BEFORE YOU AGREE TO RENT

 

Before you decide on a rental unit, there are several other points to consider. For example: Is an oral rental agreement legally binding? What are the differences between a lease and a rental agreement? What are some of the advantages and disadvantages of each? This section answers these and other questions.

 

RENTAL AGREEMENTS AND LEASES

 

General information

 

Before a tenant can rent a rental unit, the landlord and tenant must enter into a rental agreement or lease. A "lease" generally refers to a written agreement while a "rental agreement" generally includes both oral and written agreement. However, these terms are synonymous and can be used interchangeably. For purposes of this guide, the term "rental agreement" is used to describe both a "rental agreement" and a "lease".

 

The tenant’s right to use and possess the landlord’s rental unit is called a tenancy. The rental agreement includes the terms and conditions that will govern the tenancy, including the length of the tenancy, the amount of the rent, the timing when the rent payments are due, and the amount of the security deposit. Although the different types of rental agreements and tenancies are discussed below, before entering into an agreement with a landlord, the tenant may want to seek advice from an attorney, legal aid organization, housing clinic, or tenant-landlord program to make sure that they understand all of the rental agreement provisions, each party's obligations, and any risks that either party may face.

 

Oral and Written Agreements

 

The rental agreement may be oral or written, however, it is strongly recommended that the parties have a written rental agreement. The landlord is required to provide the tenant with a signed copy of the rental agreement within 15 days of its execution. The landlord and tenant should retain copies of the signed rental agreement for their records.

 

An oral agreement is an agreement where the terms are agreed upon by spoken communication. This is in contrast to a written agreement where the terms are set forth in a written document. A tenancy term of more than one year must be in writing. Oral agreements for a tenancy term of more than a year are unenforceable.  

 

If you have an oral agreement, the landlord must give you a written statement regarding the name, street address, and phone number of the landlord or agent for receipt of legal notices; the contact information for the person who will accept the rent; and how the rent is to be paid (for example by cash, check or money order). One disadvantage of an oral agreement is that parties will have no written proof of the terms of their rental agreement if they get into a dispute with the other party. Also, once the oral agreement is made, any change of its terms by a landlord, or its termination by either party, must still be made by a properly served and legally sufficient written notice. 

 

Tenants with special circumstances may especially want to avoid an oral agreement. For instance, tenants may prefer a written agreement if they plan to reside at the rental unit for an extended period (i.e., several months up to one year), the landlord permits 22 the tenant to have pets or water-filled furniture (i.e., waterbed), or the landlord has agreed to pay any of the expenses (i.e., utilities or garbage removal) or provide any services (i.e., gardening).

 

Again, a written agreement is preferred and is in the best interest of both parties. The key problem with an oral agreement is that the obligations of the landlord to the tenant, and vice-a-versa, are not spelled out in an easily verifiable form.

 

Fixed Term and Periodic Tenancies

 

Whether the parties choose an oral or written agreement, either agreement must address the length of the tenancy or rental period. There are two types of tenancies, a tenancy for a fixed term and a tenancy for a periodic term. Fixed-term tenancies are tenancies that last for a set amount of time and have a defined expiration date, such as six months or one year. It is important to understand that the tenant is bound by the agreement until the agreement expires, which means that the tenant must pay the rent and perform all of the tenant's obligations under the agreement during the entire tenancy. There are some advantages to having a fixed-term tenancy. For instance, the landlord cannot raise the tenant's rent during the tenancy, unless the rental agreement expressly allows rent increases. Also, the landlord cannot terminate the tenancy while the rental agreement is in effect unless the tenant breaches a term in the rental agreement (for example, the tenant fails to pay rent, damages the property, or commits illegal activity on the premises). A fixed-term tenancy gives the tenant the security of a long-term agreement at a known cost. Even if the rental agreement allows rent increases, the rental agreement should specify a limit on how much and how often the rent can be raised. One disadvantage of a fixed-term tenancy is that the rental agreement may be more difficult to break, especially if another tenant cannot be found to take over your tenancy, if you need to move before the end of the fixed-term. If you move before the fixed-term ends, you could be liable for the rent for the rest of the term or until such time as the landlord rents the unit to a new tenant.

 

 Periodic tenancies are tenancies that continue for successive periods until the landlord or tenant gives the other party proper notification that they want to end the tenancy. Examples of periodic tenancies are tenancies that run from week to week or month to month. A periodic-term tenancy does not state the total number of weeks or months that the rental agreement will be in effect. The tenant can continue to live in the rental unit as long as the tenant continues to pay rent and the landlord does not provide proper notice of termination in a manner provided by law.

 

If a tenant is protected by just cause eviction protections, a landlord cannot ask a tenant to leave for no reason even during a month-to-month tenancy. Many tenants have city or county just cause eviction protections or have tenancies that qualify for eviction protections under the recently enacted Tenant Protection Act of 2019 (AB 1482) (hereinafter referred to as the “Tenant Protection Act”). In these circumstances, a monthto-month tenancy will continue indefinitely unless a landlord has one of the good causes for eviction specified in the law and gives the tenant a valid termination notice.

 

As for rental payments, the landlord and tenant should agree on the timing of the rental payments. Where the term of a tenancy for a rental unit is not specified, it is presumed to have been for the time period between rental payments.77 Thus, the term of a periodic-term tenancy with rent paid monthly is presumed to be for month to month.78 23

 

State law provides for the amount of advance notice that the landlord and tenant must give to the other party to terminate the tenancy or change the terms (except the rental amount) of their rental agreement (see pages 64-68).79 Special rules govern the amount of advance notice that a landlord must give to a tenant before the landlord can increase the rental amount, and by how much the rent can be increased (see pages 35- 37).

 

SHARED UTILITY METERS

 

Some buildings have a single gas or electric meter that serves more than one rental unit. In other buildings, a tenant’s gas or electric meter may also measure gas or electricity used in a common area, such as the laundry room or the lobby. In situations like these, the landlord must disclose that utility meters are shared before you sign the rental agreement or lease, or as soon as the landlord discovers the shared metering. When utilities are apportioned among multiple rental units, a tenant may consider asking the landlord to provide them with information about how the charges are apportioned. A landlord cannot charge more than the actual cost of the utilities.

 

The landlord and tenant should discuss and agree upon which party will be responsible for paying the shared utilities and memorialize their understanding in writing. The options available to the landlord and tenant include:

 

• The landlord can pay for the utilities provided through the meter for your rental unit by placing the utilities in the landlord’s name;

 

• The landlord can have the utilities in the area outside your rental unit put on a separate meter in the landlord’s name; or

 

• You can agree to pay for the utilities provided through the meter for your rental unit to areas outside your rental unit.

 

If the landlord fails to do this, the tenant may bring a legal action and ask for remedies such as an order that the utilities be put in the landlord's name, or that the tenant be compensated for the tenant's payment of utilities outside the dwelling unit. If a public municipal utility company provides utility service to a rental dwelling, and the utility service is in the landlord’s name, a tenant may be able to become the customer of record on the account in order to avoid utility shut-off if the landlord falls behind on payments.

 

Rental units in older buildings may not have separate water meters or submeters. Ask the landlord if the rental unit that you plan to rent has its own water meter or submeter. If it does not, and if the landlord will bill you for water or sewer utilities, be sure that you understand how the landlord will calculate the amount that you will be billed. Under California law, a landlord is required to make specific disclosures to a tenant about the billing of water when there is a water submeter for the rental unit.

 

Translation of Proposed Rental Agreement

 

Although most lease negotiations are conducted in English, English may not be the primary language spoken by some landlords and tenants. Parties to a rental agreement may negotiate in another language. If the parties specifically negotiate in Spanish, Chinese, Tagalog, Vietnamese or Korean, the landlord must give the tenant a written translation of the proposed written agreement in the language used in the negotiation before the tenant signs the agreement. This rule applies whether the negotiations are oral or in writing. The rule does not apply if the rental agreement is for a period of one month or less. This rule only applies if Spanish, Chinese, Tagalog, Vietnamese or Korean is used. It does not apply if the parties negotiate in some other language, such as Russian.

 

The landlord must give the tenant the written translation of the rental agreement whether or not it is requested by the tenant. The translation must include every term and condition in the rental agreement, but may retain elements in English such as names, addresses, numerals, dollar amounts and dates. It is never acceptable for the landlord to give the written translation of the rental agreement to the tenant after the tenant has signed the lease. Rather, the landlord must provide the tenant with the written translation of the rental agreement prior to the execution, or signing, of the rental agreement.

 

However, the landlord is not required to give the tenant a written translation of the lease or rental agreement if all of the following are true:

 

• The Spanish-, Chinese-, Tagalog-, Vietnamese-, or Korean-speaking tenant negotiated the rental agreement through his or her own interpreter; and

 

• The tenant’s interpreter is able to speak fluently and read with full understanding English, as well as Spanish, Chinese, Tagalog, Vietnamese, or Korean (whichever language is used in the negotiation); and

 

• The interpreter is not a minor (under 18 years of age); and

 

• The interpreter is not employed or made available by or through the landlord.

 

If a landlord who is required to provide a written translation of a lease or rental agreement in one of these languages fails to do so, the tenant can rescind (cancel) the agreement.

 

WHEN YOU HAVE DECIDED TO RENT

 

Before signing a rental agreement or a lease, the parties should read it carefully so that each party understands all of its terms. What kind of terms should be included in the rental agreement or lease? Can the rental agreement or lease limit the basic rights that the law gives to all tenants? How much can the landlord require you to pay as a security deposit? This section answers these and other questions.

 

WHAT THE RENTAL AGREEMENT SHOULD INCLUDE

 

Most landlords use printed forms for their rental agreements; however, printed forms may vary from form to form. There is no standard rental agreement. Some agreements may have terms that are only invoked through the checking of a box, placing a party’s initials or otherwise marking the agreement. Also, some sections may require filling in one or more blanks before a term is complete and understandable. Therefore, carefully read and understand the entire document before signing it. And make sure you are given a complete and exact copy to keep before signing it. Do not sign an agreement on which any relevant blanks are not completed.

 

The written rental agreement should contain all of the promises that the landlord or the landlord’s agent has made to you and should not contain anything that contradicts 25 what the landlord or the agent told you. If the rental agreement refers to a separate document, such as “tenant rules and regulations,” get a copy and read it before you sign the written agreement.

 

Do not feel rushed into signing. Make sure that you understand every term before signing the rental agreement. If you do not understand something, ask the landlord to explain it to you. If you still do not understand, discuss the agreement with an attorney, legal aid organization, tenant-landlord program, or housing clinic before signing it.

 

Key terms

 

The written rental agreement should contain key terms, such as the following:

 

• The names of the landlord and the tenant.

 

• The address of the rental unit.

 

• The amount of the rent.

 

• When the rent is due, to whom it is to be paid, and where it is to be paid.

 

• The amount and purpose of the security deposit (see pages 74-76).

 

• The amount of any late charge or returned check fee (see page 40).

 

• Whether pets are allowed. The law does not treat assistance animals and service animals as pets.

 

• The number of people allowed to live in the rental unit.

 

• Whether attorney’s fees can be collected from the losing party in the event of a lawsuit between you and the landlord.

 

• Who is responsible for paying utilities (gas, electric, water, and trash collection).

 

• If the rental is a house or a duplex with a yard, who is responsible for taking care of the yard.

 

• Any promises by the landlord to make repairs, including the date by which the repairs will be completed.

 

• Contact information for reporting problems or necessary maintenance or repairs, including an emergency number.

 

• Other items, such as whether you can sublet the rental unit (see page 45-46) and the conditions under which the landlord can enter the rental unit (see pages 44-45).

 

In addition, the rental agreement must disclose:

 

• The name, address, and telephone number of the authorized manager of the rental property and an owner (or an agent of the owner) who is authorized to receive legal notices for the owner.

 

• If you may make your rent payment in person, the rental agreement must state the usual days and hours that rent may be paid in person. Or the document may state the name, street address, and account number of the financial institution where rent payments may be made (if it is within five miles of the unit) or information necessary to establish an electronic funds transfer for paying the rent.

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• The form in which rent payments must be made (for example, by check or money order).89 Except when there has been an issuance of a 3-Day Notice to Pay Rent or 26 Quit or a dishonored payment instrument, the landlord cannot require that you make rent payments in cash, or by electronic funds transfer, without offering other options (see pages 38-39).A tenant should never pay rent in cash without getting a receipt every single time.

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• Certain required disclosures, including bed bugs and flood hazards. 

 

If the rental agreement is oral, the landlord or the landlord’s agent must give the tenant, within 15 days, a written statement containing the information in the foregoing three bullet points. The tenant may request a copy of this written statement each year thereafter.

 

Every rental agreement also must contain a written notice that the California Department of Justice maintains a website at www.meganslaw.ca.gov that provides information about specified registered sex offenders. This notice must contain the legally required language.

 

A rental agreement may contain other terms. Examples include whether you must park your car in a certain place, pool or clubhouse hours, whether storage is available, or when quiet hours begin. A landlord may lawfully prohibit smoking anywhere on the rental property. If the landlord chooses to do so, then the rental agreement must specify where on the property smoking is prohibited. If a landlord chooses to prohibit smoking after a rental agreement is entered into, the landlord must provide you with adequate notice of this change. A landlord cannot prevent you from posting political signs involving, for instance, noncommercial messages associated with people or issues up for public vote. As long as the sign is less than six square feet in size and is not otherwise prohibited by law, it may be posted. If no local ordinance gives time limits for how long you may post the sign, your landlord may establish a reasonable time limit for the posting and removal of the sign. A “reasonable” time period means at least 90 days before the election or vote to which the sign refers and at least 15 days after.95

 

It is important that you understand all of the terms of your rental agreement before you sign it. If you do not comply with them, the landlord may have grounds to evict you.

 

Do not sign a rental agreement if you think that its terms are unfair or you believe that one or more terms violate the law. If a term does not fit your needs, try to negotiate a more suitable term (for example, a smaller security deposit or a lower late fee). It is important that any agreed-upon change in terms be included in the rental agreement that both you and the landlord sign. If you and the landlord agree to change a term in the rental agreement, the change can be made in handwriting. Both you and the landlord should initial or sign in the area immediately next to the change to show your approval of the change. Alternatively, the document can be retyped with the new term included therein but will need to be signed by all the parties.

 

If you do not agree with a term in the rental agreement and cannot negotiate a better term, carefully consider the importance of the term, and decide whether or not you want to sign the document.

 

The owner of the rental unit or the person who signs the rental agreement on the owner’s behalf must give you a copy of the document within 15 days after you sign it.96 Be sure that your copy shows the signature of the owner or the owner’s agent, in addition to your signature. Keep the document in a safe place and do not ever discard it. 27

 

A good idea is to email a scanned copy to yourself. Tenants are also entitled to receive one copy of the lease from the landlord every calendar year upon request

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Alterations to Accommodate a Tenant with a Disability

 

Under fair housing laws, housing providers must make reasonable exceptions to neutral policies, practices or services, or to make certain reasonable physical modifications when necessary to provide persons with disabilities an equal opportunity to use and enjoy a dwelling. A reasonable accommodation could include changing the rental due date or waiving a no animals policy in order to allow a service or emotional support animal to reside in the unit. A landlord must also allow a tenant with a disability to make reasonable modifications - physical changes - to the premises to the extent necessary to allow the tenant “full enjoyment of the premises.”Except at properties that receive ‘federal financial assistance’, as that term is defined by law, the tenant must pay for the modifications. However, the landlord is required to make structural modifications if required by a separate provision of the law related to structural access standards. It is important to recognize that a modification is distinct from a reasonable accommodation - a change to a policy or practice - which the property owner cannot charge for, even if they involve some costs. As a condition of making certain modifications, the landlord may require the tenant to enter into an agreement to restore the interior of the rental unit to its previous condition at the end of the tenancy. Yet, most modifications will not require restoration. The landlord cannot require an additional security deposit in this situation. However, the landlord can require that some form of financial guarantee be put in place that is sufficient to pay for the properly required restoration. This can take the form of requiring that the tenant pay into an interest bearing escrow account, over a reasonable period, a reasonable amount of money not to exceed the cost of the restorations, where the interest in any such account shall accrue to the benefit of the tenant. 

 

Assistance animals and service animals, used by persons with disabilities as a reasonable accommodation for a disability, are not pets and are not subject to a no pets policy. A refusal to make reasonable accommodations in rules, policies, practices, or services when these accommodations may be necessary to afford a person with disabilities equal opportunity to use and enjoy a dwelling, violates fair housing laws.

 

For more information on reasonable accommodations, review https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf and https://www.hud.gov/sites/documents/reasonable_modifications_mar08.pdf.

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Tenant’s basic legal rights

 

Tenants have basic legal rights that are always present, no matter what the rental agreement states. These rights include all of the following:

 

• Limits on the amount of the security deposit that the landlord can require you to pay (see pages 31-34).

 

• As of January 1, 2020, most rental units are covered by the Tenant Protection Act which places a cap on annual rent increases equal to 5% plus inflation, or 10%, whichever is lower, and no more than two rental increases within a 12-month period (see page 35-37).99 Tenants living in cities with rent stabilization programs might have additional rent protections available to them. See Appendix 2 in this guidebook for a comprehensive list of California cities and counties with rent stabilization protections.

 

• Limits on the landlord’s right to enter the rental unit (see pages 44-45).

 

• The right to a refund of the security deposit, or a written accounting of how any of it was used by the landlord, after you move out (see pages 74-77).

 

• The right to sue the landlord for violations of the law, or your rental agreement.

 

• The right to repair serious defects in the rental unit and to deduct certain repair costs from the rent, under appropriate circumstances, provided the tenant gives the landlord reasonable advance notice (see pages 51-60).

 

• The right to withhold rent under appropriate circumstances (see pages 55-57). • Rights under the warranty of habitability (see pages 47-50).

 

• The right to the implied rental agreement covenant of ‘quiet enjoyment’ (see pages 61-62).

 

• Protection against retaliatory eviction (see pages 102-104).

 

• Most tenants are protected from being evicted without just cause, which means that the landlord must have a valid legal reason for an eviction (see pages 67-68, AB 1482).

 

• Right to request a reasonable accommodation.

 

• Right to fair housing rights and protections against unlawful discrimination. These and other rights will be discussed throughout the rest of this booklet. The duty of good faith and fair dealing

 

Every rental agreement requires that the landlord and tenant deal with each other fairly and in good faith. Essentially, this means that both the landlord and the tenant must treat each other honestly and reasonably. This duty of good faith and fair dealing is implied by law in every rental agreement even though the duty is typically not expressly stated in the agreement. A typical legal description of the implied covenant of good faith and fair dealing is that neither party will do anything that will unreasonably interfere with the right of the other party to receive the benefits of the agreement. To put it another way, the implied covenant imposes upon each party the obligation to do everything that the contract presupposes they will do to accomplish its purpose.

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LANDLORD’S DISCLOSURES

 

There are many state-wide disclosures landlords are required by law to make prior to the tenancy commencing. There may be other local disclosure requirements depending on the city or county in which the rental unit is located. These required disclosures often show up as Addendums or Attachments to lease agreements. Here are some you may encounter.

 

Lead-based paint

 

If the rental unit was constructed before 1978, the landlord must comply with all of the following requirements:

 

• The landlord must disclose the presence of known lead-based paint and lead-based paint hazards in the dwelling before the tenant signs the rental agreement.101 The landlord must also give the tenant a copy of the federal government’s pamphlet, “Protect Your Family From Lead in Your Home” (available by calling (800) 424- LEAD, or online at https://www.epa.gov/lead/protect-your-family-lead-your-home), before the tenant signs the rental agreement.102

 

• The landlord is not required to conduct any evaluation of the lead-based paint, or to remove it.103

 

• The rental agreement must contain a lead warning statement in legally-required language.104

 

• The landlord also must give potential tenants and tenants a written Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards.105

 

Periodic pest control treatments

 

A pest control company must give written notice to the landlord and tenants of rental property regarding pesticides to be used when the company provides an initial treatment as part of an ongoing pest-control service contract. The landlord must give a copy of this notice to every new tenant who will occupy a rental unit that will be serviced under the service contract. If the landlord fails to do so, the new tenant might be able to sue the landlord for costs incurred, moving costs, and an additional penalty of up to $2,500.106

 

Bed Bugs

 

Prior to creating a new tenancy for a dwelling unit, a landlord must provide a written notice to a prospective tenant about bed bugs. The required notice must include general information about bed bug identification, behavior and biology, the importance of cooperation for prevention and treatment, and the importance of, and for prompt written reporting of, suspected infestations to the landlord. If a landlord suspects that a rental unit contains bed bugs, or if they somehow learn of a possible bed bug infestation, the landlord must inspect the rental unit for bed bugs.107 If bed bugs are found, a landlord cannot show, rent or lease the rental unit until the bed bugs are eradicated.

 

Asbestos

 

Residential property built before 1981 may contain asbestos. Landlords of properties built before 1981 are strongly urged to disclose the presence of asbestos whenever they discover or reasonably suspect the presence of asbestos at the property

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Carcinogenic material

 

In 1986, California voters approved the Safe Drinking Water and Toxic Enforcement Act of 1986 (known as “Proposition 65”). The act requires any person or entity with 10 or more employees to provide a warning of possible exposure to chemicals (listed by the State of California) that cause cancer, birth defects or other reproductive harm if that person or entity knows or suspects the chemical is present at a workplace, business or rental housing. Examples of listed chemicals include, but are not limited to, arsenic, asbestos, benzene, and lead. For landlords with 10 or more employees, the landlord must provide the notice in one or more conspicuous locations at the rental property to warn tenants, prospective tenants and others of possible exposure to the listed chemical. For more information, please visit the State of California’s Proposition 65 website at https://www.p65warnings.ca.gov/.”

 

Methamphetamine contamination

 

Residential property that was used for methamphetamine production may be significantly contaminated.

 

A local health officer who inspects a rental property and finds that it is contaminated with a hazardous chemical related to methamphetamine laboratory activities must issue an order prohibiting the use or occupancy of the property. This order must be served on the property owner and all occupants. The owner and all occupants then must vacate the affected units until the officer sends the owner a notice that the property requires no further action.

 

The owner must give written notice of the health officer’s order and a copy of it to potential tenants who have completed an application to rent the contaminated property. Before signing a rental agreement, the tenant must acknowledge in writing that they received the notice and order. The tenant may void (cancel) the rental agreement if the owner does not comply with these requirements. The owner must comply with these requirements until they receive a notice from the health officer that the property requires no further action.110

 

Demolition permit

 

The owner of a dwelling who has applied for a permit to demolish the dwelling must give written notice of this fact to a prospective tenant before accepting any fee from the tenant or entering into a rental agreement with the tenant. (The owner must give notice to current tenants, including tenants who have yet to move in, before applying for a permit.) The notice must state the earliest approximate date that the owner expects the demolition to occur, and that the tenancy will end.111

 

Military base or explosives

 

A landlord who knows that a rental unit is within one mile of a closed military base in which ammunition or military explosives were used must give written notice of this fact to a prospective tenant. The landlord must give the tenant this notice before the tenant signs a rental agreement.

 

Death in the rental unit

 

California law requires a landlord to disclose to a prospective tenant a death and the manner of such death that occurred at the rental unit within the last three years. The landlord is not required to disclose that an occupant of the rental unit was living with human immunodeficiency virus (“HIV”) or died from AIDS-related complications. The law does not protect an owner, however, from liability for making any intentional misrepresentations in response to a direct inquiry from a prospective tenant who asked about a death at the rental unit.

 

Condominium conversion project

 

A rental unit may be in a condominium conversion project. A condominium conversion project is an apartment building that has been converted into condominiums or a newly constructed condominium building that replaces demolished residential housing. Before the potential tenant signs a rental agreement, the owner or subdivider of the condominium project must give the tenant written notice that:

 

• The unit has been approved for sale, and may be sold, to the public, and

 

• The tenant’s rental agreement may be terminated (ended) if the unit is sold, and

 

• The tenant will be informed at least 90 days before the unit is offered for sale, and

 

• The tenant normally will be given a first option to buy the unit.

 

The notice must be in legally required language. This notice requirement applies only to condominium conversion projects that have five or more dwelling units and that have received final approval.If the notice is not given, the tenant may recover actual moving expenses not exceeding $1,100 and the first month’s rent on the tenant’s new rental unit, if any, not to exceed $1,100. These notice provisions do not apply a) to projects of four dwelling units or less, or b) as a result of transfers due to court order (including probate proceedings), foreclosure proceedings, or trusts.115

 

In some cities, additional requirements for condominium conversion may apply, or certain types of condominium conversions may be prohibited.

 

Flood Hazard

 

In all rental agreements entered into after July 1, 2018, if the owner has actual knowledge that the rental unit is located in a flood hazard zone, the landlord must disclose to the tenant that they live in a special flood hazard area or an area of potential flooding.

 

Megan’s Law

 

A landlord must include the following language in every rental agreement: "Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides."

 

BASIC RULES GOVERNING SECURITY DEPOSITS

 

At the beginning of the tenancy, the landlord can, and most likely will, require you to pay a security deposit. The landlord can use the security deposit, for example, if you move out owing rent, damage the rental unit beyond normal wear and tear, or leave the rental unit less clean than when you moved in.

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Under California law, a rental agreement cannot say that a security deposit is nonrefundable.119 This means that when the tenancy ends, the landlord must return to you any payment that is a security deposit, unless the landlord uses the deposit for a lawful purpose, as described on pages 68-70 and 74-76.

 

Almost all landlords charge tenants a security deposit. The security deposit may be called last month’s rent, security deposit, pet deposit, key fee, or cleaning fee. The security deposit may be a combination, for example, of the last month’s rent plus a specific amount for security. But note that if a tenant is living with a service or emotional support animal, they cannot be charged a separate pet deposit. No matter what these payments or fees are called, the law considers them all, as well as any other deposit or charge, to be part of the security deposit.120 The one exception to this rule is stated in the next paragraph. Tenants should not believe that they have somehow pre-paid their last month’s rent if the landlord has used this term with respect to the security deposit. The landlord will almost always be able to insist a tenant pay rent for their last month or partial portion thereof.

 

EXCEPTION: The law allows the landlord to require a tenant to pay an application screening fee, in addition to the security deposit (see pages 15-16).121 The application screening fee is not part of the security deposit. However, any other fee charged by the landlord at the beginning of the tenancy to cover the landlord’s costs of processing a new tenant is part of the security deposit.122 Here are examples of the two kinds of fees:

 

• Application screening fee—A landlord might charge you an application screening fee to cover the cost of obtaining information about you, such as checking your personal references and obtaining your credit report (see pages 15-16). The application screening fee is not part of the security deposit. Therefore, it is not refundable as part of the security deposit.

 

The law limits the total amount that the landlord can require you to pay as a security deposit. The total amount allowed as security depends on whether the rental unit is unfurnished or furnished and whether you have a waterbed.

 

• Unfurnished rental unit: The total amount that the landlord requires as security cannot exceed two months’ rent. If you have a waterbed or any other liquid-filled bedding, the total amount allowed as security can be up to two-and-a-half times the monthly rent.

 

• Furnished rental unit: The total amount that the landlord requires as security cannot exceed three months’ rent. If you have a waterbed or any other liquid-filled bedding, the total amount allowed as security can be up to three-and-a-half times the monthly rent.

 

• The foregoing maximum security deposit amounts may be reduced by one month’s rent if the tenant’s household consists only of a service member and any of their spouse, parent, domestic partner, or dependents. Service members with a poor credit or tenant history may be charged up to the regular maximum deposit amount. The landlord can require you to pay the first month’s rent in addition to the security deposit.123 If you choose to pay in cash, which is not recommended, be sure to get a receipt at the time you make the payment. The above security deposit limitations and rules also apply to family child care homes.

 

Security deposit examples:

 

• Suppose that you agreed to rent an unfurnished apartment for $1,000 a month. Before you move in, the landlord can require you to pay up to two times the amount of the monthly rent as a security deposit ($1,000 x 2 = $2,000). The landlord also can require you to pay the first month’s rent of $1,000, plus an application screening fee of up to $52.46, in addition to the $2,000 security deposit. This is because the first month’s rent and the application screening fee are not part of the security deposit.

 

• Suppose the landlord requires you to pay $2,000 security deposit (the maximum allowed by law for an unfurnished unit when the rent is $1,000). The landlord cannot then add to this $2,000 deposit additional deposit fees such as another $200 cleaning fee, $25 key deposit, $50 mail box deposit fee, or other similar fees. The $2,000 plus the added fees would be prohibited by state law.

 

A landlord cannot require that a security deposit is nonrefundable However, when you move out of the rental, the law allows the landlord to keep all or part of the security deposit for the following:

 

• You owe rent;

 

• You leave the rental less clean than when you moved in;

 

• You damaged the rental beyond normal wear and tear;

 

• You have made alterations and did not return the unit to the original condition; or

 

• You fail to restore personal property (such as keys or furniture), other than because of normal wear and tear.

 

If none of these circumstances are present, the landlord must return the entire amount that you paid as security. However, if you left the rental very dirty or damaged beyond normal wear and tear, for example, the landlord can keep an amount that is reasonably necessary to clean or repair the rental.125 Deductions from security deposits and the time periods when the landlord must notify the tenant of any deductions are discussed in detail on pages 71-76.

 

Make sure that your rental agreement clearly states that you paid a security deposit to the landlord and correctly states the amount that you paid. Most landlords will give you a written receipt for all amounts that you pay as a security deposit. Keep a copy of both the receipt, if any, and your rental agreement in case of a dispute.126

 

California law provides survivors of domestic violence, sexual assault, human trafficking, stalking, or elder/dependent adult abuse the ability to terminate their lease early without penalty. A landlord may not charge a tenant a penalty for breaking their lease, regardless of what is stated in their lease, if the tenant is breaking their lease because of domestic violence, sexual assault, human trafficking, stalking, or elder/dependent adult abuse. The tenant must tell the landlord in writing that they are ending the rental agreement early because of the domestic violence, sexual assault, human trafficking, stalking, or elder/dependent adult abuse they’ve experienced, and provide the landlord a copy of a restraining order no more than 180 days old, a police report no more than 180 days old, or a statement from a qualified third-party. Qualified third parties include domestic violence or sexual assault advocates, doctors, registered 34 nurses, psychologists, or licensed clinical social workers. However, the landlord can require the tenant to pay rent for 14 days after providing this notice (which must be refunded if the landlord re-rents the unit within that time). Tenants can also break their lease early if it is necessary because the tenant’s household member is a survivor of domestic violence, sexual assault, human trafficking, stalking, or elder/dependent adult abuse.127 The National Housing Law Project has created an Early Lease Termination Toolkit, available at: https://www.nhlp.org/wp-content/uploads/00-CA-Civil-Code-1946.7- Toolkit-Jan-2016updated.pdf.

 

Normal security deposit law applies in cases where a survivor has to break their lease early.128 In addition, if the tenant is a survivor of domestic violence, a landlord may not penalize the tenant for property damage, nor deduct the cost from the security deposit to repair those damages, caused by the domestic violence survivor’s abuser if the domestic violence survivor (i.e., tenant) did not invite the abuser onto the property.

 

If your building changes owners during your tenancy, your prior landlord is responsible for either transferring your security deposit to your new landlord or returning the security deposit to you, minus any lawful deductions.

 

If your landlord fails to return part or all of a security deposit without having a reason allowed by law, you may be able to recover your deposit in court, such as by filing a lawsuit in small claims court.131 If the landlord withheld the security deposit in bad faith, the court may award the tenant up to twice the amount of the security deposit, plus any monetary damages that the tenant suffered

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