California Landlord Tenant Act is as extensive as it is overwhelming. There’s a lot to know about it so let’s get started.
- Screening of tenants
It’s the right of the property manager to screen potential renters. Of course, you’d want to make sure that the person can pay since it’s your job to ensure profit for the property. This is why it’s within your rights to ask questions.
However, guidelines now determine questions that you may or may not ask. You must inform the potential renter that you will run eviction checks for starters. This also applies before you run a criminal background check. You must let them know why you plan on running these checks.
It’s also a must that you provide them with a copy of the checks, and you must do so within 3 days.
The federal Fair Housing Act also states that it’s illegal to ask questions that may pave the way for discrimination. This is why you can’t ask things like their race or sexual preference. Religion is also a no-no, along with disability.
- Rental agreement
You need to sign an agreement if the lease is more than 12 months. Anything shorter than that will require an oral agreement. It’s considered good practice to have an agreement still, even if it’s just for the short-term. This can help protect both parties.
It’s the responsibility of the property manager to disclose the following before signing the agreement:
- Are there bed bugs or other pests?
- Is there history of flooding? Is the property at risk of being flooded?
- Has there been mold? Is there mold?
- Was lead paint used? This is especially important for properties built before 1978. If you’re not sure, you can use lead paint test kits.
- Are there military bases in the vicinity?
- Has it ever been contaminated by methamphetamine?
- Is there a presence of cancer-causing materials?
- Is there an ongoing demolition permit?
- Has there been a death in the unit within the past 3 years?
- Are there registered sex offenders in the area? NOTE: It’s the property manager’s responsibility to provide a link to Megan’s Law to educate the renter about this.
- Security deposit
The state doesn’t require that a property manager collect a security deposit. This works in favor of the renter, and it’s not illegal to collect a security deposit. It’s simply not a requirement. It’s recommended that you collect a security deposit. This is for your protection if you’re the landlord.
Why should you get this deposit? It’s your protection when the renter doesn’t pay. You can also use this for damages caused by the person living there or leaving the unit dirty. You can withhold the deposit if these things happen. Just make sure to provide the renter with an itemized list complete with documentation like receipts and pictures to support your move to withhold the deposit.
It’s common to ask for a security deposit equivalent to a month’s rent. However, you can ask for up to 2 months. You can collect up to 3 months if it’s a furnished unit.
Issuing a receipt is not required but highly recommended for records purposes. It’s good practice to include the security deposit details in the receipt.
Some cities in California require interest payment on the security deposit, like San Francisco. Check with the rental board in your city to know if this applies to you.
This security deposit must be given to the renter within 21 days if there are no issues.
- Rent
There should be a mutual agreement between both parties on paying the rent. There’s no specific requirement set by California laws, except for the fact that a property manager can’t force the renter to pay in cash. The exception is when the former has issued a bounced check within the last 3 months.
As for the rent increase, a landlord can increase it except for properties in a rent control area. The California landlord-tenant law requires a 30-day notice in most cases. The exception is if the sum of the previous (during the last year) and planned increase is higher than 10% of that period’s lowest rate, wherein a 60-day notice is required.
Just make sure that the increase does not force the tenant out, which is considered harassment through retaliation. This is illegal under the landlord-tenant law in California.
There’s also rent control in these cities:
- Los Angeles
- Beverley Hills
- Campbell
- Hayward
- Oakland
- Palm Springs
- San Jose
- Thousand Oaks
- Berkeley
- San Francisco
- Fremont
- East Palo Alto
- Los Gatos
- Santa Monica
- West Hollywood
Since there’s rent control, you have to operate within a limit on the rent price and the increasing percentage within a specific amount of time.
There are also late fees that a landlord can impose for late payments. It’s a little vague and can be subject to interpretation. The vague rule is the late fee has to be reasonable. Although to protect renters, it has to be stipulated in the lease agreement. They have to agree to it.
- Maintenance fees
Like most states, California laws require the landlord to perform repairs to ensure that their property complies with local and state codes. They must also perform regular maintenance to ensure habitability.
What makes a property habitable? Generally speaking, it has to be free from anything hazardous to life and limb. This means that there should be no lead, mold, or safety risks. It has to be comfortable to live in as well. This means running water, heat, plumbing, electricity, and the like. Of course, it should be free from pests as well.
| Ways to test | Comment |
| XRF | The best. It costs about $250-300 to have testing done. |
| D-Lead | It’s great for individual surfaces. |
| 3M | It works the same way as D-Lead. |
| Unbranded | It’s not approved by the EPA. |
On the other hand, they are not required to repair issues caused by the tenants and their guests or even their pets.
The clock is ticking for the repairs. As soon as the tenant reports the need for maintenance or repair, you have 30 days to do the repairs. Some issues would require a shorter timeline. This is when the issue is making the unit unlivable, like a broken furnace during winter.
You have to work with the timeline because the tenant has several courses of action. They can hire a contractor and pay for their services. They can deduct the next month’s payment cost. They can also choose to move, although most people in this situation would stop paying altogether. They can also file a complaint to the health or housing authority. They can even choose to sue you.
- Entrance to property
While property managers have the key to the units that they’re managing, that doesn’t give them the right to enter anytime they want. That’s illegal trespassing and is considered harassment. They can enter as long as they’ve scheduled it. It has to be at least 24 hours in advance. It also has to be done from 8 AM to 5 PM during a weekday. Some reasons may include showing the property to new tenants or conducting maintenance or repairs.
There are emergency cases wherein they can enter the property without approval. These include gas or water leaks. The landlord must properly document the entry as proof that it was an emergency.
- Utilities
Details about the utilities have to be included in the lease agreement. Property managers can split the utilities among the tenants or pay for them.
This is simplified if there are meters for every unit that measure that unit’s consumption. There are cases wherein utility usage in hallways, and other common areas is to be paid for by the tenants. In this case, you have to explain to the tenants how you plan on dividing the cost among the individual people.
Can a property manager shut off utilities if someone doesn’t pay? No, it’s illegal. There’s no valid reason for a landlord to do so.
There’s also a very specific law in San Francisco. It states that property managers have to make sure that the unit is heated comfortably to 68 degrees at very specific hours of 5 AM to 11 AM and 3 PM to 10 PM.
- Eviction
This is something that property managers have to handle delicately. While it’s their right to evict, there has to cause. Or else, you can fight back.
Non-payment is the most common cause of eviction. You can give them a 3-day notice stating information and how much is due. It should include steps they can take to prevent being evicted. It must also include information on how and when they can pay. Send this notice by mail and post it to ensure receipt.
Here are some other valid reasons to evict someone:
- Violation of an agreement
- Drug-related issues (using, making and dealing)
- Assault
- Stalking
- Stored guns and ammo in the property
- Committed a crime in the property
- Illegal cockfighting or dog fighting in the property
In addition to issuing a 3-day notice to evict, you can also issue a 3-day notice to quit. It states that you can issue an eviction notice if they don’t stop what they’re doing.
- Other fees
Some fees are not mandated by the state but are often included in the lease agreement:
- Application
The screening process will cost the landlord money, including the background checks. This is why he can legally charge up to $35 per applicant. He has to refund the remainder if he doesn’t use up the entire amount.
- Early termination
It can be stated in the agreement that the renter is responsible for paying for the remaining months in the lease in case of early termination. However, it’s the landlord’s responsibility to keep the financial damages as low as possible. This includes finding a replacement to move in instead.
For his part, the renter has to issue a 30-day notice signifying his intention of early termination.
- Bounced check
You can be charged $25 for the first bounced check. He can be charged $35 for every bounced check after that.
