California Residential Lease Agreement

Introduction

This comprehensive guide provides essential information about California residential lease agreements. A California lease agreement is a legally binding contract between a landlord and tenant for the rental of residential property. The agreement establishes the terms of tenancy, including monthly rent, lease duration, security deposits, utilities, late fees, and pet policies.

Upon signing, tenants are typically required to pay the first month's rent, security deposit, and any other applicable fees. California law provides extensive protections for both landlords and tenants, with specific requirements for disclosures, security deposits, rent collection, and lease termination.

Required Disclosures

**California law mandates 18 specific disclosures that landlords must provide to tenants. **Failure to provide these disclosures can result in legal liability, fines, or complications in eviction proceedings.

Ab 1482 Just Cause and Rent Limit Addendum

AB 1482 is a California law that took effect on January 1, 2020, with two main impacts: (1) it limits annual rent increases, and (2) it requires landlords to have "just cause" for terminating tenancies. ^[1]

For any tenancy beginning after July 1, 2020, landlords must provide written notice to all tenants in 12-point font or larger stating:

"California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information."

Exempt Properties: ^[2]

• Units constructed in the last 15 years
• Units restricted by deed as affordable housing
• Certain dormitories owned by educational institutions
• Duplexes where owner occupies one unit
• Single-family homes (if not owned by REIT, corporation, or LLC with corporate member)
• Units already subject to local rent control ordinances

If a property is exempt, landlords must provide an exemption addendum for tenant signature. ^[3]

Bed Bug Disclosure

Landlords must provide tenants with written information about bed bug identification, behavior, biology, and prevention before entering into a lease agreement. ^[4] This disclosure educates tenants on how to identify bed bugs and prevent infestations.

Carbon Monoxide Detector Compliance

Landlords must install and maintain carbon monoxide detectors in all rental units with fossil-fuel-based heaters and/or appliances. ^[5] The detectors must be operational when tenants take possession. While not a formal "disclosure" requirement, landlords should document compliance and tenant awareness.

Carcinogenic Material (proposition 65)

If the property contains known carcinogens listed on the Current Proposition 65 List, landlords with 10 or more employees must provide written warnings. ^{[6] [7] [8]} Warnings must be provided at lease signing and annually thereafter, identifying specific chemicals and exposure sources.

Consumer Agency Reporting (rent Payment Reporting)

Owners of properties with 15+ units, assisted housing developments, and corporate/REIT/LLC landlords must offer tenants the option to have rent payments reported to credit bureaus. ^[9] Landlords may charge up to $10/month or the actual cost, whichever is less. ^[10]

Death on Premises

Landlords must disclose any death that occurred in the rental unit within the last three years, except deaths from HIV or AIDS-related complications. ^[11] This disclosure helps prospective tenants make informed decisions.

Demolition

If the landlord has applied or will apply for a permit to demolish the rental unit, they must notify prospective and current tenants before accepting any rental contract or deposit. ^[12]

Flood Hazard Area

If the property is located in a special flood hazard area, landlords must disclose this information to tenants. ^[13] This allows tenants to obtain appropriate flood insurance if desired.

Lead-Based Paint Disclosure

For rental units built before 1978, landlords must provide a lead-based paint disclosure form and EPA pamphlet informing tenants of the potential presence of toxic paint. ^[14] Both parties must sign the disclosure.

Megan's Law Disclosure

Every California residential lease must include a Megan's Law statement informing tenants that they can access the California Megan's Law database to search for registered sex offenders in their area. ^[15]

Mold Disclosure

Landlords must provide a mold disclosure with every residential lease agreement. ^{[17] [18]} The disclosure informs tenants about mold prevention and health risks. If mold has been remedied, disclosure is not required.

Ordnance Locations

If the property is within one mile of a former federal or state ordnance location (military training area that may contain explosive munitions), tenants must be notified. ^[19]

Pest Control

If the landlord has a written contract with a pest control company for regular property servicing, they must provide tenants with a copy of the pesticides used. ^{[20] [21]} Failure to provide this can result in fines up to $2,500.

Renter Protections Notice (city of Los Angeles Only)

Landlords in the City of Los Angeles must attach a Renter Protections Notification to all lease agreements. ^[22] This disclosure informs tenants of their rights under Los Angeles municipal law.

Shared Utilities

If the rental unit has a shared electrical or gas meter between multiple units, the lease agreement must explain how utilities are billed. ^[23] Landlords must enter into a written agreement with tenants regarding utility payments.

Smoking Policy

Any lease agreement containing a non-smoking policy must include an addendum specifying which areas around the building prohibit smoking. ^[24]

Water Submetering Disclosure

If tenants are charged separately for water (submetered property), landlords must provide a written billing estimate and explanation of how charges are calculated. ^[25] The estimate can be the average median bill for any three of the past six months.

Security Deposits

California law underwent significant changes in 2024 regarding security deposit limits, effective July 1, 2024.

**Maximum Amount: **Landlords may collect a maximum of one month's rent as a security deposit. ^[26] This applies to both furnished and unfurnished units.

**Interest on Deposits: **California does not require landlords to pay interest on security deposits, though local rent-controlled jurisdictions may have different requirements.

**Return Timeline: **Landlords must return security deposits within 21 days after the tenant vacates the premises. ^[29]

**Itemized Statement Required: **Yes. Landlords must provide an itemized statement outlining the amount and reason for each deduction when refunding the deposit. ^[30] The statement must include photographs of the property before and after repairs. ^[31]

**Move-Out Inspection: **Landlords must notify tenants in writing of their right to a move-out inspection and the opportunity to remedy damages before deductions are made. ^[32]

**Separate Bank Account: **No state requirement exists for storing security deposits in separate bank accounts.

Rent Payments

**Grace Period: **Rent is due on the date specified in the lease agreement. California law does not require landlords to provide a grace period unless agreed to in the lease. If rent is late, landlords may serve a 3-day notice to pay or quit.

**Maximum Late Fee: **California statutes do not specify a maximum late fee amount. ^[33] Late fees must be "reasonable" and represent a reasonable estimate of costs incurred by the landlord due to late payment. Los Angeles County has established 5% of monthly rent as a reasonable standard. ^[34]

***Proposed Legislation: ***Bills SB-681 and SB-381 propose limiting late fees to 2% of monthly rent with a 7-day grace period, but these are not yet enacted into law.

**NSF (Bounced Check) Fee: **Landlords may charge $25 for the first bounced check and $35 for each subsequent bounced check. ^[35]

**Withholding Rent: **Tenants may withhold rent or make deductions for repairs if: (1) the property is unsafe or uninhabitable, (2) the landlord was notified in writing, and (3) repairs have not been made within 35 days. ^[36] Tenants may deduct up to one month's rent to cover repair costs. ^[37]

Landlord's Right to Enter

**Standard Access: **Landlords must provide at least 24 hours' notice before entering the rental unit for showings, maintenance, or repairs. ^[38] Notice is considered reasonable if given 24 hours in advance.

**Emergency Access: **In the event of an emergency or pursuant to a court order, landlords may enter without notice. ^[39]

Breaking a Lease

**Non-Payment of Rent: **If a tenant fails to pay rent, landlords may serve a 3-day notice to pay rent or quit. ^[40] The tenant must pay all rent due (including late fees) or vacate the property within three days.

**Non-Compliance (Lease Violations): **Landlords may deliver a 3-day notice to cure or quit for fixable violations, or a 3-day notice to quit for unfixable violations. ^[41]

**Tenant Maintenance Obligations: **Tenants have a legal obligation to maintain the rental unit. If they substantially ignore this responsibility, they'll be liable for necessary repairs. ^[42]

**Lockouts Prohibited: **Landlords cannot change locks to prevent tenants from entering the rental unit. ^[43]

**Early Termination by Tenant: **If a tenant vacates before the lease end date, the landlord has the right to recover lost rent until a new tenant is in place. ^[44] Landlords must make good-faith efforts to re-rent the property.

Abandonment

**Presumption of Abandonment: **If rent is overdue by 14 days and the landlord reasonably believes the tenant has abandoned the property, the landlord may give notice that the lease will terminate if no response is received. ^[45]

**Unclaimed Property: **If tenants leave personal property after the lease ends, landlords must provide notice advising tenants of storage costs, where property may be claimed, and a deadline (15 days if delivered personally, 18 days if mailed). ^[46] If property is worth less than $700, the landlord may dispose of it. If worth more than $700, it must be sold at auction with proceeds returned to the tenant or county treasury, less landlord costs. ^[47]

Lease Termination

**Month-to-Month Tenancy: **Landlords may terminate a month-to-month tenancy with a 30-day notice if the tenancy has lasted less than one year. ^[48] If the tenancy has been in effect for one year or longer, a 60-day notice is required. ^[49]

**Just Cause Requirements: **Properties subject to AB 1482 require "just cause" for termination after 12 months of continuous tenancy. Valid reasons include at-fault causes (non-payment, lease violations, criminal activity) and no-fault causes (owner move-in, withdrawal from rental market, substantial remodeling). ^[50]