A California lease agreement is more than just a piece of paper. Instead, think of it as your safeguard in one of the nation’s most competitive rental markets. Whether you’re renting a bungalow in Los Angeles or a Victorian in San Francisco, the right lease can set expectations from day one, keep you compliant with California laws, and help to protect your investment.
Read on to find out what you need to include in your California lease agreement, the laws you need to know, and how to make your lease work for both you and your tenant.
Disclosures (21)
California has an extensive list of disclosures that landlords must account for in a California lease agreement.
- Lead-based paint: Landlords are required to disclose any known information about lead-based paint and lead-based paint hazards for any home built before 1978.
- Statement on just cause requirements: According to Section 1946.2 of the Civil Code, a landlord must give at least 60 days written notice before terminating a long-term lease if they meet the requirements in the Civil Code (§ 1946.2).
- Contact information: A California lease agreement must include the name, address, and phone number of whoever is responsible for managing the property (Cal. Civ. Code § 1962(4)).
- Notice of change of terms: California landlords are required to issue a statement on the limits of rent increases (Tenant Protection Act).
- Notice of exemption from rent limits: You must include notice in the lease that the property is not subject to rent limits (AB 1482).
- Waterbeds: If you suspect there may be a waterbed in the rental, you must include a waterbed statement (§ 1940.5).
- Bedbugs: You are required to disclose that the property is free from bedbugs. The tenant must sign this disclosure (§ 1942.5).
- Carbon monoxide detectors: If the rental’s heat source is fossil fuel-based, state law requires you to provide carbon monoxide detectors throughout the home (§ 17926.1).
- Sex offender registry: The rental agreement must include a statement about Megan’s Law sex offender registry (§ 2079.10a).
- Smoking policy: The lease agreement must include any smoking restrictions (§1947.5 (b 1)).
- Carcinogenic material: You must disclose any carcinogenic materials in the property if they’re listed on the Proposition 65 list (§ 25607.34 (3)).
- Asbestos notification: Any known asbestos on the property must be disclosed (§ 29515.5 (a)).
- Death in the rental unit: Landlords must disclose any prior deaths in the unit, except for HIV/AIDS-related deaths, which are protected information (§ 1710.2).
- Demolition: If you have any demolition plans, you must disclose them before signing a lease (§ 1940.6 (a)(1)(A)).
- Flood zone: Landlords must inform tenants if the property lies in a flood zone (§ 8589.45 (a)).
- Methamphetamine or fentanyl contamination: If there has been any manufacture, storage, or use of methamphetamine or fentanyl on the property, landlords must disclose this to the tenant, along with orders relating to contamination and remediation (§ 25400.28 (b)).
- Mold: If there is any toxic mold present or suspected, disclose it to tenants. Additionally, landlords must give all tenants a California Department of Health Services booklet (§ 26147).
- Ordinance locations: Landlord must disclose if there is a military testing site within one mile of the rental that may contain live munitions (§ 1940.7 (b)).
- Pest control: If the rental is treated regularly for pests, landlords must disclose the pesticides used.. You must also give them 24 hours’ notice before applying any pesticide (§ 1940.8).
- Shared utilities: If there is a shared meter, your lease must outline how the utilities will be billed (§ 1940.9).
- Water service: If water is billed separately from the rent, landlords must inform tenants when they will be billed for water, as well as an estimate of the monthly bill (§ 1954.204).
Optional Disclosures and Addenda
While not legally required in California, several disclosures and addenda are recommended to include:
Late/returned check fees: Discloses any late or returned check fees in the lease. California does not restrict late fees. For returned checks, the first-time fee is $25, and a $35 limit applies for each subsequent returned check (Cal. Civ. Code § 1719(a)(1)).
Medical marijuana use: Informs tenants of the guidelines for medical marijuana use.
Move-in checklist: Outlines current conditions of the property for comparison at the end of the lease. This checklist helps ensure accurate deductions.
Non-refundable fees: If you charge any non-refundable fees, you must clearly state them in the lease agreement.
Consequences of Not Including Mandatory Disclosures
These disclosures are important to keep everyone informed and on the same page. Failure to share required disclosures could result in fines or even legal consequences. California allows tenants to sue landlords who do not disclose certain conditions, including asbestos, mold, bed bugs, and more.
Security Deposit Regulations in California
A security deposit is a deposit that is returned to a tenant at the end of the lease, minus any deductions for repairs beyond normal wear and tear.
Maximum amount: For unfurnished units, California caps the security deposit limit at 1 month’s rent. If the landlord owns two or fewer properties (a total of 4 or fewer rental units), they may charge up to 2 months’ rent (Cal. Civ. Code § 1950.5).
Deposit receipt: California landlords are not required to provide a security deposit receipt, although it’s considered best practice..
Interest payments: While there is no state law about paying interest to a tenant on a security deposit, some local laws require it.
Security deposit return: Landlords must return security deposits within 21 days of a tenant moving out. Tenants must be given written notice of their right to a move-out inspection and given the chance to repair any damages.
Deductions: Track any deduction from the deposit in an itemized statement. If the deduction is less than $125, an itemized statement is not required.
Rent Payment Regulations
Several California laws pertain to rent payments, including rent control, late fees, and more.
Rent control/stabilization: California cities have enacted several rent control laws, and landlords may raise the rent by no more than 10% each year.
Landlords must give 30 days’ written notice before a rent increase is effective. If the rent increase exceeds 10%, the notice period increases to 90 days.
Late rent fees: Landlords may charge a fee for late rent, but it can be no more than 5% of the unpaid rent amount or $50, whichever is less. The lease must outline any late fees.
Grace period: California landlords are not required to give a grace period for late rent.
Tenant’s right to withhold rent: Tenants are permitted to withhold rent or deduct the cost of repairs if they have given their landlord notice of necessary repairs and they have not been made within 35 days.
Rental Agreement Violations
If a tenant violates lease terms, it’s essential to know your rights as a landlord to help protect yourself and your investment.
Lease violation: If tenants violate their lease, the landlord has the right to issue a 3-day notice to fix the issue or vacate the property.
Missed rent payment: In the case of a missed rent payment, the landlord has the right to issue a 3-day notice to vacate the property. Tenants must submit payment for the missed rent, as well as any late fees, or the landlord may begin eviction proceedings.
Lease abandonment: If rent is past due by at least 14 days and you believe that the tenant has abandoned the lease, the landlord is required to provide Notice of Belief of Abandonment.
Self-help evictions: In California, self-help evictions are illegal. You must go through the proper legal channels to initiate any type of eviction.
Terminating a Lease
When the time comes to end the lease, it’s far from simple. How a lease is terminated can depend on different factors, including the type of lease.
Standard lease: In California, if a tenant leaves a standard lease early, they are responsible for the remainder of the lease, unless the landlord re-rents the property. Some instances allow a tenant to break a lease without penalty, such as active duty military service, landlord harassment, and more.
Month-to-month: In a month-to-month lease, 30 days’ written notice must be given by either party to terminate the lease.
Property abandonment: If a tenant leaves property behind, the landlord must notify them of the storage costs, where the items are stored, and on what date they will be considered abandoned. After this time, the landlord may dispose of said items if they are valued at less than $700.
Renewing a Lease
Notice requirements: Landlords can refuse renewal of a lease if they provide written notice at least 60 days in advance.
Required renewals: Landlords are not required to renew leases in California. When the lease ends, if the tenant stays in the property and continues to pay rent, the lease will convert to month-to-month.
Landlord’s Access to Property
Immediate access: In an emergency, the landlord is permitted to enter the property without prior notice.
Notice requirements: To access the property for routine maintenance, repairs, or showings, the landlord must give tenants a minimum of 24 hours’ notice.
Harassment: If the landlord continuously accesses the property without proper notice or for illegitimate reasons, the tenant may be able to sue and legally break the lease without penalty.
Frequently Asked Questions: California Lease Agreements
Do lease agreements need to be notarized in California?
Typically, a California lease agreement does not need to be notarized to be a legal document.
Can a lease automatically renew in California?
Leases do not automatically renew in California, unless the lease agreement states otherwise.
Can landlords withhold rent for repairs in California?
Tenants may legally withhold rent or deduct the cost of repairs if the landlord has not made necessary repairs within 35 days of being given notice.
Sources
- 1 Cal. Health & Saf. Code § 25400.28(b)
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The property owner shall provide written notice to all prospective tenants that have completed an application to rent an affected dwelling unit or other property of the remediation order, and shall provide the prospective tenant with a copy of the order. The prospective tenant shall acknowledge, in writing, the receipt of the notice and pending order before signing a rental agreement. The notice shall be attached to the rental agreement. If the property owner does not comply with this subdivision, the prospective tenant may void the rental agreement…
Source Link - 2 Cal. Health & Saf. Code § 25400.16(a)
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Property contaminated by methamphetamine laboratory activity is safe for human occupancy for purposes of this chapter only if the level of methamphetamine on an indoor surface is less than, or equal to, 1.5 micrograms per 100 square centimeters…
Source Link - 3 Cal. Health & Saf. Code § 26141(a) & (b)
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…(a)… landlords shall provide written disclosure to prospective and current tenants of the affected units as specified in subdivision (b), when the landlord knows that mold, both visible and invisible or hidden, is present that affects the unit or the building and the mold either exceeds the permissible exposure limits … or poses a health threat according to the department’s guidelines as developed pursuant to Section 26105.
(b) The written notice required by subdivision (a) shall be provided:
(1) To prospective tenants as soon as practicable and prior to entering into the rental agreement.
(2) To current tenants in affected units as soon as is reasonably practical…
Source Link - 4 Cal. Civ. Code § 2079.10a(a)(3)
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…(3) A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender’s criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which the offender resides…
Source Link - 5 Cal. Civ. Code § 1940.6(a) & (b)
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(a) The owner of a residential dwelling unit or the owner’s agent who applies to any public agency for a permit to demolish that residential dwelling unit shall give written notice of that fact to:
(1) A prospective tenant prior to the occurrence of any of the following actions by the owner or the owner’s agent:
(A) Entering into a rental agreement with a prospective tenant.
(B) Requiring or accepting payment from the prospective tenant for an application screening fee, as provided in Section 1950.6.
(C) Requiring or accepting any other fees from a prospective tenant.
(D) Requiring or accepting any writings that would initiate a tenancy.
(b) The notice shall include the earliest possible approximate date on which the owner expects the demolition to occur and the approximate date on which the owner will terminate the tenancy. However, in no case may the demolition for which the owner or the owner’s agent has applied occur prior to the earliest possible approximate date noticed…
Source Link - 6 Cal. Civ. Code § 1940.7(b)
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(b) The landlord of a residential dwelling unit who has actual knowledge of any former federal or state ordnance locations in the neighborhood area shall give written notice to a prospective tenant of that knowledge prior to the execution of a rental agreement. In cases of tenancies in existence on January 1, 1990, this written notice shall be given to tenants as soon as practicable thereafter…
Source Link - 7 Cal. Civ. Code § 1710.2(a)(1)
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(a)(1) Subject to subdivision (d), an owner of real property or his or her agent, or any agent of a transferee of real property, is not required to disclose either of the following to the transferee, as these are not material facts that require disclosure:
(A) The occurrence of an occupant’s death upon the real property or the manner of death where the death has occurred more than three years prior to the date the transferee offers to purchase, lease, or rent the real property.
(B) That an occupant of that property was living with human immunodeficiency virus (HIV) or died from AIDS-related complications.
[Editor’s note: the statute does not expressly mandate disclosure, but by negative implication, it makes a landlord potentially liable for not disclosing deaths within the past 3 years that were unrelated to HIV/AIDS.]
Source Link - 8 Cal. Civ. Code § 1940.8.5(b)(1)
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A landlord or authorized agent that applies any pesticide to a dwelling unit without a licensed pest control operator shall provide a tenant of that dwelling unit and, if making broadcast applications, or using total release foggers or aerosol sprays, any tenant in an adjacent dwelling unit that could reasonably be impacted by the pesticide use with written notice that contains the following statements and information using words with common and everyday meaning:
(A) The pest or pests to be controlled.
(B) The name and brand of the pesticide product proposed to be used.
(C) “State law requires that you be given the following information:…
Source Link - 9 Cal. Civ. Code § 1940.8
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A landlord of a residential dwelling unit shall provide each new tenant that occupies the unit with a copy of the notice provided by a registered structural pest control company pursuant to Section 8538 of the Business and Professions Code, if a contract for periodic pest control service has been executed.
Source Link - 10 Cal. Civ. Code § 1940.9(1) & (2)
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If the landlord does not provide separate gas and electric meters for each tenant’s dwelling unit so that each tenant’s meter measures only the electric or gas service to that tenant’s dwelling unit and the landlord or his or her agent has knowledge that gas or electric service provided through a tenant’s meter serves an area outside the tenant’s dwelling unit, the landlord, prior to the inception of the tenancy or upon discovery, shall explicitly disclose that condition to the tenant and shall do either of the following:
(1) Execute a mutual written agreement with the tenant for payment by the tenant of the cost of the gas or electric service provided through the tenant’s meter to serve areas outside the tenant’s dwelling unit.
(2) Make other arrangements, as are mutually agreed in writing, for payment for the gas or electric service provided through the tenant’s meter to serve areas outside the tenant’s dwelling unit. These arrangements may include, but are not limited to, the landlord becoming the customer of record for the tenant’s meter, or the landlord separately metering and becoming the customer of record for the area outside the tenant’s dwelling unit.
Source Link - 11 Cal. Civ. Code § 1954.603(a)
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…On and after July 1, 2017, prior to creating a new tenancy for a dwelling unit, a landlord shall provide a written notice to the prospective tenant as provided in this section. This notice shall be provided to all other tenants by January 1, 2018. The notice shall be in at least 10-point type and shall include, but is not limited to, the following:
(a) General information about bed bug identification, behavior and biology, the importance of cooperation for prevention and treatment, and the importance of and for prompt written reporting of suspected infestations to the landlord. The information shall be in substantially the following form:…
Source Link - 12 Cal. Gov. Code § 8589.45(a)
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In every lease or rental agreement for residential property entered into on or after July 1, 2018, the owner or person offering the property for rent shall disclose to a tenant, in no smaller than eight-point type, the following:
(1) That the property is located in a special flood hazard area or an area of potential flooding, if the owner has actual knowledge of that fact
(2) That the tenant may obtain information about hazards, including flood hazards, that may affect the property from the Internet Web site of the Office of Emergency Services. The disclosure shall include the Internet Web site address for the MyHazards tool maintained by the office.
(3) That the owner’s insurance does not cover the loss of the tenant’s personal possessions and it is recommended that the tenant consider purchasing renter’s insurance and flood insurance to insure his or her possessions from loss due to fire, flood, or other risk of loss…
Source Link - 13 Cal. Civ. Code § 1947.5(a) - (c)
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(a) A landlord of a residential dwelling unit, as defined in Section 1940, or his or her agent, may prohibit the smoking of a cigarette, as defined in Section 104556 of the Health and Safety Code, or other tobacco product on the property or in any building or portion of the building, including any dwelling unit, other interior or exterior area, or the premises on which it is located, in accordance with this article.
(b)(1) Every lease or rental agreement entered into on or after January 1, 2012, for a residential dwelling unit on property on any portion of which the landlord has prohibited the smoking of cigarettes or other tobacco products pursuant to this article shall include a provision that specifies the areas on the property where smoking is prohibited, if the lessee has not previously occupied the dwelling unit.
(2) For a lease or rental agreement entered into before January 1, 2012, a prohibition against the smoking of cigarettes or other tobacco products in any portion of the property in which smoking was previously permitted shall constitute a change of the terms of tenancy, requiring adequate notice in writing, to be provided in the manner prescribed in Section 827.
(c) A landlord who exercises the authority provided in subdivision (a) to prohibit smoking shall be subject to federal, state, and local requirements governing changes to the terms of a lease or rental agreement for tenants with leases or rental agreements that are in existence at the time that the policy limiting or prohibiting smoking is adopted.
Source Link - 14 Cal. Health & Saf. Code § 25915(a)
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…the owner of any building constructed prior to 1979, who knows that the building contains asbestos-containing construction materials, shall provide notice [of]…
(1) The existence of… and location of asbestos-containing construction materials within the building…
(2) Specific locations within the building known to the owner, or identified in a survey known to the owner, where asbestos-containing construction materials are present in any quantity.
(3) General procedures and handling restrictions necessary to prevent, and, if appropriate, to minimize disturbance, release, and exposure to the asbestos…
(4) A summary of the results of any bulk sample analysis, or air monitoring, or monitoring conducted…
(5) Potential health risks or impacts that may result from exposure to the asbestos in the building…
Source Link - 15 Cal. Civ. Code § 1719(a)(1)
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Notwithstanding any penal sanctions that may apply, any person who passes a check on insufficient funds shall be liable to the payee for the amount of the check and a service charge payable to the payee for an amount not to exceed twenty-five dollars ($25) for the first check passed on insufficient funds and an amount not to exceed thirty-five dollars ($35) for each subsequent check to that payee passed on insufficient funds.
Source Link - 16 Cal. Civ. Code § 1946.1(i)
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A landlord or its agent shall not charge a tenant a fee for serving, posting, or otherwise delivering any notice, as described in this section [regarding lease termination].
Source Link - 17 Cal. Civ. Code § 1947.3(b)
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A landlord or its agent shall not charge a tenant any fee for payment by check for rent or security deposit as described in this section.
Source Link - 18 24 Code Fed. Regs. § 30.65 (2023)
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The Director of the Office of Lead Hazard Control and Healthy Homes, or his or her designee, may initiate a civil money penalty action against any person who knowingly violates 42 U.S.C. 4852d… The maximum penalty is $21,018 for each violation.
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