Is it necessary to have a written rental agreement / lease under California law?

No, the agreement may be either oral or in writing, express or implied, for a fixed term (such as 6 months, 1 year, etc) or on a periodic basis (week-to-week, month-to-month, year-to-year). If the tenancy is for a fixed term of more than 1 year, the least MUST be in writing.

What about a signed move-in move-out inspection report?

State law requires that, within a reasonable time after notice by either party of their intention to terminate the tenancy, or before the end of the lease term, the landlord must notify the tenant in writing of his/her option to request an initial inspection and of his/her right to be present at the inspection. No earlier than 2 weeks before the termination or the end of the lease date, the landlord must, upon the request of the tenant, inspect the premises. The purpose of the initial inspection is to allow the tenant an opportunity to remedy identified deficiencies in a manner consistent with the rights and obligations of the parties under the rental agreement. The landlord is not required to perform this initial inspection if the tenant has been served with an eviction notice.

Can the landlord charge a deposit?

Yes, a landlord can charge a maximum security deposit equal to 2 months’ rent for unfurnished units and 3 months rent for furnished units, however the landlord can charge an amount equal to an extra 1/2 month’s rent if the tenant owns a waterbed. Even if the landlord designates some of the security deposit as a cleaning deposit or a pet deposit, the total maximum limit still applies.

Within 21 days after the tenant moves out, the landlord must either return the security deposit, or send the tenant an itemized statement showing the amount of any deductions from the deposit and the reasons for those deductions, together with a refund of any balance remaining. The landlord can apply the security deposit to unpaid rent, repair of damages to the premises (except for normal wear and tear), cleaning the premises at the end of the tenancy if necessary to bring the unit to the same level of cleanliness it was in at the start of the tenancy, or remedying future defaults by the tenant in any obligations under the rental agreement to restore, replace or return personal property to their original position.

There is no state law that states that a landlord must pay interest on a security deposit, however, several local jurisdictions do require it.

California does not allow for non-refundable deposits. However, if a landlord has taken a property off the rental market and held it for a tenant who later decides not to move in, the landlord can deduct a reasonable amount from the deposit to cover costs of keeping the property vacant or costs associated with advertising stops and starts, but only if the potential amount withheld is stated up front. If a landlord chooses to take a holding deposit, the transaction should be in writing.

When is the landlord allowed to increase the rent?

In month-to-month tenancies, the landlord can raise the rent after giving the tenant appropriate advance notice. The amount of notice required depends on the level of the increase. In the case of a fixed-term lease, provisions regarding rent cannot be changed during the term of the lease.

There is no state law which limits the amount or percentage of increase. However, some local communities regulate rent increases.

Can a landlord charge a late fee when the tenant is late in paying the rent?

There is no state law that specifically addresses late fees. Late charge provisions should be in writing and are valid only if they are reasonably calculated to compensate the landlord for the cost of accepting and processing late payments. Late charges designed to deter the tenant from late payment are generally deemed inappropriate. Late charges of 5-10% are generally held to be valid. Some rent control cities limit the amount that can be levied.

How can a lease be terminated?

A fixed term lease is terminated in accordance with the provisions of the lease. Typically, the lease cannot be terminated before the expiration of the lease term. If a tenant remains in possession of the property at the end of a fixed term lease, and continues to pay rent, and the landlord accepts the rent, the tenancy is presumed to be renewed on a month-to-month basis. Otherwise, the landlord is entitled to possession at the conclusion of the term and may bring eviction proceedings if the tenant fails to move out.

A tenant wanting to terminate a month-to-month tenancy must give 30 days written notice. If a landlord wants to terminate a month-to-month tenancy, the landlord must give 60 days written notice prior to the termination date if the resident has been in possession of the rental unit for 1 year or longer. If the tenant has been in possession of the property for less than 1 year, the landlord can give a 30-day notice.

When is the landlord permitted to enter the premises?

A landlord can enter a rental unit only for the following reasons: * In an emergency. * When the tenant has moved out or has abandoned the rental unit. * To make necessary or agreed-upon repairs, decorations, alterations or other improvements. * To show the premises to prospective tenants, purchasers or lenders, to provide entry to contractors or workers who are to perform work on the unit, or to conduct an initial inspection before the end of the tenancy. * If a court order permits the landlord to enter. * If the tenant has a waterbed, to inspect the installation when it has been completed, and periodically after that to assure that the installation meets the law’s requirements.

The landlord must give the tenant reasonable advance notice in writing, and can only enter during normal business hours (generally 8 a.m. to 5 p.m. on weekdays). The notice must state the date, approximate time and purpose of entry.

Advance written notice is not required: (i) in case of emergency; (ii) if the tenant has moved out or has abandoned the premises; (iii) the tenant is present and consents to the entry; or (iv) the parties have agreed orally that the landlord may enter to make repairs or supply services, provided that the agreement includes the date and approximate time of entry, which must be within 1 week of the oral agreement.

On what grounds can a landlord evict a tenant?

The landlord can bring an eviction action if the tenant: (i) failed to pay the rent, (ii) violated a provision of the lease or rental agreement, (iii) materially damaged the property, (iv) committed a nuisance, (v) used the property for an unlawful purpose, or (vi) if a tenant holds over in possession after the expiration of a fixed term lease. A landlord may not evict a tenant for breach of a lease provision other than failure to pay rent, unless the provision breached is in writing and signed by the tenant. So if there are restrictions such as no pets, no subletting, etc., these should be included in a written lease or rental agreement.

If a tenant fails to pay rent, the landlord can serve a Three-Day Notice to Pay Rent or Quit. If rent is not paid after the 3rd day, the landlord can proceed with an Unlawful Detainer Complaint. If a tenant breaks any rules, the landlord can serve a Three-Day Notice to Perform Conditions and/or Covenants or Quit. If the tenant does not correct the breach in 3 days, the landlord can proceed with an eviction. A landlord cannot seek to force a tenant to move from a rental unit by engaging in behavior that constitutes theft or extortion, by using threats or force, or by committing a significant and intentional violation of the rules that limit the landlord’s right to enter the premises. The landlord cannot change the locks or cut off utilities to the premises.

If a landlord brings an eviction action against a tenant for nonpayment of rent, and the rental unit is found to be uninhabitable, the landlord is liable to the tenant for reasonable attorneys’ fees and court costs.

The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.