Renting a home in Southern California, especially in desirable places such as North Hollywood and Calabasas, can be an incredible experience. Yet the benefits come with certain laws and policies that landlords need to know about to safeguard their assets and keep rents legally compliant. The California rental market is known for being tenant-friendly, but cities vary and each one imposes different regulations, so owners must be on the forefront of state and local regulations.

In this guide, we’ll dissect some of the key legal and compliance steps for Southern California property owners.

1. Rent Control and Rent Stabilization Ordinances

California’s Statewide Rent Control Law (AB 1482), passed in 2020, is one of the most important pieces of legislation for rental property owners. This law caps the rent increases that a landlord may make annually for some properties and applies to the majority of multi-unit rentals older than 15 years old. But there are exceptions, and not all rental units are subject to AB 1482, particularly single-family dwellings and condos where the owner is not a corporate landlord.

Local Regulations:

North Hollywood: As part of Los Angeles’ Rent Stabilization Ordinance (RSO), rent increases are capped every year, and there is “just cause” for eviction.
Calabasas: Calabasas, unlike North Hollywood, does not currently have a rent control ordinance but is still subject to statewide rent control if necessary.
Renters should be aware that they should continually inquire whether their rental assets are subject to local or state rent control regulations and the effect these can have on potential revenue and tenants.

2. Tenant Rights and Eviction Laws

California has strong tenant protection laws, so landlords should not have to fend off eviction proceedings. AB 1482 also created new “just cause” eviction laws, which allow landlords to evict tenants for certain reasons only after a tenant has lived in a property for a specified period of time.

Types of Just Cause Evictions:

At-fault evictions:

such as rent arrears, lease violations, or illegal activities.

No-fault evictions:

These occur when there’s something beyond the tenant’s control, such as a landlord moving in, selling the house, or being demolished.
The homeowner who needs to evict someone, whether it’s in North Hollywood or Calabasas, will need to give relocation assistance, which can cost up to $50,000 depending on where you live.

3. Security Deposit Regulations

California imposes high-security deposit requirements and return deadlines:

Rent Limits:

For unfurnished rentals, landlords can demand up to two months’ rent; for furnished rentals, three months’ rent.

Return Procedure:

Following a tenant’s departure, the landlord has 21 days to pay back the security deposit, along with a list of any deductions.

Renting in Southern California, particularly in expensive areas such as Calabasas, keeping notes on damages and repairs avoids disputes and legal trouble regarding security deposits.

4. Maintenance and Habitability Standards

In California, landlords have a responsibility to maintain habitable living arrangements pursuant to the Implied Warranty of Habitability. These include having the house meet minimal health, safety, and structural needs, including good plumbing, heating, and safe entrances. Failure to provide repairs in time could lead to a tenant legally refusing to pay rent or fixing the problem themselves and deducting the repair expenses from rent.

With Southern California’s diverse climate and old infrastructure, property owners in North Hollywood and Calabasas need to stay up-to-date or risk costly repairs and legal actions. An experienced property manager can be a godsend in this regard because they keep check on everything and react quickly to maintenance.

5. Compliance with Fair Housing Laws

California’s fair housing laws deny discrimination against tenants based on race, gender, status, religion, national origin, sexual orientation, disability and other protected classes. That means in southern California that landlords need to treat applicant applications, leases, and communications with equal dignity and non-discrimination.

There are also other fair housing issues in racially diverse cities like North Hollywood where landlords have to follow rigorous application and tenant screening policies in order to comply.

6. Short-Term Rental Restrictions

If you’re a landlord and are thinking of doing short term rentals like Airbnb or VRBO, you need to make sure you are up-to-date with local short term rental regulations. Southern California cities, particularly in the residential areas, have enforced regulations that limit the popularity of short-term rentals.

Local Regulations:

North Hollywood: Los Angeles, a well-controlled short-term rental community. Home-sharing is permitted only within the confines of a main residence, with strict licensing.
Calabasas: Has also approved restrictions on short-term rentals, mostly to help preserve community character and regulate noise and traffic.
Owners need to know if short-term rentals are permitted in their territory and how fines, even the removal of rental permits, can be imposed for breaking the law.

7. Tenant Screening and Application Processes

Tenant screening is a valuable property owner tool, but California has strict rules on how property owners can screen potential tenants:

Credit and Background Checks:

These are permitted, but they have to be done in a uniform way across applicants to avoid accusations of discrimination.

Income Verification:

The norm is to verify income, but you have to do it under fair housing regulations and some jurisdictions might have special requirements for applicants.

Application Fees:

California sets application fees (per year), so property owners should make sure they’re not overcharging.

Tenant screening:

In accordance with state and federal regulations, property owners are allowed to stay safe while selecting trustworthy tenants.

8. COVID-19 Impact of Eviction Moratoriums and Assistance Initiatives

Statewide eviction moratoriums have been largely abolished, but some protections and rent-assist programs continue to exist in cities throughout Southern California. Tenants, for instance, can still seek rent relief if they’re recovering from COVID-19 damage, and some cities now provide more tenant protections.

This means keeping up to date on local COVID-19 guidelines – particularly in areas such as Los Angeles County (including North Hollywood) – so that landlords don’t mess up in eviction or rent collection proceedings.

Use Oakwood Property Management for Compliance and Security.
Rental laws in Southern California are notoriously hard to navigate because the laws are divided among multiple cities. By working with a reputable property management company, such as Oakwood Property Management, you’re not only making sure your investment is being effectively managed to achieve the highest return on your investment but you are also in full compliance with all state and local laws. We stay abreast of the current laws in North Hollywood, Calabasas, and everywhere else so you can take advantage of your investment without any worries.

If you want to know more about rental compliance in Southern California or speak to Oakwood Property Management about your property management needs, contact us today. We make renting easy, legal, and profitable.