California Landlord Laws
Hello all! I am a REI. My primary market is Utah. I am now getting into the CA scene to help my parents save some money for their retirement in 15 years. I want to set them up for success as they have had a lot of financial pitfalls.
Who can help me understand the basics of CA landlord laws? I understand it is very tenant-friendly out there. Neither my parents nor myself have any CA landlord experience. Please, any help at all would be much appreciated. If anyone is willing to do a phone call even, I am happy to venmo you some lunch money as a 'thank you.'
Best!
Jake Martinez-Parry
@Jake M. it varies on what you are doing, generally though there is rent control statewide for multiunit properties and properties owned by corporations of 5% plus inflation per year. Notices are a little longer than elsewhere as is the eviction process, some cities have more stringent rent control than the statewide law so that is something to be aware of, anything specific you want to know just ask.
I appreciate the help so far Aaron. Here's a specific question... We are doing an ADU and we want to get solar panels on the single unit. Would we be able to pay the solar bill (whether we want to lease or pay off the bank loan to own--we don't know yet) and tell them their electricity is free, but incorporate the electricity/solar bill in the rent? For example, we would like to rent out the unit for $2600/month. We are considering getting solar and pay $150/month for solar then just charge them the rent of $2750. I have heard that we can't force renters to participate in alternate energy/electricity programs. Is what we plan on doing okay?
@Jake M. Two things I would highly suggest...
First, read this (and keep it for future reference): California Dept of Consumer Affairs: Landlord-Tenant Handbook
(It covers the fundamentals of the landlord-tenant laws in California.)
Second, join one of the big landlord associations, like California Apartment Association. In my opinion, it’s really the only way to stay up-to-date on all the ever-changing laws in this state (they’ll send you frequent emails on any pending/new legislation affecting landlords).
They also have webinars, guides, podcasts, etc to help you understand the laws. And a host of other benefits like printable landlord forms, a legal helpline (where you can ask specific legal questions), tenant screening, etc.
Best of luck with your new endeavors!
@Jake M. you can but it will be difficult because people don't see the nuance, they'll just see a higher price and move on to the next unit. It is doable but difficult.
My view is that it has to be considered part of the rent. CA is lenient in how utilities are partitioned as long as disclosed, but must be based on property usage.
My opinion this is allowed: rent $2750 which includes utilities.
My opinion the following is not allowed: rent is $2600 + $150 for utilities. The issue is the $150 is not based on the utility usage of the property.
If you want a definitive answer, contact a lawyer who specializes in real estate.
Laws that are common in Ca:
- Max occupancy typically is considered protected up to 2 * numBedrooms + 1. This means for a 2 br you cannot limit to less than 5 tenants.
- There is statewide rent control for multiplexes older than 15 years, but there is also various local ordinances. This rent control provides the tenant protection if you want to get rid of them.
My area has a source of funds protection. This means you can’t refuse section 8.
notice is 1 month for 1st year then 2 months.
there is no such thing as fees, for example a pet fee. They are all legally a deposit.
depisit max is 2x rent if unfurnished, 3x rent if furnished. In all but student units the standard is 1x where my rentals are.
various eviction rules related to notification and times. Too much to cover here
all the federal rules including the protected classes, service animals, and ESAs. Make sure you know these rules.
good luck