point to.
- Stability and Security. The tenant gets the assurance that they have a home for a definite period of time and the landlord gets a guarantee of steady occupancy and payment.
- Protection of Rights. A written lease will detail each party’s responsibilities to the other and automatically comes with state-mandated rights for both landlord and tenant.
- Documentation. Oftentimes, a tenant must show a current lease to prove their residency for things like opening bank accounts, enrolling children in school, and driver’s licenses.
Important Note
Although California law does not require a lease agreement to be in writing unless the lease will run for a term of longer than 1 year.[1] It is recommended that every rental agreement, regardless of length, is put in writing to avoid disputes.
Lease Agreements by Type (6)
 Standard Lease Agreement: The most common residential lease for a fixed term (usually one year). Both parties are bound to the terms until the end date.
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 Commercial Lease Agreement: Between a landlord and a tenant seeking office, retail, or industrial-related use.
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 Month-to-Month Lease Agreement: Rental contract with no end date. Either party may cancel with 30 days’ notice if the tenancy is less than one year and 60 days if the lease is more than a year.[2]
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 Rent-to-Own Lease Agreement: Traditionally, a fixed-term contract with the added benefit of being able to buy the residence during a stated “option” period.
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 Room Rental (Roommate) Agreement: For a residence with more than one individual seeking to occupy bedrooms while sharing common areas separately.
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 Sublease Agreement: A tenant who decides to rent space they are currently involved in a lease with the landlord. Usually, the tenant must receive written confirmation before authorizing a sub-lessee.
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Security Deposits
Small landlords – may not require a security deposit of more than 2 months’ rent for most tenants.[3] If the prospective tenant is a service member, small landlords may not require a security deposit of more than 1 month’s rent.[4]
All other landlords – may not require a security deposit of more than 1 month’s rent.[5]
What is a small landlord?
A “small landlord” owns no more than 2 residential properties that together include no more than 4 residential units offered for rent.[6]
Interest on Security Deposits
While California state law does not require a landlord to pay interest on deposits they hold, some cities do. In particular, cities with rent control require that tenants be paid interest on their deposits. To find out if a particular city requires this, a landlord can check with their local housing department.
Fees in the Lease
Landlords have a right to include certain fees within the lease but any fee imposed on a tenant must not be excessive or unreasonable.
- Late Fees – Landlords may charge late fees if: (1) the lease agreement discloses the late fees outright; and (2) the fee doesn’t exceed a reasonable amount that corresponds to the damage sustained by the landlord if the tenant fails to pay rent on time.[7]
- NSF Fees – California law limits NSF fees to $25 for the first NSF check passed and $35 for any subsequent NSF checks passed.[8]
What is considered unreasonable?
California state courts have voided, for example, a $50 late fee on a $601 monthly rent for being unreasonably high.[9]
Right to Enter
A rental property may not be entered without giving the tenant reasonable notice.[10]
- Reasons for Entry – Rental properties may be entered only in order to (1) make necessary repairs, alterations, or improvements, (2) supply necessary or agreed upon services, or (3) show the property to prospective buyers.[11]
- Reasonable Notice – California law typically deems 24 hours to be reasonable notice. If the notice is mailed, then at least 6 days must pass before the landlord may enter.[10]
Exceptions to Reasonable Notice
Rental properties may only be entered without notice in special cases:[12]
- in a case of emergency
- if the landlord has a court order
- when the tenant has abandoned the property
Required Disclosures
Whether a lease is verbal or in writing, both State and Federal laws require that landlords must make certain disclosures to prospective tenants before a lease is agreed to.
| Disclosure | Applicability |
What’s Being Disclosed |
| Bed Bugs Cal. Civ. Code § 1954.603 |
Applies to all residential leases. | General information about bed bugs. The statute provides the necessary contents of the written disclosure notice. |
| Megan’s Law Cal. Civ. Code § 2079.10a |
Applies to all residential leases. | The existence of public access to the California sex offender registry database. The statute provides the necessary contents of the written disclosure notice. |
| Notices Cal. Civ. Code § 1962 |
Applies to all residential leases. | The name, telephone number, and address of any person who manages the rental property.
The name, telephone number, and address of any person authorized to receive tenant’s rent payments, and the form in which rent payments are to be made. |
| Rent Cap and Just Cause Cal. Civ. Code § 1946.2(f) |
Applies to all residential leases (subject to limited exceptions.)[13] | Rent cap and eviction limitations under the California Tenant Protection Act. The statute provides the necessary contents of the written disclosure notice. |
| Toxic Mold Cal. Health & Safety Code § 26148 |
Applies to all residential leases. | General information on potential health risks that may result from exposure to mold. The California Department of Public Health provides a booklet for distribution to tenants. |
| Condominium Conversions Cal. Gov’t Code § 66459 |
Rental units located within an apartment building with 4+ rental units; and Owner intends to convert the apartment building to a condominium. | Intent to convert an apartment building into a condominium. |
| Death on Premises Cal. Civ. Code § 1710.2 |
A death occurred on the rental property in the last 3 years; and That death is somehow relevant to the tenant (e.g., when it’s the result of a violent crime or other extraordinary circumstances worth knowing). | A death on the property in the last 3 years. |
| Emergency Procedures Cal. Health & Safety Code § 13220(c) |
Rental unit is situated inside an apartment building; and That apartment building:
is at least 2 stories; contains 3 or more apartment units; and has units with front doors that open to an interior hallway or lobby. |
Emergency procedures for exiting the rental building in emergency circumstances.
This requires posting signs in certain areas of the building, as opposed to a written disclosure on the lease.[14] |
| Flood Hazards Cal. Gov’t Code § 8589.45 |
Owner has actual knowledge that the rental property is situated in a flood hazard area. | That the property is located in a flood hazard area or an area of potential flooding. |
| Foreign Language Translation Cal. Civ. Code § 1632(b) |
The parties negotiated the lease in Spanish, Chinese, Tagalog, Vietnamese, or Korean; and The lease term will extend for more than 1 month. | The lease terms in the applicable foreign language of the tenant. |
| Lead-Based Paint 42 U.S.C. § 4852d |
The rental property was built prior to 1978. | General information on lead-based paint hazards. An Environmental Protection Agency (EPA) pamphlet contains the necessary contents of the written disclosure notice.
The presence of any known lead-based paint or lead-based paint hazards on the property. |
| Methamphetamine or Fentanyl Contamination Cal. Health & Safety Code § 25400.28(b) |
A local health officer deemed the rental unit contaminated and served an order for remediation; and That order has yet to be fulfilled. | The existence of a contamination order due to methamphetamine or fentanyl laboratory activity, including a copy of the order. |
| Military Ordnance Location Cal. Civ. Code § 1940.7(b) |
Landlord has actual knowledge that the property is within proximity to military facilities containing potentially explosive munitions; and The rental property is within 1 mile of that military facility. | The property’s proximity to any former federal or state military training facilities that may contain potentially explosive munitions. |
| Offer of Positive Rent Payment Information Reporting Cal. Civ. Code § 1954.07 |
Rental unit is located within a residential rental building with more than 15 units; or
Landlord is a corporation that owns at least 2 residential rental buildings. (All assisted housing developments are excluded from this requirement.)[15] |
Must offer tenant the option of having positive rental payment information reported to at least one nationwide consumer reporting agency. |
| Pest Control Cal. Civ. Code § 1940.8; Cal. Bus. & Prof. Code § 8538 |
Landlord contracted with a pest control company to provide periodic pest control service on the rental property. | Any planned or ongoing pest control treatment on the rental property. The statute provides the necessary contents of the written notice. |
| Shared Gas and Electric Meters Cal. Civ. Code § 1940.9(a) |
Rental unit shares a meter supplying gas or electric services with other units or common areas. | That the tenant’s unit is not separately metered, including how utility costs are allocated to the tenant’s unit. |
| Smoking Tobacco (Prohibited Areas) Cal. Civ. Code § 1947.5 |
Landlord intends to prohibit smoking in all or some areas of the rental unit. | All the specific areas within the rental property where smoking is prohibited. |
| Water Submetering Cal. Civ. Code § 1954.204 |
Landlord intends to charge for rent and water service separately; and
The rental property uses a submeter to measure tenant’s particular use. |
Certain information on the rental unit’s use of a submeter for supplying water service. |
| (Los Angeles Only) Right to Counsel L.A., Cal., Mun. Code ch. XVI, art. 6, § 166.03(B) |
The rental unit is located within a Los Angeles covered area;
Tenant’s income is 80% or less of the HUD-defined area median income; and Landlord doesn’t reside in the same rental unit. |
The tenant’s right to counsel. |
| (Los Angeles Only) Notice of Renters’ Protections Ordinance No. 187737 |
Rental unit is located within a Los Angeles covered area. | Certain information on renters’ rights. The Los Angeles Housing Department provides a standard written notice to use for compliance. |
About 44% of California households are renters
This is a larger percentage than the US’s overall rentals (35%), and every state other than New York (46%).[16]
Optional Disclosures and Addendums
The disclosures and addendums in the following table are not legally required but may help some landlords.
| Disclosure | What’s Being Disclosed |
| CC&Rs Addendum | Acknowledgement of declaration of covenants, conditions, restrictions, and association rules and regulations. |
| Grilling Guidelines | This sets the rules for the tenant if a grill is allowed. |
| Move-In/Move-Out Inspection Checklist | To record the property’s condition before move-in and move-out to properly account for any security deposit deductions. |
| Personal Guarantee | This form legally binds a person to a lease agreement. It is commonly used when a tenant is considered high-risk and wants a family member or friend to be bound to the lease. |
| Pet Agreement | If the tenant has a pet. |
| Pool & Hot Tub Addendum | For using a hot tub or pool on the premises. |
| Renter’s Insurance Addendum | If the landlord requires the tenant to have liability insurance. |
| Resident Policies and House Rules | Sets standard rules and parameters for the residence. |
| Satellite Dish Addendum | To share the FCC’s OTARD Rule that tenants have the right to install a satellite dish on the property. |
| Unlawful Activities Addendum | Stipulates that the tenant and their guests may not conduct any of the activities listed in the document. |
Frequently Asked Questions (FAQs)
Are security deposits refundable in California?
Yes, all security deposits are refundable, and a lease agreement cannot state otherwise.[17] However, landlords may apply a security deposit to cover permitted costs.
What costs can security deposits cover in California?
A landlord may apply security deposit funds when reasonably necessary to cover end-of-lease costs such as outstanding (unpaid) rent or repairs for damage caused by the tenant, other than ordinary wear and tear.[18]
How does California law require security deposits be returned?
Generally, a landlord may return any unused security deposit funds by personal delivery, first-class mail (postage prepaid and check enclosed) to an address the tenant provides, or any other pre-agreed-upon method (e.g., electronic delivery).[19]
How does a landlord handle tenant abandonment of a rental property?
If the landlord believes the tenant has abandoned the property and rent has been due and unpaid for at least 14 days, the landlord can give notice that the lease will terminate if the tenant does not respond.[20]
What happens if a tenant breaks the lease?
If the tenant vacates the property before the term of the lease is complete, the landlord has a right to recover unpaid rent until a new tenant is in place.[21] The landlord must make good-faith efforts to find a new tenant.
What if a tenant leaves behind personal property?
For unclaimed personal property, the landlord is required to give notice advising the tenant of storage costs, where the property may be claimed, and a date after which the property will be considered abandoned (15 days if the notice is delivered personally, or 18 days if delivered by mail).[22]
The landlord can then dispose of the property if it is worth less than $700. If the property is worth more than $700, it must be sold with its proceeds returned to the tenant or county treasury, less than the landlord’s costs.[23]
Sample
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Sources
- Cal. Civ. Code § 1624(a)(3)
- CIV § 1946(a)
- Cal. Civ. Code § 1950.5(c)(5)(A)
- Cal. Civ. Code § 1950.5(c)(5)(B)
- Cal. Civ. Code § 1950.5(c)(1)
- Cal. Civ. Code § 1950.5(c)(5)(A)(ii)
- Cal. Civ. Code § 1671(d)
- Cal. Civ. Code § 1719(a)(1)
- Orozco v. Casimiro, 121 Cal. App. 4th Supp. 7, 10-11 (2004)
- Cal. Civ. Code § 1954(d)(1)
- Cal. Civ. Code § 1954(a)(2)
- Cal. Civ. Code § 1954(a)(1), (3), (4)
- Cal. Civ. Code § 1946.2(e)
- Cal. Health & Safety Code § 13220(c)(1)
- Cal. Civ. Code § 1954.07(j)(2)
- Public Policy Institute of California
- Cal. Civ. Code § 1950.5(h)(1)
- Cal. Civ. Code § 1950.5(f)
- Cal. Civ. Code § 1950.5(h)(1)(A)
- Cal. Civ. Code § 1951.3(c)
- Cal. Civ. Code § 1951.2(b)(2)
- Cal. Civ. Code § 1983(b)
- Cal. Civ. Code § 1988