California Landlord-Tenant Law

Owning or managing rental property in California means navigating a dense and evolving legal framework. From California rent control laws to California security deposit laws, and from how to break a lease in California to the detailed California eviction process, both landlords and tenants must stay informed to avoid compliance risks.

At BFPM, we serve as your trusted partner across Los Angeles and Southern California, monitoring legislative changes, implementing best practices, and guiding you through every decision so your operations remain secure, compliant, and profitable.

Understanding California Rent Control Laws

While California does not have a uniform statewide rent control law for all properties, critical statutes like the state’s Tenant Protection Act (AB 1482) set key frameworks. Under this law, many rentals are subject to annual rent-increase caps (generally 5% plus regional inflation, or 10% max) and “just cause” eviction requirements. In addition, many cities impose local rent-stabilization ordinances with stricter limits.

For landlords and property managers, compliance means you must:

• Check whether a unit is covered by AB 1482 or by a local ordinance
  
• Track last rent increases and ensure new increases stay within caps
  
• Properly document rent increase notices and tenant communications

Failing to follow rent control rules can trigger tenant claims, penalties, and costly audits.

California Security Deposit Laws

Under California law, the rules for security deposits are spelled out in Civil Code §1950.5 and related guidance.

Key provisions include:

• For many properties, starting July 1, 2024, the maximum-security deposit is one month’s rent for an unfurnished unit (with exceptions for small-owner properties).
• Landlords may only use the deposit to cover: unpaid rent, repairing damages caused by tenant (beyond normal wear and tear), cleaning the unit to the condition it was at move-in, and restoring personal property if the lease allows.
• Landlords must, within 21 days of a tenant vacating, either return the deposit or send an itemized statement of deductions plus the remaining amount.

For property managers: Keep move-in inspection records, document unit condition, return deposit or deductions timely, and avoid “non-allowed” deductions (like normal wear, or improvements not in the lease).

How to Break a Lease in California

Tenants or landlords may find themselves needing to terminate a lease early. In California, breaking a lease is legal under certain conditions, but it may trigger liability (for unpaid rent, damages) unless proper procedures are followed.

Important points:

• A tenant who ends a lease early may still be liable for rent through the end of the lease term or until the unit is re-rented, unless the landlord mitigates damages.
  
• Certain exceptions apply for example, victims of domestic violence have rights under Civil Code §1946.7 to terminate early without penalty.
• Property managers should review the lease terms for early-termination clauses, document tenant notice, attempt to re-rent quickly, and calculate actual damages rather than speculative losses.

The California Eviction Process

Evictions (Unlawful Detainer) in California are tightly regulated. Key elements include:

• A landlord must serve a valid notice before filing an eviction—common notices include: 3-day notice to pay rent or quit (for nonpayment), 3-day notice to cure or quit (for lease violations), 30-/60-day notice (for termination of tenancy when lawful).
• After the notice period expires and the tenant fails to comply, the landlord can file an unlawful detainer action in court.
  
• Local ordinances may impose just-cause eviction requirements for covered units (e.g., AB 1482 units) and may require landlord to provide relocation assistance or documentation.
  
• Because laws often change, always check for the latest local jurisdiction rules, such as rent-stabilization ordinances in specific cities.

For property management: keep a detailed log of notice service, ensure proper format and timing, coordinate with legal counsel for court filings, and avoid “self-help” evictions (changing locks, shutting off utilities) which are illegal.

Best Practices for Property Owners & Managers

To ensure compliance and minimize tenant disputes, consider these action steps:

• Audit your lease portfolios to flag units subject to rent-control or special eviction rules
  
• Update leases annually to reflect current law changes — include disclosure pages for security deposit rules, rent control coverage, early-termination rights
  
• Maintain detailed move-in and move-out condition reports with photo documentation
  
• Track last rent increase dates and amounts to ensure future increases are lawful
  
• Train staff or vendors on proper notice service, especially in jurisdictions with local additional requirements
  
• Establish a clear workflow for early lease termination: tenant notice → unit marketing → calculation of actual costs
  
• Work with a qualified landlord-tenant attorney when dealing with complex or high-risk cases

Staying current with California landlord-tenant law is critical in today’s rental environment. Whether it’s understanding tenant law, complying with rent control laws, managing security deposits, navigating early lease terminations, or executing the proper eviction process, property owners and managers must act proactively rather than reactively.

At BFPM, we specialize in monitoring California’s evolving legal landscape and translating complex rules into practical, operational workflows—so you can focus on owning and growing your investments with confidence.

Ready to ensure your property is compliant and protected? Contact BFPM Inc.