In the ever-evolving landscape of landlord-tenant law in California, keeping abreast of the latest legal requirements is paramount for landlords. Not only does this protect you as a property owner, but it also safeguards the rights of your tenants. This blog post aims to shed light on critical elements that must be included in lease agreements for single-family homes in California, emphasizing new mandates that have been introduced since 2021.
Understanding California's Lease Requirements
When drafting a lease for a single-family home in California, several key components must be included to ensure the agreement is legally binding and compliant with state laws:
- Identifying Information: The lease must clearly list the names of the landlord and tenant(s), as well as a detailed description of the rental property.
- Term of Lease: Specify the start and end dates of the rental period, indicating whether it's a fixed-term lease or a month-to-month arrangement.
- Rent Details: Clearly state the rent amount, due dates, acceptable payment methods, and any late fees.
- Security Deposit: Outline the amount, potential deductions, and the process/timeline for return post-tenancy as per California law.
- Legal Right to Occupy: Affirm the tenant’s right to legally occupy the rental unit as their residence.
- Entry to Property: Describe the landlord's right to access the property, ensuring compliance with California's notice requirements.
- Maintenance and Repairs: Clarify the responsibilities of both landlord and tenant regarding property maintenance, repair needs, and reporting procedures.
For an exhaustive list of requirements, see https://www.courts.ca.gov/documents/California-Tenants-Guide.pdf ↗
Recent Legislative Changes Since 2021
Since 2021, California has introduced several new requirements impacting lease agreements:
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Rent Cap Protections: Under the California Tenant Protection Act of 2019 (AB 1482) ↗, which took full effect from January 1, 2020, landlords need to be aware of statewide rent caps. Leases must include a disclosure regarding these protections. "Landlords cannot raise rent more than 10% total or 5% plus the percentage change in the cost of living – whichever is lower – over a 12-month period." There may be local laws that provide additional renter rights. See https://oag.ca.gov/consumers/general/landlord-tenant-issues ↗ for details.
- Note: properties not covered by the Act include "Single-family homes not owned or controlled by a corporation or real estate investment trust (the Act does apply to single-family homes owned or controlled by a corporation or real estate investment trust)."
- Ensure you include the requisite notices that you are not subject to AB 1482, including those needed in your lease itself.
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Eviction Protections: Again under the California Tenant Protection Act, there are just cause eviction rules that provide protections for renters that must be covered in the lease.
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Pest Infestation Disclosure: Landlords are now required to provide written disclosures about pest infestation and mitigation actions taken before tenant move-in, as part of the ongoing effort to maintain habitable living conditions. For details see https://americanlandlord.com/california-landlord-tenant-laws/california-landlord-pest-control-disclosure/ ↗
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No longer in effect: ~~COVID-19 Requirements~~~~: Due to the COVID-19 pandemic, there have been temporary ordinances enacted that may affect lease terms, including moratoriums on evictions and modifications to rent increase caps. Landlords must stay informed about these changing regulations to ensure compliance.~~
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Only for Large Operators: [link ↗] ~~Rental Payment Reporting~~~~: As of July 1, 2021, California allows tenants to request rental payment history from their landlords to be reported to credit bureaus. This aims to help tenants build credit histories and must be acknowledged in lease agreements.~~
Staying informed about these legal requirements is crucial for landlords to avoid costly penalties and potential disputes. For a more detailed discussion on how these changes might affect your lease agreements and for up-to-date legal counsel, speak with a licensed California attorney who focuses on California Landlord Tenant Law.
Remember, this blog post is for informational purposes only and does not constitute legal advice. Additionally, the author is not a licensed attorney in California and makes no representations as to the accuracy or completeness of this content. Additional resources can be consulted including
- https://oag.ca.gov/system/files/media/Tenant-Protection-Act-Landlords-and-Property-Managers-English.pdf ↗
- https://belonghome.com/blog/california-rental-law-changes ↗
- https://www.mellorlawfirm.com/real-estate-education/rental-disclosures-that-are-required-in-california-renters-agreement/ ↗
Given the complexities of landlord-tenant laws and their continuous evolution, seeking personalized legal counsel is always advisable.
