There are many things that landlords in California have to deal with on a regular basis. From property maintenance to dealing with unruly tenants, there are times when the responsibilities of being a landlord can be stressful and time consuming.
Some of the most important responsibilities—ones that can land you in hot water if not dealt with correctly—are legal issues. Landlords in California must abide by several laws and regulations to remain compliant and avoid fines and other legal actions.
California Landlord Responsibilities
Disclosure Obligations
California state law dictates that the landlord is obliged to disclose certain information to tenants. While it’s best to make these disclosures as upfront as possible, at a minimum they should be included in your rental agreement so the prospective tenant is aware of them before the agreement is finalized. Examples include disclosing:
- Potential health issues such as toxic mold
- Whether the tenant’s utilities also serve other areas (e.g., common areas)
- If any pest control contracts are ongoing on the property
Provide Housing that Is Habitable
Landlords are obliged to keep the property in livable condition at all times throughout the tenancy agreement. This includes taking responsibility for any repairs for things like plumbing and heating. If you don’t, the tenants have a right to either withhold rent or invoke the right to “repair and deduct.”
Leases and Rental Agreements
Your lease agreement should set forth all the contractual obligations required of your tenant and of you as a landlord. The rental agreement should take into account any legal obligations or parameters imposed at the local, state, and federal level. It should also include important details such as the duration of the tenancy and the agreed rental amount. It’s important not to include any illegal items in the lease and that all your disclosures are made clear in the document.
Adhere to Anti-Discrimination Regulations
Californian landlords are obliged to strictly adhere to anti-discrimination laws in regards to existing and prospective tenants. Under the Fair Housing Act of 1968, you cannot refuse a tenant based on:
- Race
- Religion
- Gender identity
- Sexual orientation
- Nationality
- Family situation
- Disability (both physical and mental)
The only times it is acceptable to reject an applicant is in cases of:
- Poor credit history
- Bad references
- Past behavior such as illegal activity
Failure to abide by anti-discrimination laws can result in an expensive and lengthy lawsuit.
Laws for Landlords in California
Rent Control
In 2019, California introduced the Tenant Protection Act. This legislation mainly covered rent control and eviction laws of residential properties. You may not increase rent by more than 5% at one time, and rent cannot be raised more than once within a 12-month period.
You may be required to follow further rent increase laws at a city or county level.
Security Deposits
For an unfurnished rental unit, you may not charge more than two months rent for a security deposit. For furnished units, you may not charge more than three months of the agreed rent. Additionally, any cleaning fees cannot be added on top of the security deposit.
Under the California Code of Civil Protection (sections 12 and 12a), the landlord is required to return the security deposit within 21 days.
Property Access
Landlords are perfectly within their rights to enter the rental property during the tenancy. However, landlords must provide a:
- Written notice of their intent to enter the property
- Reasonable notice period (24 hours at minimum)
In case of a true emergency or permanent abandonment of the property, landlords can enter without any notice.
Federal Tenancy Laws
All landlords are obliged to follow not just Californian tenancy regulations but any that exist at the federal level as well. For example, federal law dictates that landlords must disclose potential health issues such as lead paint. It’s worth getting to know your federal legal obligations, as well as those at the state level to avoid repercussions.
Common Legal Issues Landlords Face in California
Late Rent and Rent Withholding
In some circumstances (such as “repair and deduct”), tenants have the right to withhold rent from their landlord.
More commonly, you might deal with tenants who frequently pay rent late or not at all. In that case, since you’re not obliged to provide a grace period for rental payments, you can serve a 3-day eviction notice. If the rent is not paid within those three days (excluding weekend days and public holidays) you can file an eviction lawsuit.
Evicting Tenants
The legal responsibilities surrounding eviction change, depending on the circumstances and reason for eviction. Typically, you can use the 3-day eviction notice under the following circumstances among others:
- Late rent payments
- Tenant has broken the rental agreement
- Your property has been damaged
- Tenants have broken the law on your property
- The production, use, or selling of drugs on your property
- The presence of illegal guns and ammunition in the unit
No Retaliation
Despite a careful tenant screening process, bad tenants can happen. When that situation arises, tensions can quickly become fraught. However, no matter how complicated the situation gets, landlords should be aware that there are specific retaliation laws that they must follow.
Landlords in California are not permitted to terminate a lease or refuse renewal if their tenant has made an official complaint to government authority or a tenant’s organization or if they have exercised any kind of legal right. You cannot retaliate within 180 days after circumstances, including:
- Use or notice of repair and deduct
- Complaints to the landlord about the unit
- Filing of a lawsuit by the tenant
- Request by the tenant for an inspection of the unit by a public agency
- Citation issued by government authority or public agency
Small Claims Court Limits
No matter how much damage a tenant causes to a unit, there is a limit to what you can seek in small claims court.
The limit to what you can seek in a small claims court in general is $10,000. However, landlords are not permitted to seek more than $2,500 more than twice in one year.
How Property Management Can Help Landlords
There’s a lot to consider when it comes to California landlord tenant laws. Even the most conscientious landlord can easily misinterpret a requirement or find themselves facing legal action.
Engaging a property management company means all your legal obligations and paperwork are taken care of, so you can rest assured that tenants are fully screened and costly lawsuits can be avoided.
At Genuine Property Management, we take care of everything, from advertising your property to onboarding tenants and maintenance and repairs at great value. Contact us today to learn more about our property management service in Orange County.
