Lease Agreements and Rental Contracts in California

If you are a renter, you have had questions about all the fees and deposits charged by landlords and wondered, “Can I get my security deposit back?” or “Are landlords allowed to charge application screening fees?” This article addresses many of the important questions a renter may have about lease agreements in California. For more information, contact David Knecht at davidknechtlaw.com.

  1. Does the landlord have to return the application screening fee?

No. An application screening fee or new tenant processing fee that is used to check the background or the references of a prospective tenant can be non-refundable.

  1. Can a landlord make a security deposit nonrefundable in California?

No, a nonrefundable deposit is technically illegal (See Civil Code Section 1950.5(m), but before you get too excited, please note that there are certain instances where a landlord may keep your deposit. A landlord can keep the security deposit if you owe rent, don’t leave it clean, damage the property, or fail to restore property (such as a key or furniture).

  1. Is there a limit on the amount of the security deposit a landlord can charge in California?

Yes, there is a limit on security deposits. A landlord can charge the first month’s rent PLUS either two times the monthly rent (for unfurnished) or three times the monthly rent (for furnished). If the place has a waterbed, then these maximums are higher. For example, if your rent is $1000 per month for an unfurnished studio apartment, your landlord can charge $1000 for first month’s rent plus $2000 for the two month’s rent, for a total of $3000 in a security deposit.

  1. What cities have rent control?

Some California cities have rent control ordinances that limit or prohibit rent increases. These ordinances vary by city, but they often specify rules for when rent can be increased or when a tenant can be evicted. You can often find these ordinances on the city web site. For a list of cities with rent control ordinances, go here. http://www.dca.ca.gov/publications/landlordbook/appendix2.shtml

  1. What should I look for in a lease agreement?

An often neglected, but obvious, rule is that you should always read your lease agreement in full prior to signing it. If there is a term that is unacceptable to you, then you should negotiate with the landlord to remove it from the contract or decline to rent that particular property. Some of the basic items you will want to review are the following:

  • Is the lease for a specific term, or is it month to month?
  • What day is the rent due and how much is it?
  • Am I responsible for utilities, HOA fees, etc.?
  • Can I sublease to roommates or to another tenant entirely if I need to move out?
  • What are the fees (look for carpet cleaning fees, pet deposit fees, key fees, cleaning fees, etc.)
  • Are there any restrictions on how I can use the property? (parking, etc.)

Conclusion

As a renter, you are in the driver’s seat when reviewing a lease because a landlord wants your money, so take your time to read it carefully and understand the terms. If you have questions about a lease agreement or need representation in a housing contract dispute, contact David Knecht at davidknechtlaw.com.