Types of California Lease Agreements
Choosing the right lease is important for managing a rental. In California, leases longer than one year must be in writing under the Statute of Frauds. Verbal agreements are allowed for shorter terms, but a written lease is recommended to ensure clarity and avoid disputes.
Before entering a lease, landlords use a rental application to screen potential tenants.
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.
Commercial Lease Agreement
Enables a business to rent office or retail spaces.
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 law requires landlords to provide certain disclosures to tenants to promote transparency and safety. These disclosures help avoid disputes and ensure compliance with state rental laws. The state’s Civil Code outlines the following disclosures: [1]
Health and Safety Disclosures
These disclosures help ensure tenants live in safe and hazard-free conditions:
- Disclosure of Lead-Based Hazards. Required for properties built before 1978. [2]
- Carbon Monoxide Detector Notice. Landlords must install carbon monoxide detectors and inform tenants of their maintenance responsibility. [3]
- Mold Disclosure. If the landlord is aware of mold, they must notify tenants and provide a state-approved mold guide. [4] [5]
- Asbestos Disclosure. This applies to buildings built before 1979, notifying tenants of any asbestos-containing materials. [6]
Property Condition and Environmental Risks
These disclosures inform tenants of potential risks associated with the property or location:
- Flood Hazard Disclosure. Needed if the property is in a flood zone. [7]
- Notice of Illegal Substance Contamination. If the rental was used for methamphetamine production, tenants must be informed. [8]
- Notice of Death in Rental Unit. Tenants must be notified of any unnatural death in a unit within the last three years. [9]
- Disclosure of Ordnance Location. If the property is near a former military training facility, tenants must be warned about possible unexploded munitions. [10]
- 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. [11]
Rental Terms and Tenant Rights
These disclosures clarify financial and legal responsibilities for tenants and landlords:
- Disclosure of Shared Utilities. If gas or electricity is shared between units, landlords must explain cost allocation. [12] 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. [13]
- Notice of Foreclosure. A landlord must disclose whenever their residential property has entered the foreclosure process. [14]
- Rent Control & Just Cause Addendum (AB 1482). Limits rent increases and requires a valid reason to terminate a lease.
- Megan’s Law Notice. Informs tenants about their right to access California’s 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. [15]
Additional Lease-Specific Notices
These disclosures apply to specific rental situations:
- Bed Bug Addendum. Landlords need to provide specific information about bed bugs. [16]
- 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. [17] [18]
- Move-In/Move-Out Inspection Checklist. Documents the property’s condition before and after the lease.
- Pet Addendum. The landlord grants the tenant permission to have a pet in the rental unit.
- Smoking Policy Disclosure. Landlords must provide a clause describing prohibited and limited smoking areas for rental agreements signed after January 1, 2012. [19]
- Pool and Hot Tub Notice. If a jacuzzi or pool is on the property, tenants must be informed about its proper use.
- Satellite Dish & Antenna Addendum. Allows tenants to install a satellite dish on the property. [20]
Security Deposit
California law sets clear limits on security deposits and outlines how and when they must be returned to tenants.
- 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
California has strict regulations on rent payments, rent control, and late fees. Landlords and tenants should understand these rules to avoid conflicts.
- 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.
Price Gouging Protections
California enforces strict price gouging laws to prevent businesses and landlords from exploiting emergencies such as wildfires and windstorms. Under Penal Code 396, it is illegal to increase rental prices by more than 10% following an emergency declaration. Even properties exempt from AB 1482 rent control may still be subject to price gouging limitations during an emergency.
Here is what to know:
- Rent Cap Enforcement: Any rent increase exceeding 10% is considered illegal unless it qualifies for an exception.
- Repair-Related Increases: If a landlord makes substantial improvements beyond routine maintenance, they may raise rent beyond the cap, provided the cost is distributed over time.
- Covered Rental Agreements: Price gouging rules apply primarily to leases of one year or less, ensuring protections for short-term and newly established tenancies.
The Los Angeles County Department of Consumer and Business Affairs (DCBA) actively investigates violations and encourages tenants to report suspected price gouging.
Landlords and businesses caught price gouging can face fines up to $10,000, jail time of up to one year, or both. Protections typically remain in place for 30 days after an emergency declaration, but for contractor-related services, they extend up to 180 days. For a list of locations under price gouging protections, visit California Governor’s Office of Emergency Services.
Landlord Right of Entry
California law specifies when and how landlords can enter a rental unit. Proper notice must be given in most cases to respect tenant privacy while allowing landlords to maintain the property.
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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 units. [28]
Property Repairs
Landlords are responsible for maintaining safe and habitable living conditions, and tenants are also responsible for upkeep.
- 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
California law outlines how and when a lease can be legally ended by either party.
- 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 view a California lease agreement template below. To create a legally compliant lease tailored to your needs, start with our easy-to-use lease builder today.