Legal Compliance and the Risks of Self-Managing a Rental Property in California

Disclaimer: The information contained in this article is provided for general informational purposes only and should not be construed as legal advice. True Haven Property Management is not a law firm and does not provide legal representation or legal counsel. We strongly recommend that all landlords and property owners consult with qualified legal professionals regarding compliance with California landlord-tenant laws and regulations, particularly as they relate to their specific properties and circumstances.

Thinking About Self-Managing Your Rental Property?

Before you decide to manage your own rental, it’s important to understand the legal, financial, and time-consuming risks that come with being a landlord in California.

While self-management may seem like a cost-saving option, the reality is that even small mistakes can result in substantial legal liability, financial penalties, and long-term stress. Here’s what every rental property owner should know.

Key Laws You Must Follow (and the Cost of Getting It Wrong)

Security Deposit Laws (Civil Code § 1950.5)

• Return deadline: 21 days after move-out, with itemized deductions if over $125.
  
• As of July 1, 2024 (AB 12): Most landlords may only collect one month’s rent as a deposit.
  
• As of 2025 (AB 2801): Landlords must photograph units before and after tenancy to justify any deductions.
  
  

Violation Consequences:

• Tenant claims for 3x the withheld amount
  
• Loss of all deductions if not properly documented
  
• Court orders to pay legal fees and damages
  

Just Cause Evictions (AB 1482)

• Applies to most properties 15+ years old
  
• After 12 months of tenancy, you must have a valid legal reason to terminate tenancy.
  
• Certain reasons (like owner move-in) now require specific disclosures and timelines (see SB 567).
  
  

Violation Consequences:

• Invalid eviction notice = tenant can remain in place
  
• Exposure to retaliation lawsuits and financial penalties
  

Fair Housing Compliance (FEHA + FHA)

• Landlords may not discriminate based on race, religion, sex, national origin, disability, familial status, and more.
  
• Includes protections for source of income, gender identity, sexual orientation, and age.
  
  

Violation Consequences:

• Civil penalties up to $10,000 per offense
  
• Additional punitive and emotional distress damages
  
• Complaints investigated by HUD or California DFEH
  

Tenant Screening Restrictions

• Criminal history must be evaluated individually—blanket denials may violate fair housing law.
  
• You may not deny based solely on arrests or expunged convictions.
  
  

Violation Consequences:

• Discrimination claims and fair housing investigations
  
• Inability to defend lease denials
  

Required Disclosures (various codes)

You must provide disclosures for:

• Mold, bedbugs, lead-based paint, flood zones, pest control, utility billing, and surveillance cameras
  
• Bedbug disclosure (Civil Code §1954.603) is required for all properties
  
• Pest control (B&P §8538) notices must be given before or after treatment
  
  

Violation Consequences:

• Tenant can break lease without penalty
  
• Lawsuits for nondisclosure or personal injury
  
• Enforcement by local housing authorities
  

Utility Billing (Civil Code §1940.9)

• If you bill tenants for shared or sub metered utilities, you must disclose the method and formula in writing.
  
• Applies to water, gas, and electric service
  

Smoking Disclosure (Civil Code §1947.5)

• You must state in writing whether smoking (including cannabis) is allowed or prohibited on the property.
  

EV Charging Stations (Civil Code §1947.6)

• In multifamily properties with assigned parking, tenants have the right to install EV charging stations at their cost—with reasonable rules.
  

Lease Language Requirements (Civil Code §1632)

• If the lease is negotiated in Spanish, Chinese, Tagalog, Vietnamese, or Korean, tenants are entitled to a translated copy of the lease.
  
  

Habitability Standards (Civil Code §1941)

You must ensure the property is:

• Safe, clean, and livable
  
• Free of leaks, infestations, mold, and code violations
  
• Equipped with working smoke/CO detectors and locks
  
  

Violation Consequences:

• Rent withholding or repair-and-deduct
  
• Habitability lawsuits
  
• Local code enforcement actions
  
  

Entry Restrictions (Civil Code §1954)

• You must give 24-hour written notice before entering (except in emergencies).
  
• Excessive or inappropriate entry may be considered harassment.
  
  

Lesser-Known or Easily Missed Laws

• AB 721 (Occupancy Restrictions) – You may not enforce occupancy limits that conflict with fair housing laws, even if CC&Rs mention “single family only.”
  
• AB 2724 (Rent Payment Reporting)—If you own 15+ units, you must offer tenants the ability to report on-time payments to credit bureaus.
• City-Specific Rules (Sacramento, Davis, etc.) – Many cities require rental unit registration, special disclosures, or restrictions on evictions and rent increases beyond AB 1482.

Self-Management vs. Professional Management: Comparison Checklist

True Haven Can Help

We combine local knowledge, modern technology, and deep industry experience to make compliance easy and ownership profitable. Whether you’re managing one home or a growing portfolio, we help protect your time, your asset, and your peace of mind.

Ready to protect your investment the smart way?

(916) 410-5201
truehavenpm@gmail.com
Serving Davis, Woodland, Winters, and surrounding areas in Yolo, Solano, and Sacramento Counties