A California month-to-month lease agreement is all about flexibility, both for the landlord and the tenant. In a state known for its fast-moving rental market, this type of lease is ideal for those who need to adapt quickly while remaining compliant.
Disclosures (21)
California has some of the most detailed disclosure rules in the US, so it is essential to stay up-to-date on local and state laws regarding your rental agreement. Always include these disclosures up front, to help limit your liability and keep your tenants informed.
- Lead-based paint: Federal law requires that all landlords disclose the known presence of lead-based paint and information on its hazards for homes built before 1978.
- Landlord contact information: California landlords must provide their contact information, including name, address, and phone number, along with the lease (Cal. Civ. Code § 1962(4)).
- Change terms notice: Landlords must include a statement about the limitations on rent increases in California (Tenant Protection Act).
- Bed bugs: Landlords must inform tenants about bed bugs and instruct them to immediately report any suspected infestations in the unit (Cal. Civ. Code § 1954.603).
- Pest control: If landlords offer pest control services, they must provide a notice from the company detailing what they are controlling, the chemicals they use, the frequency at which they treat, and any potential adverse side effects (Cal. Civ. Code § 1940.8).
- Demolition: If the landlord intends to tear down the unit, the tenant must be informed (Cal. Civ. Code § 1940.6).
- Flooding: If the property is in a flood zone, the landlord must supply this information (Cal. Gov’t. Code § 8589.45).
- Mold: Landlords are required to disclose any known or suspected mold growth on the property, as well as informational guidelines supplied by the state (Cal. HSC § 26147).
- Methamphetamine/fentanyl contamination: The landlord must disclose if anyone ever used the property to manufacture or store methamphetamine or fentanyl, or any known use in the unit (Cal. HSC § 25400.28).
- Shared utilities: If there are shared utilities among tenants, landlords must explain how they plan to divide up the costs (Cal. Civ. Code § 1940.9).
- Smoking policy: Landlords must outline the policy regarding smoking in and around the unit, including any designated smoking areas (Cal. Civ. Code § 1947.5).
- Just cause and rent limit: California landlords must inform tenants that landlords typically have to provide a minimum of 60 days’ written notice before they can terminate a long-term lease, must have just cause to initiate an eviction, and that rent increases are limited to 5 percent of the local inflation rate of 10 percent of the monthly rent, whichever is less (Cal. Civ. Code § 1946.2).
- Ordinance locations: Landlords must disclose if there are any former federal or state military ordinance usage sites located within one mile of the rental (Cal. Civ. Code § 1940.7).
- Deaths on the property: If any deaths have occurred on the property within the last 3 years, landlords are required to tell their tenants, except in the case of AIDS or HIV-related deaths (Cal. Civ. Code § 1710.2).
- Sex offender registry: Also referred to as Megan’s Law, California landlords are required to include a pre-written clause about the national sex offender registry with their California month-to-month lease agreement template (Cal. Civ. Code § 2079.10a).
- Asbestos: If any known asbestos is on the property, landlords must disclose this information (Cal. HSC § 25915(a)).
- Carbon monoxide detectors: If the rental includes any fossil fuel heaters or appliances, the landlord must install carbon monoxide detectors throughout the unit (§ 17926.1).
- Water beds: Landlords must provide a water bed statement if they believe there is a water bed in the unit (§ 1940.5).
- Carcinogenic materials: If the unit includes any carcinogens listed in Proposition 65, California landlords are required to disclose this information (§ 25607.34 (3)).
- Water utilities: If water is billed separately from rent, California landlords are required to tell their tenants when they will be billed and include an estimate of the cost (§ 1954.204).
- Los Angeles-specific requirements: All Los Angeles tenants must receive an LA Renters Protections Notice along with their California month-to-month rental agreement.
Optional Disclosures and Addenda
Although California has some of the most detailed disclosures required by law, landlords should also include additional disclosures to protect both themselves and the tenant.
Late/returned check fees: Outlines fees associated with late rent and returned checks. California does not limit how much landlords may charge for late fees; however, for returned checks, the first-time fee is $25, and this increases to $35 for each subsequent returned check (Cal. Civ. Code § 1719(a)(1)).
Medical marijuana use: Explains the policy surrounding the use of medical marijuana in the unit and on the property.
Move-in checklist: Details conditions of the unit at move-in and move-out, to compare for accurate security deposit deduction calculations.
Non-refundable fees: If landlords will charge any non-refundable fees in the California month-to-month lease agreement, they must be clearly outlined and agreed to in the lease.
Additional California Month-to-Month Lease Laws
There are other laws surrounding a California month-to-month lease agreement, including how and when to terminate the lease, rent increases, lease violations, security deposit, and more. We’ll go into more detail on what you need to know to remain compliant below.
Notice to Terminate a Month-to-Month Agreement
As a tenancy-at-will, a California month-to-month lease agreement doesn’t have a set end date in place. As a result, each state has different rules for how and when to terminate these types of leases.
Required notice for the tenant: Tenants may terminate their month-to-month lease by giving at least 30 days’ written notice to the landlord (Cal. Civ. Code § 1946).
Required notice for the landlord: If the tenancy-at-will has lasted less than 1 year, landlords must give tenants at least 30 days’ written notice. If the tenancy has lasted longer than 1 year, they must provide 60 days’ notice. And in both cases, they must have just cause to terminate the lease (CA. Civ. Code Sect. 1946.1).
Laws Governing Rent Increases
While landlords typically have greater flexibility surrounding rent increases in a month-to-month lease, there are still rules and limits they must follow. California landlord-tenant laws dictate not only how much landlords may increase the rent, but also how often they may make increases. Some areas in California also have rent control laws in place, so always check your local regulations.
Lease Violations and Eviction
Missed rent payment: If a tenant misses a rent payment in California, the landlord may send a 3-day Notice to Pay or Quit.
Lease violation: If a tenant violates any portion of their lease, the landlord may issue a 3-day notice to cure or quit.
Lease abandonment: If the rent is past due by at least 14 days and the landlord believes the tenants have abandoned their lease, they must supply a Notice of Belief of Abandonment.
Self-help evictions: In California, self-help evictions are illegal, and landlords should never attempt to remove tenants on their own.
Rent Payment Laws
Additionally, there are laws surrounding rent, including late rent fees, required grace periods, and a tenant’s right to withhold rent. Here’s what you need to know in California.
Rent control/stabilization: California has several rent control laws; typically, landlords may increase the rent by no more than 10 percent per year. Landlords must provide written notice at least 30 days before these increases go into effect.
Late rent fees: California landlords may charge up to 5 percent of the unpaid rent amount or $50, whichever is less. Landlords must outline all late fees in the California month-to-month lease agreement.
Grace period: California does not require landlords to offer a grace period for late rent payments, although landlords may choose to include one.
Tenant’s right to withhold rent: Tenants may legally withhold rent or deduct the cost of necessary repairs if the landlord fails to make the repairs within 35 days of being notified.
Pet rent laws: In California, landlords are allowed to charge a separate fee for pet rent. There is no limit to how much this can be, but the California month-to-month lease agreement must clearly outline the rent.
Security Deposits
Most landlords choose to collect a security deposit from their tenants to help offset any costs of damages above normal wear-and-tear caused by the tenant.
Maximum amount: For unfurnished units, California law limits security deposits to 1 month’s rent. The maximum limit increases to 2 months’ rent if the landlord owns two or fewer properties that total four or fewer units (Cal. Civ. Code § 1950.5).
Deposit receipt: Landlords are not required to provide a receipt for a tenant’s security deposit.
Interest payments: No state laws require landlords to pay interest on security deposits; however, some local regulations may impose this requirement. Always follow your local laws.
Security deposit return: California landlords are required to return a tenant’s security deposit within 21 days of lease termination. Landlords must also inform tenants of their right to a move-out inspection and a chance to correct any damages.
Deductions: If a landlord plans to withhold any deductions from the security deposit, they must give an itemized statement to the tenant if the combined deductions are more than $125. The itemized statement must include all work completed, along with the time spent and the corresponding hourly rate.
Property Access Laws
From time to time, landlords often have to enter a property, whether for routine maintenance or an actual emergency. Following these basic guidelines will help you complete your tasks while respecting your tenant’s privacy.
Advance notice: Typically, California landlords must give at least 24 hours’ notice to their tenants before entering the unit.
Immediate access: In the case of an emergency or if there is a court order in place, the landlord may enter the unit without giving notice to the tenant.
Harassment: If a landlord chooses to ignore these guidelines, entering the property without just cause and without proper notice, it could be considered landlord harassment. In these cases, tenants may be able to terminate their lease early and without penalty.
