California Landlord Laws

California Lease Agreement Requirements: 2025 Guide

Required Clauses, Prohibited Terms & Best Practices

By Lifetime Property Management, Property Management Experts
January 15, 2025
11 min read
Lease agreement documents being signed

Key Takeaways

  • California requires specific clauses including lead paint, mold, and bed bug disclosures
  • Prohibited clauses like waiving habitability rights or prohibiting guests are unenforceable
  • Leases can be written or oral, but written agreements provide better legal protection
  • Security deposit limits (2x rent) must be stated clearly in lease
  • Late fee clauses must be reasonable and clearly stated

California Lease Agreement Basics

California law doesn't require written leases—oral agreements are legally valid. However, written leases are strongly recommended because they provide clear documentation of terms, reduce disputes, and offer better legal protection in court.

For leases longer than one year, California's Statute of Frauds requires a written agreement. Month-to-month and short-term leases under 12 months can be oral, though this is inadvisable for landlords.

Essential Lease Components

A comprehensive California lease should include:

  • Names of all adult tenants
  • Property address and description
  • Lease term (start and end dates, or month-to-month status)
  • Rent amount, due date, and accepted payment methods
  • Security deposit amount and terms
  • Tenant and landlord responsibilities
  • Pet policies
  • Maintenance and repair procedures
  • Entry and inspection rights
  • Termination and renewal procedures
  • All required disclosures

Required Lease Clauses and Disclosures

California mandates certain disclosures and information be included in lease agreements or provided separately.

1. Lead-Based Paint Disclosure

For properties built before 1978, federal law requires lead paint disclosure. Include this as an addendum and ensure both parties sign acknowledging receipt of EPA pamphlets.

2. Megan's Law Notice

Must inform tenants about the Megan's Law sex offender database and how to access it. Standard language: "Information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov."

3. Smoking Policy

California requires disclosure of the property's smoking policy. Specify whether smoking is prohibited entirely, allowed in designated areas, or unrestricted.

4. Security Deposit Terms

State the security deposit amount, conditions for withholding, and the 21-day return timeline. Clarify what is considered normal wear and tear versus chargeable damage.

5. Bed Bug Information

Provide the California Department of Housing and Community Development bed bug information sheet and disclose any bed bug history in the previous two years.

6. Mold Information

Provide the "Residential Environmental Hazards" booklet addressing mold and disclose any known mold issues.

7. Property Owner/Manager Information

California Civil Code Section 1962 requires disclosure of the property owner's name and address, and if applicable, the property manager's name and contact information.

Prohibited Lease Clauses

Warning: California law explicitly prohibits certain lease terms. Including these clauses may render them unenforceable or expose landlords to penalties.

Illegal Lease Terms (NEVER Include These)

  • Waiver of Habitability Rights: Clauses stating "tenant accepts property as-is" or "landlord has no repair obligations" are void and unenforceable. Tenants cannot waive their right to habitable housing
  • Waiver of Security Deposit Return Rights: Terms like "security deposit is non-refundable" or waiving the 21-day itemization requirement are prohibited
  • Confession of Judgment Clauses: Clauses allowing landlords to obtain judgments against tenants without court proceedings are prohibited in residential leases
  • Waiver of Jury Trial Rights: Tenants cannot be forced to waive their right to jury trial in disputes
  • Excessive Late Fees: Fees must be reasonable liquidated damages, not punitive penalties
  • Exculpatory Clauses: Cannot waive landlord liability for negligence or premises defects

Tenants cannot be required to waive their right to jury trial in residential lease disputes.

5. Provisions Limiting Landlord Liability for Negligence

Clauses attempting to exempt landlords from liability for injuries caused by their negligence are generally unenforceable.

6. Unreasonable Guest Restrictions

While you can limit long-term guests (typically 14 days in a month), you cannot prohibit tenants from having any overnight guests.

7. Mandatory Arbitration Clauses (With Limitations)

California law limits mandatory arbitration clauses in residential leases. As of 2025, certain consumer-focused protections may affect enforceability. Consult legal counsel before including arbitration provisions.

Late Fees

California doesn't set statutory late fee limits, but fees must be reasonable (generally $50-$75 or 5-6% of rent). Include grace periods and clearly state when late fees apply.

NSF/Bounced Check Fees

California allows fees for dishonored checks. The maximum is the lesser of $25 for first offense, $35 for subsequent offenses, or the bank charge amount plus $12.

Pet Policies

Specify whether pets are allowed, any size/breed/species restrictions, pet deposits (within overall security deposit limits), and monthly pet rent.

Maintenance Responsibilities

Clarify which repairs are landlord responsibility (structural, major systems) and which are tenant responsibility (minor repairs, light bulbs, air filter changes).

Entry and Inspection Rights

State that landlord may enter with 24-hour notice for repairs, inspections, showings, or emergencies. Specify acceptable entry hours (typically 8am-5pm on business days).

Subletting and Assignment

Specify whether subletting is prohibited, allowed with landlord approval, or unrestricted. California law gives tenants some subletting rights, but you can require approval.

Renter's Insurance

While you cannot require specific coverage amounts that are unreasonable, you can require tenants to maintain renter's insurance and provide proof annually.

Optional Lease Addenda

Pet Addendum

If allowing pets, use a detailed pet addendum specifying pet details, additional deposits or rent, damage liability, and behavior expectations.

Parking Addendum

For properties with limited or assigned parking, specify number of spaces, vehicle identification, guest parking rules, and storage restrictions.

HOA Rules Addendum

If the property is subject to HOA or condo association rules, attach CC&Rs and require tenant compliance. Specify consequences for violations.

Waterbedand Waterbed/Special Furniture Addendum

If allowing waterbeds or other heavy/unusual furniture, require insurance documentation and indemnification for damage.

Fixed-Term vs. Month-to-Month Leases

Fixed-Term Leases (6-12 Months)

Provide stability for both parties. Tenants have occupancy security; landlords have income predictability. Rent cannot be increased during the fixed term unless the lease explicitly allows it.

At the end of the fixed term, the lease either renews (if a renewal clause exists), converts to month-to-month, or terminates based on lease terms and tenant actions.

Month-to-Month Leases

Offer flexibility but less stability. Under AB 1482, landlords need just cause to terminate month-to-month tenancies for covered properties. Rent can be increased with proper notice (30 or 90 days) subject to AB 1482 caps.

For properties exempt from AB 1482, month-to-month leases can be terminated with 30 days' notice (60 days if tenant has lived there over one year).

Rent, Deposits, and Fees

Rent Amount and Due Date

Specify exact monthly rent amount and due date. If rent is due on the 1st, state whether there's a grace period (e.g., "rent due on the 1st, late fee applied after the 5th").

Security Deposit

Maximum two times monthly rent for unfurnished units, three times for furnished. State deposit amount, conditions for withholding, and return procedures.

Other Fees

List any additional charges: pet rent, parking fees, storage fees, late fees, NSF fees, etc. Ensure all fees are reasonable and clearly documented.

Modifying Existing Leases

Lease modifications require mutual agreement. You cannot unilaterally change lease terms during the lease period. Modifications should be in writing and signed by all parties.

Common modifications include adding or removing tenants, allowing pets mid-lease, or extending lease terms.

Signatures and Lease Execution

All adult tenants (age 18+) should sign the lease. Landlords or their authorized agents must also sign. Keep signed originals on file and provide copies to all tenants.

Electronic signatures are generally valid in California if all parties consent and proper verification measures are used.

Conclusion: The Lease as Foundation

A well-drafted lease is the foundation of a successful landlord-tenant relationship. It sets expectations, prevents disputes, and provides legal protection when problems arise.

For Placer County landlords in Roseville, Rocklin, Auburn, and surrounding areas, Lifetime Property Management uses attorney-reviewed, California-compliant lease agreements tailored to current law. Our leases include all required disclosures, avoid prohibited terms, and protect your interests while maintaining tenant relationships.

Frequently Asked Questions

Frequently Asked Questions

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