Managing rental properties in Los Angeles and California requires a comprehensive understanding of tenant laws—and a commitment to staying up-to-date with changes to maintain compliance. Changes to tenant protections happen frequently, and you certainly don’t want to be on the wrong side of a lawsuit.
Non-compliance can be costly, and not just because of fines, penalties, and legal fees. A damaged reputation and tense tenant relationships can make your property less attractive, resulting in vacancies and financial instability that can last for years.
So today, let’s explore California tenant laws. We’ll also provide a few actionable tips to help you stay compliant and ensure your property is desirable for tenants and financially viable for you.
An Overview of Key California Tenant Laws
The following are core areas of tenancy compliance in California.
Rent Control
Rent control laws in California are not consistent across the state. For example, Los Angeles has rent control, but certain areas have laws and enforcement that are independent of the rest of the county.
The California Tenant Protection Act governs the state’s rent control legislation. The Act limits yearly increases to 5% plus the lesser of the percentage change in the cost of living or 10%.
The following types of properties are exempt from rent control laws:
- Mobile homes
- Duplexes if the landlord resides in the other unit
- Rental properties under a pre-existing rent control ordinance
- Rental property managed by a non-profit organization
- Commercial properties
- College dorms and schools
- Hotels
- Buildings constructed in the past 15 years
- Condos and single-family dwellings owned by an entity other than a corporation, real estate investment trust (REIT), or corporation-owned LLC
If one of the above types of property isn’t subject to any other local laws and is considered exempt from rent control, the landlord may raise the rent as much as they want as long as they provide written notice. If the increase is 10% or less, notice must be given 30 days before the increase is due, or 90 days if the increase exceeds 10%.
Some California cities have additional rent control measures in place in addition to state ordinances. Some have rent control caps, while others base increases on a percentage of the Consumer Price Index (CPI). In any case, it is crucial to verify with local rent stabilization authorities to ensure your increases are within the permitted limits.
Eviction Regulations
Tenants who have lived in their unit for 12 months or more have strong protections against eviction. There are two types of eviction:
- At fault, reasons for which include non-payment of rent, breach of the lease, criminal activity, using the unit for unlawful purposes, nuisance, waste, and refusal to allow lawful entry.
- No-fault evictions may occur if the owner is moving into the unit, withdrawing it from the rental market, intends to demolish or substantially remodel, or is required to comply with a local law or order that necessitates the tenant’s vacating.
A tenant can only be evicted for one of the reasons listed above. In the case of an owner move-in, it must be proven that the person moving in is either the owner, their spouse, or a direct relative, such as a child, parent, or grandparent. Fraudulent use of this reason is a cause for non-compliance and may result in litigation.
Security Deposit Rules
Security deposits are refundable to the tenant upon their move-out. As of July 2024, the maximum security deposit is equal to one month’s rent.
The landlord may deduct from the security deposit for unpaid rent or the cost of repairs to the property resulting from damage that occurred during the tenancy, as well as the cost of cleaning or replacing personal property if those items were specified in the lease agreement. Security deposits cannot be withheld for ordinary wear and tear or damages that existed prior to move-in.
Within 21 days following move-out, the landlord must provide an itemized list of deductions with detailed explanations of the work done. The balance of the deposit is due back to the tenant within 14 days of the work being completed.
Even if you do your own work, it’s recommended to keep all receipts and details of the jobs done, including a reasonable estimate of hourly labor cost. If the tenant sues and the court finds these details lacking, it may rule in the tenant’s favor and award them their loss, plus up to twice the amount of the original deposit.
Tenant Privacy
Landlords must provide tenants with at least 24 hours advance notice before entering the property. Emergencies are the exception.
Fair Housing
California fair housing laws ensure landlords cannot discriminate against tenants based on any of the following:
- Race or skin color
- Sex
- Age
- Sexual orientation
- Genetic information
- Familial or marital status
- Religion/creed
- Nationality or citizenship
- Primary language spoken
- Physical or mental disability
- Gender identification or expression
- Veteran or military status
- Source of income
Additionally, certain behaviors can be considered discriminatory, such as imposing strict rules on a specific tenant’s children, canceling an agreement, lying to a prospective tenant about rental availability, or refusing to accommodate a tenant with a disability. Fair Housing also applies to service animals and emotional support animals, requiring periodic refreshers.
As federal, state, and local laws change frequently and often conflict, it is advisable to stay abreast of changes to remain compliant.
Tips on Staying Compliant While Managing Properties
Your best tenants are those that stay beyond their initial lease term. It’s about attracting great tenants, but it’s also about keeping those tenants happy enough that they don’t want to leave. Here are a few tips to support your efforts to that end.
- Stay up to date on California tenant legislation
- Operate within the laws for rent increases and security deposits
- Keep your properties safe and well-maintained
- Disclose any hazards (like lead-based paint or asbestos) before the tenant signs the lease
- Prioritize clear, transparent communication with tenants
- Try to resolve disputes directly with the tenant
- Respond to maintenance and repair requests quickly
Working with a reputable property management company in Los Angeles is an excellent way to stay on top of changing California tenancy laws and maintain compliance. Speak to the property pros at Belwood to find out how we can help.
