Legal compliance can be a complicated scenario in any industry. Failure to comply with local, state, and federal laws can lead to severe consequences. In a rental business, this can result in higher vacancy rates, a damaged reputation, and legal costs.
While hiring a legal professional is always recommended when dealing with legal issues, knowing basic rental laws enables you to be more proactive and careful in your business decisions.
Listed below are the most common legal questions that California landlords ask.
Key Highlights:
- Understanding California rental laws helps landlords avoid costly legal issues and penalties.
- Rent increases are capped under the California Tenant Protection Act and require proper notice.
- Evictions must follow strict legal procedures and valid “just cause” requirements.
- Landlords are legally required to maintain habitable living conditions regardless of tenant payment status.
- Non-compliance with laws—such as illegal evictions or discrimination—can lead to fines, lawsuits, and reputational damage.
1. How much can I legally raise rent in California?
You can raise your rent by no more than 5% plus the percentage change in the cost of living, with a maximum annual rent increase of 10%, although that may depend on the exact location, as per the California Tenant Protection Act. In San Diego, for example, you cannot charge more than 8.8% if the increase occurs before July 31st of 2026. Before increasing the rent, you must provide a written notice 30 days before it takes effect.
2. What are the legal grounds for evicting a tenant?
In California, the most common grounds for evicting a tenant include:
- Failure to pay rent
- Breaking a material rule in the lease or rental agreement
- Criminal activity within the rental property
- Subletting despite lease restrictions
- Denying the landlord entry despite the legal right to enter
The ones mentioned above are “at fault” reasons for eviction, but you may also evict a renter through “no fault” reasons, such as the owner making the property a primary residence. Note that just-cause reasons (both at-fault and no-fault) all have their own requirements that landlords need to meet.
3. How long do I have to return a security deposit?
Once the tenant moves out of the rental property, the landlord has 21 days to return the entire security deposit or the remainder. If there are deductions from the deposit, the landlord must provide an itemized statement listing the deductions and the reasons for them.
Furthermore, if the charges exceed $125, you need to attach copies of the invoices or receipts to the itemized statement. If you or your employee did the work yourselves, you have to include a description of the job, how long it took, and the hourly rate you charged.
4. What repairs are landlords legally responsible for?
You are generally responsible for repairs that involve maintaining habitability standards, including HVAC, plumbing, and electrical systems. To ensure tenant safety, you must also address structural issues and follow local and state building codes to provide livable conditions for your tenants. Be sure to refer to your own lease or rental agreement as well, so you won’t overlook some of your responsibilities as the property owner.
5. Is it legal to evict a tenant by changing locks or shutting off utilities?
This is considered an unlawful lockout, also known as self-help eviction. Doing so violates California criminal and civil laws, as a court judgment and a writ of possession are required to legally evict a tenant. Even after all requirements have been met, only a Sheriff, Marshall, or their deputies can evict the tenant in question. It is illegal for a property owner or property manager to forcibly remove a tenant from the premises.
6. When can landlords enter the rental unit legally?
Landlords must first provide reasonable notice, typically 24 hours, before entering a rental unit. You must also have a valid reason, such as conducting maintenance or repairs, or regular inspections.
Even when you have given reasonable notice and have a valid reason to enter, you still need to wait for the tenant’s permission before you can enter the property. Ideally, you should schedule a convenient entry time or clearly state the terms in the lease agreement.
7. Can I refuse to rent to someone for any reason?
You can only refuse to rent to applicants who do not meet the screening criteria, such as having a low credit score, a poor rental history, or a criminal record that could endanger your investment property and the current tenants living in it.
However, Fair Housing laws state that you cannot reject an applicant based on protected classes, such as race, color, national origin, religion, sex, familial status, and disability. Violating Fair Housing laws can lead to hefty fines, mandatory trainings, and lawsuits.
8. Can I withhold maintenance if a tenant hasn’t paid rent?
No. You are legally obligated to maintain habitable living conditions, even if a tenant is late on rent payments. They will even have the right to withhold rent or pay for repairs themselves and deduct the costs from the monthly rent.
Non-payment of rent is an issue that must be dealt with separately. If you withhold maintenance, you might face issues like move-outs without notice, the tenant calling state or local building health inspectors, or a lawsuit.
Who Can You Consult for Legal Problems?
Lawyers
Some lawyers specialize in the rental industry, which means they are equipped with the kind of knowledge you need to make informed decisions. They are also the ones you call when you land in legal trouble, since dealing with it yourself could only make it worse.
Property Managers
Property managers or property management companies have a team of experts, including legal professionals, who know the rental and landlord-tenant laws that concern you, your tenants, and your property. Hiring them allows you to be more proactive in legal compliance and make business decisions that will benefit both your tenants and your rental business.
Why Blue Line Property Management is a Good Choice
We always strive to protect you and your investment from any issues that may arise, and if you do run into trouble, we can provide the advice you need to get out of it. Blue Line Property Management can be both proactive and reactive.
We try to keep your operations running smoothly by ensuring you get only quality tenants through meticulous tenant screening, and if they violate your rules, we can either mediate or handle eviction proceedings from start to finish.
Let us help you stay legally compliant. Call us and learn more!
More Resources:
What San Diego Landlords Should Know About the Rent Algorithm Ban
What Is Considered Normal Wear and Tear in California Rental Properties?
