If you’ve rented out a home in the Bay Area for any amount of time, you know that the rental laws throughout California are strict. They’re also always changing.
It’s easy to make an expensive legal mistake when you’re renting out property in Oakland. You’ll need to educate yourself on all state rental laws before you begin renting out a home.
Let’s take a look at some of the property laws and regulations that Oakland landlords need to know before renting out a home. We’ll also tell you how a local property manager can help you stay up to date on all those laws, as well as in full compliance.
California’s Implied Warranty of Habitability
Habitability is non-negotiable. Your property needs to be safe and habitable, otherwise you cannot legally rent it out. This is perhaps the most basic rental property law of all: habitability.
Your rental property cannot pose a danger or any kind of risk. You need to have hot water, electricity, and a roof that doesn’t leak. Ventilation has to be clean and safe. There cannot be pest infestations and you cannot allow gas leaks or sewer backups.
When you work with a property manager, you know your home won’t be rented until it’s clean, in good condition, and safe for residents. California has an implied warranty of habitability, which means you’re renting out your property with the understanding that tenants can live there without putting themselves at risk.
California Fair Housing Laws
Fair housing laws start at the federal level, with the Fair Housing Act. This law protects people seeking housing against discrimination based on race, skin color, religion, national origin, sex, disability, and familial status. Those are the seven protected classes provided by the federal government.
California goes even further when it comes to fair housing. In California, we get into protected classes that cover sexuality, age, gender identification, veteran’s status, and citizenship. You cannot deny someone your property based on the language they speak or the way they earn income.
Most landlords don’t intentionally discriminate. But, you could make a mistake in your marketing language that might cause others to believe you’re discriminating. You don’t want to say that a home is perfect for families. You don’t want to make it sound like your property is better suited for one class of people over another. Advertise your home around what it offers to everyone.
Tenant screening needs to be fair and consistent. Document your set of rental criteria and provide it to all applicants so they can decide whether they’re likely to be approved. You must show that everyone gets treated the same way. Remember that in Oakland, you cannot conduct a criminal background check until after you’ve already approved your tenant.
Your Oakland property management partner will do a much better job of screening tenants accurately and consistently. We can put together some standard rental criteria and keep the process completely objective.
Rent Control in Oakland and California
Statewide rent control went into effect on January 1, 2020, and that new law applies mostly to multi-family properties that are at least 15 years old.
If you own a single-family home and you’re not a corporation, you’re likely exempt from rent control. However, it still has an impact on how you price your own properties.
The rent control limits and requirements caps rental increases to five percent plus the cost of living increase set by the Consumer Price Index.
Check your lease agreement. It must reflect whether your property is bound by the statewide rent control law. The language has to be specific, so make sure you have an attorney-approved template or verbiage provided by a local Oakland property manager.
Just Cause Eviction Laws in Oakland
You’ll need a reason to evict most tenants in Oakland. This is called just-cause eviction. The laws are strict, and they need to be followed to the letter, otherwise your eviction case can be thrown out of court.
When your property falls under The Tenant Protection Act, you cannot simply terminate a tenancy because you don’t want to rent your unit to a particular tenant anymore.
You can’t evict a tenant because you want to start over with a higher rental amount.
Instead, you must have just cause (which means a good, legal reason) if you want to terminate a tenancy and not renew a lease agreement.
Just causes include:
- Nonpayment of rent
- Property damage
- Lease violations
- Criminal activity
If you’re evicting for a reason that isn’t considered just cause, a tenant relocation payment will be required.
Security Deposit Laws and Limits in California
Here’s what you need to know about security deposit laws and your Oakland rental:
- Security deposit limits. There are limits to how much you can collect in a security deposit. For unfurnished units, you cannot charge more than two months’ rent. If you’re renting out a furnished unit, you can charge up to three month’s rent for the security deposit.
- Deposits are refundable. There is no such thing as a nonrefundable security deposit.
- Deposits must be returned within 21 days. At the end of the lease term, you have 21 days after a tenant moves out to return the security deposit and/or an itemized accounting of why money was withheld and what it’s being used for.
- You can charge for damage but not wear and tear. This is sometimes tricky. Use your condition reports from the move-in and move-out inspections.
Always double-check your math and your documentation when you’re deducting from a security deposit.
Section 8 Tenants in Oakland
One of the statewide laws that was included in the Tenant Protection Act of 2019 concerns Section 8 tenants and renters who benefit from housing voucher programs. All applicants must be considered for your property and screened consistently, regardless of how they earn their income. Those housing vouchers used by Section 8 tenants can be legally considered a source of income.
This impacts how you market your rental property and screen your potential tenants. In the past, you could actively advertise that you did not accept Section 8 tenants for a property. There was some distinction about whether certain units were approved for Section 8. This is no longer legal.
Update and document your qualifying rental criteria. When it comes to being fair to Section 8 tenants, all of your screening criteria can remain the same. Those income standards can, however, be met when a housing voucher brings in enough money for the tenants to qualify to rent your home.
Property managers keep you compliant with all these laws and help you avoid expensive and messy legal mistakes. Need some help? Please contact us at Marquardt Property Management. We provide expert property management in Oakland, the East Bay and in surrounding communities like Hayward, Pittsburg, and Concord.
