What a Landlord Cannot Do in California: Rules & Limits

The demand for rental properties is always high in the Golden State. There is a lot of opportunity for California landlords to capitalize on this housing demand, but Califronia landlords must advere to California landlord-tenant law.

If you’re interested in offering properties for lease in California, you must familiarize yourself with the do’s and don’ts in the state. To help you avoid potential landlord faux pas, we’ve compiled a list of what a landlord cannot do in California.

#1: You’re Not Allowed to Evict an Active-Duty Service Member Without a Court Order

California landlords are forbidden from evicting active-duty service members due to unpaid rent without securing a court order. According to the Servicemembers Civil Relief Act (SCRA), service members can delay eviction hearings for at least three months if they can prove that military service hinders them from making payments.

The rent agreement must’ve been signed before the service member received deployment or permanent change of station orders. This protection is valid even if the military member isn’t physically present at the property or has been transferred to another base. Their dependents are covered by this particular SCRA benefit.

Likewise, this federal law allows military tenants to change the rent amount due for service members facing eviction. However, this is provided that the rent is below a specific ceiling which varies based on inflation and interest rates.

It should be highlighted that this protection covers an eviction notice due to nonpayment only. If the service member violates the lease agreement in other ways, like bringing in a pet when it’s forbidden, the eviction can still proceed.

Proof that a person is an active duty military member is vital for this SCRA protection to be legally binding. SCRACVS can assist California landlords in obtaining evidence of military verification in as soon as one business day.

#2: California Landlords Can’t Ask More Than One Month’s Rent as Security Deposit

Because of Assembly Bill 12, as of July 2024, security deposits landlords can require in California are limited to one month’s rent amount. Previous California security deposit laws allowed landlords to collect up to three months in bond and an entire month’s advanced payment before permitting the tenant into the property.

Because of rising rental costs nationwide, many renters have found move-in costs beyond their means, especially when the unit is already furnished. Because of Assembly Bill 12, moving forward, the move-in costs for tenants will be limited to one month’s rent and a month’s security deposit. This limit applies to both unfurnished and furnished rentals.

However, an exemption exists for this new rule. California landlords with one to two properties are considered ‘small landlords.’ If you fall under this category, you are allowed to ask for up to two months’ rent as a security deposit.

But what if you’ve already collected over one month’s rent as a security deposit? Does the Tenant Protection Act mandate you return the excess amount? If you collected the security deposit before July 12024, you can hold to the excess even if it exceeds the new limit.

#3: You Can’t Discriminate Based on Bad Credit History

As per California Senate Bill 267, there’s an update in the screening process for potential tenants of rental units. As of January 2024, you should review how you analyze a person’s credit history and background if they receive a government rental subsidy.

Amendments to Senate Bill 267 forbid landlords to use a person’s credit history when screening their application. This rule applies if landlords aren’t provided with an alternative means to confirm a person’s ability to pay rent on time. This may come in bank statements, benefit statements, or pay records.

Moreover, California landlords must give potential tenants enough lead time to thoroughly secure and analyze the required documents instead of analyzing their credit history only.

#4: You Can’t Raise the Price on Rental Properties Without Following the Law

California’s landlord-tenant laws are stringent regarding rent raises. Local rent control laws state that landlords can’t raise rent above 5%, in addition to the rate of inflation indexing. This rent control ensures a balanced approach for tenants and landlords for a rental unit. This rule applies until January 1, 2030, permitting long-term predictability for both.

While the state has universal standards for rent increases, select California cities have local rent control ordinances that impose more stringent protocols. For example, notoriously expensive cities like San Francisco and Los Angeles are stricter than the state law.

If you’re a landlord in California, you should regularly monitor state and local laws to ensure adherence to all local ordinances. Potential fines and legal disputes can damage your finances as a landlord in the long run.

#5: You Can’t Evict a Tenant Without Conferring with the California Tenant Protection Act

Since 2019, the California Tenant Protection Act has imposed statewide rent control and eviction requirements. In addition to the Federal Fair Housing Act, this law has limited what landlords can do to raise rent and evict tenants, ensuring these landlords abide by fair housing practices.

California rental laws require landlords to follow legal procedures, including providing proper notice and securing a court order. Under the Tenant Protection Act, landlords must have just cause to terminate a lease agreement. Some examples include nonpayment of rent on time (active-duty service members are exempted from this) and lease violations.

In addition, landlords aren’t allowed to refuse tenants a lease renewal if that tenant exercised their legal rights. Because of this, all communication, including those with prospective tenants, should be adequately documented.

While evicting a tenant, the landlord can’t cut off that tenant’s utilities to force them to leave the premises. Doing so is an illegal ‘self-help’ eviction method.

#6: You Can’t Neglect Maintenance Obligations on a Rental Property

Rental properties undergo normal wear and tear, and the landlord must ensure the property remains habitable. Failure to attend to tenant’s maintenance requests is considered illegal in the state.

Aside from prohibiting landlords from neglecting their maintenance obligations, landlords can’t retaliate against tenants with repair requests or ‘repair and deduct.’ Moreover, tenants aren’t permitted to charge tenants for damage due to normal wear and tear. Only damage beyond the usual daily use can be deducted from one’s security deposit.

To avoid any legal dilemma, landlords should prepare a checklist for prospective tenants so they understand the potential deductions to their security deposit. Disputes over damages can be lengthy and expensive for both parties.

#7: You Can’t Violate the Tenant’s Privacy

California law is also quite strict regarding privacy. Landlords must provide reasonable notice before entering a rental unit, but this rule is waived in emergency situations. The landlord must also have the tenant’s consent and a justified reason to enter the premises.

While landlords can enter a rental unit under certain circumstances, they must not abuse this privilege. They can’t enter the premises too often or without just cause. To avoid issues, landlords must log in when they enter the apartment or house.

#8: You Can’t Simply Throw Away Abandoned Belongings

What if a tenant vacates a rental property and leaves some belongings behind? State law has a proper protocol when dealing with abandoned property. These rules ensure tenants have enough time to collect their belongings and guide landlords when disposing of them.

The landlord must itemize the personal property left behind by the tenant. The list should include the following elements:

• Abandoned property descriptions
• Current location of the abandoned property
• The deadline to claim the said property (usually between 15 to 18 days)
• A guide on how to claim the items, like contacting the landlord or representative
• Storage fees, if applicable

Upon delivery of the abandoned property notice, the landlord must securely store these items for an indicated period. This leeway permits the tenant some allowance to collect the items if they want to.

If the tenant fails to claim these items, the landlord is authorized to dispose of them. They can perform any of the following actions:

• Sell the items, and the proceeds go to storage fees or unpaid rent.
• Donate the items to a charitable organization.
• Recycling or throwing away items with no value

#9: You Must Respect Quiet Enjoyment

One of California’s more unique laws requires landlords to respect the tenant’s quiet enjoyment rights. What exactly does this entail? Landlords cannot disturb the occupant’s right to use their property peacefully.

How can landlords respect a tenant’s quiet enjoyment? Here are some simple rules to note if you intend to become a landlord someday:

1. Don’t interfere with the tenant’s right to live without unnecessary intrusion or noise.
2. Prevent unnecessary noise from property repairs or other tenants, if possible.
3. Respect the tenant’s privacy by providing reasonable notice before going inside the rental property.
4. Address concerns immediately when faced with noise-related complaints from tenants.

#10: You Can’t Withhold Transparency

Transparency is key to amiable landlord-tenant relationships in California. The state requires landlords to practice full transparency so prospective tenants can make informed decisions before signing a rental agreement.

Regarding utilities, landlords must discuss utility information and clarify the costs for shared facilities. Disclosing this information allows tenants to gauge their financial obligations in the property. The landlord must also notify the tenants if there are hazardous molds. This will enable tenants to assess potential health risks.

In addition to informing tenants of molds and utility costs, they should also disclose any lead paint or other potentially dangerous materials in the unit or house. Failure to disclose this information may have legal consequences for the landlord.

Honesty is vital in ensuring the tenant thoroughly understands what they’re getting into before they sign the contract. Likewise, landlords shouldn’t be secretive to avoid legal issues.

Conclusion

California landlord-tenant laws safeguard tenant interests. If you abide by the above rules and regulations, you can enjoy steady profit from renting out properties in the Golden State.

If you’re dealing with a military tenant and they activate their SCRA rights, confirming their military status is vital. Sign up at SCRACVS to verify whether your tenant is eligible for SCRA protections today.

FAQs

What is the new tenant law in California 2024?

The new tenant law stipulates that landlords can collect only up to one month’s rent as a security deposit. This rule doesn’t apply to property owners with one or two rental properties.

What is considered landlord harassment in California?

Cutting off essential utilities, entering the premises too often or without proper notice, and using threatening language are all forms of landlord harassment. This illegal behavior can result in court drama for landlords.

What can a landlord charge you for in California?

The costs would depend on the property’s size and location. However, within the state, the landlord can’t increase your rent by more than 5%.

What are the new California laws for landlords?

The new laws provide a limit on rent increases. The general rule is that landlords can only increase one’s rent by 5%.