2020 California Residential Lease Changes

The 2020 California Residential Lease assumes the property is not exempt from rent limits.

Security Deposit

Amount:

For the California 2020 lease, new limitations were added to the security deposit amount. The amount that can be required is dependent on the tenant's status as a Service Member.

If the tenant is not a Service Member, the amounts stay the same as last year: maximum security deposit cannot exceed two months’ rent for an unfurnished rental, and three months’ rent for a furnished rental.

If the tenant is a Service Member, the amount of the security deposit cannot exceed one months’ rent for an unfurnished rental, and two months’ rent for a furnished rental, unless the Service Member has a poor credit or rental history or the property is rented with a group of individuals, one or more of whom is not related to the Service Member.

Fixed Term Lease

Month-to-Month Rent Increases and Caps on Rental Rate:

If the fixed term of the lease expires and the lease becomes a month-to-month lease, the landlord cannot raise the rent amount more than 5% + the cost of living of the lowest gross rental amount charged in the last 12 months, or 10%, whichever is lower, for the course of 12 months.

Furthermore, if the tenant occupies the property over any 12-month period, the gross rental rate should not be increased more than two increments over that 12-month period.

Notices of Rent Increases:

Any proposed rent increase (see above for maximum allowed), charged to the tenant at any time during the 12 months prior to the effective date of the increase, is subject to a notice delivered at least 30 days prior to the effective date.

Notice can be delivered by mail or in person.