If you're a landlord or tenant in California, having a well-drafted California residential lease agreement is essential. This legally binding document outlines the terms of the tenancy and protects the rights of both parties.

Whether you're looking for a free rental agreement California landlords can use or a simple rental agreement California tenants can easily understand, this guide covers everything you need to know.

Download Your Free California Lease Agreement Template(s)

Download Includes: Free California Lease Agreement, Residential Rental Application, Required Notices, and 23+ more essential landlord templates, checklists and forms.

Why a California Residential Lease Agreement Matters

Navigating the complex landlord-tenant relationship and rental laws in California would be difficult without an enforceable rental lease agreement in place.

A valid California residential lease agreement typically outlines the rules that guide the landlord-tenant relationship. These requirements are created to protect both tenant rights and landlord interests.

There are certain specifications that govern what should be included in a California rental agreement to make it enforceable. Some of these elements include personal details of the parties involved, property description, lease terms, rent payment terms, and security deposit details.

Following these specifications will help landlords prevent disputes and ensure compliance with legal standards.

Essential Clauses in a California Residential Lease Agreement

Landlords are required to include certain key clauses in their California rental agreement to make it valid under the law. Here are some of these key clauses:

• Identification of Parties: A rental lease agreement in California should explicitly identify both the landlord and tenant, including their full legal names and contact details. This clarity ensures that both parties understand their respective obligations and responsibilities under the contract.
• Property Description: Include a comprehensive description of the rental property, specifying its address and any unique features that may impact the tenant's use or enjoyment. This helps prevent any misunderstandings regarding the property's condition or location.
• Rent Payment Terms: Clearly outline the monthly rent amount, due date, and acceptable payment methods. Additionally, specify any late fees that may apply and the repercussions of failing to make timely payments.
• Security Deposit Details: Indicate the amount of the security deposit and clarify its purpose. Include conditions for its return as well as potential deductions for damages or unpaid rent.
• Lease Duration: State the exact start and end dates of the lease term, indicating whether it is a fixed-term lease or a month-to-month arrangement.
• Notice Requirements: Detail the notice period necessary for terminating the lease or making amendments to the rental agreement. For California residential lease agreements, this period is generally 30 or 60 days, depending on specific circumstances.
• Maintenance and Repairs: Define the responsibilities of both the landlord and tenant concerning maintenance and repairs. Outline how repairs will be addressed and provide a timeframe for handling maintenance requests.
• Utilities and Services: Specify which utilities and services (such as water, electricity, and internet) are included in the rent and which will be the tenant's responsibility.
• Entry and Access: Clarify under what conditions the landlord may access the rental property, ensuring compliance with California laws regarding notice requirements and valid reasons for entry.
• Rules and Regulations: List any specific rules governing tenant behavior and property use, including policies on smoking, pet ownership, noise levels, and usage of common areas.
• Tenant Rights and Responsibilities: Clearly outline the rights and responsibilities of tenants, including their obligations to maintain the property, report damages promptly, and adhere to the terms set forth in the California rental agreement.
• Dispute Resolution: Incorporate a clause that describes the process for resolving disputes, whether through mediation, arbitration, or small claims court, to help avoid expensive legal conflicts.  

Download Your Free California Lease Agreement Template(s)

Download Includes: Free California Lease Agreement, Residential Rental Application, Required Notices, and 23+ more essential landlord templates, checklists and forms.

Mandatory Disclosures in a California Lease Agreement

Landlords are required to include specific disclosures within every rental lease agreement in California. These ensure transparency and protect tenant rights.

Note that while some disclosures must be included in all rental agreements, others might only be necessary if they are relevant to the property. 

Key landlord disclosures include:

• Registered Sex Offender Database: In pursuance to California Code § 290.46, landlords must inform tenants about the existence of California's database, providing specific language regarding its access. 
• Bed Bug Information: California lease agreements are mandated to detail bed bug behavior, prevention, and reporting procedures in the lease. 
• Landlord Contact Information: Landlords must provide their name, phone number, and address in writing.
• Lead-Based Paint: For properties built before 1978, landlords must disclose lead hazards.
• Toxic Mold: Any known mold must be reported in writing.
• Drug Lab Contamination: This disclosure is only required if a property was used for drug manufacturing.
• Death on Property: Any deaths within three years must be disclosed.
• Pest Control Notices: Details of pest treatments must be provided to tenants.
• Demolition Plans: Landlords must notify tenants of any demolition permits applied for.
• Flood Hazard Areas: Disclosures are required if the property is in a flood zone.
• No Smoking Policy: Smoking restrictions must be clearly stated in the lease.
• Shared Utilities: Tenants must be informed about shared utility meters and billing methods.
• Proximity to Military Grounds: Notification is required if a rental is near former military training grounds.
• Condominium Conversions: Disclosure is necessary if a building is converting to individual units for sale.

Fixed-Term vs. Month-to-Month California Rental Agreements

Fixed-term and month-to-month leases are two common types of lease agreements in California. Each option has different rules and levels of flexibility.

Below is a comparison table that examines the distinct features, legal requirements and implications of both types of rental agreement in California.

Rent Control Note: California law limits rent increases to 5% plus inflation or 10% total per year, whichever is lower – over a 12-month period. If the tenants of a unit move out and new tenants move in, the landlord may establish the initial rent to charge. (Civ. Code § 1947.12)

California Residential Lease Agreement: Security Deposit Laws

Details about security deposit are one of the key elements that are expected to be included in a California lease agreement.

Below is an overview of California security deposit laws (Civ. Code §§ 1950.5) that should be included in a residential lease agreement California:

• Maximum amount: Capped at one month's rent for both furnished and unfurnished apartments. Small landlords (owning up to two properties with four rental units) may charge up to two months' rent.
• Collecting Security Deposits: California laws allow landlords to collect deposits at the beginning of a lease.
• ‍Accepted Deductibles from Security Deposit: Unpaid rent, repairs (except regular wear and tear), and cleaning expenses.‍
• Return Timeline: In California, the landlord has 21 calendar days from the date of the renter's departure to return the security deposit.‍
• Holding Deposits: Landlords are not required to keep or store security deposits in a certain way. 

Related: A Guide To California Security Deposit Laws

Rent Collection Rules in California

Below is an overview of some of the rent collection rules that are required to be included in rental agreements in California.

• Late Payments: Landlords are legally permitted to impose a late fee on tenants who do not make payments on the due date, but only if the fee is reasonable. 
• Grace period: A landlord may specify a grace period in their agreement paper, even though California law doesn't specify any.
• Rent Withhold: Per the "Repair and Deduct Remedy," if the landlord neglects or declines to do a major repair on the property, tenants are permitted to partially withhold payments.
• NSF Fees for Bounced Checks: California rental laws allow landlords to charge $25 for the first bounced check and $35 for subsequent bad checks.

Tired of having to deal with late rent as a landlord? Try using Landlord Studio’s online rent collection tool. This platform allows tenants to automate their payments reducing late rent payments, and you’ll save time on bookkeeping with seamless, automated income tracking. 

Even better, it’s free for landlords! Each transaction carries a small fee of $2.50, which you can choose to pass along to tenants or cover yourself. And you’re always in control—set rent amounts and due dates, prevent partial payments, and easily manage late fees.

Related: A Guide To Rent Collection and Rent Control Laws In California

Lease Termination and Renewal

California has specific laws that govern how lease termination and renewal are carried out. However, it’s important to note that these specifications vary depending on the type of California residential lease agreement in place. 

Below is an overview of the type of lease and the notice periods for lease termination and renewal.

Fixed-Term Leases

• End automatically on expiration unless renewed.
• Tenants must give 30 days’ notice to renew or terminate early.

Month-to-Month Leases

• Either party can terminate with 30 days’ written notice.
• Lease continues indefinitely unless ended.

Leases Over One Year

• Landlords must give 60 days’ notice to terminate.
• Tenants should provide renewal notice 60 days before expiration.

Related: The Complete Guide To California Eviction Laws

California Rental Agreements: Final Thoughts

Whether you're a landlord or tenant, a well-written California residential lease agreement is vital for a smooth rental experience.

Make sure your lease includes key terms like rent, duration, and maintenance duties, and complies with all disclosure and termination laws. A simple rental agreement California landlords can customize makes it easier to stay legally compliant and avoid costly disputes.

Download Your Free California Lease Agreement Template(s)

Download Includes: Free California Lease Agreement, Residential Rental Application, Required Notices, and 23+ more essential landlord templates, checklists and forms.

More California Legal Guides

• A Guide To California Rental Application Laws‍
• California Security Deposit Laws‍
• California State Landlord Tenant Laws‍
• California Tenant Screening Laws‍
• Rent Control Laws In California‍
• The Complete Guide To California Eviction Laws

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• What is a Holdover Tenant? Definition & Holdover Tenant Legal Rights
• Lease Renewal and Non-Renewal of Lease Free Templates
• How Long Is a Short-Term Lease Agreement?
• Subletting And Sub-Lease Agreements In The USA

Frequently Asked Questions

What should be included in a California residential lease agreement?‍

The lease should include party details, rent, property description, security deposit terms, maintenance responsibilities, and mandatory disclosures.

Is there a free rental agreement template for California?‍

Yes. You can download a free rental agreement California landlords can use to stay compliant with state laws.

How do I create a simple rental agreement in California?

Use a simple rental agreement California template that includes the essentials—rent, duration, maintenance, and termination clauses—without unnecessary legal jargon.