California is well-known for being strong on tenant rights. There are a number of laws in place that protect tenants from unfair rental increases, uninhabitable living environments, excessive security deposits, discrimination, and retaliation.
Landlord and tenant relationships can be complicated, but they do not have to be adversarial. Remaining responsive, welcoming communication, and sharing expectations are all good ways to ensure the tenancy supports both landlords and tenants.
Respecting tenant rights is also an important part of ensuring the lease term is pleasant and profitable. Not only does it help a landlord with tenant satisfaction, it also provides protection against legal pitfalls and expensive mistakes.
Compliance with tenant rights and rental laws is mandatory, so we’re taking a look at the tenant rights that must be respected.
Overview of Tenant Rights in California Rental Properties
Tenants today are more informed and educated than ever before, thanks to education, online resources, and tenant rights organizations. Residents know their rights, and they’ll know when a landlord or a property manager is violating those rights.
Here are some of the most important tenant rights in California. Violating these laws and tenant protections will almost certainly lead to a discrimination claim, formal complaint, or lawsuit. There may be steep punitive penalties, too, so it’s important to not only be aware of these laws, but also to comply with them:
- Rent stabilization. Many renters in California are protected against rent increases that are more than 5% plus the annual cost of living increase, which is established by the Consumer Price Index (CPI). The statewide rent control law passed in 2019 created these limits across the state, if the local city or county where a rental property is located does not already have rent stabilization laws in place. Landlords need to know whether their investment properties are covered by this law or exempt from it. Even those properties that are exempt must be transparent about that exemption. The lease agreement has to include information that explains to tenants that the property is exempt from rent control laws.
- Unlawful evictions. California residents are protected against eviction, too. Landlords cannot evict a tenant at the end of a lease agreement only to rent to someone else or re-list the property at a higher rent. Rental property owners must have a just cause in order to evict. Usually, that’s going to be unpaid rent, property damage, a lease violation that the tenant refused to correct, or criminal activity in the property. During the eviction process, tenants will continue to have protections. Landlords cannot confront them and demand payment. It’s not legal to change the locks or turn off the utilities in the home. There are notice periods and paperwork. Without an extensive legal background, landlords should never evict a tenant without first talking to a property manager or an attorney.
- Relocation assistance. To evict a tenant because a landlord is planning to sell the property, make major renovations to it, remove it from the rental market, or allow an immediate family member to move in, that landlord will have to conduct a no-fault eviction. This means the tenant is being removed from the property through no fault of their own, and they have a right to relocation assistance. Owners must pay the tenant the equivalent of one month’s rent so that they can find a new place to live.
- Security deposit deductions. Tenants have a right to know why deductions were made from a security deposit after they’ve moved out. If a landlord keeps any or all of that deposit, they must send an itemized list of the charges, detailing how much was withheld and why it was withheld. This notice has to go out to tenants within 21 days of their move-out.
- Fair housing protections. Tenants are also protected by fair housing laws. This covers a wide range of protections. There are strict protected classes in California that far exceed the protected classes established by the federal government. Landlords cannot deny an application to a tenant with Section 8 benefits. There are laws in place that protect tenants who need a service dog or an emotional support animal. Landlords must allow those animals even if pets are not generally allowed in the property. These animals are not pets; the law sees them as accommodations.
- Right to quiet enjoyment. Tenants also have a right to privacy and a right to the quiet enjoyment of their home. This prevents landlords from simply showing up at the door and demanding to take a look around. Landlords cannot conduct an inspection for no reason. While getting inside the home to do a maintenance check annually is an excellent way to protect a property, this is a requirement that needs to be included in a lease agreement in order to remain legally compliant. The walk through must always be scheduled well in advance with tenants.
This is just a sampling of the rights that tenants have in California rental homes. Landlords need to know the laws well, otherwise it’s going to be too easy to make a mistake. Work with a property manager who can protect you and keep you informed if you’re not sure you can follow the laws and their ongoing changes.
Tenants are Protected from Retaliation
There are tenant protections in place and then there are laws that prevent landlords from retaliating against tenants for making complaints against them.
Rental property owners cannot retaliate against the tenant who files a habitability compliant after that owner refused to fix the hot water. Landlords cannot retaliate against the tenant who takes them to court for unlawfully charging too much of a security deposit. It is unlawful to retaliate against the tenant who files a fair housing compliant because a landlord told them they don’t want their kids living in the home.
In all of those examples we just mentioned, retaliation will only get an owner into more legal trouble.
Emotionally, there’s always going to be a desire to immediately remove the tenant who is causing problems, but California Civil Code 1942.5 prohibits retaliatory evictions. Serving a tenant with an eviction notice shortly after they make a compliant or file a claim will only be seen as suspicious by the California courts.
California laws will give tenants plenty of recourse when they believe their landlord or property manager has retaliated against them in some way, either during the tenancy or when they are served an eviction notice.
The law provides an entire eviction defense for tenants in this situation. It’s called the “retaliation defense” and it allows residents to appeal the eviction or have it thrown out altogether. When a tenant raises the retaliation defense, landlords need to prove that their actions were not retaliation.
Not only can tenants defend themselves in this way against an eviction that they believe is retaliatory, but a tenant can also turn the legal tables and sue their landlord to recover financial and punitive damages. That can be expensive.
Tenants can also report retaliation to local housing authorities. No landlord needs a complaint like this spinning out of control.
Be mindful of these laws and the perception of any actions that might appear to be retaliatory.
Avoiding Tenant Complaints and Complying with Tenant Protections
The best way for a rental property owner to protect themselves against any claims of retaliation is to treat tenants well and follow the law.
Tenants can appeal wrongful evictions. They can report uninhabitable living conditions. They can even organize with other tenants and file official complaint against a landlord, a property manager, or an apartment building.
Don’t give them any reason to do these things. Good tenant screening will help. Positive tenant relationships will help, too. Here are a few actionable steps that rental property owners can put into place to ensure they are not in danger of violating any laws or retaliating against any tenants:
- Share expectations at the beginning of the lease.
- Sign a strong lease agreement that’s clear and easy to follow.
- Communicate openly and transparently with tenants.
- Establish policies for things such as rent collection and maintenance reporting.
- Be available and accessible to residents.
- Be mindful of rental increases, even if the property is exempt from rent control laws.
- Get to know the pertinent laws protecting tenants, from fair housing to rent stabilization to eviction laws.
- Always provide plenty of notice to tenants before conducting a walk-through.
- Document everything.
Working with a local property manager is perhaps the best way to protect yourself and your property. We understand every landlord/tenant law and we work with some of the best attorneys in the state in order to make sure we’re applying those laws effectively. We will protect you from legal land mines and ensure your tenants have an outstanding rental experience.
Let’s talk about it. If you have any questions about what you’ve read or you’d like to discuss the value of professional management, please contact us at New Bridge Management. We serve Modesto, Turlock, Merced, Stockton, and the surrounding Stanislaus, Merced, and San Joaquin Counties.
