Property Management·Residential Landlord Tenant

Residential Landlord-Tenant Law

Overview

California has some of the most tenant-protective landlord-tenant laws in the United States. For real estate brokers — especially those involved in property management or residential leasing — mastery of these laws is essential to avoid liability and serve clients effectively. This section covers the major statutes and regulations that shape residential tenancies in California.

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AB 1482 — The Tenant Protection Act of 2019

AB 1482 (effective January 1, 2020) created the first statewide rent cap and just cause eviction requirement in California. Its two main components are:

Rent Cap

Rent increases for covered units are limited to the lesser of:

  • 5% + the local CPI (Consumer Price Index) change, OR
  • 10% maximum in any 12-month period
  • The CPI component is calculated based on the April-to-April CPI for the region where the property is located. In high-inflation years, the CPI component can be significant, but the 10% ceiling is absolute.

    Important mechanics:

  • Landlords may not "bank" unused increases (can't skip a year and then double-increase later)
  • The 10% cap applies even if the landlord makes multiple rent increases in a 12-month period — total increases cannot exceed the cap
  • Increases below the cap are not a right — landlords must still comply with notice requirements (10-day written notice for ≤10% increase; 30-day notice for >10% in non-AB-1482 situations, but for covered units the cap prevents >10% anyway)
  • Properties Covered by AB 1482

    The rent cap and just cause eviction requirements apply to multi-unit buildings that are at least 15 years old at the time of the proposed rent increase. This means:

  • A building built in 2008 becomes covered in 2023
  • Coverage is rolling — the coverage age is calculated against the current date
  • Properties EXEMPT from AB 1482

  • Single-family homes — UNLESS owned by a corporation, REIT (Real Estate Investment Trust), or LLC where one member is a corporation (in those cases, AB 1482 applies and the owner must provide an exemption notice to tenants of non-covered SFH)
  • Condominiums — if sold separately and owned by individual landlords (not institutionally owned)
  • Units built after February 1, 1995 (covers the Costa-Hawkins Rental Housing Act)
  • Duplexes where the owner occupies one unit
  • Government-subsidized housing subject to other restrictions
  • Hotels and transient occupancy
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    Just Cause Eviction (AB 1482)

    For covered units, landlords must have just cause to terminate a tenancy. Just cause is divided into:

    At-Fault Just Cause (tenant did something wrong)

  • Nonpayment of rent
  • Breach of a material lease term
  • Nuisance or waste
  • Illegal activity on the premises
  • Refusal to allow lawful entry by landlord
  • Unapproved subletting or assignment
  • Failure to vacate after proper notice
  • No-Fault Just Cause (landlord needs the unit back)

  • Owner or owner's immediate family member moving in (must actually move in and occupy for 12 months)
  • Substantial rehabilitation (requires building permits and displacement of tenant)
  • Demolition of the unit
  • Ellis Act withdrawal — withdrawing the property from the rental market entirely
  • For no-fault evictions, the landlord must pay the tenant one month's rent as relocation assistance (or allow the tenant to remain rent-free for the final month).

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    Security Deposits

    Limits

  • Unfurnished rental unit: maximum 2 months' rent
  • Furnished rental unit: maximum 3 months' rent
  • AB 12 (effective July 1, 2024): Reduces the security deposit limit to 1 month's rent for most landlords. Exception: small landlords (individuals who own no more than two residential rental properties with a combined total of no more than 4 units) may still charge up to 2 months' rent
  • Pet deposits are part of the total security deposit — landlords cannot charge a separate unlimited pet deposit
  • Return Timeline

  • The security deposit (less lawful deductions) must be returned within 21 days of the tenant vacating
  • Landlord must provide an itemized statement of any deductions, with receipts or invoices for repairs exceeding $125
  • Lawful Deductions

  • Unpaid rent
  • Cleaning costs to restore the unit to the condition at move-in (normal wear and tear cannot be charged)
  • Repair of damages beyond normal wear and tear
  • Replacement of keys or lost access devices
  • Normal wear and tear (which cannot be charged): nail holes from pictures, carpet worn by normal use, faded paint. This is a frequent dispute area — landlords who charge for normal wear and tear face liability for wrongfully withheld deposits (up to 2x the withheld amount as statutory damages).

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    Implied Warranty of Habitability

    California Civil Code §1941 imposes an implied warranty of habitability on all residential rental units. The landlord must maintain the unit in a habitable condition throughout the tenancy, including:

  • Weatherproofing and waterproofing (roof, windows, walls)
  • Functioning plumbing and hot water (capable of 120°F minimum)
  • Functioning heating system (capable of maintaining 70°F in all rooms)
  • Working electrical systems
  • Clean and sanitary premises, free from vermin and rodents
  • Functioning and safe common areas
  • Adequate garbage receptacles
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    Repair and Deduct Remedy

    If the landlord fails to repair a habitability defect after reasonable notice (typically 30 days, or shorter in emergency situations), the tenant may:

    1. Have the repair made by a licensed contractor 2. Deduct the cost from the next month's rent

    Limits:

  • Maximum deduction: one month's rent per repair event
  • This remedy may be used no more than twice in any 12-month period
  • The tenant must give the landlord reasonable time to make the repair first
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    Eviction Notices

    The type of notice required depends on the reason for the eviction:

    | Situation | Notice Required | |---|---| | Nonpayment of rent | 3-Day Notice to Pay Rent or Quit | | Curable lease breach | 3-Day Notice to Perform Covenant or Quit | | Incurable breach (major) | 3-Day Notice to Quit | | No-fault termination (≤1 year tenancy) | 30-Day Notice to Vacate | | No-fault termination (>1 year tenancy) | 60-Day Notice to Vacate |

    If the tenant does not comply with a 3-day notice, the landlord may file an unlawful detainer (UD) lawsuit — California's eviction proceeding. The UD process typically takes 3–6 weeks from filing to judgment (longer if contested).

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    Fair Housing in Rentals

    Federal Fair Housing Act protections apply to rentals. In California, the Fair Employment and Housing Act (FEHA) adds additional protected classes. Landlords cannot discriminate based on any protected class in:

  • Advertising and marketing
  • Application screening (e.g., blanket policies excluding felons without individualized assessment)
  • Lease terms
  • Maintenance and services provided
  • Eviction decisions
  • Source of income (including Section 8 Housing Choice Vouchers) is a protected class under California law — landlords who refuse Section 8 tenants violate FEHA.

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    Smoking Policies

    California law (Prop 65 and local ordinances) has increasingly restricted smoking in rental units:

  • Landlords may prohibit smoking in any part of the rental property, including individual units and outdoor areas
  • Non-smoking policies must be disclosed in the lease
  • Many California cities have enacted no-smoking ordinances in multi-unit buildings
  • E-cigarettes and cannabis may be treated differently under different local ordinances
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    Key Terms

  • AB 1482: The Tenant Protection Act of 2019 — statewide rent cap (5% + CPI, max 10%) and just cause eviction for covered units
  • Just cause eviction: Requirement that a landlord have a legally recognized reason to terminate a covered tenancy
  • At-fault just cause: Eviction based on tenant's breach (nonpayment, lease violation, nuisance, illegal activity)
  • No-fault just cause: Eviction not based on tenant's breach (owner move-in, demolition, Ellis Act withdrawal)
  • Warranty of habitability: Implied guarantee that the landlord will maintain a livable rental unit (Civil Code §1941)
  • Repair and deduct: Tenant remedy — repair habitability issues and deduct cost (up to 1 month's rent) from rent, after landlord fails to act
  • Unlawful detainer (UD): California's court eviction process — used when a tenant fails to comply with a notice
  • Security deposit: Money paid by tenant to cover potential damages; CA limit is 1-2 months (AB 12 post-July 2024)
  • AB 12: 2023 law reducing security deposit cap to 1 month for most landlords (effective July 1, 2024)
  • Ellis Act: State law allowing landlords to withdraw rental property from the market as no-fault just cause for eviction

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Quiz Questions:

Q1. The local CPI for a region is 4.5%. Under AB 1482, what is the maximum rent increase a covered landlord can impose on a tenant in a single 12-month period?

A) 4.5% B) 9.5% (5% + 4.5%) C) 10% D) 15%

Answer: B — The AB 1482 formula is 5% + local CPI = 5% + 4.5% = 9.5%. Since 9.5% is less than the 10% ceiling, the maximum increase is 9.5%.

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Q2. A landlord owns a 20-unit apartment building that was built in 2001. In 2026, the landlord wants to increase rent. Which of the following is correct?

A) The building is exempt from AB 1482 because it was built before 2010 B) AB 1482 does NOT apply because the building is over 15 years old C) AB 1482 DOES apply — the building was built in 2001, making it more than 15 years old, and it is a multi-unit building D) AB 1482 applies only to buildings built after 2010

Answer: C — AB 1482 applies to multi-unit buildings that are at least 15 years old. A building built in 2001 is 25 years old in 2026, clearly covered. The rule is that buildings must be at least 15 years old to be covered — older buildings are covered, newer (under 15 years) are not.

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Q3. A landlord wants to evict a tenant under AB 1482 so that the landlord's daughter can move into the unit. The landlord serves a 30-day notice without paying relocation assistance. Is this proper?

A) Yes — no relocation assistance is required for owner move-in evictions B) No — owner move-in is a no-fault just cause; the landlord must pay one month's rent as relocation assistance C) No — owner move-in is not a valid just cause under AB 1482 at all D) Yes — owner move-in for an immediate family member requires only 10 days' notice

Answer: B — Owner/family move-in is a valid no-fault just cause under AB 1482, but the landlord must provide relocation assistance equal to one month's rent. The notice period for most covered tenancies of more than one year is 60 days (not 30).

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Q4. Under AB 12 (effective July 1, 2024), what is the maximum security deposit a large corporate landlord may collect for an unfurnished unit renting for $3,000/month?

A) $6,000 (2 months) B) $9,000 (3 months) C) $3,000 (1 month) D) $4,500 (1.5 months)

Answer: C — Under AB 12, most landlords (including corporate landlords) are limited to 1 month's rent as the maximum security deposit. At $3,000/month, the maximum deposit is $3,000.

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Q5. A tenant discovers the heating system has been broken for 2 weeks. She notified the landlord in writing 30 days ago with no response. She has a contractor repair the system for $900. Her rent is $2,200/month. She deducts $900 from her next rent payment. Is this lawful?

A) No — the tenant can only deduct up to $500 regardless of repair cost B) No — the tenant must first obtain a court order before deducting repair costs C) Yes — the repair cost of $900 does not exceed one month's rent of $2,200, and she gave the landlord 30 days' notice before exercising the repair and deduct remedy D) No — the repair and deduct remedy only applies to roof and plumbing repairs, not heating

Answer: C — California's repair and deduct remedy allows tenants to deduct repair costs up to one month's rent after giving the landlord reasonable notice. $900 is less than $2,200 (one month's rent), and 30 days' notice was provided. The remedy applies to all habitability defects, including heating.