So you hold a property management company in Los Angeles or anywhere in California state of the US and navigating California’s property management landscape requires a clear understanding of state-specific laws. The California property management laws are designed to protect landlords, tenants, and property managers alike. Whether you’re a landlord, tenant, property manager, or real estate broker, these rules shape everything from security deposits and eviction processes to fair housing compliance and lease agreements.
California’s laws, like the Tenant Protection Act (AB 1482) and Fair Housing Act, ensure rental housing remains fair and habitable. For landlords and managers, compliance isn’t optional—it’s critical to avoid lawsuits, fines, or disputes with agencies like the Department of Fair Employment and Housing (DFEH) or HUD. Tenants, meanwhile, gain clarity on their rights, such as protections against retaliatory evictions or excessive rent increases under rent control.
Let’s break down the key topics, from security deposit limits (Civil Code 1950.5) to licensing requirements for real estate professionals. The California property management rules aim to help you stay compliant, avoid pitfalls, and foster positive rental relationships.
Rental Application Laws
California Civil Code 1950.6 regulates rental applications to protect applicants from unfair fees and discrimination. Enacted in 1997, this law applies to landlords, property managers, and real estate brokers who charge fees to screen potential tenants.
Under Civil Code 1950.6Act, landlords can only charge a screening fee to cover actual costs like credit checks or background checks—capped at $56.05 (adjusted annually for inflation) as of 2023. They must provide an itemized receipt if the fee is non-refundable and cannot profit from it. Applicants must also receive a written notice explaining how their information will be used.
The Department of Fair Employment and Housing (DFEH) enforces anti-discrimination rules, ensuring landlords don’t reject applicants based on protected categories (e.g., race, disability, source of income). Violations—like charging excessive fees, failing to provide receipts, or biased rejections—can lead to fines, refunds, or lawsuits. Tenants may recover up to $1,000 in penalties plus damages through Small Claims Court.
By setting clear rules, the California Civil Code 1950.6 benefits both parties: applicants avoid predatory fees, while landlords follow fair screening practices.
Fair Housing Act
The Fair Housing Act is a federal law enacted in 1968 to ban housing discrimination based on race, religion, national origin, sex, disability, or familial status. However, California pioneered these protections years earlier. The Unruh Act (1959) barred discrimination in housing and businesses, and the Rumford Act (1963) specifically targeted housing bias. Though Proposition 14 (1964) temporarily rolled back these gains, the California Supreme Court overturned it in 1966. The state also established the Fair Employment and Housing Act (FEHA) in 1959, creating today’s Civil Rights Department (formerly DFEH) to enforce anti-discrimination rules—all before the federal law existed.
Today, FEHA and federal law work together, with California adding protections for sexual orientation, gender identity, marital status, and source of income. Landlords, property managers, and real estate brokers cannot refuse housing, set unfair terms, or harass tenants based on these traits. Violations like rejecting an applicant due to disability or imposing biased screening fees risk lawsuits, fines, or penalties from state/federal agencies.
Landlords must also follow fair housing guidelines in advertising and avoid policies that disproportionately harm protected groups. For example, refusing to allow service members or victims of domestic violence to break a lease could trigger legal action. By complying, housing providers foster inclusive communities and avoid costly penalties.
California Security Deposit Law
California Security Deposit Law is a regulation governed by Civil Code 1950.5 for landlords to collect, hold, and return security deposits to tenants fairly to prevent unfair deductions and protect tenant rights. The security deposit law ensures fairness for both landlords and tenants.
The Civil code 1950.5 limits landlords to cap the amount of security deposit to one month’s rent only as from July 1 2024. Until July 1 the limit was two times the monthly rent for unfurnished and 3 times the monthly rent for furnished house. Landlords and property managers must hold deposits in a trust account and provide tenants with an itemized receipt if any portion is non-refundable.
When a tenant moves out, landlords have 21 days to return the deposit or supply a detailed list of deductions for repairs beyond “normal wear and tear.” Acceptable deductions include unpaid rent, damage exceeding ordinary use, or cleaning costs if the property isn’t left in the same condition as the move-in inspection. However, charging for routine maintenance or habitable property standards (e.g., repainting undamaged walls) is prohibited.
Tenants disputing deductions can file a claim in Small Claims Court, while landlords who withhold deposits improperly risk owing the full amount plus penalties. By following these guidelines, both parties avoid conflicts and ensure compliance with California’s tenant-protection framework.
California Landlord Tenant Law
California’s landlord-tenant relationship is defined by laws like the California Tenant Protection Act (AB 1482) of 2019 and the Implied Warranty of Habitability (Civil Code 1941). These landlord laws ensure landlords maintain habitable properties (e.g., functioning plumbing, heating, and pest-free environments) while tenants uphold their lease obligations.
However AB 1482 Act is a tenant protection act of 2019, most rentals fall under rent control, capping annual rent increases at 5% + local CPI (up to 10% total). The AB 1482 Act demands Landlords to provide “just cause” for evictions, such as unpaid rent or lease violations, shielding tenants from arbitrary displacement. Tenants, meanwhile, can withhold rent for unresolved habitability issues but must follow proper procedures to avoid retaliatory eviction claims.
Landlords must also respect tenant privacy. California Civil Code 1954 restricts property entry to emergencies or “reasonable notice” (typically 24 hours) for repairs or showings. Violations could lead to fines or lawsuits through the Department of Fair Employment and Housing (DFEH).
By balancing rights and responsibilities, landlord and tenant laws aim to foster fair, transparent rental agreements while minimizing disputes between lessor and lessee.
Lease and Lease Termination Law
California’s lease termination rules, outlined in Civil Code 1946 and the Tenant Protection Act (AB 1482), define how tenants and landlords can legally end a rental agreement. For fixed-term leases (e.g., a 1-year lease), neither party can terminate early without a valid reason, such as tenant domestic violence or landlord failure to maintain a habitable property.
For month-to-month leases, tenants must give 30 days’ notice (or 60 days if they’ve lived there over a year) before moving out. Landlords, meanwhile, can only terminate with “just cause” under AB 1482, like nonpayment of rent, illegal activity, or plans to move in themselves. They must provide a 30-day or 60-day notice depending on the tenant’s tenure.
Tenants can break a lease early without penalty in special cases, such as entering military service (protected by the SCRA) or fleeing abuse. Landlords cannot retaliate with eviction if tenants report habitability issues—a violation of retaliatory action laws.
Both parties must follow these rules to avoid disputes or legal action. Tenants who leave improperly risk losing their security deposit, while landlords who skip proper notices could face fines or lawsuits.
License Requirement
In California, anyone who is involved in real estate and property management activities will require state-issued licenses to ensure professionalism and legal compliance. The California Department of Real Estate (DRE) oversees licensing for roles like real estate brokers, salespersons, and community association managers, governed by laws such as Section 10131-b of the Business and Professions Code.
Operating without proper licensing will lead to fines, legal disputes, or voided contracts. For example, property managers handling rentals for others typically need a Real Estate Broker License, while tasks like leasing or collecting rents will require a Property Management License. These rules protect consumers and uphold industry standards.
Real Estate Broker License and Requirements
In California, a Real Estate Broker License is required for anyone managing property for others, negotiating leases, or handling transactions involving rentals or sales. Governed by Section 10131-b of the Business and Professions Code, this license ensures brokers meet state standards for ethics and competency.
To qualify for real estate broker license, applicants must:
- Be at least 18 years old and a California resident (or U.S. citizen/legal resident).
- Complete eight college-level courses in real estate (e.g., property management, real estate law).
- Gain at least two years of full-time experience as a salesperson or equivalent.
- Pass the California Real Estate Broker Exam.
- Submit fingerprints for a criminal background check and pay licensing fees.
Brokers can oversee real estate salespersons, manage trust accounts, and operate independently. They must also carry errors and omissions insurance to protect against lawsuits.
Real Estate Salesperson License and Requirements
A Real Estate Salesperson License allows professionals to assist brokers in property transactions, leasing, or management under supervision. Governed by the California Department of Real Estate (DRE), this license ensures salespersons meet basic competency and ethical standards.
To qualify for real estate salesperson license , applicants must:
- Be at least 18 years old.
- Complete three college-level real estate courses (e.g., principles, practices, and one elective).
- Pass the California Real Estate Salesperson Exam.
- Submit fingerprints for a criminal background check and affiliate with a licensed broker.
Salespersons cannot work independently—they must operate under a broker’s license to perform tasks like showing rentals, collecting deposits, or advertising properties. Brokers oversee their activities and are legally responsible for their actions.
Failing to obtain a salesperson license (or working without broker supervision) violates Business and Professions Code Section 10130-10131, risking fines, license suspension, or legal action by the DRE. Exemptions apply to community association managers or unpaid assistants (e.g., leasing agents paid via salary only).
The real estate salesperson license is a stepping stone for those aiming to later become brokers.
Do Sky Bridge Adhere to California Property Management Rules and Regulations?
Yes, Sky Bridge operates in full compliance with California laws. As a local property management company in Los Angeles we follow habitable property standards, lawful tenant screening (Civil Code 1950.6), and eviction protocols under the Tenant Protection Act. Our licensed brokers and managers stay updated on regulatory changes, ensuring transparent lease agreements, proper security deposit handling, and adherence to anti-discrimination laws.
Need a trusted partner to navigate California’s property management landscape? Contact Sky Bridge today for expert, compliant solutions tailored to your needs.
