Renting out a house in California can be an excellent investment—but it comes with significant responsibilities and legal requirements. California has some of the nation's strongest tenant protections, making it essential for first-time landlords to understand the rules before listing their property. This guide walks you through everything you need to know.
Step 1: Prepare Your Property
Safety and Habitability Requirements
California law requires rental properties to meet specific habitability standards. Before renting, ensure your property has working smoke detectors in every bedroom and common area, carbon monoxide detectors on every level, functioning heating system, safe electrical and plumbing systems, weatherproof structure (roof, walls, windows), and working locks on all exterior doors.
Recommended Preparations
Beyond legal minimums, prepare your property to attract quality tenants. Fresh paint in neutral colors, professional cleaning, landscaping maintenance, and updated fixtures can command higher rents and attract better applicants.
Step 2: Understand California Legal Requirements
Required Disclosures
California requires numerous disclosures to tenants before signing a lease. These include lead-based paint disclosure (pre-1978 buildings), bed bug history, mold disclosure, flood zone information, Megan's Law database notice, and many others. Missing disclosures can void lease provisions or create liability.
Security Deposit Limits
As of 2024, California limits security deposits to one month's rent for most properties. You have 21 days after move-out to return the deposit or provide an itemized statement of deductions.
Rent Control Considerations
California's Tenant Protection Act (AB 1482) may apply to your property, limiting rent increases and requiring just cause for evictions. Single-family homes can be exempt if you provide proper written notice to tenants—but failure to provide this notice means you're covered by the law.