CA · Researched October 7, 2026
California is the most regulated state for rentals. Deposits are capped at one month's rent for most landlords, statewide rent caps and just cause rules (AB 1482) cover many units until 2030, and new 2025 and 2026 rules require move-in and move-out photos, electronic deposit refunds, and a working stove and refrigerator. Managing rentals for others requires a broker license from the Department of Real Estate.
Leasing or renting, soliciting tenants, or collecting rent for others for compensation is broker activity. A property management company needs a corporate or individual broker license, and salespersons must work under a broker.
Owners managing their own property; the resident manager of an apartment building or complex and that manager's employees; hotel and motel managers; certain employees of a licensed management firm doing limited listed tasks; attorneys and court appointees.
Brokers must deposit funds held for others, including rents and deposits, in a trust account at a bank in California and disburse only on the owner's instructions. Trust accounts need reconciliation and records under DRE regulations.
The two-month exception applies only to a natural person or an LLC of natural persons (including family trusts) owning no more than two rental properties with four or fewer units in total. It never applies to service members. Deposits collected before July 1, 2024 are not affected. A lease may not call any deposit nonrefundable.
Attach receipts or invoices for repairs and cleaning (or time and hourly rate for in-house work) when deductions exceed $125. Take photos at move-in (tenancies starting on or after July 1, 2025) and at move-out before and after repairs (since April 1, 2025), and include them with deductions. Since January 1, 2026, if the tenant paid the deposit or rent electronically, refund electronically unless you both agree otherwise in writing. Bad faith retention can cost up to twice the deposit plus actual damages.
The deposit belongs to the tenant and ranks ahead of the landlord's creditors. On sale, transfer the deposit to the buyer and notify the tenant, or refund it. Several cities, including San Francisco, Los Angeles, and Santa Monica, require interest. Brokers holding deposits must use a trust account.
California courts treat late fees as liquidated damages, so a fee that is a penalty can be thrown out. Put the fee in the lease. A 3-day notice to pay may demand only rent, not late fees.
Industry groups calculate the 2026 cap at about $65.86. You may charge only if you screen in order received and approve the first qualified applicant, or refund everyone not selected. Give a receipt itemizing costs and a copy of the credit report within 7 days. Do not charge when no unit is available.
The 10% is measured against the lowest rent charged in the prior 12 months. Serve the notice personally or by mail under CCP § 1013. Units under AB 1482 or local rent control have separate caps.
Applies to most units with a certificate of occupancy more than 15 years old. Single-family homes and condos are exempt only if the owner is not a REIT, corporation, or LLC with a corporate member and the tenant got the statutory exemption notice. Increases are limited to two per 12 months. Rent resets for a new tenancy. The law sunsets January 1, 2030. Local rent control, where stricter, controls.
The notice must state the exact rent due and the name, phone number, and address of the person to pay, plus days and hours if paying in person. Do not include late fees or other charges.
Serious breaches such as nuisance or illegal use allow a 3-day notice to quit without a cure. Units under AB 1482 just cause need one of the listed at-fault reasons, and curable breaches require a chance to cure first.
After 12 months of tenancy, most units also need just cause stated in the notice (AB 1482). No-fault terminations require relocation help equal to one month's rent, paid directly or as a waived final month, and the notice must tell the tenant about it.
After the notice period, file an unlawful detainer. The response deadline excludes weekends and court holidays, with 5 more court days if served through the Secretary of State's address confidentiality program. After judgment, the sheriff posts a notice to vacate before the lockout. Just cause and local rules may add steps.
If unclaimed, property worth $700 or more must be sold at public sale after published notice. If the landlord reasonably believes it is worth less than $700, the landlord may keep or dispose of it.
Entry must be during normal business hours and for a listed reason such as repairs, showings, or an initial move-out inspection. The notice must state the date, approximate time, and purpose. Emergencies, abandonment, and court orders are exceptions.
For leases entered into, amended, or extended on or after January 1, 2026, the landlord must provide and maintain a working stove and refrigerator, and fix or replace a recalled appliance within 30 days of notice. A tenant may opt in the lease to supply their own refrigerator. Tenants may repair and deduct up to one month's rent, no more than twice in 12 months, after giving reasonable notice.
Common items include the owner or manager's name and address for notices, the Megan's Law database notice, lead paint for pre-1978 housing, known mold, bed bug information, flood hazard area, shared utility meters, pest control, planned demolition, nearby former military ordnance, and the AB 1482 exemption or coverage notice.
Source of income includes Section 8 and other housing vouchers. Separate laws also bar asking about immigration status and limit criminal history screening.
SB 567 tightened AB 1482's just cause rules for owner move-in, withdrawal from the rental market, and substantial remodel evictions. It also lets tenants sue over rent charged above the cap, with up to triple damages for willful violations; the rules still sunset January 1, 2030.
Most landlords may collect no more than one month's rent as a deposit, furnished or not. Small individual landlords may still charge two months, except to service members.
Tenants now have 10 days, not counting weekends and court holidays, up from 5, to respond to an unlawful detainer. Demurrers and motions to strike must be heard within 5 to 7 court days.
Landlords may charge screening fees only if they review applications in the order received and approve the first qualified applicant, or refund every applicant not selected within 7 days of choosing a tenant or 30 days of applying, whichever is first.
Landlords must photograph the unit after move-out and after repairs (from April 1, 2025) and at move-in for tenancies starting July 1, 2025 or later, and send the photos with the itemized deduction statement.
If a service member is charged a higher deposit due to credit or rental history, the landlord must explain it in writing and return the extra after six months if rent is current. SB 611 also bars fees for serving notices, operative February 1, 2025.
If the tenant paid rent or the deposit electronically, the refund must be electronic unless both sides agree in writing to another method. With multiple adult tenants, refund by one check payable to all of them unless all agree otherwise in writing.
For leases entered into, amended, or extended on or after January 1, 2026, landlords must provide and maintain a working stove and refrigerator, and fix or replace recalled ones within 30 days of notice. A tenant may choose in the lease to supply their own refrigerator, and some housing types are exempt.
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Compare with other states: security deposit limit, deposit return deadline, deposit interest and holding rules, late fees, application and screening fees, rent increase notice, rent control, notice for unpaid rent, notice for lease violations, ending a month-to-month, eviction timeline, abandoned property, landlord entry, repairs and habitability, required disclosures, state fair housing protections.