What a Landlord Cannot Do in California: A Guide for Landlords

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Being a landlord involves many responsibilities. If you're running a large property management firm or simply overseeing one or two of your own properties, there's always something to deal with.

One of the most complex aspects of being a landlord is understanding and navigating the legal side of the rental industry. As a landlord, you must contend with local laws and also with state and federal laws.

This can be particularly challenging in a state like California, which has many landlord-tenant laws in place.

In this article, we'll discuss what a landlord cannot do in California without facing legal repercussions. We'll also outline some best practices for landlords to follow.

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1. Landlords Can't Discriminate

To successfully avoid discriminatory behavior, a landlord must first understand the types of actions the law considers discriminatory.

Housing discrimination in general refers to when a landlord or property owner treats a tenant (or rental applicant) unfairly because of their race, national origin, sex, skin color, family status, sexual orientation, disability status, or religion.

This prohibition applies during the selection process and also when it comes to advertising rental properties and when showing units to potential tenants. California law also limits the fees landlords can charge for rental application screenings.

Other examples of housing discrimination include (but are not limited to) refusing to rent to people of a certain race, attempting to raise the rent when a family has a child, refusing to make reasonable accommodations for a tenant with a disability, or establishing different rental terms for men versus women.

If you harass a tenant protected by these laws, this is also classed as housing discrimination. Landlords should always behave in a fair way when dealing with all tenants.

How To Avoid Being Accused of Discriminatory Practices

When it comes to housing discrimination, there are two important pieces of legislation to understand. The first is the Fair Housing Act (enacted by Congress in 1968). The second is the California Fair Employment and Housing Act.

If you're operating as a landlord in California, it's absolutely crucial to be familiar with both of these pieces of legislation. Knowing what you can't do as a landlord can keep you from facing charges and fines.

2. Restrictions on Security Deposits

A security deposit is there to cover the cost of any property damage done to a rental unit. A landlord should not misuse a security deposit's funds by using them for anything other than repairs.

There are also limits on the amount landlords can charge as a security deposit. A landlord demanding a higher amount runs the risk that tenants will report them to a housing authority.

If a landlord fails to return a tenant's security deposit without just cause, they also open themselves up to legal trouble.

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3. Limitations on Rent Increases

Landlords must handle rent increases responsibly. A landlord can't raise the rent by an exorbitant amount. There are tenant protections in place that restrict rent payment increases. This cap can range from 5% to 10%, depending on the location.

There are also laws in place regarding rent increases for different types of tenants. A fixed-term lease agreement protects a tenant from rent increases during the period of their lease. In comparison, landlords can raise rent for tenants on a month-to-month lease at any time. The Tenant Protection Act also prohibits landlords from raising rent more than twice in a 12-month period.

A landlord should also familiarize themselves with local rent control laws. While there are federal and state rent control regulations, cities often have their own laws as well.

When Can a Tenant Withhold Rent?

Although it may seem unusual, there are situations where a tenant can legally withhold rent from a landlord.

A landlord failing to perform a necessary repair for a rental property is a good example of this. In this situation, the tenant can repair it themselves and deduct the cost from that month's rent. This is a tenant's right to "repair and deduct".

4. Eviction Procedure

California has well-defined eviction laws and established procedures in place. Landlords are expected to follow these eviction procedures or face serious repercussions.

Eviction Laws in California

In California, eviction protections exist to safeguard renters from unlawful eviction actions. These tenant protections are in place to keep landlords from removing tenants from their homes without a reason. They ensure that you can't evict renters without justification.

In California law, landlords must give tenants a formal eviction notice with just cause for doing so. If the landlord doesn't have legal grounds for an eviction notice, then the eviction itself is invalid. It's also considered an invalid eviction if the landlord tries to evict a tenant without reasonable notice.

Proper Eviction Procedure in California

California landlord-tenant laws stipulate that when a landlord wishes to evict a tenant, they must follow the proper eviction process.

The timeline for this process can vary depending on the root cause behind the eviction proceedings. The first initial step is to serve the tenant with an eviction notice. This notice will state the grounds for eviction and give a notice period. The notice period is the amount of time the tenant has to resolve the issue or vacate the premises.

Eviction Periods of Three Days

If there's unpaid rent, the landlord can issue what is referred to as a 3-day quit, as dictated by landlord-tenant law. This typically comes in the form of an official written notice to the tenant. The tenant must remit unpaid rent to the landlord or face eviction at the end of a three-day period. Once the tenant pays the rent owed, the landlord can no longer evict them for that reason.

Landlords can also issue a 3-day eviction notice when tenants violate lease terms. Illegal activity in the rental unit is also another valid cause for eviction.

Lease agreements are a binding contract between landlords and tenants. Lease terms outline rules and expectations for both parties in advance. California landlord-tenant laws state that while landlords have certain responsibilities towards their tenants, tenants also have responsibilities towards their landlords.

If a tenant fails to maintain safe and sanitary conditions in the residence, the landlord may issue a 3-day notice to quit. Causing significant damage to the property can also result in eviction. This is because the tenant's failure to maintain the property is a breach of their lease agreement.

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Eviction Periods of 30 or 60 Days

Tenants will typically have eviction periods of either thirty or sixty days when a tenant's initial lease period has expired. Notice periods of this length are also common if a tenant didn't have a lease agreement in the first place.

If a tenant rents without a lease agreement in place, they are considered a "tenant at will". This means that they're renting the property on a month-to-month basis (without a fixed lease period).

Because of this "at will" designation, landlords have the right to terminate the rental agreement at any time. That said, a landlord must still give the tenant a proper eviction notice. How long a renter's tenancy is determines the length of the eviction period. If tenancy is less than a year, the eviction period will typically be thirty days. If the tenancy is longer than a year, the eviction period will be sixty days.

The next step in the 30-day or 60-day eviction process follows the same procedure as that of a 3-day quit notice. If the tenant doesn't vacate the premises after the notice period, the landlord must file an official eviction lawsuit.

What Comes After the Eviction Notice?

Once a landlord has sent an eviction notice, the tenant must either:

• Resolve the issue that prompted it
• Vacate the premises

If the tenant fails to do so, the landlord may proceed with an eviction lawsuit to remove them. This involves filing a legal complaint against the tenant. You must file the complaint in the same jurisdiction as the rental property itself. The court will then hear both sides of the case and make a decision based on the evidence.

If you're thinking of pursuing this type of legal action, it's important to be thorough. Make sure you have all the necessary paperwork in order and follow all established procedures. We also recommend consulting with a legal expert familiar with landlord-tenant law and the eviction process.

Improper Eviction Actions (Illegal Lockouts and What Not To Do)

While a landlord can evict a tenant with just cause, you must follow the proper eviction procedure. Even if the eviction is valid, it's important that you don't violate tenant protections.

A landlord can't enforce eviction on their own. Attempting to remove a tenant yourself is against the law and can result in severe penalties. A landlord should never change the locks or shut off utilities to get a tenant to leave. Landlords also cannot remove personal property.

These types of actions are considered "illegal lockouts" and can result in serious legal trouble for property owners. If a landlord attempts to evict a tenant unlawfully, they may face serious consequences.

5. Illegal Lease Terms

Lease agreements can't include terms that waive a tenant's legal rights or limit a landlord's legal obligations. While automatic renewal clauses aren't banned, they must meet specific requirements to be enforceable in California. We recommend having an attorney review the lease agreement to make sure it complies with legal standards.

6. Privacy and Entry Restrictions

Landlords must give tenants at least 24 hours written notice before entering a rental unit, except in emergency situations.

Although landlords can enter for specific reasons (such as repairs or showing the property), they can't misuse this right by entering too often or for unauthorized purposes.

You, as a landlord, should keep a record of the reasons for entry and maintain a log of all visits to the rental unit. This will help you avoid disputes.

7. Maintenance and Repairs

Landlords must ensure that rental properties remain habitable. They mustn't neglect necessary repairs or fail to address health and safety issues. Additionally, landlords can't retaliate against tenants who request repairs or exercise their right to "repair and deduct".

Landlords can't charge tenants for normal wear and tear when they move out. Only significant damages may be deducted from the security deposit. To prevent disputes over damages, provide tenants with a checklist to document the unit's condition at both move-in and move-out.

8. Utility Restrictions

Landlords can't cut off utilities to force a tenant to leave the property. This constitutes an illegal "self-help" eviction. They also can't remove any amenities that were originally provided without proper compensation or an agreement with the tenant. Landlords should clearly communicate any changes to amenities and obtain written consent from the tenant.

9. Disclosure Requirements

Landlords must disclose known hazards, such as lead-based paint in older properties or mold. They must also inform tenants about any periodic pest control services. Make sure you get everything in writing and keep signed copies for your records.

10. Abandoned Property

When tenants leave behind property after moving out, landlords must follow procedures for handling these items. This includes notifying the tenant and storing the belongings for a specified period.

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The Fair Housing Act

While the Fair Housing Act is a federal legislation that applies to all states (with the Civil Rights Division of the Department of Justice enforcing it), California actively enforces it. It ensures that management treats all tenants fairly, regardless of:

• Race or skin color
• National origin
• Sex
• Family status
• Sexual orientation
• Disability

As a landlord, you must be mindful of how you treat both current and prospective tenants.

It's important to treat all new applicants equally during the tenant screening process. Evaluate rental applications solely on factors such as rental history, credit score, references, and income.

A landlord mustn't make a decision about renting to a potential tenant based on their race, religion, national origin, or any other protected status. If you refuse to rent to someone because of bias, this can end up causing serious legal trouble.

Violations of the Fair Housing Act can result in lengthy court battles and civil penalties, which could cost a landlord thousands (or even tens of thousands) of dollars. Additionally, if there are prior violations or multiple violations at once, this cost can climb even higher. This financial loss has the potential to be even more severe when combined with legal fees.

The California Civil Rights Department (CRD) may also become involved in matters relating to potential discrimination, as there are anti-discrimination laws on the state level.

California's Fair Employment and Housing Act

Enacted even earlier than the Fair Housing Act, California's Fair Employment and Housing Act also focuses on protecting against discrimination.

While it primarily prevents employment discrimination, FEHA is also a key piece of legislation when it comes to housing discrimination.

Examples of actions that violate the Fair Employment and Housing Act specifically include offering inferior contract terms to applicants of certain ethnicities or using discriminatory income standards when screening applicants. Also known as “source of income discrimination”, this is when a landlord refuses to rent to an applicant because of their income. This type of refusal is in violation of the provisions of FEHA.

What is the California Tenant Protection Act?

The California Legislature passed the California Tenant Protection Act of 2019, also known as AB 1482, with the intention of protecting both landlords and tenants. Enacted during a time when the housing crisis was at its peak, AB 1482 focuses on two things:

• Restricting annual rent increases to protect renters from exorbitant rate hikes.
• Ensuring that evicting renters with tenancies longer than one year must be done with just cause.

Exemptions to AB 1482 do exist, but seek legal assistance if you're a landlord looking to understand what exactly these exemptions entail and how they might apply to you.

Landlord-Tenant Laws: Recent Developments

Understanding the laws and best practices when it comes to the rental industry in California is crucial. You also need to stay on top of the latest developments in California law that relate to landlord-tenant relationships and interactions.

Several new housing bills have taken effect over the past couple of years. These include updates to the regulations surrounding security deposits. One of the most notable changes is the cap on security deposit amounts. Security deposit laws now dictate that a security deposit on a rental property can't exceed one month's rent.

Because California frequently updates laws annually, landlords need to stay informed about any changes related to:

• Tenant protections
• Rental agreements
• Common landlord-tenant issues

As a landlord, you should also be up-to-date on US-wide landlord-tenant laws.

Conclusion

Landlords must respect tenant rights and follow strict legal limits. They cannot harass, discriminate, illegally evict, or neglect essential repairs. California state laws protect tenants by ensuring they have access to safe and habitable housing. Understanding these restrictions empowers renters to defend themselves and ensures landlords operate fairly within the law.

Disclaimer - This information is for general informational purposes only and should not be treated as legal advice. We recommend you consult an experienced Landlord Tenant attorney if you require legal advice.