California Landlord-Tenant Law 2026: Complete Guide for Property Owners

California has some of the most tenant-friendly laws in the United States, making landlord compliance complex but essential. From statewide rent control to strict eviction procedures, California landlords must navigate detailed regulations to avoid costly violations.

This comprehensive 2026 guide covers everything California property owners need to know about landlord-tenant law, including recent legislative changes and best practices for lawful, profitable rental operations.

California Landlord-Tenant Law Overview

Key Statutes Governing Rentals

Primary laws:

California Civil Code (Sections 1940-1954.1): Core landlord-tenant rights
AB 1482 (Tenant Protection Act of 2019): Statewide rent control and just-cause eviction
Local ordinances: Many cities have additional rent control (SF, LA, Oakland, etc.)
California Code of Regulations: Habitability standards

Tenant-friendly state: California courts generally favor tenants in disputes. Landlord documentation and compliance critical.

Statewide Rent Control (AB 1482)

Who It Applies To

Covered properties:

Buildings 15+ years old (as of 2026, built before 2011)
NOT owner-occupied with 2 or fewer units (duplexes where landlord lives in one unit exempt)
NOT single-family homes owned by individuals, LLCs with individual owners, or REITs (unless managed by corporate entity with multiple properties)

Exemptions:

New construction (less than 15 years old)
Dorms, hospitals, licensed care facilities
Deed-restricted affordable housing

Annual Rent Increase Limits

Maximum increase: 5% + local CPI (Consumer Price Index), capped at 10% total

2026 example:

California CPI: 3.8% (varies by region)
Maximum increase: 5% + 3.8% = 8.8%
If CPI were 6%: 5% + 6% = 11%, capped at 10%

Applies to 12-month period, not calendar year.

Example:

Current rent: $2,500/month
Increase effective date: March 1, 2026
Maximum new rent: $2,500 × 1.088 = $2,720
Cannot raise again until March 1, 2027

Notice Requirements for Rent Increases

Under 10% increase:

30 days written notice for month-to-month tenancies
60 days notice if tenant has lived there 1+ year

10% or more increase (pre-2020 leases):

60 days written notice required

Best practice: Always give 60 days notice to avoid mistakes and build goodwill.

Just-Cause Eviction Requirements (AB 1482)

Protected Tenancies

After 12 months of tenancy, landlords can only evict for "just cause":

Just causes fall into two categories:

At-Fault Just Causes

Nonpayment of rent
Breach of lease (material violation like unauthorized occupants, pets, illegal activity)
Nuisance (disturbing other residents)
Illegal use of property (crime, safety violations)
Refusal to sign similar lease after current expires
Failure to give access (refusing landlord entry per legal requirements)
Unapproved subtenant after written notice to cease

Landlord advantage: No relocation assistance required for at-fault evictions.

No-Fault Just Causes

Owner move-in: Landlord or immediate family moving in
Withdrawal from rental market (Ellis Act)
Demolition or substantial remodel (requires permits)
Government order (code compliance, unsafe conditions)

Relocation assistance required:

One month's rent OR
Waive last month's rent
Paid before tenant moves

Owner move-in restrictions:

Must occupy for minimum 12 continuous months
Cannot re-rent for 3 years (except at lawful rent)
Tenant must have lived there 12+ months

Security Deposits (California Civil Code §1950.5)

Maximum Deposit Amounts

Unfurnished units:

2 months' rent maximum (as of 2024 law change, previously 2x)
Example: $2,000/month rent = $4,000 max deposit

Furnished units:

3 months' rent maximum
Example: $2,000/month rent = $6,000 max deposit

Small landlords (1-2 units) owned by individuals:

May charge up to 3 months' rent for unfurnished (exemption)

Pet Deposits

Separate pet deposits allowed:

Must be reasonable
Combined with security deposit, cannot exceed maximum (2-3 months' rent)

Example:

Unfurnished apartment: $2,200/month
Security deposit: $4,000
Pet deposit: $400
Total: $4,400 (compliant if "pet deposit" counted as part of security deposit)

Recommendation: Include pet fees in standard security deposit to avoid confusion.

Return of Security Deposit

Timeline: 21 days from move-out

Required documentation:

Itemized statement of deductions
Copies of receipts/invoices for repairs over $126 (2026 threshold)
Remaining balance check

Allowable deductions:

Unpaid rent
Repairs beyond normal wear and tear
Cleaning (only if necessary to restore to move-in condition)

NOT allowed:

Normal wear and tear (faded paint, worn carpet from normal use)
Future repairs unrelated to tenant damage

Failure to comply:

Landlord may forfeit right to deduct anything
May owe tenant 2x security deposit (bad faith retention penalty)
Tenant can sue in small claims court

Best practice: Conduct move-in and move-out inspections with photos, provide pre-move-out inspection opportunity (legally required).

Habitability and Maintenance (California Civil Code §1941)

Landlord Responsibilities

California landlords must provide:

Essential services:

✅ Waterproofing and weather protection
✅ Plumbing (hot/cold running water)
✅ Heating system
✅ Electrical system (safe, working)
✅ Safe structure (no health/safety hazards)
✅ Trash receptacles
✅ Working locks on doors and windows
✅ Smoke detectors, carbon monoxide detectors (multi-family)

California-specific:

Seismic safety: Soft-story retrofitting in earthquake zones (LA, SF, Oakland)
Lead-based paint disclosure: Pre-1978 buildings
Mold prevention: Adequate ventilation, prompt leak repairs

Tenant Repair Requests

Process:

Tenant requests repair in writing (email acceptable)
Landlord has reasonable time to fix (30 days standard, urgent repairs faster)
If landlord fails to repair habitability issue, tenant can:

Repair and deduct (spend up to 1 month's rent)
Withhold rent until repaired (risky, often leads to disputes)
Break lease without penalty
Sue for damages

Landlord protection:

Respond to requests promptly (written acknowledgment within 48 hours)
Schedule repairs ASAP
Document all communication and work completed
Never retaliate for repair requests (illegal)

Retaliation Protections (California Civil Code §1942.5)

Illegal retaliatory actions:

Raising rent
Decreasing services
Eviction
Harassment

Within 180 days of:

Tenant repair request
Tenant complaint to government agency
Tenant joining tenant organization
Tenant exercising legal rights

Consequence: Presumption of retaliation (landlord must prove legitimate business reason).

Entry and Privacy (California Civil Code §1954)

Lawful Entry Reasons

Landlords may enter only for:

Emergency (fire, flood, gas leak)
Repairs and maintenance (with notice)
Showing to prospective tenants/buyers (with notice)
Inspection (with notice, no more than twice yearly for typical inspections)

Notice Requirements

24 hours written notice required for non-emergency entry:

Must state purpose of entry
Enter only during business hours (8am-5pm typical)
Cannot abuse right (excessive entries)

Emergency exception: No notice needed (document emergency thoroughly).

Tenant refusal: Tenant cannot unreasonably deny entry if proper notice given.

Lockouts Prohibited

Illegal "self-help" evictions:

❌ Changing locks without tenant consent
❌ Removing tenant's belongings
❌ Shutting off utilities
❌ Removing doors or windows

Consequence:

Tenant can sue for damages
Tenant may break lease without penalty
Landlord liable for moving/storage costs, housing costs

Only legal eviction: Court process (Unlawful Detainer action).

Eviction Process (Unlawful Detainer)

Step-by-Step California Eviction

Timeline: 30-60 days minimum (uncontested), 4-6 months (contested).

Step 1: Notice to Tenant

Notice type depends on reason:

3-Day Notice to Pay or Quit (nonpayment):

Tenant has 3 days to pay rent in full
Must include exact amount owed
Delivered in person, posted, or certified mail

3-Day Notice to Cure or Quit (lease violation):

Tenant has 3 days to fix violation (remove pet, unauthorized occupant)

3-Day Notice to Quit (incurable violations):

Illegal activity, serious nuisance
No opportunity to cure

30/60-Day Notice to Terminate (no-fault evictions under AB 1482):

30 days if tenant <1 year
60 days if tenant ≥1 year
Must state just cause and provide relocation assistance if no-fault

Step 2: File Unlawful Detainer Complaint

If tenant doesn't comply with notice:

File complaint with superior court
Pay filing fee ($240 in most counties)
Serve tenant with summons and complaint

Step 3: Tenant Response

Tenant has 5 days to respond (Answer the complaint).

If no response: Landlord requests default judgment.

If tenant responds: Case proceeds to trial.

Step 4: Trial

Typical timeline: 20 days from tenant's response.

Landlord must prove:

Proper notice given
Tenant violated lease or failed to pay rent
Just cause for eviction (if AB 1482 applies)

Tenant defenses:

Retaliation
Landlord failed to maintain habitability
Discrimination
Improper notice

Step 5: Judgment and Eviction

If landlord wins:

Court issues writ of possession
Sheriff posts 5-day notice to vacate
If tenant doesn't leave, sheriff physically removes

Total timeline:

Uncontested: 30-60 days
Contested: 3-6 months
Appeals: Add 6-12+ months

Never skip court process: Self-help evictions lead to lawsuits and penalties.

California Fair Housing Laws

Protected Classes (California Fair Employment and Housing Act)

Cannot discriminate based on:

Race
Color
Religion
Sex (including pregnancy, gender identity, sexual orientation)
National origin
Disability
Familial status (families with children)
Marital status
Age
Ancestry
Genetic information
Military/veteran status (California adds this)
Source of income (Section 8, disability benefits, etc.)

Source of Income Protection (Critical for California)

California Civil Code §12955:

Landlords cannot refuse Section 8 vouchers
Cannot reject applicants because income from government assistance, alimony, child support

Exceptions:

Total income must still meet landlord's qualifying criteria (e.g., 3x rent requirement)
Voucher amount + tenant income must cover rent

Penalty for violation:

Discrimination complaints to DFEH (Department of Fair Employment and Housing)
Fines, damages, attorney fees

Disability Accommodations

Landlords must:

Allow reasonable modifications (tenant pays, may require restoration at move-out)
Provide reasonable accommodations (policy changes, like allowing service animal in "no pets" building)

Examples:

Wheelchair ramp (tenant installs at their expense)
Allowing emotional support animal (no pet deposit, though damage deposit ok)
Reserved parking space close to entrance

Cannot charge extra for disability accommodations.

Advertising Best Practices

Avoid discriminatory language:

❌ "No children"
❌ "Perfect for quiet couple"
❌ "Christian household preferred"
✅ "2-bedroom apartment available"
✅ "Close to parks and schools"

Screening criteria:

Apply same criteria to all applicants
Document reasons for denials
Provide adverse action notice (if credit/background check factors)

Local Rent Control Ordinances

Cities with Additional Rent Control (2026)

Los Angeles:

Rent Stabilization Ordinance (RSO) buildings (built before 1978)
Max increase: Typically 3-4% annually (changes yearly)
Just-cause eviction requirements (stricter than AB 1482)
Relocation assistance: $8,000-$20,000+ depending on unit size, tenant age/disability

San Francisco:

Rent control: Buildings built before 1979
Annual increase: Set by Rent Board (2026: ~3.2%)
Just-cause evictions + relocation fees
Buyout agreements common (landlords pay tenants $20K-$100K+ to vacate)

Oakland:

Rent adjustment ordinance: Properties built before 1995
Petition-based increases (landlords petition Rent Board)
Just-cause eviction, relocation assistance

Berkeley:

Rent control: Buildings built before 1980
Annual increase formula (varied)
Strict eviction protections

Check local ordinances: California Department of Consumer Affairs

Tax Implications for California Landlords

Rental Income Taxation

Federal:

Rental income taxable
Deductions: Mortgage interest, property tax, insurance, repairs, depreciation
See: Rental Property Tax Deductions

California state:

Rental income taxed at CA income tax rates (top rate: 13.3% in 2026)
Same deductions as federal

Depreciation

27.5-year straight-line for residential rentals:

$550,000 property (excluding land value of $150K) = $400K depreciable basis
Annual depreciation: $400,000 ÷ 27.5 = $14,545

Accelerated depreciation:

Cost segregation study can reclassify components (appliances, flooring) for faster depreciation
Bonus depreciation: 60% in 2026 (phasing out)
See: Cost Segregation Study Guide

1031 Exchange

California investors: Can defer capital gains by exchanging for like-kind property.

Must use qualified intermediary
Strict timelines: 45 days identify, 180 days close
Learn more: 1031 Exchange Guide

California Landlord Insurance

Required Coverage

Landlord insurance (not standard homeowners):

Property coverage: Building, landlord's contents
Liability: Injury claims, lawsuits
Loss of rental income: Coverage if unit uninhabitable (fire, etc.)

Additional California considerations:

Earthquake insurance: Not included in standard policies, separate policy needed
Flood insurance: If in FEMA flood zone
Umbrella policy: Extra liability coverage ($1-5M common)

Cost: $1,500-$3,000/year for typical California rental (higher in LA, SF).

Best Practices for California Landlords

1. Thorough Lease Agreements

Include:

Rent amount, due date, late fees
Security deposit amount and conditions
Maintenance responsibilities
Entry notice procedures
Rules (noise, smoking, pets)
AB 1482 notice (required disclosure that property subject to limits)

Use California-specific forms:

California Association of Realtors (CAR) forms (most comprehensive)
Legal templates reviewed by CA attorney

2. Document Everything

Critical documentation:

Move-in/move-out inspection reports (photos, video)
All communication with tenants (email preferred for paper trail)
Repair requests and completion
Rent payment history
Notice delivery (certified mail, proof of service)

Reason: If case goes to court, documentation wins. Verbal agreements worthless.

3. Screen Tenants Thoroughly (Within Legal Limits)

Application process:

Written application (same for all applicants)
Credit check (FICO score, payment history)
Background check (eviction history, criminal history)
Income verification (3x rent standard)
Previous landlord references (critical)

Legal screening:

Objective criteria applied uniformly
Cannot discriminate based on protected classes
Provide adverse action notice if denied

Red flags:

Prior evictions (especially non-payment)
Income below 3x rent
Criminal history (violent crimes, drug dealing)
Negative landlord references

4. Understand Local Ordinances

Research city/county rules:

Rent control specifics
Business licensing (some cities require rental permits)
Short-term rental regulations (Airbnb restrictions common)
Inspection requirements (some cities mandate periodic inspections)

5. Join Landlord Associations

California Apartment Association (CAA):

Legal updates
Discounted forms and resources
Attorney referrals
Advocacy (lobbying for landlord interests)

Local chapters: LA, SD, SF, Sacramento, etc.

Cost: $200-$500/year (worth it for legal updates alone).

Common California Landlord Mistakes

Mistake 1: Raising Rent Too Much/Too Often

AB 1482 violation consequences:

Tenant can sue for damages
Rent increase void
Potential bad faith penalties

Prevention: Track CPI annually, calculate maximum allowed increase, provide proper notice.

Mistake 2: Retaliating Against Tenants

Illegal retaliation examples:

Tenant complains about mold → Landlord raises rent
Tenant requests repairs → Landlord starts eviction
Tenant joins tenant union → Landlord decreases services

180-day window: Courts presume retaliation if adverse action within 180 days of protected activity.

Prevention: Never make decisions based on tenant exercising rights. If legitimate business reason (market rent increase), document thoroughly.

Mistake 3: Improper Eviction Procedures

Shortcuts lead to dismissal:

Insufficient notice period
Wrong notice type
Failing to state just cause (AB 1482 properties)
Self-help eviction attempts

Prevention: Consult attorney before starting eviction. Cost of proper process ($1,500-$3,000) far less than wrongful eviction lawsuit ($10K-$50K+).

Mistake 4: Discrimination (Intentional or Unintentional)

Unintentional discrimination examples:

"No Section 8" policy (illegal source of income discrimination)
Requiring specific income source (SSI vs. W-2)
Steering families with children to specific units

Prevention:

Apply objective criteria uniformly
Train on fair housing laws
Document decision-making
When in doubt, consult attorney

Conclusion

California landlord-tenant law is complex and heavily tenant-protective, but thorough understanding enables profitable, compliant rental operations. The combination of AB 1482 statewide protections and local rent control ordinances creates a challenging landscape, but strategic landlords thrive by:

Mastering compliance (rent control, just-cause eviction)
Documenting everything meticulously
Screening tenants thoroughly within legal bounds
Maintaining properties to high habitability standards
Staying updated on legislative changes

California's strong rental demand, appreciation potential, and tax benefits (1031 exchanges, depreciation) reward landlords who navigate the regulatory environment professionally.

Action steps:

Review your current leases for AB 1482 compliance
Ensure all exemptions and disclosures current
Join California Apartment Association for ongoing education
Consult landlord-tenant attorney for complex situations
Implement robust documentation systems

HonestCasa specializes in DSCR financing for California investment properties. We understand the state's unique landlord challenges and provide financing solutions that work with California's rental market dynamics.

Landlord Tenant Law California

Key Takeaways