Landlord and Tenant Laws in California – 2025

California’s rental market operates under some of the most tenant-friendly laws in the United States, creating a complex web of regulations that property investors must navigate carefully. Landlords in California face strict requirements around rent control, security deposits, habitability standards, and eviction procedures that can significantly impact investment returns if not properly understood. These California landlord-tenant laws have evolved rapidly in recent years, with new legislation regularly changing the landscape for rental property owners.

The state’s approach to rental regulations varies dramatically by location, with cities like San Francisco and Los Angeles implementing additional rent control measures beyond state requirements. Property investors must balance compliance with local ordinances, state laws, and federal fair housing requirements while maintaining profitable operations. Understanding these legal requirements becomes even more critical when considering passive investment strategies that don’t involve direct property management.

Modern real estate investment has shifted toward fractional ownership models that allow investors to participate in California’s rental market without the traditional barriers of full property ownership. This approach lets investors benefit from California’s strong rental demand while professional management handles the complex legal compliance requirements that come with the state’s extensive tenant protection laws.

Key Takeaways

• California enforces strict tenant protection laws including rent control limits, security deposit caps, and detailed eviction procedures that landlords must follow precisely
• Property investors can avoid direct legal compliance responsibilities through fractional real estate investing where professional management handles all landlord-tenant law requirements
• Understanding local rent control ordinances and state habitability standards is essential for profitable rental property investment in California’s regulated market

Key Landlord and Tenant Laws in California

California limits security deposits to one month’s rent starting July 2024, requires specific notice periods for evictions, and provides strong tenant protections through the Tenant Protection Act of 2019. These laws create strict requirements for both property owners and renters.

Security Deposit Rules California

California’s security deposit laws changed significantly in 2024. California’s AB 12 limits security deposits to one month’s rent for both furnished and unfurnished units starting July 1, 2024.

Small landlords who own two or fewer properties can charge up to two months’ rent as a security deposit. This exception helps smaller property owners protect their investments.

Security Deposit Requirements:

• Maximum deposit: One month’s rent (two months for small landlords)
• Return timeline: 21 days after tenant moves out
• Required documentation: Itemized list of any deductions
• Penalties for violations: Up to three times the deposit amount

Landlords must return deposits within 21 days along with written explanations for any deductions. Valid deductions include unpaid rent, cleaning costs beyond normal wear, and actual property damage.

Property owners cannot deduct for normal wear and tear like faded paint or worn carpets. California tenant protections require landlords to provide receipts for repair costs over $126.

Eviction Laws for California Landlords

California eviction laws require specific notice periods and valid reasons for removing tenants. The Tenant Protection Act of 2019 created “just cause” eviction requirements for most rental properties.

Valid Reasons for Eviction:

• At-fault: Non-payment of rent, lease violations, illegal activities
• No-fault: Owner move-in, substantial renovations, withdrawal from rental market

Landlords must provide 30-day notice for month-to-month tenancies under one year. Tenancies over one year require 60-day notice for no-fault evictions.

Owner move-in evictions require landlords or immediate family members to occupy the property for at least 12 months. Violating this rule can result in penalties up to $10,000 plus actual damages.

No-fault evictions require relocation assistance payments. The amount varies by location but typically equals one to three months’ rent depending on local ordinances.

Tenant Rights in California

California tenant rights include protection from discrimination, the right to habitable housing, and privacy protections. The state’s comprehensive tenant protection laws rank among the strongest in the United States.

Core Tenant Rights:

• Habitability: Safe living conditions with working plumbing, heating, and electrical systems
• Privacy: 24-hour advance notice for landlord entry (except emergencies)
• Discrimination protection: Fair housing laws prohibit bias based on race, religion, income source
• Rent control: Annual increases capped at 5% plus local inflation or 10%, whichever is lower

Tenants can withhold rent or use “repair and deduct” remedies when landlords fail to maintain habitable conditions. The repair and deduct option allows tenants to fix problems and subtract costs from rent up to one month’s rent amount.

California landlord-tenant laws also protect tenants from retaliation. Landlords cannot evict, raise rent, or reduce services within 180 days of tenant complaints about housing conditions or rent increases.

Rent Control and Lease Agreements

California’s rent control laws limit how much landlords can increase rent annually, while lease agreements must follow specific legal requirements. These regulations affect lease termination procedures and rental agreement terms statewide.

California Rent Control Act Explained

The California Tenant Protection Act of 2019 caps annual rent increases at 5% plus local inflation, not exceeding 10% total. This applies to properties over 15 years old, excluding single-family homes owned by individuals.

Covered Properties:

• Apartments and condos in buildings with 2+ units
• Properties built before 2009 (as of 2024)
• Corporate-owned single-family rentals

Exempt Properties:

• New construction (first 15 years)
• Single-family homes owned by individuals
• Properties with deed restrictions

Landlords must provide 30-day notice for rent increases up to 10%. Increases over 10% require 90-day notice and are generally prohibited under California landlord tenant laws.

Local rent control ordinances in cities like San Francisco and Los Angeles may impose stricter limits. These local laws often override state regulations when they provide greater tenant protections.

Creating a Legal Lease in California

California law requires specific disclosures and terms in rental agreements. Written leases provide better protection than verbal agreements for both parties.

Required Disclosures:

• Lead-based paint (pre-1978 properties)
• Registered sex offenders database information
• Bedbug infestation history
• Shared utility arrangements

Essential Lease Terms:

• Rent amount and due date
• Security deposit amount (maximum 2 months’ rent for unfurnished units)
• Property condition and tenant responsibilities
• Pet policies and additional fees

The lease must specify the rental period, payment methods, and late fee policies. California limits late fees to 6% of monthly rent or $30 for rent under $500.

Landlords cannot include clauses that waive tenant rights or require tenants to pay attorney fees. Any such provisions are legally unenforceable under state rental laws.

Renewal and Termination Rules

California’s “just cause” eviction laws require valid reasons for lease termination in covered properties. Month-to-month tenancies need proper notice periods based on tenancy length.

Notice Requirements:

• 30 days: Tenancies under 1 year
• 60 days: Tenancies over 1 year
• 90 days: Rent increases over 10%

Just Cause Reasons:

• Non-payment of rent
• Lease violations
• Property damage
• Illegal activities

For lease termination without cause, landlords must pay relocation assistance equal to one month’s rent in many cases. This applies to no-fault evictions like owner move-ins or major renovations.

Written rental agreements automatically convert to month-to-month after the lease term expires unless either party provides proper notice. California tenant rights include protection from retaliatory evictions for exercising legal rights.

Landlords cannot terminate leases in retaliation for tenant complaints about habitability issues or rent control violations. Such actions may result in legal penalties and tenant damages.

Maintenance and Repairs Responsibilities

California landlords must maintain specific systems and amenities in rental properties, while tenants handle basic upkeep and cleanliness. Both parties have clear timelines for repair requests, with tenants gaining legal remedies when landlords fail to act within 30 days.

Landlord Maintenance Duties California

California landlords are legally required to maintain essential systems that affect health and safety. The California repair and maintenance laws specify exact amenities landlords must keep in working order.

Required Maintenance Items:

• Heating and electrical systems
• Hot and cold potable water
• Plumbing fixtures and wiring
• Ventilation and lighting systems
• Smoke alarms and carbon monoxide detectors
• Weather protection on doors and windows
• Common areas in multi-unit buildings
• Mold and moisture prevention
• Adequate garbage storage
• Exterior locks

Landlords cannot refuse repairs even if tenants are behind on rent. Property owners must address any issues that threaten habitability standards.

The implied warranty of habitability makes landlords responsible for keeping rental units fit for human occupancy. This legal concept forms the foundation of all repair obligations in California.

Tenant Maintenance Expectations

California tenants must keep rental units clean and sanitary. Basic maintenance tasks fall under tenant responsibilities, including changing light bulbs and general cleanliness.

Tenant Duties Include:

• Maintaining cleanliness throughout the unit
• Handling minor repairs like light bulb replacement
• Promptly notifying landlords of major issues
• Repairing damage caused by their actions
• Avoiding misuse of property amenities

Tenants are responsible for damage resulting from deliberate or careless actions. This includes damage from lack of cleanliness or improper use of fixtures.

When major repairs are needed, tenants must inform landlords quickly. Written notices carry more legal weight than verbal requests. California tenant rights protect renters who make good-faith repair requests.

Handling Repair Requests Efficiently

California landlords have 30 days to complete repairs after receiving notice from tenants. This timeline applies to both written and verbal requests, though written notices provide better legal protection.

Emergency situations may require shorter repair timelines when valid reasons exist. Tenants and landlords can agree to expedited repairs for urgent safety issues.

Tenant Remedies After 30 Days:

• Repair and deduct method for costs under one month’s rent
• File injunction to force repairs
• Abandon rental unit for habitability violations
• Withhold rent through court-established escrow

The right to repair and deduct can only be used twice within any 12-month period. Tenants must follow strict regulations to avoid eviction risks.

Landlords cannot retaliate against tenants for making repair requests. Illegal retaliation includes rent increases, reduced services, or denied access following legitimate complaints.

Compliance and Documentation for California Investors

California landlords must maintain specific documentation and follow strict compliance requirements to protect their investments and avoid costly legal disputes. Proper record-keeping helps investors demonstrate adherence to state regulations while minimizing liability exposure.

Required Documents for Landlords

Lease Agreements and Addendums Every rental property must have a written lease agreement that includes all mandatory disclosures required by California law. The lease must specify the exact rental amount, including all mandatory fees and security deposits in the actual cost as required by SB 611.

Security Deposit Documentation Landlords must maintain detailed records of security deposit handling. This includes move-in inspection reports, photos of the property condition, and itemized statements for any deductions. AB 2801 requires landlords to provide inspection photos to support any security deposit deductions.

Rent Payment Records Keep accurate records of all rent payments, late fees, and any payment arrangements. AB 2747 requires landlords to maintain records of positive rental payment reporting if tenants opt for credit reporting services.

Maintenance and Repair Documentation Document all maintenance requests, repairs completed, and property inspections. This documentation proves compliance with habitability standards and helps defend against tenant complaints.

Compliance with Local Housing Codes

Habitability Standards California requires rental properties to meet minimum habitability standards. Landlords must ensure properties have working plumbing, electrical systems, heating, and structural integrity. Document all maintenance and upgrades to demonstrate ongoing compliance.

Safety Requirements Install and maintain required safety equipment including smoke detectors, carbon monoxide alarms, and security devices. Keep records of installation dates, battery replacements, and annual inspections.

Local Ordinances Many California cities have additional housing codes beyond state requirements. Los Angeles, San Francisco, and other major cities often have stricter rules for rental properties. Research local regulations and maintain compliance documentation for your specific area.

Inspection Records Schedule regular property inspections and document findings. This proactive approach helps identify potential code violations before they become serious problems. Keep photos and written reports of all inspections.

Legal Disputes

Fair Housing Act Compliance Document all tenant screening processes to ensure compliance with federal and state fair housing laws. Keep records of screening criteria, application processes, and decision-making factors. This documentation protects against discrimination claims under the Fair Housing Act.

Eviction Documentation Maintain detailed records of lease violations, notices served, and communication with tenants. California has strict eviction procedures, and proper documentation is essential for successful legal proceedings. Keep copies of all notices and delivery confirmations.

Dispute Resolution Records Document all tenant complaints and your responses. Keep records of mediation attempts, settlement negotiations, and any agreements reached. This documentation helps resolve future disputes and demonstrates good faith efforts to address tenant concerns.

Legal Consultation Records Maintain records of consultations with attorneys or California property management professionals who provide legal guidance. This documentation shows due diligence in following proper procedures and can help in court proceedings.

Passive Property Investment in California

Investors can earn rental income from California properties without direct ownership or management responsibilities through fractional investing and professional property management services. These approaches allow modest capital investors to access high-value markets while avoiding traditional landlord duties.

How to Access California Real Estate Income

California rental properties generate income through monthly rent payments and property appreciation. Investors can access this income without buying entire properties through fractional ownership platforms.

Fractional investing allows multiple investors to own shares of a single property. Each investor receives proportional rental income based on their ownership percentage. This approach reduces the minimum investment required for California real estate.

Traditional rental property investment requires significant capital. A typical California home costs $700,000 to $1.2 million. Fractional investing reduces entry costs to $100 to $5,000 per investment.

Income Distribution Methods:

• Monthly rental payments divided among shareholders
• Quarterly distributions from property management companies
• Annual profit sharing after expenses

California rental income tax obligations apply to all property investors. Passive rental income receives different tax treatment than active business income.

Avoiding Active Landlord Duties

Professional property management eliminates direct landlord responsibilities. Third-party companies handle tenant screening, rent collection, maintenance, and legal compliance.

Property managers charge 8-12% of monthly rent for full-service management. This fee covers tenant relations, property maintenance, and regulatory compliance. Investors receive net rental income after management fees.

Duties Handled by Property Managers:

• Tenant screening and lease agreements
• Monthly rent collection and late fee enforcement
• Maintenance requests and contractor coordination
• Eviction proceedings and legal compliance

California landlord-tenant laws require extensive legal knowledge. New 2025 California landlord-tenant regulations include stricter security deposit rules and tenant screening requirements.

Professional management ensures compliance with rent control laws, habitability standards, and eviction procedures. Individual investors often lack the expertise to navigate these complex regulations.

Benefits for Modest Capital Investors

Small investors access premium California markets through fractional ownership. High-value properties in Los Angeles, San Francisco, and San Diego become available with minimal capital requirements.

Portfolio diversification improves with fractional investing. Investors can own shares in multiple properties across different California cities and property types. This spreads risk across various rental markets.

Capital Requirements Comparison:

• Traditional Purchase: $140,000-$240,000 down payment
• Fractional Investment: $100-$5,000 minimum investment
• REIT Investment: $1,000-$10,000 typical minimum

Fractional platforms like Ark7 provide access to pre-vetted California rental properties. Professional teams handle property selection, legal documentation, and ongoing management.

Liquidity options vary by platform. Some allow secondary market trading of property shares. Others require holding periods of 3-5 years before exit opportunities.

Geographic diversification becomes possible with modest capital. Investors can own fractional shares in properties across California’s major rental markets without relocating or managing multiple properties directly.

How Fractional Real Estate Investing Works

Fractional real estate allows multiple investors to purchase shares in rental properties through digital platforms, with investments starting as low as $100. California investors can access professionally managed properties through securitized ownership structures and track returns via mobile applications.

Fractional Ownership Basics California

Fractional ownership splits single rental properties into digital shares that investors can purchase. Each investor owns a percentage of the property based on their investment amount.

The platform handles all property management tasks including tenant screening, rent collection, and maintenance. Investors receive monthly rental income payments proportional to their ownership stake.

Investment minimums typically range from $100 to $1,000 per property. This allows California residents to invest in rental real estate without the traditional barriers of large down payments or property management responsibilities.

Investors earn returns through two methods:

• Monthly rental income distributed as cash payments
• Property appreciation when the home increases in value over time

Most platforms require investors to hold their shares for 5-7 years before selling. This fractional real estate investing approach provides real estate exposure without direct landlord duties.

Securitization of Rental Properties

Fractional platforms create legal structures that convert individual rental properties into investable securities. Most companies use Limited Liability Companies (LLCs) to hold each property.

When investors purchase shares, they become members of the property-specific LLC. This structure provides legal protection and clearly defines ownership percentages.

The securitization process typically works as follows:

1. Platform identifies and purchases rental property
2. Creates dedicated LLC for that specific property
3. Divides ownership into shares available for purchase
4. Investors buy shares becoming LLC members
5. Platform manages property and distributes profits

California securities regulations require platforms to comply with federal and state investment laws. Many platforms register as investment advisors or work with registered broker-dealers.

The LLC structure allows investors to receive tax benefits including depreciation deductions proportional to their ownership stake. However, this also means investors receive K-1 tax forms rather than simple 1099s.

Mobile Dashboard for Investors

Modern fractional real estate platforms provide mobile applications that give investors real-time access to their portfolio performance. These dashboards display key metrics including rental income, property values, and total returns.

Typical dashboard features include:

• Current property valuations
• Monthly rental income statements
• Tax document downloads
• Property photos and updates
• Investment performance charts

Investors can track multiple properties across different markets from a single interface. Push notifications alert users when rental payments are deposited or when important property updates occur.

The mobile interface also allows investors to reinvest rental income into additional properties or transfer funds to their bank accounts. Some platforms enable investors to browse and purchase new property shares directly through the app.

Advanced dashboards provide market comparisons showing how individual properties perform relative to local rental markets and broader real estate indices.

Why Ark7 Simplifies California Rental Investing

Ark7 enables investors to purchase fractional shares in rental properties starting at $20, while their professional team handles all property management tasks. Investors receive monthly rental income without dealing with tenant screening, rent collection, or maintenance issues.

Ark7 Property Management Team Advantages

The Ark7 platform manages all property management tasks including tenant screening, rent collection, and maintenance. This removes the burden of being a landlord while still earning rental income.

Property managers handle emergency repairs at any time of day. They also manage tenant turnover and find new renters quickly to minimize vacancy periods.

The team screens tenants using credit checks and income verification. This reduces the risk of problem tenants who might damage property or skip rent payments.

Investors avoid dealing with late-night maintenance calls or difficult tenant situations. The property management team handles these issues professionally.

Tracking Dividends and Occupancy

Ark7 provides a digital dashboard showing rental income payments and property occupancy rates. Investors can track their returns without managing spreadsheets or tax documents.

Monthly dividend payments arrive automatically based on the investor’s ownership percentage. The platform shows exactly how much each property generates in rental income.

Occupancy data helps investors understand property performance. Higher occupancy rates typically mean more consistent rental income throughout the year.

The platform sends regular updates about property maintenance and tenant changes. This keeps investors informed without requiring active management.

Getting Started with Ark7

New investors can start with just $20 to purchase their first fractional share. The platform accepts both accredited and non-accredited investors.

The signup process requires basic personal information and bank account details. Investors can browse available properties and choose based on location and expected returns.

Each property listing shows photos, rental history, and projected returns. This helps investors make informed decisions about which properties to invest in.

California rental laws can be complex for individual landlords. Ark7’s professional team handles legal compliance across all their properties.

Frequently Asked Questions

California landlord-tenant laws address specific situations that commonly arise in rental relationships. These laws cover guest policies, eviction procedures, landlord maintenance duties, security deposit returns, rent increase notices, and recent legislative changes.

What rights do tenants have regarding having guests in their rented property in California?

California tenants have the right to have guests in their rental units. Most lease agreements specify guest policies, including how long guests can stay before being considered occupants.

Landlords cannot completely prohibit guests. However, they can set reasonable limits on guest stays and overnight visitors.

If a guest stays beyond the lease’s specified time limit, the landlord may require them to be added to the lease or ask them to leave. Typical limits range from 7 to 14 consecutive days or 30 days total per year.

Tenants should review their lease agreement for specific guest policies. Violating guest policies can be grounds for lease termination if the tenant doesn’t correct the violation.

What process must a California landlord follow to legally evict a tenant?

California landlords must follow a specific legal process to evict tenants. The process begins with serving proper written notice to the tenant.

For nonpayment of rent, landlords must serve a 3-day notice to pay or quit. For lease violations, they serve a 3-day notice to cure or quit.

Month-to-month tenants who have lived in the unit less than one year receive a 30-day notice to quit. Tenants who have lived there one year or more receive a 60-day notice to quit.

If the tenant doesn’t comply with the notice, the landlord can file an unlawful detainer lawsuit in court. California landlord tenant rights specify that landlords cannot use self-help evictions like changing locks or shutting off utilities.

Only a court order can force a tenant to leave. The entire process typically takes 30-60 days if uncontested.

What are the specific responsibilities of landlords in maintaining rental properties in California?

California landlords must provide habitable housing that meets basic health and safety standards. They must provide heating systems, hot water, and smoke and carbon monoxide detectors.

Landlords must fix problems with plumbing, electrical systems, and structural issues. They must also address pest control problems and mold issues when they arise.

Repairs must be completed within 30 days of receiving written notice from tenants. Landlords cannot rent units that don’t meet habitability requirements.

Properties must have adequate garbage removal services and proper sanitation facilities. Landlords must also maintain common areas in multi-unit buildings.

If landlords fail to maintain properties, tenants can report violations to local authorities, sue for damages, or terminate their lease agreements.

Under what conditions is a landlord in California required to return a security deposit?

California landlords must return security deposits within 21 days after a tenant moves out. The maximum security deposit is typically one month’s rent for unfurnished units.

Landlords can deduct money for unpaid rent, damage beyond normal wear and tear, and cleaning costs. They cannot deduct for normal wear and tear like faded paint or worn carpets.

If landlords make deductions, they must provide an itemized list of charges and receipts for work over $126. They must return the remaining deposit amount with the itemized statement.

Landlords who fail to return deposits on time may owe tenants twice the deposit amount as a penalty. California residential tenants’ rights provide specific protections for deposit returns.

Tenants should document the unit’s condition with photos when moving in and out to protect their deposit rights.

How much notice must a California landlord provide before increasing rent for a month-to-month lease?

California landlords must provide 30 days’ written notice for rent increases on month-to-month leases. For rent increases of 10% or more, landlords must provide 90 days’ notice.

Landlords cannot increase rent during a fixed-term lease unless the lease specifically allows it. They also cannot increase rent more than twice in a 12-month period.

The maximum rent increase is limited by California’s rent control laws. The statewide cap changes annually based on inflation rates.

Local rent control ordinances may have stricter limits than state law. Many California cities have their own rent control rules that landlords must follow.

Rent increases cannot be retaliatory or discriminatory. Landlords cannot raise rent to punish tenants for exercising their legal rights.

What are the recent changes in California law that impact landlord and tenant agreements?

California implemented new micromobility storage requirements in 2024. Landlords cannot prevent tenants from storing bicycles, e-scooters, and similar devices on the premises.

The law requires landlords to allow at least one micromobility device per occupant. Alternatively, landlords can provide secure storage with electrical connections for charging.

New accessibility requirements allow local jurisdictions to mandate that ground-floor units be available to disabled tenants with mobility issues. This applies to certain rental properties as determined by local authorities.

California continues to adjust rent control caps annually based on inflation. These changes affect how much landlords can increase rent each year.

The state has also strengthened tenant protections against retaliatory evictions. Landlords face stricter penalties for attempting to evict tenants who report habitability issues.