Guide to Residential Leases in California

What Tenants and Landlords Need to Know About Residential Leases in California

Whether you’re a tenant or a landlord renting out residential property, such as an apartment or house, it’s important to understand how rental leases work in California.

Leases are legally binding agreements that define the rights and responsibilities of both parties. California law provides specific protections and obligations that apply to these relationships. Here’s what both tenants and landlords should know before signing or drafting a lease.

Does a lease need to be in writing in California?

In California, leases can generally be either written or oral (verbal). However, leases lasting longer than 1 year (such as committing to rent for 2 years or more) must be in writing to be legally enforceable.1CA Statute of Frauds Even for shorter tenancies, a written lease is highly recommended as it provides clear terms and reduces the risk of disputes.

As of March 2019 the city of Glendale requires most landlords to offer a written lease of a 1-year term to a prospective tenant (or a current tenant when the landlord wants to increase the rent).2Glendale Municipal Code Sec 9.30.025 (Note: the tenant is NOT required to accept the offer, and may agree to a shorter term lease). This Glendale rule does NOT apply to any unit on a property of 4 units or less.

What are important terms to include in a lease?

A solid lease agreement should include at least the following elements:

  1. Names of all tenants
  2. Names of landlord(s)
  3. Property address
  4. Lease term (start and end dates, or month-to-month)
  5. Rent amount, due date, and accepted payment methods
  6. Security deposit amount and terms of return
  7. Maintenance responsibilities for tenants and landlord
  8. Policies on subletting, pets, smoking, guests, etc.
  9. Notice requirements for ending or renewing the lease
  10. Disclosures required under California law

Many of the above items are regulated by California law, discussed below. For much more on important items for leases, see our Guide to Essential Terms to Include in Residential Lease in California.

What are the rules on security deposits?

Under California law, landlords may collect a security deposit equivalent to 2 months’ rent for an unfurnished property, or 3 months’ rent for a furnished property. See more at our Guide to Security Deposits.

What must landlords disclose in a lease in California?

California requires landlords to include certain disclosures in the lease or rental agreement. Some of the most common include:

  • Lead-based paint disclosure: for properties built before 1978
  • Pest control notice: if pesticides will be used
  • Mold disclosure: if the landlord is aware of mold in the unit
  • Bed bug information
  • Prop 65 warning: about chemicals known to cause cancer or reproductive harm

Is everything in a lease legally enforceable?

No, sometimes items in a lease are not enforceable, such as if they contradict a legal right (often unintentionally). For example, if a lease states that a security deposit is nonrefundable for any reason, this violates the rules for security deposits, which state that security deposits must be refunded (less valid deductions for specific things).

See more on renters rights.

What happens if the lease does not address an issue?

If the lease does not discuss an issue, such as what happens with the security deposit, then the state laws on that issue would be used to resolve it.

How to terminate a lease?

Tenants who want to end a fixed-term lease early may be responsible for paying rent until a replacement tenant is found. For month-to-month tenancies, proper notice is required:

  • 30-day notice if the tenant has lived in the unit for less than a year
  • 60-day notice if the tenant has lived in the unit for more than a year

Landlords must also give proper notice and must have a lawful reason to terminate under just cause laws if they apply.

Are all residents required to be on a lease?

Many landlords require all adult residents of an apartment to be on a lease, and the landlord can usually evict (through proper proceedings) those not on a lease.

However, some rental situations are more informal and do not have a written lease. In this case, there is considered to be an “oral agreement” (aka “verbal agreement”) about the lease. Oral rental agreements are usually valid and can be enforced in court, however, it is usually quite difficult to prove the terms of the oral agreements. Thus, it is in everyone’s interest to get rental agreements in writing.

What is a “month to month” lease?

A month to month lease simply means that the lease is valid for one month at a time, but by default it renews for the next month, and then the next month, and so on. It’s essentially an ongoing lease, but the tenant has the option to terminate at any time, one month in advance. Usually the landlord can also terminate at any time, one month in advance, except if the apartment is rent-controlled.

A month to month lease can be created from the beginning of a rental arrangement, but it is much more common to start with a 1 year lease, which then automatically converts to a month to month after the 1st year.

Further Resources

Guide to Essential Terms to Include in Residential Lease in California

Guide to Tenant Rights

Minimum Standards for Rentals in California

Guide to Laws for California Homeowners

Guide to Laws about Rent Control in California


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Author

  • Tristan Blaine is the founder of Law Soup Media, and has been a licensed attorney since 2013.

    About Tristan

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