Becoming a landlord in California for the first time? Congrats, but don’t skip the paperwork. A solid lease agreement California landlords can rely on is your best protection when renting out your property, and trust me, you’re going to need it.
But with the state’s complex rental laws, it’s totally normal to feel unsure about what to include, what’s required, and how to stay compliant without getting overwhelmed. I mean, California has some pretty specific rules that can catch new landlords off guard.
This FAQ breaks down common questions first-time landlords ask, so you can rent with confidence, avoid legal slip-ups, and protect your investment from day one.
Do I Really Need a Written Lease in California?
Technically, leases under one year can be oral, but here’s the thing: written leases are strongly recommended, and honestly, you’d be crazy not to use one. Why make things harder for yourself?
A written lease clearly outlines the rent amount and due date, duration of the rental, security deposit details, and who’s responsible for maintenance and repairs. Without one, resolving disputes becomes incredibly difficult because it’s just your word against theirs.
A written lease also proves you’re complying with state and local housing laws, which can be a lifesaver if things go sideways. Plus, it makes you look professional and serious about your business.
What Disclosures Are Legally Required?
California law mandates several disclosures in every lease, and you can’t just skip these because they seem like a hassle. Missing them can result in fines or weaken your legal protections when you need them most.
Required disclosures include lead-based paint warnings if the property was built before 1978, flood hazard risk information, bed bugs and mold disclosures that nobody wants to think about, pest control services details, and utility sharing arrangements if applicable.
Always use a current lease template that includes these required sections, or better yet, have an attorney review your lease before you start using it. It’s way cheaper than dealing with problems later.
How Much Can I Charge for a Security Deposit?
The rules here are pretty straightforward. You can charge up to two months’ rent for an unfurnished unit, or up to three months’ rent for a furnished unit. Don’t try to get creative and go over these limits.
Security deposits must be returned within 21 days of move-out, along with a written itemized list of deductions if you’re keeping any of the money. This isn’t negotiable, and the timeline is strict.
Improper handling or delays can result in legal penalties, including having to pay double the deposit amount in damages. That can get expensive fast, so make sure you understand the process before you collect that first deposit.
Can I Raise the Rent or Evict at Will?
Nope, not anymore. Under California’s Tenant Protection Act, which is also called AB 1482, annual rent increases are capped at typically 5% plus local inflation for most properties over 15 years old.
You must give 30 or 90 days’ notice for rent increases, depending on the percentage you’re raising it. And evictions require “just cause” after a tenant has been in place for 12 or more months.
Just causes include nonpayment of rent, lease violations, or owner move-in situations, but the rules can vary if your unit is exempt or under local rent control. This is definitely different from how things used to work.
What Are Common Mistakes First-Time Landlords Make?
There are several pitfalls that new landlords fall into pretty regularly. Using outdated or generic lease templates is a big one because laws change and you need current forms.
Failing to document the condition of the unit before move-in is another mistake that’ll bite you later. Take lots of photos and do a detailed walkthrough with your tenant.
Ignoring local rent control rules is dangerous because some cities have their own additional requirements. Charging illegal or excessive fees will get you in trouble, and mishandling deposit returns is a common source of disputes.
Also, don’t overlook communication. Tenants who understand expectations are way less likely to cause problems. Keep detailed records, respond to repair requests promptly, and consider joining a local landlord association for legal updates and support.
Don’t Wing It When Money’s on the Line
Your first lease doesn’t have to be overwhelming if you take it step by step. With the right information and a legally sound lease agreement, California landlords can avoid unnecessary stress and build a strong foundation for their rental business.
Start by knowing the rules, using proper documentation, and staying proactive about your rights and responsibilities. It’s not rocket science, but you do need to pay attention to the details.
If you ever feel unsure about something, don’t just guess and hope for the best. Consult a property attorney or experienced advisor to help you stay compliant and confident. It’s way cheaper than fixing mistakes after they happen.