The landlord-tenant relationship is highly regulated in California thanks to laws and ordinances on the federal, state, and local levels. Property owners and managers have better things to do than develop expertise in this area of law. Anthony Burton advises, counsels, and represents landlords in all areas of related law, so they can focus on running their businesses.
Some landlord-tenant laws applicable in California and Orange County:
- Rent Control
The state’s Tenant Protection Act of 2019 describes California’s rent and eviction controls impacting most rental housing. Rent increases for qualifying units are limited to 5% plus inflation, or 10% of the lowest gross rental rate charged during the 12 months before the increase (whichever is lower). Santa Ana has an ordinance controlling rent increases built before 1995 to what’s lower – 3% or 80% of the change in the Consumer Price Index in the prior 12 months.
- Rental Application and Tenant Screening
California landlords may charge a nonrefundable application fee no more than their actual costs for screening services and the value of the time a landlord or an agent spends finding information about the potential tenant. There can’t be such a fee if there’s no current vacancy. Depending on your location (such as Alameda County), part of the screening can’t include a person’s criminal history or running a criminal background check.
The applicant can be rejected if a search turns up a conviction that harms a legitimate business concern. These background checks should be done universally or not at all. You would risk a discrimination claim if you chose applicants for a criminal background check based on their color, race, or ethnic background. You also cannot ask about a potential tenant’s immigration or citizenship status.
- Security Deposits
You may charge up to two months’ rent for a security deposit for an unfurnished rental. If it’s furnished, that increases to three months’ rent. If your tenant is an active military member, it decreases to one month. Depending on your location, a local ordinance may require you to pay your tenant the interest earned on the deposit.
- Nonrefundable Cleaning and Pet Fees
Cleaning and pet fees are part of the security deposit. As such, they must be refundable under the same rules.
- Required Landlord Disclosures
You must disclose specific information to tenants, including your name and contact information, bedbug information, smoking policy, presence of lead-based paint, potentially hazardous situations (including toxic mold), pesticide use, and shared utilities.
- Rent Grace Period
Landlords aren’t required to have a rent grace period for those not paying on time, though you’re free to add one in the lease, which can include late fees. If the rent’s not been paid, you can serve a tenant with a three-day notice demanding payment or that the person leave the premises.
- Your Access to the Property
You can enter the unit without notice if there’s an emergency, but you usually must give 24 hours notice unless your tenant agrees otherwise. You must balance your need for access during reasonable hours, your ability to repair and maintain your property, and your tenant’s right to peaceful enjoyment of their unit.
- Unhabitable Unit
You must offer and maintain habitable rental units. If you fail to keep it in a livable condition and jeopardize the tenant’s health and safety, your tenant may:
- Withhold rent
- Move out without notice
- Sue you for breaching your lease and state law
- Call local or state health inspectors
- Use their right to “repair and deduct”
If you sue the tenant for failure to pay rent, they may use this as a defense.
- Termination and Eviction
State laws and local ordinances state how and when you can terminate a tenancy. If the reason’s a lease violation, you must give the tenant a three-day notice to cure the problem or leave the unit. The tenant can be evicted for failure to pay rent, but this also requires a three-day notice to pay you what’s owed.
You can give your tenant a three-day unconditional quit notice (the tenant’s unable to remedy the problem) if they assign or sublet the unit without your permission, engage in illegal activity, commit waste, or make a nuisance.
Santa Ana has a “just cause” ordinance covering eviction. There can be an “at fault” eviction for such things as failure to pay rent, a material breach of the lease, or refusing to allow you access. There are also “no-fault” reasons where the lease isn’t breached, but your family wants to occupy the unit, it’ll be off the market for at least 24 months, or by court or government order. It’s illegal to evict a tenant in retaliation for exercising their legal rights under state law and local ordinance.
The eviction process is spelled out in California law and civil procedure. If the unit’s covered by the Tenant Protection Act of 2019, you must have the proper notice and have it served properly before you can proceed against the tenant.
- Illegal Discrimination
Housing discrimination is covered by state and federal laws and possibly local ordinances. The federal Fair Housing Act prohibits discrimination against tenants and potential tenants due to their race, color, religion, sex, disability, national origin, and familial status.
California state law adds protection to tenants based on their:
- Citizenship status
- Mental disability
- Gender identity/expression
- Immigration status
- Marital status
- Military and veteran status
- Primary language
- Sexual orientation
- Income source
Some of the potentially illegal actions include:
- Refusing to rent or lease property
- Falsely denying availability
- Canceling a rental agreement
- Creating or unequally enforcing policies and causing unequal housing access
- Offering inferior lease conditions, terms, or privileges
- Refusing to reasonably accommodate a disabled tenant or potential tenant
This list just scratches the surface of all the laws and legal issues you may face as a property owner.
AWB Law, PC is Here to Help
We help landlords by:
- Giving them advice
- Counseling them about how the law impacts their situation or plans
- Taking action to prevent legal problems
- Negotiating resolutions with government agencies, tenants, contractors, and other parties
- Representing them in court and before government boards
If you’re a residential landlord looking for help, call AWB Law, PC at (949) 244-4207 or complete our online contact form today.
