You can keep your Southern California home as a rental after you move away. The main steps are pricing the rent against comparable homes, switching to a landlord insurance policy, checking your mortgage and HOA rules, screening tenants carefully, and hiring a manager who is actually local. If you live outside California, the state generally requires your property manager to withhold 7% of the rent for state income tax unless an exemption applies.
A lot of the owners we work with are in exactly this spot: a new job in another state, a move closer to family, or a bigger home somewhere else, and a house in Los Angeles or Orange County they do not want to sell. Keeping it can make sense. Here is what to handle before you leave.
Step 1: Make sure the numbers work
Start with a realistic rent estimate and compare it with your mortgage, property tax, insurance, HOA dues and a reserve for repairs. Then think about timing. If you lived in the home for at least two of the last five years, you can generally still exclude up to $250,000 of gain ($500,000 for married couples) if you sell within about three years of moving out. Renting for a year or two does not erase that, but waiting too long can. Map out your plan with your CPA.
Step 2: Check your mortgage, HOA and insurance
- Mortgage: Most owner occupied loans require you to live in the home for a period, often 12 months, before renting it. Read your loan documents.
- HOA: Some associations limit rentals or require a minimum lease term. Ask for the current rules in writing.
- Insurance: A homeowner policy does not cover a rental. Switch to a landlord policy before the tenant moves in, and require tenants to carry renters insurance.
Step 3: Know which rent rules apply
California’s statewide rent cap and just cause law, AB 1482, covers many rentals. Single family homes owned by individuals are usually exempt from its rent cap if the lease includes the required exemption notice. On top of that, the City of Los Angeles, unincorporated LA County and several other cities have their own rent and registration rules. Your manager should confirm what applies to your address before the first lease is signed.
Step 4: Get the home rent ready before you leave
Move out completely, then finish repairs, paint and cleaning before photos. We list a home only after make ready is done and professional photos are taken. Showings run through self showing lockboxes that hold a physical key, open on weekdays and weekends until sunset, so you never need to be in town for a showing. If your front door only has a keypad lock, plan to add a keyed lock.
Step 5: Screen like you will never meet the tenant
When you live a thousand miles away, screening is your best protection. Our standard is a 720 credit score, gross income of 2.5 times the rent, and no prior evictions. We verify every applicant’s identity and call past landlords, then check that the landlord is the real owner on property tax records and not a friend or relative. We have had one eviction in the last eight years. Read more about tenant screening in California.
Step 6: Set up the money
Rent should be collected online, with a monthly owner statement and a direct deposit to your account. Rent from a California home is California income even after you move. For owners who live out of state, California generally requires the property manager to withhold 7% of rent paid to you (after management fees) once payments pass $1,500 for the year, send it to the Franchise Tax Board, and give you Form 592-B by January 31 so you can claim the credit on your California return.
Step 7: Choose a manager who is actually local
Ask who answers the phone, how fast repairs get scheduled, how showings work, and what every fee is. Skybridge manages homes from West Hollywood to Rancho Cucamonga to San Clemente, with contractors in the field every day. Single family management is a flat $149 per month, condos and townhomes are $99, leasing is 50% of the first month’s rent, there is no onboarding fee, and you can cancel with 30 days’ notice. See pricing or check the areas we serve.
Frequently asked questions
Can I rent out my California house if I move to another state?
Yes. Check your mortgage, HOA rules and insurance first, then price the rent against comparable homes and screen tenants carefully. Most owners who move away hire a local property manager so repairs and showings are handled without them.
Do I still pay California tax on rent after I move away?
Yes. Rent from California property is California source income. Your property manager generally withholds 7% of the rent for the state unless an exemption applies, and you claim that amount as a credit when you file a California nonresident return.
Will renting out my house cost me the capital gains exclusion?
Not right away. If you lived in the home for two of the five years before you sell, you can generally still use the exclusion. That usually means selling within about three years of moving out. Confirm the details with your CPA.
How do showings work if I am not in California?
We use self showing lockboxes with a physical key. Prospective tenants book a time, get a one time code, tour the home and return the key. You do not need to be there.
How much does it cost to have my home managed while I live out of state?
At Skybridge, $149 per month for a single family home or $99 for a condo or townhome, plus 50% of the first month’s rent when we place a tenant. There is no onboarding fee.
Buying a new home and deciding what to do with this one? Read rent out your current home or sell it.
Planning your move?
Call (909) 610-9780 and we will give you a free rent estimate before you go. When you call, a real person picks up.
General information, not legal or tax advice. Talk with a CPA about your situation. Figures are current as of November 2026.
