A California lease agreement is a legally binding contract between a landlord wanting to rent all (or a portion of) their property and a tenant. In the document, written according to the state’s landlord-tenant law, the tenant agrees to the terms and conditions, including payment of the monthly rent and other fees, along with other rental rules and requirements.
Rental Lease Laws Overview
- Rent Control: Yes.
- Limit on Late Fees: Late fees must be reasonable.
- Late Fees in Rental Agreement: Yes.
- Grace Period: No.
- License Required for Landlord: No.
Before entering a lease, landlords use a rental application to screen potential tenants.
By Type (6)
Standard Lease Agreement
Legally binds a landlord and tenant to a fixed-term rental arrangement.
Month-to-Month Rental Agreement
Automatically renews on a monthly basis, allowing either party to terminate with proper notice.
Room Rental Agreement
Allows a principal tenant to rent an individual room on their leased property to another tenant.
Sublease Agreement
Allows a tenant to rent all or part of their leased property to another party, while retaining responsibility to the original landlord.
Rent-to-Own Lease Agreement
Provides tenants an exclusive option to purchase a property at a predetermined price.
Required Lease Disclosures
California imposes specific requirements for landlords and tenants when executing a lease agreement. For example, the state’s Civil Code outlines the following disclosures: [1]
- Disclosure of Lead-Based Hazards. All landlords of any building constructed before 1978 must notify all tenants of the potential existence of lead-based hazards. [2]
- Bed Bug Addendum. Landlords need to provide specific information about bed bugs. [3]
- Disclosure of Mold. A written disclosure of all mold a landlord knows of or should reasonably know of, along with a handbook provided by the State Department of Health Services, must be presented to all tenants. [4] [5]
- Disclosure of Flood Hazard Area. Needed if the property is in a flood zone. [6]
- Pool and Hot Tub Notice (for the use of a jacuzzi or pool on the property).
- Carbon Monoxide Detector Addendum. The landlord must maintain carbon monoxide devices, and a tenant must be made aware that they have a responsibility to notify the landlord of any defects with those devices immediately. [7]
- Disclosure of Asbestos. For buildings built before 1979, the owner must notify all tenants of any asbestos-containing materials on the premises. [8]
- Notice of Illegal Substance Contamination. It contains a notification of any prior contamination caused by the production of methamphetamine on the property, and all prospective tenants must sign and acknowledge that. [9]
- Disclosure of Shared Utilities. The landlord must notify tenants whether the electric or gas utility company services other areas of the house and ensure a fair allocation of the costs amongst all tenants. [10] In San Francisco, landlords are legally required to provide a heating system that can sustain a temperature of at least 68 degrees Fahrenheit for at least 13 hours, between 5–11 AM and 3–10 PM. [11]
- Notice of Death in Rental Unit. Tenants must be notified of any unnatural death in a unit within the last three years. [12]
- Disclosure of Ordnance Location. A written notice of the prior existence of a military training facility in the neighborhood that may still contain explosive munitions. [13]
- Notice of Intent to Demolish. Before applying for a permit to demolish a residential property, a landlord must notify current and prospective tenants of the earliest possible date that the building is scheduled to be demolished. [14]
- Notice of Foreclosure. A landlord must disclose whenever their residential property has entered the foreclosure process. [15]
- Notice of Pest Control / Periodic Pest Control Service. Must describe any known or reasonably identifiable pests, past and current pest control contracts, and the contact information of a pest control company. [16] [17]
- AB 1482 Just Cause and Rent Limit Addendum. Limits the yearly rent increase and requires landlords to have a just cause when terminating a tenancy.
- Megan’s Law Notice. Refers to the rights of the tenants to access the sex offender registry. Landlords must specifically include a provision in the lease directing the tenant to the website maintained by the Department of Justice, www.meganslaw.ca.gov. [18]
- Move-In/Move-Out Inspection Checklist. Ensures that both the landlord and tenant acknowledge and agree on the condition of each aspect of a rental unit before moving in and moving out.
- Pet Addendum. The landlord grants the tenant permission to have a pet in the rental unit.
- Satellite Dish & Antenna Addendum. Allows tenants to install a satellite dish on the property. [19]
- Smoking Policy Disclosure. Landlords must provide a clause describing prohibited and limited smoking areas for rental agreements signed after January 1, 2012. [20]
Security Deposit
- Maximum Amount: For unfurnished premises, security deposits must not exceed two months’ rent, while furnished premises allow for up to three months’ rent to be requested by a landlord. [21] [22]
- Receipts: Not specified.
- Interest Payments: Not required, but local laws may vary.
- Bank Account: Not required.
- Returning Requirements: The landlord must return the security deposit to the tenant within 21 days of termination of the lease agreement. [23]
- Withholding Rules: Landlords may withhold security deposits for unpaid rent or excessive damage and must provide itemized repair lists for deductions.
Rent Payments
- Laws: Rent is expected on the date mentioned in the lease agreement.
- Rent Control: California limits annual rent increases to a maximum of 5% plus inflation or 10% of the previous year’s lowest rent. [24] This statewide rent control applies until 2030 but does not supersede existing city ordinances.
- Late Fees and Grace Period: Landlords may charge reasonable late fees outlined in the lease. [25] Los Angeles County suggests a maximum of 5% of monthly rent. No grace period is required, and landlords can issue a 3-day notice to quit for late rent. Failure to comply may initiate eviction proceedings.
- Withholding Rent: Tenants may deduct up to one month’s rent for landlord-caused uninhabitable conditions. [26] For severe health and safety risks, tenants can withhold rent until repairs are made.
Landlord Right of Entry
- Notice Requirements: Here are the landlord’s entry rights and notification requirements for various scenarios: [27]
- Emergency Entry: Without delay and requires no notice.
- Showing the Property: With a 24-hour notice.
- Maintenance: With a 24-hour notice.
- Move-Out Inspection: With a 48-hour notice.
- Keys, Locks, and Security: Landlords are prohibited from changing locks to deny tenants access to their rental unit. [28]
Property Repairs
- Landlord Responsibilities: If the landlord doesn’t make necessary repairs, the tenant can use the “Repair and Deduct Remedy,” allowing them to make the repairs themselves and deduct the costs from their rent.
- Tenant Repairs: Tenants are legally required to maintain the rental unit. If they neglect this duty, they will be responsible for the necessary repairs. [29]
- Abandonment: If rent is over 14 days late and the landlord suspects the property is abandoned, the tenant is responsible for the unpaid rent and the lease will automatically terminate. The landlord can also give notice that the lease will end if the tenant does not respond within a specified period. [30]
Terminating a Lease
- Month-to-Month Tenancy: Landlords can terminate the lease with a 30-day notice if the tenancy is less than a year old, or a 60-day notice if it has lasted a year or more. [31]
- Unclaimed Property: Landlords must notify tenants to retrieve their belongings within 15 days if hand-delivered, or 18 days if sent by mail. Unclaimed property will be sold at a public auction unless its total value is under $700, in which case the landlord can dispose of or keep it. [32]
City-Specific Considerations
Above are the requirements and guidelines landlords and tenants follow in California. Nonetheless, certain major cities like Los Angeles, San Diego, San Jose, San Francisco, Fresno, Long Beach, and Sacramento have specific local regulations. It’s advisable to review the laws in your area while drafting a lease agreement to ensure full compliance.
Sample
You can download a California lease agreement template below in PDF or Word format.
