Being a landlord comes with many responsibilities, from managing tenant relationships to maintaining properties. Amid rent collection, tenant screenings, and legal obligations, it’s easy to make mistakes. Unfortunately, in California, some of these mistakes can land landlords in legal trouble. Here’s a look at five common errors landlords make—and how to avoid them to protect your rental property investment.
Are You at Risk of Breaking the Law?
If you’re new to the rental game, or even if you’re experienced, you may unknowingly be violating California laws. Below are five things that landlords often do that can jeopardize their property and financial well-being.
1. Entering the Property Without Notice
One of the most common mistakes landlords make is entering a rental property without proper notice. Tenants in California have a right to privacy, which means landlords must provide at least 24-hours’ notice before entering for inspections, repairs, or maintenance. Even though landlords own the property, once the tenant signs a lease, they effectively take control of the space. Without proper notice, entering the unit is illegal, unless it’s an emergency. In some cases, tenants may waive the notice requirement if they are present and give permission at the time, but landlords should never assume they can drop in unannounced.
2. Asking for Prohibited Personal Information
During the tenant screening process, it’s essential to stick to legally approved questions. Landlords can ask about income, employment status, and credit history to assess a potential tenant’s ability to pay rent. However, prying into personal details such as religion, nationality, or family planning is strictly prohibited. Even casual conversations that delve into these areas can be grounds for discrimination claims. Always ensure your tenant screening process is aligned with Fair Housing laws to avoid legal troubles.
3. Raising Rent Without Proper Notice
In California, landlords are required to give tenants advance notice before increasing rent. If the rent increase is 10% or less, the landlord must provide 30 days’ notice. If the increase exceeds 10%, a 60-day notice is required. This rule applies even if the landlord wants to raise rent in the middle of a lease. Failing to follow these notice requirements can lead to legal action from tenants, so it’s critical to stay compliant with rent control laws.
4. Evicting Tenants Due to Property Sale
While property owners have the right to sell their rental properties, the sale does not allow for immediate eviction of tenants. In California, tenants have the right to stay in the property until their lease ends, even if the property changes ownership. If a new owner wants to move into the property or change its use, they must either honor the existing lease or negotiate a lease buyout with the tenant. Evicting tenants solely because of a sale can lead to costly legal battles.
5. Overcharging for Security Deposits
California law limits the amount landlords can charge for a security deposit. For unfurnished rentals, landlords can charge up to two months’ rent, while for furnished properties, the limit is three months’ rent. Charging beyond these limits is illegal and could result in legal penalties. Make sure you’re familiar with local laws regarding security deposits to avoid potential disputes with tenants.
Stay Protected with a Professional Property Management Company
Ensuring legal compliance in all aspects of property management is not just good practice—it’s essential for avoiding costly fines, lawsuits, and damaged reputations. If managing your rental properties is becoming overwhelming or you’re unsure about your legal responsibilities, working with a property management company can be a game-changer.
At APG Properties, we specialize in managing rental properties throughout Southern California. We handle everything from tenant screening and maintenance coordination to rent collection and legal compliance. Here’s how we can help:
- Comprehensive Tenant Screening: We conduct thorough background checks to ensure you find reliable tenants.
- On-Time Payments: Receive ACH distributions on time, every time.
- Maintenance Management: Our team responds quickly to repair requests, ensuring tenant satisfaction while protecting your property.
Conclusion
Landlording in California requires staying informed about tenant rights and legal responsibilities. From providing notice before entering a property to adhering to rent control and eviction laws, it’s crucial to follow the rules to avoid common mistakes landlords make. For landlords who want to minimize risk and maximize income, partnering with a property management company like APG Properties is an excellent solution. Contact us today to learn how we can help you streamline your rental property operations and boost your profits.
