California (CA) law guide
California is one of the most tenant-protective states in the country. Statewide rent caps under the Tenant Protection Act, just-cause eviction rules, and a one-month security deposit limit all shape how owners and managers operate here. This guide covers the rules that matter most for day-to-day property operations, with the governing statute cited so you can verify the detail.
Security deposit limit
One month rent (two months for qualifying small landlords)
Deposit return deadline
21 days after move-out
Statewide rent cap
Yes, AB 1482: 5% plus CPI, capped at 10% per year
Nonpayment eviction notice
3-day notice to pay or quit
California rental market snapshot
Population
39.0 million
Renter households
~44% of households rent
Median rent
~$2,100 (2BR)
Largest rental markets
Los Angeles, San Francisco, San Diego, San Jose, Sacramento
California has the largest renter population in the country and the tightest tenant protections, so compliance with AB 1482 rent caps and AB 12 deposit limits is non-negotiable for operators here.
As of July 1, 2024, AB 12 limits security deposits to one month of rent, whether the unit is furnished or unfurnished. This replaced the old rule that allowed two months for unfurnished and three months for furnished units.
A narrow small-landlord exception allows up to two months of rent. It applies only when the owner is a natural person, an LLC whose members are all natural persons, or a family trust, and owns no more than two residential rental properties totalling no more than four units. The exception does not apply when the tenant is a service member.
The landlord must return the deposit, with an itemized statement of any deductions, within 21 days after the tenant moves out. For deductions effective January 1, 2026, landlords must also provide photographs documenting the unit condition at move-in, move-out, and after any repairs or cleaning.
The Tenant Protection Act (AB 1482) caps annual rent increases for most residential units at 5% plus the regional change in the cost of living, with a hard ceiling of 10% in any 12-month period, whichever is lower. Some units are exempt, including certain single-family homes not owned by a corporation and housing built within the last 15 years.
Notice requirements scale with the size of the increase: at least 30 days written notice for a cumulative increase of 10% or less over the prior 12 months, and at least 90 days for an increase above 10%.
Eviction in California begins with the correct written notice. For nonpayment of rent, the landlord serves a 3-day notice to pay or quit. For a curable lease violation, a 3-day notice to cure or quit applies.
For units covered by AB 1482, the landlord must have a just cause to end a tenancy once the tenant has occupied the unit for 12 months, and no-fault terminations can require relocation assistance. If the tenant does not comply with a valid notice, the landlord files an unlawful detainer action; self-help eviction is illegal.
Landlords must maintain habitable housing under the implied warranty of habitability and provide proper notice, generally 24 hours, before entering an occupied unit except in emergencies. Retaliation against tenants who exercise their legal rights is prohibited.
This guide is general information, not legal advice. Governing statute: California Civil Code 1940 et seq. and the Tenant Protection Act (AB 1482). Laws change; confirm the current statute or consult an attorney before acting. Last reviewed 2026-06-04.
California FAQ
One month of rent as of July 1, 2024 under AB 12, regardless of furnishing. Qualifying small landlords (a natural person, family trust, or LLC of natural persons owning no more than two properties and four units) may charge up to two months, except for service-member tenants.
Within 21 days after the tenant moves out, with an itemized statement of any deductions.
For units covered by AB 1482, the cap is 5% plus the regional cost-of-living change, with a maximum of 10% in any 12-month period. Some units are exempt.
At least 30 days for a cumulative increase of 10% or less in the prior 12 months, and at least 90 days for an increase above 10%.
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