California Residential Lease Agreement (2026): Required Clauses, Deposit Rules, Late Fees and Disclosures
California has the most demanding residential lease in the country: a deposit capped at one month's rent since AB 12, a rent-increase ceiling and just-cause rules under the Tenant Protection Act, and more than a dozen mandatory disclosures, several with statutory wording. Cities layer their own ordinances on top. A lease missing a required disclosure is not void, but each omission is a defense for the tenant and, for some of them, a penalty for the landlord.
1. The numbers the statute fixes
| Term | California rule | Statute |
|---|---|---|
| Security deposit cap | 1 month's rent; 2 months if landlord is a natural person/LLC owning no more than 2 properties with 4 or fewer units total (AB 12, eff. 7/1/2024) | Cal. Civ. Code § 1950.5 |
| Deposit return deadline | 21 days after move-out | Cal. Civ. Code § 1950.5(g) |
| Interest on deposit | Not required | No state requirement; some cities (e.g., San Francisco, Los Angeles, Berkeley) require interest by ordinance |
| Late fee | Must be a reasonable estimate of landlord's actual damages; no statutory percentage cap | Cal. Civ. Code § 1671(d) |
| Notice before landlord entry | 24 hours, written | Cal. Civ. Code § 1954 |
| Ending a month-to-month tenancy | Landlord 60 days · tenant 30 days | Cal. Civ. Code §§ 1946, 1946.1 |
| Rent increase limit | Covered units: 5% + CPI, max 10% per 12 months (AB 1482, through 1/1/2030); notice 30 days for increases ≤10%, 90 days for >10% | Cal. Civ. Code §§ 1947.12, 827(b) |
Many cities (LA, SF, Oakland, San Jose, etc.) have stricter rent control and just-cause ordinances. Landlord must also provide the CA Department of Consumer Affairs 'California Tenants' guide reference and, from 2025, itemized deposit deductions with photos (§ 1950.5(g), AB 2801).
2. Disclosures the lease must contain
Each of these is a separate statutory requirement. "When applicable" means the duty depends on the property (year built, number of units, known conditions) — the lease generator asks the question and includes the clause when the answer triggers it.
| Disclosure | Applies | Statute |
|---|---|---|
| Lead-Based Paint Disclosure (pre-1978 housing) | When applicable | 42 U.S.C. § 4852d; 24 C.F.R. Part 35 Subpart A |
| Megan's Law Database Notice | Every lease | Cal. Civ. Code § 2079.10a |
| Bed Bug Notice | Every lease | Cal. Civ. Code § 1954.603 |
| Mold Disclosure | Every lease | Cal. Health & Safety Code § 26147; Cal. Civ. Code § 1941.7 |
| Flood Hazard Disclosure | Every lease | Cal. Gov. Code § 8589.45 |
| Pest Control Notice | Every lease | Cal. Civ. Code § 1940.8.5; Bus. & Prof. Code § 8538 |
| Demolition Permit Disclosure | Every lease | Cal. Civ. Code § 1940.6 |
| Former Military Ordnance Disclosure | Every lease | Cal. Civ. Code § 1940.7 |
| Death on Premises (3 years) | Every lease | Cal. Civ. Code § 1710.2 |
| Methamphetamine / Fentanyl Contamination Order | Every lease | Cal. Health & Safety Code § 25400.28 |
| Shared Utility Meters | Every lease | Cal. Civ. Code § 1940.9 |
| Smoking Policy | Every lease | Cal. Civ. Code § 1947.5 |
| Owner/Agent Identification and Rent Payment | Every lease | Cal. Civ. Code § 1962 |
| Tenant Protection Act (AB 1482) Notice | Every lease | Cal. Civ. Code §§ 1946.2(f), 1947.12(b)(5) |
3. What trips landlords up in California
- Collecting more than one month's deposit. Since July 1, 2024, § 1950.5(c) caps the security deposit at one month's rent (two months only for small landlords who own no more than two properties with four units or fewer in total). Pet deposits, key deposits and 'last month's rent' all count toward the cap.
- A fixed late fee with no basis. § 1671(d) and Orozco v. Casimiro allow a late fee only as a reasonable estimate of the landlord's actual damages; a flat 10% clause is routinely thrown out. Keep the fee modest and state that it reflects the landlord's costs.
- Omitting the Tenant Protection Act notice. For covered units, §§ 1946.2(f) and 1947.12(b)(5) require the lease to contain a specific paragraph about just-cause eviction and the rent cap (5% plus CPI, maximum 10% per year through 2030). The wording is prescribed; paraphrasing does not count.
- Forgetting the small disclosures: Megan's Law database notice (§ 2079.10a), bed bugs (§ 1954.603), mold (Health & Safety Code § 26147), flood hazard (Gov. Code § 8589.45), shared utility meters (§ 1940.9), smoking policy (§ 1947.5), and a death on the premises in the last three years (§ 1710.2).
- Entering without notice. § 1954 requires written notice with 24 hours presumed reasonable, during normal business hours, and only for the purposes the statute lists — a lease clause allowing 'entry at any time' is unenforceable.
- Ignoring the city. Los Angeles, San Francisco, Oakland, San Jose and others have rent stabilization and just-cause ordinances that are stricter than state law; the lease should say which rules apply.
4. Ending and changing the tenancy
Ending or changing the tenancy is also regulated: a landlord ending a month-to-month tenancy needs 60 days' notice once any tenant has lived there a year (30 days before that), the tenant needs 30 (§§ 1946, 1946.1); rent increases above 10% need 90 days' notice (§ 827(b)); and since 2025 deposit deductions must be itemized with photographs (AB 2801). Nonpayment follows the 3-business-day notice described in our California eviction notice guide.
Generate the lease
Our California residential lease applies every rule on this page: the deposit field will not accept more than the cap, the late-fee clause is written to the statute, and each disclosure above is inserted with its required wording when it applies. A watermarked preview is free; the clean PDF and Word file are $19.
Related: security deposit limits in all 50 states · late fee caps by state · eviction notice periods by state · California eviction notice.
Questions
How long does a California landlord have to return the deposit?
21 days after the tenant moves out (§ 1950.5(g)), with an itemized statement of deductions and, for deductions over $125, receipts. Since 2025 the landlord must also photograph the unit before and after the tenancy and share the images.
Does the rent cap apply to my property?
AB 1482 exempts single-family homes and condos owned by individuals (if the lease says so in the prescribed words), buildings less than 15 years old, and owner-occupied duplexes. Everything else is covered after the tenant's first 12 months.
Can I charge a fee for a bounced check?
Yes: $25 for the first NSF check and $35 for each one after (§ 1719), and the lease should state it.
How current is this guide?
Reviewed September 2026. The caps, deadlines, disclosures and citations come from the dataset our California lease generator enforces; the commentary is ours. Statutes change — verify the cited section before relying on it.
General information about California statutes, not legal advice; FormsByState is not a law firm. Landlord-tenant law changes often and cities add their own rules — verify the cited sections for your situation.