Tenant Business: California Apartment Laws Explained

California has a robust set of landlord-tenant laws that outline the rights and responsibilities of both parties. While these laws cover various aspects of the landlord-tenant relationship, it is unclear whether they specifically address the question of whether a tenant can operate a business from their rented apartment. This paragraph aims to introduce the topic and explore the relevant California laws that may impact a tenant's ability to run a business from their residence.

Security deposits

California has strict rules about security deposits that all landlords and property managers must follow. Security deposits are refundable and belong to the tenant, but the landlord is allowed to hold on to them until the tenant moves out. Landlords can only use security deposits for specified expenses, such as past-due rent, the cost of repairing damages caused by tenants or guests (not including ordinary wear and tear), cleaning costs to restore the property to its original condition, and the cost of replacing or restoring the landlord's personal property if included in the rental agreement. Security deposits may not be used for other costs, such as pre-existing damages, unreasonable expenses, or ordinary wear and tear.

The law limits the amount of security deposit that can be charged. Until July 1, 2024, the limit is two times the monthly rent for unfurnished properties and three times the rent for furnished properties. After this date, the limit will be one month's rent, regardless of whether the unit is furnished or unfurnished. Landlords are required to provide an itemized statement explaining any deductions made from the security deposit within 21 days of the tenant moving out and return the remaining balance. If the repairs are not finished within the 21-day period, landlords can provide a reasonable estimate of the repair costs and must provide receipts within 14 days of completing the repairs.

Tenants have the right to be present during inspections, and landlords must notify tenants of their right to request an initial inspection before move-out, giving them a chance to fix any issues and avoid charges. If a tenant is a victim of domestic violence and ends the rental agreement early, the landlord cannot use the security deposit as a penalty for ending the lease early or to cover the rental period after the tenant moves out. If the landlord does not return the entire security deposit or the tenant disagrees with the deductions, the tenant can write a letter requesting the return of the deposit and may sue the landlord in small claims court for up to $12,500.

It is important to note that California law requires landlords to provide written notice before entering the rental property, except in emergencies. This notice must include the date, time, and purpose of the entry and be delivered in person, left at the property, or mailed with an additional five days added to the notice period. Landlords must also schedule their entry during normal business hours unless the tenant agrees to an alternate arrangement.

Rental agreements

Firstly, rental agreements in California must include specific details to ensure clarity and compliance. These details comprise identifying information, such as the names and contact information of the landlord and tenant(s). A clear description of the rental property, including its address and unit number, is also necessary. Financial matters, such as the rent amount, due date, acceptable payment methods, and consequences for late payments, should be outlined. The lease term, specifying whether it is month-to-month or fixed-term, should be stated, along with the start and end dates. Security deposit terms, including the amount, permitted uses, and conditions for return or withholding, are crucial. Additionally, any rules regarding tenant conduct, property use, or other house rules must be communicated.

Security deposits in California are subject to strict regulations. The maximum security deposit amount is typically limited to two months' rent for unfurnished properties and three months' rent for furnished properties. Permitted deductions from the security deposit include unpaid rent, damage beyond normal wear and tear, cleaning costs, and agreed-upon repair costs mentioned in the lease. Landlords are required to return the security deposit within 21 days of the tenant moving out and provide an itemized statement for any deductions made. Additionally, a new law mandates that landlords take photographs of the unit at different stages of the tenancy to document its condition.

California's Tenant Protection Act of 2019 (the Act) implemented statewide rent and eviction control laws. It caps rent increases at 5% plus inflation or 10% of the lowest gross rental rate charged in the previous 12 months, whichever is lower. Landlords can only raise rent once during any 12-month period. The Act also allows local governments to enact more restrictive rent control laws if needed.

Regarding entry into the rental property, California law requires landlords to provide written notice to tenants before entering, except in emergencies. This notice should include the date, time, and purpose of the entry and be delivered personally, left at the property, or mailed with an additional five days added to the notice period. Landlords must schedule their entry during normal business hours unless the tenant agrees to an alternate arrangement to minimise disruption. Landlords are prohibited from abusing their right of entry and cannot enter without a valid reason or use entry as a means of harassing or retaliating against the tenant.

California law also addresses other aspects of the landlord-tenant relationship, such as price gouging after a natural disaster, limiting rent increases to no more than 10% above the pre-disaster rate. Additionally, landlords can reject applicants based on past convictions directly related to the application and must follow specific procedures when issuing notices to pay or quit. Small claims courts provide a venue for resolving disputes, with varying monetary limits depending on the county.

Landlord entry

In California, tenants are entitled to exclusive possession of their premises, even to the exclusion of the owner or property manager. However, landlords do have the right to enter a rental property under certain conditions.

Firstly, landlords must provide written notice before entering the rental property, except in emergencies. This advance notice is typically 24 hours for non-emergency entry and should specify the date, time, and purpose of the entry. This notice can be delivered in person, left at the property, or mailed, in which case an additional five days must be added to the notice period. Landlords must also schedule their entry during normal business hours (8 am-5 pm) unless the tenant agrees to an alternative arrangement.

Legitimate Reasons for Landlord Entry

There are four categories of legitimate reasons for landlord entry, as outlined in the California Civil Code Section 1954:

• Property Showings: Landlords can enter the property to show it to prospective tenants or purchasers. If the property is for sale, the landlord must notify the tenant in writing within 120 days of an oral notice, and the tenant may be contacted orally for this purpose.
• Tenant Consenting to Entry: If the tenant gives permission, the landlord can enter for various reasons, such as repairs or maintenance.
• Emergencies: In emergency situations, such as a fire or flooding, landlords can enter without advance notice.
• Abandonment: If the tenant has abandoned or surrendered the premises, the landlord can enter without prior notice and outside of normal business hours.

Tenant Rights and Protections

Tenants have the right to privacy and exclusive possession of their premises. If a tenant feels their landlord has abused their right of entry or used it for harassment, they should discuss this with the landlord and request compliance with the law. If the issue persists, tenants can contact the police and file a report. Additionally, tenants can take practical measures, such as installing additional locks, to restrict unauthorized entry.

Tenant privacy

In California, tenants have a right to privacy in their rented properties. This means that landlords cannot enter the property without valid reasons and must provide written notice before entering, except in emergencies. The notice must specify the date, time, and purpose of the entry, and can be delivered in person, left at the property, or mailed (with an additional five days added to the notice period for mailed notices). Landlords must also schedule their entry during normal business hours unless the tenant agrees to an alternative arrangement.

California law prohibits landlords from entering rented properties without a valid reason, or using entry as a means of harassment or retaliation against the tenant. Tenants can sue their landlords for up to $10,000 in small claims court for trespassing, breach of contract, invasion of privacy, and breach of quiet enjoyment. Each tenant in a shared rental can separately sue the landlord for up to $10,000, and a joint action is not required.

To ensure privacy, tenants can request that the landlord provide deadbolt locks on doors and adequate locks on windows. If the landlord fails to do so, it violates the "warranty of habitability", permitting the tenant to move out, repair, and deduct the cost from their rent, or withhold rent as a remedy. Additionally, tenants can change the locks or add a chain lock to restrict the landlord's entry, especially if the landlord has a history of snooping or intrusions.

It is important to note that California's tenant-friendly laws also protect tenants from discrimination based on race, religion, sex, and nationality differences. These protections extend to rental laws, ensuring that tenants have equal rights and opportunities regardless of their background.

Eviction

California's Tenant Protection Act of 2019 implemented statewide rent and eviction control laws that affect most residential tenancies in the state. Eviction is the legal procedure property owners must use to remove a tenant. In California, landlords must get a court order before evicting a tenant. If a landlord tries to evict a tenant without a court order, they have committed an "illegal eviction" or "illegal lockout".

The eviction process often starts with serving a three-day notice to the tenant, which is required for issues like unpaid rent or other lease violations. For most violations, a landlord will give a tenant three days to fix the problem. For serious violations, such as a sublet violation, grave damage to the property, the creation of a nuisance, or illegal activity in the housing, the landlord will provide a notice that gives the tenant three days to leave before an eviction lawsuit is filed. Before filing a lawsuit, the landlord must provide the tenant with notice. Notice requirements vary based on the reason for the eviction. When a tenant is behind on rent, the landlord will give an eviction notice that says they have three days to pay rent or leave. If the tenant has violated the lease, but the violation can be remedied, the landlord will provide notice that the issue must be fixed or the tenant must leave in three days.

If the landlord wins the lawsuit, they will receive a judgment. Then, they must file a writ of possession, which allows the local sheriff to remove the tenant from the property if they do not leave. The landlord can file this writ the day the judgment is issued. The tenant has five days to move out once they receive notice of the writ. If they do not leave voluntarily, the landlord can get the sheriff involved, which can take up to 25 days. The tenant has the right to request a stay of execution, which will give them a 40-day extension on moving out. They also have the right to appeal within 90 days from when the judge enters the judgment or 30 days from when they receive a copy of the judgment, whichever comes first.

Commercial vs Residential Evictions

Commercial evictions are handled with a focus on contractual obligations and potential business impacts, while residential evictions require landlords to be well-versed in local tenant protection laws and just-cause requirements. There are fewer regulations regarding how security deposits are handled and returned for commercial properties. Disputes over security deposits are typically resolved based on the lease terms. Due to the nature of business operations, the impact of eviction on a commercial tenant is most likely to involve financial losses. If the correct eviction procedures are not followed, the landlord may be responsible for the resulting losses to the tenant.

Frequently asked questions