California Standard Residential Lease Agreement

Legal Framework

California residential leases are governed by multiple layers of law:

State Law: California Civil Code Division 3, Part 4, Title 5, Chapter 2 ("Hiring of Real Property") contains the primary landlord-tenant laws.^[2]

Tenant Protection Act (AB 1482): Effective January 1, 2020, this law caps annual rent increases at 5% + local CPI (or 10%, whichever is lower) and requires "just cause" for evictions after 12 months of tenancy.^[3]

Federal Law: The federal Fair Housing Act (42 U.S.C. 3601-3619) prohibits discrimination, and lead-based paint disclosure is required for pre-1978 housing under 24 CFR Part 35.^[4]

Local Ordinances: Many California cities (San Francisco, Los Angeles, Oakland, San Jose, etc.) have additional rent control and tenant protection ordinances that may provide greater protections than state law.

Required Disclosures

California law requires landlords to provide numerous disclosures before or at the time of signing a lease agreement. Failure to provide required disclosures can result in legal consequences.

1. Lead-Based Paint Disclosure (Conditional)

If the property was built before 1978, landlords must provide the federally-required lead-based paint disclosure and the EPA pamphlet "Protect Your Family From Lead in Your Home."^[4]

2. Bed Bug Disclosure

Landlords must provide information about bed bugs, including their behavior and biology, the importance of cooperation for prevention and treatment, and the importance of promptly reporting suspected infestations.^[5]

3. Death on Premises

Landlords must disclose any deaths that occurred on the property within the past three (3) years. Deaths from HIV/AIDS-related illness are exempt from this disclosure requirement.^[6]

4. Demolition Notice

If the landlord has applied for or intends to apply for a demolition permit, this must be disclosed to prospective tenants before accepting any deposits or screening fees, including the estimated demolition date.^[7]

5. Flood Hazard Area

For leases entered on or after July 1, 2018, landlords must disclose if the property is located in a special flood hazard area or area of potential flooding if they have actual knowledge of this fact. The disclosure must also inform tenants about the Office of Emergency Services' MyHazards website and recommend renter's insurance.^[8]

6. Just Cause Eviction / AB 1482 Notice

Unless the property is exempt under Civil Code Sections 1947.12(d)(5) and 1946.2(e)(8), landlords must provide tenants with a statement explaining the rent increase caps and just cause eviction protections. Exempt properties require a different notice informing tenants the property is not subject to these protections.^[9]

7. Megan's Law (Sex Offender Registry)

Every lease must include the following 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."^[10]

8. Methamphetamine/Fentanyl Contamination

If the property was previously contaminated by methamphetamine or fentanyl production and has been remediated, the landlord must provide a copy of the remediation order signed by the health officer.^[11]

9. Military Ordnance Location

Landlords must disclose if the property is located within one (1) mile of a current or former federal or state military ordnance location where live munitions or explosives were used.^[12]

10. Pest Control Treatments

Landlords must notify tenants of any ongoing pest control treatments, including the names and brands of pesticides used. A specific warning statement about pesticide toxicity as prescribed by Civil Code Section 1940.8.5 must be included in the rental agreement.^[13]

11. Shared Utility Meters

If gas or electric service to the unit also serves other areas (shared metering), the landlord must disclose this and explain how utility costs will be allocated among tenants.^[14]

12. Smoking Policy

If smoking is prohibited or limited on the property, the lease must include a clause describing the specific areas where smoking is prohibited or allowed.^[15]

13. Toxic Mold

Landlords who know or have reason to know that mold exists in the rental unit that exceeds permissible exposure limits or poses a health threat must provide written disclosure to prospective and current tenants.^[16]

14. Water Submeter

If the tenant will be separately billed for water service through a submeter, the landlord must provide written disclosure including all billing information and an estimate of monthly water costs.^[17]

15. Condominium Conversion

Landlords must notify tenants if the property is located in an apartment building that has been approved for conversion to a condominium project.

Security Deposit Laws

IMPORTANT UPDATE: California's security deposit laws changed significantly on July 1, 2024 under Assembly Bill 12 (AB 12).^[18]

Maximum Security Deposit Amount (Effective July 1, 2024):

• General Rule: One (1) month's rent maximum, regardless of whether the unit is furnished or unfurnished.^[18]

• Service Member Protection: The small landlord exception does not apply to service members, who are always protected by the one-month maximum.

Return of Security Deposit:

Landlords must return the security deposit (or provide an itemized statement of deductions) within 21 calendar days after the tenant vacates the premises.^[19]

Permissible Deductions:

• Unpaid rent
• Repair of damages beyond ordinary wear and tear caused by the tenant
• Cleaning necessary to return the unit to its condition at the start of tenancy
• Restoration of personal property or appurtenances as specified in the lease

Landlords cannot deduct for ordinary wear and tear or for professional carpet cleaning unless reasonably necessary.^[19]

Documentation Requirements:

• If deductions exceed $125, landlords must provide receipts for labor and materials.
• Beginning July 1, 2025, landlords must take photographs of the unit at the start of tenancy.
• Beginning April 1, 2025, landlords must take photographs before and after repairs when making deductions.^[19]

Penalties for Non-Compliance:

Bad faith retention of a security deposit may result in statutory damages of up to twice the amount of the security deposit, in addition to actual damages.^[19]

Domestic Violence Protection: Landlords may not deduct from a tenant's security deposit if damage was caused by the tenant's abuser, provided the tenant did not invite the abuser onto the property.

Rent Payment Laws

Grace Period:

California law does not mandate a grace period for rent payments. However, landlords cannot charge late fees until rent is at least 5 days late. Landlords may voluntarily include a grace period in the lease agreement.

Late Fees:

Late fees must be "reasonable" under California law. The maximum late fee is 6% of monthly rent. Late fees must be specified in the lease agreement to be enforceable.

NSF (Bounced Check) Fees:

Under Civil Code Section 1719, landlords may charge:

• $25** for the first bounced rent check**
• $35 for each subsequent bounced rent check to the same landlord^[20]

Rent Increases (AB 1482 Rent Cap):

For properties subject to AB 1482, annual rent increases are capped at 5% + local Consumer Price Index (CPI), or 10%, whichever is lower.^[3]

Rent Increase Notice Requirements:

• 30 days' notice** for increases of 10% or less (within any 12-month period)**
• 90 days' notice for increases greater than 10% (within any 12-month period)^[21]

Landlord Obligations

Implied Warranty of Habitability:

Under California Civil Code Section 1941.1, landlords must maintain rental units in a habitable condition. This warranty is implied in every residential lease and cannot be waived, even if the tenant signs an agreement accepting the property in poor condition.^[22]

Minimum habitability requirements include:

• Waterproofing and weather protection of roof and exterior walls
• Plumbing facilities in good working order
• Hot and cold running water
• Heating facilities in good working order
• Electrical lighting with wiring and equipment in good working order
• Adequate sanitary facilities (garbage receptacles, etc.)
• Floors, stairways, and railings in good repair
• Working locks on doors and windows
• Carbon monoxide detectors (for units with fossil fuel-burning appliances)^[22]

Right of Entry:

Landlords must provide at least 24 hours' written notice before entering a rental unit, except in emergencies. Entry is only permitted during normal business hours unless the tenant consents otherwise. The notice must include the date, approximate time, and purpose of entry.^[23]

Permissible reasons for entry include:

• Necessary or agreed repairs, alterations, or improvements
• Showing the unit to prospective tenants, buyers, or contractors
• Emergencies (no notice required)
• Court order
• Tenant has abandoned or surrendered the premises

Tenant Rights and Protections

Repair and Deduct Remedy:

Under Civil Code Section 1942, tenants may repair habitability defects and deduct the cost from rent if the landlord fails to make repairs within a reasonable time (typically 30 days).^[24]

Requirements:

• Tenant must provide written or oral notice to landlord
• Repair cost cannot exceed one month's rent
• Remedy limited to twice per 12-month period
• Tenant must not have caused the defect

Protection from Retaliation:

Under Civil Code Section 1942.5, landlords may not retaliate against tenants for exercising their legal rights. If a landlord increases rent, decreases services, or attempts eviction within 180 days of a tenant's protected activity (such as complaining to a housing authority), retaliation is presumed.^[25]

Protected activities include:

• Complaining to the landlord about habitability issues
• Reporting code violations to government agencies
• Exercising the repair and deduct remedy
• Organizing or participating in a tenants' union
• Reporting landlord to immigration authorities is specifically prohibited as retaliation

Just Cause Eviction Protection (AB 1482):

After a tenant has occupied a unit for 12 months, landlords must have "just cause" to terminate the tenancy. Just cause includes "at-fault" reasons (nonpayment, lease violations) and "no-fault" reasons (owner move-in, substantial remodel). No-fault evictions require relocation assistance equal to one month's rent.^[3]

Lease Termination Requirements

Fixed-Term Lease:

A fixed-term lease automatically terminates at the end of the lease period. No notice is required from either party unless specified in the lease. If neither party provides notice and the tenant remains, the tenancy typically converts to a month-to-month arrangement.

Month-to-Month Tenancy - Landlord Notice:

• 30 days' notice** if the tenant has resided in the unit for less than one year**
• 60 days' notice if the tenant has resided in the unit for one year or more^[26]

Month-to-Month Tenancy - Tenant Notice:

Tenants must provide 30 days' written notice to terminate a month-to-month tenancy, regardless of how long they have occupied the unit.

Section 8 Tenants:

Tenants receiving Section 8 housing assistance are entitled to 90 days' notice for termination of tenancy.

Fair Housing Protections

California provides broader fair housing protections than federal law. The California Fair Employment and Housing Act (FEHA) prohibits discrimination in housing based on the following protected classes:^[27]

Protected Classes in California:

• Race
• Color
• Religion
• Sex (including pregnancy, childbirth)
• Sexual orientation
• Gender identity and gender expression
• National origin
• Ancestry
• Familial status (families with children under 18)
• Disability (physical, mental, medical conditions)
• Age
• Marital status
• Military or veteran status
• Genetic information
• Source of income (including Section 8 vouchers and other rental assistance)^[27]

Complaints: Fair housing complaints may be filed with the California Civil Rights Department (CRD) or the U.S. Department of Housing and Urban Development (HUD).

How to Create a Lease Agreement

A California residential lease agreement should include the following essential elements:

Step 1: Identify the Parties

Include the full legal names and contact information of the landlord (or property management company) and all adult tenants who will be living in the property.

Step 2: Describe the Property

Provide the complete address of the rental property, including unit number, city, state, and ZIP code. Include a description of any included amenities, parking spaces, or storage areas.

Step 3: Specify the Lease Term

State the exact start and end dates of the lease. Standard residential leases typically run for 12 months. Include provisions for what happens at the end of the term (renewal, month-to-month conversion, etc.).

Step 4: Establish Rent Terms

Specify the monthly rent amount, due date, acceptable payment methods, and where rent should be paid. Include any late fee provisions (maximum 6% after 5-day grace period).

Step 5: Document the Security Deposit

State the security deposit amount (maximum one month's rent for most landlords as of July 1, 2024) and the conditions under which it may be withheld.

Step 6: Include Required Disclosures

Attach all required disclosures (see Section 3 of this guide). California requires up to 15 different disclosures depending on the property's characteristics.

Step 7: Define Rules and Policies

Include provisions regarding pets, smoking, guests, noise, alterations to the property, maintenance responsibilities, and any other house rules.

Step 8: Sign and Date

Both the landlord (or authorized agent) and all adult tenants must sign and date the agreement. While notarization is not required, both parties should retain signed copies of the complete lease and all attachments.