Leasing Laws in California: Legal Requirements

Understanding leasing laws in California is essential for landlords, property managers, and tenants alike. California’s legal framework governing residential leases is among the most detailed in the United States, blending state statutes, habitability standards, disclosure mandates, and evolving tenant protections. For rental professionals from independent landlords to large property management firms, clarity about these requirements not only reduces legal risk but also supports better tenant relationships and operational excellence. Platforms like Platuni emphasize that housing compliance should be integrated into everyday workflows, not treated as an afterthought, helping property managers stay ahead of legal changes and minimize disputes.

In this comprehensive guide, we’ll unpack California’s leasing laws, explain the legal requirements landlords must follow, explore key tenant protections, and highlight best practices for compliant lease agreements. This article is supported by the latest research and authoritative sources with citations for data and statutes where appropriate ensuring you have current and accurate information.

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California’s Legal Context for Leasing

Leasing laws in California are rooted primarily in the California Civil Code, supplemented by state and federal consumer protections, fair housing laws, and local ordinances. Residential leases whether fixed-term or month-to-month create contractual relationships that must comply with statutory mandates, disclosures, and procedural requirements.

Many aspects of leases are explicitly governed by state law, including security deposits, rent increase notices, eviction procedures, habitability standards, and anti-discrimination rules. Additionally, recent legislation continues to shape the landscape including protections like just-cause eviction requirements and limits on security deposits.

Lease Agreements: What Must Be Included

Under California law, certain terms should be clear and well-documented in written leases (although oral agreements can be valid, written agreements provide crucial proof and clarity). At a minimum, a legally compliant lease should include:

• Names of all parties (landlord and tenants)
• Rental unit address
• Rent amount and due date
• Security deposit amount and terms
• Lease duration and renewal terms
• Utility responsibilities
• Pet policies
• Important terms and conditions of tenancy

For leases longer than one-year, written documentation is required for enforceability under the Statute of Frauds.

California also mandates specific disclosures that must accompany a lease or be provided as addenda. These include:

• Lead-based paint disclosure for properties built before 1978.
• Megan’s Law disclosure related to registered sex offender information.
• Notices about known mold issues and certain environmental hazards.
• Bed bug information and prevention notices.
• Flood zone and shared utility meter disclosures when applicable.

Failing to include required disclosures in leasing documentation may empower tenants to challenge leases or seek damages.

Security Deposits: Limits and Return Requirements

Security deposits are among the most regulated lease provisions in California. Under Assembly Bill 12 (AB 12), which took effect July 1, 2024, most landlords may collect a security deposit of no more than one month’s rent whether the unit is furnished or unfurnished.

However, there is a small-landlord exception: when a landlord is a natural person or a limited liability company whose members are all natural persons, and the total rental portfolio is no more than four units across up to two properties, the landlord may still collect up to two months’ rent as a deposit.

Security deposit rules also include:

• Use of deposits: Landlords may only apply deposits toward unpaid rent, repairs for damage beyond normal wear and tear, cleaning (to return the unit to its original condition), and restoring landlord property if authorized by the lease.
• Return timeline: Landlords must return the security deposit or provide an itemized statement of deductions within 21 calendar days after the tenant moves out.
• Documentation: If deductions are made, landlords must provide receipts or invoices for charges above $125 unless the lease specifies otherwise.
• Bad faith penalties: A landlord acting in bad faith by wrongfully withholding a deposit may be liable for statutory damages up to twice the amount of the deposit, plus actual damages.

Importantly, any clause attempting to classify a security deposit as “non-refundable” is not enforceable under California law.

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Rent Increases and Notice Requirements

Landlords in California must follow statutory notice timelines before increasing rent:

• For increases of 10% or less, landlords must provide at least 30 days’ written notice.
• For increases greater than 10%, at least 90 days’ written notice is required.

These notice requirements are statutory under California Civil Code § 827 and apply regardless of what informal communication (such as a text or call) may have occurred. Written delivery remains essential.

In addition, rent increases in units covered by the Tenant Protection Act of 2019 (AB 1482) are capped at 5% plus the regional Consumer Price Index (CPI), or 10% total in a 12-month period whichever is lower for most covered residential properties.

Local rent control ordinances (such as in Los Angeles or San Francisco) may impose stricter limits, so compliance requires awareness of both state and municipal law.

Habitability and Repairs: The Implied Warranty

Under California law, every residential lease includes an Implied Warranty of Habitability, which requires landlords to provide and maintain safe, sanitary, and livable housing conditions throughout tenancy. Landlords must ensure functional plumbing, heating, electrical systems, waterproofing, and structurally sound living spaces.

If a rental unit fails to meet habitability standards, tenants have rights to request repairs in writing. If necessary, repairs are not made within a reasonable period, tenants may pursue legal remedies, such as rent reduction or withholding, or seek enforcement through local housing agencies.

Additionally, Assembly Bill 628, effective January 1, 2026, strengthens habitability standards by requiring landlords to provide functioning refrigerators and stoves/ovens in all newly signed or renewed residential leases recognizing these appliances as essential elements of a habitable unit.

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Just-Cause and Eviction Protections

California’s Tenant Protection Act (AB 1482) imposes just-cause eviction requirements after a tenant has resided in a unit for 12 months. Landlords cannot terminate a tenancy without:

• At-fault cause: e.g., nonpayment of rent, lease breach, nuisance, criminal activity, or refusal of lawful entry.
• No-fault cause: e.g., owner move-in, substantial renovations requiring vacancy, or withdrawal from the rental market (Ellis Act withdrawal).

In no-fault terminations, landlords may also have to provide relocation assistance or rent waivers, depending on local rules and the basis for eviction.

Landlords must proceed through the court system to evict a tenant lawfully. “Self-help” evictions such as lockouts or utility shutoffs are illegal and can expose landlords to legal penalties and damages.

Notice Requirements for Lease Termination

When terminating a lease (including a month-to-month tenancy), California law requires specific notice periods:

• 30 days’ notice if the tenant has lived there less than one year.
• 60 days’ notice if the tenant has lived there one year or more.

These statutory notice periods apply unless otherwise governed by local ordinance or unless just cause protections override them.

Anti-Discrimination and Fair Housing Laws

In addition to federal protections under the Fair Housing Act, California enforces expansive anti-discrimination provisions through the Fair Employment and Housing Act (FEHA) and the Unruh Civil Rights Act. These laws prohibit discrimination based on protected characteristics including:

• Race, color, religion, sex, disability
• Familial status or source of income (including housing vouchers such as Section 8)
• Sexual orientation, gender identity, or expression
• Medical condition or veteran status.

Landlords cannot refuse rental, impose different terms, or harass tenants based on these characteristics. Reasonable accommodations or modifications must be made for tenants with disabilities when necessary.

Practical Best Practices for Compliant Leasing

For property managers and landlords, following legal requirements is more than a regulatory obligation; it's a risk-mitigation strategy. Best practices include:

• Use comprehensive written lease templates that address all statutory requirements and disclosures.
• Document all notices in writing with proof of delivery (mail or electronic) when permitted.
• Respond promptly to repair requests and maintain records.
• Track security deposit handling and return timelines carefully.
• Stay aware of local rent control and eviction rules in addition to state law.
• Train staff on fair housing practices and regular compliance audits.

Leveraging systems like Platuni can help landlords centralize lease document storage, standardize disclosures, track compliance deadlines, and reduce human error.