Property Management & Landlord-Tenant
Study Property Management & Landlord-Tenant for the California Real Estate Exam. A lease for more than one year generally must be in writing under the...
Landlord-tenant problems are solved by separating contract formation, deposit handling, habitability, access, and notice. Apply the specific statute to the residential facts, distinguish a procedural notice period from a substantive rent cap, and account for the documentation and exceptions that make broad rules unreliable.
What you will learn
- Determine when a residential lease must be written and how a periodic tenancy differs from a fixed term.
- Apply the current residential security-deposit ceiling, permitted deductions, documentation, and 21-day accounting rule.
- Recognize habitability responsibilities and avoid treating repair-and-deduct or withholding as automatic remedies.
- Identify lawful landlord-entry purposes and notice exceptions.
- Separate rent-increase notice timing from state and local limits on the amount of an increase.
12.1 Leases and rental agreements
A lease for more than one year generally must be in writing under the Statute of Frauds. Month-to-month tenancies can be created by agreement or holdover after a fixed-term lease expires.
The Statute of Frauds generally requires a lease for a term longer than one year to be in writing to be enforceable. Shorter residential arrangements may be oral, although written terms reduce disputes about rent, services, occupants, and notice. A periodic tenancy—such as month-to-month—continues by rental periods until lawfully terminated; a fixed-term lease ordinarily ends on its stated date, subject to renewal, holdover, and applicable tenant-protection laws.
A tenant who remains after a fixed term may become a periodic tenant if the landlord accepts rent or the parties otherwise establish that relationship. Do not infer that the original term silently renews for another full year. Read the lease's holdover clause and applicable law, then determine what notices and just-cause protections apply before treating the tenancy as terminated.
Worked example · hypothetical
An oral one-year rental versus a longer term
Hypothetical: The parties agree orally to a six-month rental at a monthly price; separately, a broker is asked whether an oral three-year lease can be enforced as stated.
Reasoning
The six-month agreement is not automatically barred by the Statute of Frauds solely because it is oral, though proof of its terms may be difficult. A three-year lease generally falls within the writing requirement. In either case, other statutory protections and the evidence of agreement still matter.
Common exam mistake
Saying all leases must be written or, at the other extreme, that oral promises always control. The Statute of Frauds turns on the term and enforceability, while written documentation remains sound practice.
Exam Tips
- Leases over 1 year must be in writing to be enforceable.
12.2 Security deposits
For most California residential tenancies, the security-deposit ceiling is one month's rent regardless of furnished status. A narrow statutory exception allows qualifying small landlords to collect up to two months' rent. After vacancy, the landlord generally must return the balance and provide an itemized accounting within 21 calendar days, with permitted deductions and required supporting documentation; current photo duties also apply.
Civil Code § 1950.5 generally limits residential security to one month's rent, in addition to first month's rent, whether the unit is furnished or unfurnished. A narrow exception applies to a qualifying natural-person owner or qualifying LLC with no more than two residential rental properties and no more than four dwelling units collectively; verify the statute's exact qualifications and military-service limitation before relying on the higher ceiling. A deposit is not an automatic fee and may be used only for statutory purposes, including unpaid rent and specified cleaning or damage beyond ordinary wear.
No later than 21 calendar days after the tenant vacates, the landlord generally must return the remaining deposit and provide an itemized statement explaining deductions. Invoices, receipts, labor details, and estimates are subject to statutory requirements and exceptions; for tenancies beginning on or after July 1, 2025, move-in photographs are required, and since April 1, 2025, move-out photographs generally must be taken before deductible repair or cleaning, with after-photos when the work is complete. The statute includes exceptions, including small repair/cleaning totals and tenant waiver provisions; preserve records rather than assume photos are optional.
Worked example · hypothetical
Calculate the balance and document the claim
Hypothetical: A tenant paid a $2,400 deposit and vacates. The landlord documents $300 of unpaid rent and $250 to repair a tenant-caused broken cabinet door beyond ordinary wear. Assume the deductions are lawful and properly supported.
Reasoning
Total permitted deductions are $300 + $250 = $550. The accounting should identify each basis and amount, include required documentation, and return $2,400 − $550 = $1,850 by the 21-calendar-day deadline. The landlord should retain required before/after photographs for covered repair deductions; the example assumes no other deposit balance or disputed charge.
Common exam mistake
Using the former two-month general deposit ceiling or starting the 21 days at lease signing, the last rent payment, or a later accounting date. The general ceiling is now one month's rent, and the return clock is tied to the tenant vacating.
Exam Tips
- The ordinary deposit cap is one month's rent; check whether the landlord and tenancy meet the narrow statutory exception before applying a higher cap.
- The itemized accounting and remaining balance are generally due within 21 calendar days after the tenant vacates; check current photo and documentation conditions.
12.3 Habitability and repairs
Residential landlords must maintain the property in a habitable condition under the implied warranty of habitability. Tenants have remedies including repair-and-deduct and rent withholding in appropriate circumstances.
Residential landlords generally must provide and maintain premises that meet the implied warranty of habitability and applicable housing standards. Depending on the facts, relevant conditions may include working essential services, weatherproofing, sanitation, safe common areas, and functioning plumbing or heat. A tenant's request for repair should be documented and handled promptly; the landlord should not retaliate for a tenant's lawful complaint.
Repair-and-deduct and rent withholding are limited remedies, not automatic permission to stop paying rent. Their availability depends on the defect, notice, landlord opportunity to repair, amount, frequency, and other statutory or case-law limits. A tenant should document conditions and communications and obtain legal advice before using a remedy; a manager should address urgent hazards and comply with local building and health rules.
Worked example · hypothetical
A repair request is not a self-help calculation
Hypothetical: A tenant reports that the only toilet is unusable. After one day, the tenant hires a contractor for an expensive remodel and deducts the full bill from rent.
Reasoning
The condition may implicate habitability, but that does not make every chosen repair or its full cost deductible. The tenant's notice, opportunity to cure, necessity and reasonable cost of the repair, and statutory remedy limits matter. The manager should arrange an urgent appropriate repair and preserve all communications rather than treating the tenant's deduction as automatically valid or invalid.
Common exam mistake
Treating habitability as a cosmetic standard or assuming every complaint permits immediate rent withholding. The defect and the statutory prerequisites for a remedy must be analyzed separately.
Exam Tips
- Landlords must maintain residential habitability — it's an implied warranty.
12.4 Entry and privacy
Civil Code § 1954 limits entry to specified purposes, such as emergency, necessary or agreed repairs, agreed services, showing the unit to specified prospective occupants or purchasers, abandonment, or court order. Twenty-four hours is generally presumed reasonable written notice for covered nonemergency entries, but the statute has purpose-specific exceptions and timing rules; it is not a blanket right of access.
A landlord may enter only for the purposes authorized by Civil Code § 1954. For many nonemergency entries, 24 hours' written notice is presumed reasonable; notice should state the date, approximate time, and purpose. The statute permits particular alternatives—for example, an oral agreement for agreed repairs or services within one week, and a specific oral-notice option for certain showings after the required written sale notice. Emergency entry, abandonment or surrender, and court order are separately addressed.
Even a properly noticed entry must be at reasonable times and for the stated purpose. Repeated or harassing access can violate the tenant's right to quiet enjoyment and other law. A prospective purchaser showing is not the same as an unrestricted inspection, and a landlord should not use entry to pressure a tenant. Keep a record of notices, responses, actual entry, and work performed.
Worked example · hypothetical
A repair entry with a mutually agreed time
Hypothetical: Tenant and manager speak by phone and agree that a plumber may enter Thursday afternoon to repair a reported leak; the agreement is made on Monday.
Reasoning
For agreed repairs or services, § 1954 allows the parties to agree orally to the entry date and approximate time within one week, without separate written notice. The manager should keep a note of the agreement and enter only for the repair. That specific route does not authorize entry whenever convenient for unrelated purposes.
Common exam mistake
Memorizing '24 hours' as either necessary for every entry or sufficient for any entry. First establish a statutory purpose, then apply the appropriate notice and timing rule or exception.
Exam Tips
- For an authorized nonemergency entry, 24 hours' written notice is generally presumed reasonable; confirm the purpose-specific notice rule and any statutory exception.
12.5 Notices and termination
Notice and legality are separate checks. Under Civil Code § 827, a rental-rate increase of 10 percent or less in the aggregate during the prior 12 months generally requires at least 30 days' notice; an increase above 10 percent generally requires at least 90 days. Civil Code § 1947.12 separately caps increases for covered units—generally the lesser of 5 percent plus cost-of-living change or 10 percent—and exemptions and stricter local limits may apply.
The 30/90-day rule concerns advance notice, not permission to raise rent by that amount. Section 827 measures the proposed increase together with other increases for the tenant during the preceding 12 months; over 10 percent triggers at least 90 days' notice, while 10 percent or less generally triggers at least 30 days. Service method and additional statutory timing rules matter, so check the operative text and lease.
For units covered by the Tenant Protection Act, § 1947.12 generally limits the gross rental increase to the lesser of 5 percent plus the applicable cost-of-living change or 10 percent over the relevant 12-month period. Statutory exclusions include specified newer housing, certain separately alienable single-family property when ownership and written-notice conditions are met, and qualifying owner-occupied duplexes; local rent-control rules may be more protective. Determine coverage first, calculate the cap separately, and then give the required notice.
Worked example · hypothetical
A compliant notice cannot legalize an over-cap increase
Hypothetical: Rent is $2,000. The landlord proposes a $260 increase, which is more than 10 percent, and gives 90 days' notice. Assume the unit is covered and the applicable annual state cap is 8 percent, with no prior increase in the measuring period.
Reasoning
Ninety days addresses notice under § 827 but does not make the amount lawful. With an assumed 8 percent cap, the maximum increase is $2,000 × 0.08 = $160, yielding $2,160 rent. The proposed $260 increase exceeds that cap by $100; the landlord must separately satisfy the cap and notice requirements. The percentage is hypothetical, not a statement of the cap for every year or unit.
Common exam mistake
Conflating the 90-day notice threshold with an allowable 10-percent rent increase. Notice timing and rent-cap coverage are independent requirements, and exemptions or local rules can change the result.
Exam Tips
- First determine whether the unit is covered by a state or local cap; then calculate the lawful amount separately from § 827's 30- or 90-day notice period.
Four separate landlord-tenant checks
| Issue | Ask first | Do not assume |
|---|---|---|
| Lease | What term and writing rule apply? | Every oral rental agreement is unenforceable. |
| Deposit | What may be held and deducted, with what proof? | 21 days runs from the last rent payment. |
| Entry | Is the purpose authorized and was notice adequate? | 24 hours permits any entry at any time. |
| Rent change | Is the increase lawful and how much notice applies? | A 30- or 90-day notice makes any amount lawful. |
Primary sources and further reading
Use these official references to check the underlying rules and current requirements. These lessons are study aids, not legal, tax, or financial advice.
- California Civil Code § 1950.5 (opens in a new tab)
Official residential security-deposit statute covering amount limits, permitted deductions, photos, itemization, and return timing.
- California Civil Code § 1954 (opens in a new tab)
Official list of authorized landlord-entry purposes and statutory notice standards and exceptions.
- California Civil Code § 1947.12 (opens in a new tab)
Official text for the statewide rent cap, covered tenancies, exceptions, and written exemption-notice conditions.
- California Civil Code § 827 (opens in a new tab)
Official notice periods for rental-rate increases, including the 30- and 90-day thresholds.