California Property Management Laws & Landlord-Tenant Laws

California's property management laws, while not as complex as in other states, are still extensive and can be challenging to navigate. All property managers must operate under a licensed real estate broker unless they hold their own license. These laws are designed to ensure tenant safety. This guide provides a succinct overview of California's property management laws, including where to find the official laws and how to access more detailed information. It serves as a quick reference for property managers and landlords on legal requirements when leasing a property in California. 

Key California landlord, tenant and property management laws include:

• Licensing Laws: Property managers must hold a real estate broker license or operate under a licensed broker.
• Rental Application Laws: Landlords can charge a screening fee of up to $30 per applicant and access a consumer credit report during the screening process.
• Security Deposit Laws: Non-refundable move-in fees are prohibited. Maximum security deposit for an unfurnished property is two months' rent, and for a furnished property, it is three months' rent.
• Lease and Termination Laws: Both fixed-term and month-to-month leases are recognized. Tenants have three business days to pay rent or face eviction. A 30-day notice is mandatory for termination of month-to-month leases.
• Rent and Late Fee Laws: Rent increase is limited to 5% plus inflation or 10% of the previous year's lowest rate. No state-mandated grace period for late rent payments.
• Disclosure Laws: Landlords must disclose potential health risks from mold and the presence of lead paint dust or corroded lead pipes. They must also disclose the presence of a registered sex offender in the same ZIP code and the details of shared utility costs.
• Landlord Responsibility Laws: Landlords must provide reasonable notice before entering a tenant's unit and maintain a habitable property. Retaliatory actions against tenants are prohibited.

California Property Management Laws

In California, it's mandatory for individuals managing properties professionally on behalf of owners to hold a proper license, as per the state law (10131-b). A property management company may employ unlicensed agents for limited duties, but they must operate under a licensed broker's supervision. To obtain a real estate broker license in California, applicants must be at least 18 years old, a legal U.S. citizen, have no criminal record, successfully complete three approved college-level courses, pass a background check, provide fingerprints, and successfully pass a licensing exam. 

California Rental Application Laws

In California, landlords and property managers are legally permitted to charge a screening fee of up to $30 per applicant, in accordance with code 1950.6. This fee should not exceed the cost of obtaining necessary information such as credit reports. While the law does not specifically address the issue of obtaining criminal background information, landlords are legally allowed to access a consumer credit report during the screening process. However, they must adhere to the Department of Fair Employment and Housing laws (12920) to avoid discrimination based on factors such as race, religion, disability, marital status, sex, gender, or sexual orientation. 

California Security Deposit Laws

In California, landlords are permitted to charge security deposits, but non-refundable move-in fees are prohibited under section 1950.5. The maximum security deposit for an unfurnished property is two months' rent, while for a furnished property, it is three months' rent as per section 1950.5-c. There are no specific state laws regarding the holding of security deposits, but other local or federal laws may apply.

Landlords have 21 days after a tenant's departure to return any unused portion of the security deposit, according to section 1905.5-g-1. Landlords can withhold security deposits for reasons such as cleaning, repair costs, and unpaid rent under section 1905.5-f-1.

If a landlord fails to return the security deposit or provide an itemized receipt within a reasonable time frame, tenants can sue in small claims court under section 1905.5-n, provided the total amount is $10,000 or less.

No specific state laws address forfeiture of security deposits, but other laws may apply. 

California Laws About Leases and Lease Termination

In California, both fixed-term and month-to-month leases are legally recognized with no specific stipulated term length. Tenants who fail to pay rent have three business days to rectify the situation or face eviction. For month-to-month leases, a 30-day notice is mandatory for termination.

Tenants can terminate a lease without penalty under certain circumstances including being a victim of abuse, starting active military duty, or if the landlord fails to maintain a safe residence or violates tenant privacy. Service members are allowed to break a lease due to military reasons, provided they give written notice and their deployment is at least 50 miles away for 90 days or longer.

Victims of domestic violence can terminate a lease without notice or penalty. In terms of property changes resulting in lease termination, a 30-day notice is required for month-to-month leases, while for fixed-term leases, changes can only be made post the lease term unless the Ellis Act is invoked. 

California Laws About Rent and Late Fees

Under California's AB 1482, landlords are limited to raising rent no more than 5% plus inflation or 10% of the previous year's lowest rate. There are no state laws dictating the maximum rent charge, but local or federal laws may apply. No state-mandated grace period exists for late rent payments, though landlords may set their own within the lease agreement. Late fee amounts are also not governed by state law, but could be influenced by local or federal legislation. 

California Legally Required Disclosures

California law mandates landlords to disclose certain information to prospective tenants. While there are no specific laws regarding property ownership disclosures, local or federal laws may apply. There's also no restriction on who can serve disclosures.

Landlords must alert tenants to potential health risks from mold before signing a lease agreement (26148-a), distributing a booklet provided by the California Department of Health. For residences built before January 1, 1978, landlords must disclose the presence of lead paint dust or corroded lead pipes (26148).

Additional mandatory disclosures include the presence of a registered sex offender in the same ZIP code (2079-10-a), and the details of shared utility costs among tenants in separate units (1940.9). 

California Laws About Landlord Responsibilities

Landlords in California must adhere to specific rules regarding property entry, maintenance, and tenant relations. They are required to provide reasonable written notice before entering a tenant's unit during business hours, with exceptions made for emergencies, tenant consent, property abandonment, court orders, or health and safety regulations. Entry without notice is not permissible, and tenants have the right to refuse if notice is not given or if the attempted entry is outside business hours.

Landlords are also obligated to maintain a habitable property, which includes well-kept plumbing, gas, heating, lighting, electrical systems, and sanitary grounds. They must also ensure tenants have access to working heat, electricity, and clean running water. While there are no specific laws on amenities, landlords are required to provide a working deadbolt and keys.

California law does not require landlords to supply move-in inspections or certificate disclosures, but they must handle abandoned tenant property responsibly. If a tenant leaves property behind, landlords must notify the tenant in writing and store the property for a total of 33 days. Property valued under $300 can be kept or sold by the landlord, while property over $300 must be auctioned and proceeds donated to the county.

Retaliatory actions against tenants for filing complaints or joining tenant unions are strictly prohibited. Landlords must adhere to these regulations to ensure a fair and respectful landlord-tenant relationship. 

Bottom Line

In conclusion, California's property management laws ensure a balance of power between landlords and tenants, promoting a fair and respectful relationship. Landlords must adhere to these laws to maintain a safe and habitable environment for their tenants. While these laws may seem extensive, they are essential for protecting the rights and interests of both parties. Understanding these laws not only helps landlords avoid legal issues but also empowers tenants to know their rights.