Renting out a property in California comes with real legal exposure. Here are the mistakes we see most often — and how to avoid them.
Many owners assume rent control only applies to big cities like Oakland or San Francisco. In reality, California's statewide Tenant Protection Act (AB 1482) caps annual rent increases at 5% plus local inflation (up to 10% max) and requires "just cause" for eviction on most rental housing statewide, including single-family rentals owned by an LLC or corporation. Some properties are exempt (certain single-family homes, newer construction), but the exemption has to be documented correctly in the lease — a mistake we see often.
California requires at least 30 days' written notice for a rent increase of 10% or less in the prior 12 months, and at least 90 days' notice for anything larger — on top of whatever cap AB 1482 allows. Landlords who increase rent based only on "what the market will bear," without tracking the 12-month lookback and notice period, can have the increase invalidated.
Since July 2024, California generally caps security deposits at one month's rent, furnished or unfurnished (a narrow exception allows up to two months for small landlords who own two or fewer rental properties). Renaming part of the deposit a "cleaning fee" or "pet deposit" doesn't get around the cap if it's refundable.
Deposits must be returned within 21 days of move-out along with an itemized statement and receipts for any deduction over $125. New photo-documentation requirements (move-in, move-out, and after repairs) took effect in 2026. Miss the deadline or shortcut the documentation, and a tenant can pursue damages up to twice the deposit amount.
Faded paint, minor carpet matting, or a few nail holes are wear and tear — not deductible damage. Charging for a full repaint after a multi-year tenancy is a common way landlords lose deposit disputes in court.
Outside of emergencies, California law requires landlords to provide 24-hour written notice before entering an occupied unit, even for routine maintenance or showings. Treating this as a courtesy rather than a legal requirement is a common (and easily avoidable) mistake.
Screening every applicant with the same written criteria isn't just good practice, it's fair-housing protection. Using different questions or standards for different applicants — even unintentionally — is one of the most common ways landlords end up with a discrimination complaint. California also protects against "source of income" discrimination, including housing assistance vouchers.
Under AB 1482, most tenants who've been in place 12+ months can only be evicted for a legally defined "just cause," and no-fault terminations often require paying relocation assistance or waiving a month's rent. Serving the wrong notice, or skipping the relocation piece, can invalidate the entire eviction.
Landlords are responsible for keeping a rental livable — working plumbing, heat, and (as of 2026) functioning stoves and refrigerators are now explicit habitability requirements under California law. Slow maintenance response isn't just a tenant-relations problem; it's a legal exposure.
Lease templates pulled from a generic online source often miss California-specific requirements — proper notice language, required disclosures, and exemption language for AB 1482. An outdated or out-of-state lease is one of the most common root causes behind the mistakes above.
This is general educational information, not legal advice — California landlord-tenant law changes frequently and local rules can add further requirements. When in doubt, talk to a real estate attorney or our team before acting.
Every Haven management plan includes compliant leases, proper notices, and documentation handled for you.
