For landlords in California, a standard lease agreement will be more specific than those in other states. As a landlord, it’s important to ensure that your lease agreements comply with state and local laws, which is why we compiled a list of what every landlord needs to include in a California lease agreement.
In any standard lease agreement, including those in California, there are basic requirements, such as a description of the property, the rental amount, duration of the rental period, payment due dates, any deposits or fees, condition of the property at the beginning of the lease, maintenance expectations, and how the tenant should leave the property when they moving out.
There are a few aspects of a California lease agreement that are unique to the state’s landlord-tenant laws. While these are aspects of a lease agreement that are required in California, individual cities and towns may have more detailed rental laws that will need to be addressed in the agreement as well.
These are eight clauses that a landlord should include in a lease agreement in California:
California does not require that a landlord collect a security deposit, though most do. If one is collected, it cannot be more than two months of rent. If the apartment is furnished, the security deposit cannot be more than three months rent, and does not need to be held separate from the landlord’s other assets.
Check your local laws on security deposits, since cities like San Francisco and Los Angeles (if the apartment is covered by the new Rent Stabilization Ordinance) require landlords to pay their tenants the security deposit plus interest. In Los Angeles, the current interest rate is 0.23%, while San Francisco’s is 0.6%.
These security deposits can only be held by a landlord if the renter owes unpaid rent and if there is damage to the property beyond normal wear and tear and the renter is responsible. Otherwise, they must be returned to the renter within 21 days of their move-out date.
Landlords can take any form of rental payments, though they cannot require rental payments in cash. The exception is if a check bounced back within the last three months, in which case a landlord is entitled to the rent payment in cash.
If a tenant misses a rent payment, or a few, the state mandates that any late rent fees must be a reasonable estimate of the cost owed by the renter. These fees are not meant to punish the renter, and cannot under state law be used in such a way.
In California, most rentals are subjected to a 5% rent increase cap, with inflation factored in. While this is state law, some cities and localities have their own rent increase requirements, which the landlord will also need to follow.
In California, landlords must provide their renters with written notice at least 24 hours prior to entering the rental, unless in the case of an emergency, and can only enter said rental for agreed upon repairs, when showing to prospective tenants, or if the rental property was abandoned.
The California Environmental Protection Agency created a residential environmental hazard guide that references all toxic substances, such as mold and asbestos, that must be disclosed to a prospective renter if they have ever been found in the rental property.
Another rental agreement disclosure document required by California law was initiated under Megan’s law, which provides renters with important information about registered sex offenders in the area. This is not information that is required in every state, which is why it is important to understand one’s local requirements.
If a unit or rental property in California is not individually metered for gas or electricity, the landlord will need to include a disclosure statement making the tenant aware what the cost of these utilities will be each month.
Though recreational marijuana is allowed in California, a landlord is allowed to prevent the growing and smoking of it on their properties. This would be included in the smoking clause of a lease agreement and should specifically address recreational marijuana rules in the rental property.
To take the pain out of building your lease agreement, Avail provides a standard California lease agreement that’s tailored to state laws to make your life as a landlord a bit easier.
When you build your lease through Avail, you can tap into the benefits of using our free digital lease agreement, including saving time, money, and making it easy for both you and your tenants to review and sign the lease online.
