California Month-to-Month Rental Agreement
Lease agreements can take several different forms when renting property. A fixed-term California lease agreement might provide peace of mind, knowing that you have a tenant to fill your unit for a set period. However, a California month-to-month lease agreement might offer the flexibility you and your tenant need.
A month-to-month lease, often called a “rental agreement,” renews monthly and can be terminated with adequate notice. Because of the flexibility offered, month-to-month tenants are called “tenants at will.”
In this guide, we’ll review California month-to-month lease agreements, how landlord-tenant laws treat them, and essential things landlords should consider when accepting month-to-month tenants.
California Month-to-Month Lease Agreement
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California Month-to-Month Lease Laws
One of the most important aspects of being a California landlord is fully understanding the state’s landlord-tenant laws. These laws impact critical aspects of rental properties, including:
- Mandatory disclosures
- Notice to terminate
- Rent increases
- Eviction
- Security deposit laws
- Pet deposits and rent limitations
- Late fees
Required Landlord Disclosures (21)
- Lead paint: Federal law requires all landlords to disclose the presence or knowledge of any lead-based paint or lead-based paint hazards in all units built prior to 1978.
- Landlord contact info: The tenant must be provided with the person authorized to manage the property’s name, address, and phone number (Cal. Civ. Code § 1962(4)).
- Change terms notice: Landlords must provide a statement regarding rent increase limitations (Tenant Protection Act).
- Bedbugs: California landlords must inform tenants about bed bugs, including their behavior and biology. The disclosure should urge tenants to report any suspected infestations immediately (Cal. Civ. Code § 1954.603).
- Pest control: Landlords who provide pest control services must give tenants a notice from the company describing the pest they’re controlling, the chemicals used, their active ingredients, the frequency of their application, and any potential adverse effects. (Cal. Civ. Code § 1940.8).
- Demolition: Landlords must tell tenants if they intend to demolish the unit (Cal. Civ. Code § 1940.6).
- Flooding: California landlords must disclose whether the property is in a flood zone (Cal. Gov’t. Code § 8589.45).
- Mold: If a landlord knows of or suspects mold growth on the property, they must provide the tenant with informational guidelines provided by the state as soon as is reasonably practical (Cal. HSC § 26147).
- Methamphetamine/fentanyl contamination: If the property has been used to store, manufacture, or use methamphetamine or fentanyl, the landlord must provide the tenant with written notice of the remediation and a copy of the report. (Cal. HSC § 25400.28).
- Shared utilities: If utilities, such as electric or gas, are shared, the landlord must explain how they’ll split the costs between units (Cal. Civ. Code § 1940.9).
- Smoking policy: California landlords must disclose the smoking policy for all leases and whether they allow or prohibit smoking (Cal. Civ. Code § 1947.5).
- Just cause and rent limit: Landlords must make tenants aware that most properties require a landlord to provide at least 60 days’ written notice before terminating a long-term lease, must have just cause to evict a tenant, and that rent increases are capped at 5% of the local inflation rate or 10%, whichever is lower (Cal. Civ. Code § 1946.2).
- Ordinance locations: If there are any locations of former federal or state military ordinance usage within one mile of the property, landlords must make tenants aware (Cal. Civ. Code § 1940.7).
- Deaths on the property: Landlords must tell tenants about any deaths that have occurred on the property within the last three years, except for deaths related to AIDS or HIV (Cal. Civ. Code § 1710.2).
- Sex offender registry: Also known as “Megan’s Law,” landlords must provide a pre-written clause about the national sex offender registry that the Department of Justice provides (Cal. Civ. Code § 2079.10a).
- Asbestos: California landlords must disclose whether they know of potential asbestos contamination in any unit built before 1979 (Cal. HSC § 25915(a)).
- Carbon monoxide detectors: The landlord must install carbon monoxide detectors throughout the dwelling if the unit uses fossil fuel heaters or appliances (§ 17926.1).
- Water beds: If a landlord believes a tenant may use a water bed in the unit, they must provide a water bed statement (§ 1940.5).
- Carcinogenic materials: Landlords must inform their tenants if the unit contains carcinogens listed in Proposition 65 (§ 25607.34 (3)).
- Water utilities: If landlords bill rent and water separately, they must inform tenants when they’ll be billed. The least must also include a water bill estimate (§ 1954.204).
Los Angeles-specific requirements: Tenants must receive an LA Renters Protections Notice with their lease agreement.
Required Notice to Terminate Month-to-Month Agreement
Since a month-to-month rental agreement has no fixed end date, each state has different rules for terminating these leases.
Required notice for landlords: Landlords must provide at least 30 days’ written notice to terminate a month-to-month lease if the tenancy has lasted less than one year. They must provide 60 days’ written notice for tenancies lasting more than one year. In both cases, landlords must have just cause to terminate the agreement (CA. Civ. Code Sect. 1946.1)
Required notice for tenant: Tenants can terminate a month-to-month lease by providing at least 30 days’ written notice, regardless of how long they’ve lived there (Cal. Civ. Code § 1946).
Rent Increase Laws
Month-to-month rental agreements provide landlords with greater flexibility regarding rent increases. However, landlord-tenant laws govern both the amount of rent increase and the notice required. Additionally, many areas have implemented rent control laws, which limit how much landlords can increase rent.
California has passed several rent control measures statewide, and some local municipalities have their own guidelines. In general, landlords cannot raise the rent more than twice a year and cannot increase it by more than 10% (or 5% on top of the inflation rate). Depending on the amount, landlords must give tenants 30-60 days’ notice of the increase.
Rent Payment Laws
Grace period: Landlords in California are not required to provide a grace period for late rent.
Late rent fees: Late fees are allowed in California, but the list must list them. They must also be “reasonable” (around 5-10%) and represent actual damages suffered by the landlord (Cal. Civ. Code § 1671).
Tenant’s right to withhold rent: Tenants may withhold rent if the landlord fails to meet a minimum standard of habitability. They can make the repairs themselves and deduct the amount from a future rent payment if the cost is less than one month’s rent (Cal. Civ. Code § 1942).
Pet rent laws: California landlords can charge rent for pets, but the lease must include that information.
Security Deposit Rules
Maximum security deposit: State law caps security deposits at 1 month’s rent for unfurnished units or 2 months if you own two or fewer properties with a collective total of 4 units (Cal. Civ. Code § 1950.5).
Security deposit receipt: Landlords in California are not required to provide a receipt for the security deposit.
Interest: While some local jurisdictions require landlords to pay interest on held security deposits, no statewide requirements exist.
Deduction tracking: Landlords are allowed to withhold funds from the security deposit for repairs or cleaning that is necessary and beyond normal wear and tear. If done, they must provide an itemized list of the damages and charges (Cal. Civ. Code § 1950.6).
Returning a tenant’s security deposit: Landlords must return security deposits within 21 days of the tenant’s move-out (Cal. Civ. Code § 1950.5g).
Pet deposit rules: Landlords are allowed to charge a pet deposit. However, any funds listed as pet deposits are considered part of the overall security deposit and must follow the state’s rules regarding security deposits.
Property Access Regulations
Advance notice: Landlords must provide at least 24 hours’ notice before entering the unit (Cal. Civ. Code § 1954a).
Immediate access: Landlords can enter the property without providing notice in cases of emergency (Cal. Civ. Code § 1954b).
Landlord harassment: Landlords who repeatedly enter a tenant’s unit could be held liable for landlord harassment, which could result in civil penalties.
Rental Agreement Violations
Missed rent payment: If the tenant fails to pay rent, the landlord may issue a 3-day notice to pay or quit (Cal. CCP § 1161(2)).
Lease violation: For a lease violation, landlords may deliver a 3-day notice to cure or quit (Cal. CCP § 1161(3)).
Self-help evictions: Landlords should never attempt self-help evictions, which involve changing the locks to evict a tenant on their own. They’re illegal in California.
Lease abandonment: Tenants who break a lease early could be liable for the remainder of the rent due at the end of the lease term or for other civil or financial penalties.
California Month-to-Month Lease Agreement FAQs
What is a California month-to-month lease agreement?
A month-to-month lease agreement is a flexible lease between a landlord and tenant that automatically renews at the end of each month and does not have a fixed end date, creating a tenancy at will. TurboTenant offers customizable lease templates, including month-to-month leases, for your convenience.
What’s the difference between a lease and a month-to-month agreement?
A lease typically has a fixed end date, whereas a month-to-month rental agreement can last for a short or long term, depending on the whims of both landlord and tenant.
How to end a California month-to-month lease agreement?
Tenants can end a month-to-month lease agreement by giving the landlord at least 30 days’ written notice. Landlords can terminate tenancies lasting less than one year by giving 30 days’ written notice and 60 days for tenancies lasting more than one year. Landlords must have just cause to terminate fixed-term or month-to-month agreements.