The Legal Side of Los Angeles Property Management: Understanding Landlord-Tenant Laws

Understanding the legal side of Los Angeles property management isn’t always easy. There are a lot of landlord-tenant laws in place to protect tenants within your rental relationships. Some of these laws protect owners, too. For example, you are entitled to sue for unpaid rent, you can ask a few more questions now than you once could about emotional support animals, and you can legally evict a tenant who does not pay rent or follow the terms of the lease agreement. 

However, there are a lot of responsibilities on your end, too. 

Here is a look at some of the most important laws for you to understand and comply with when you’re renting out a property in Los Angeles 

Rent Control and Just Cause Eviction 

The Tenant Protection Act of 2019 went into effect in 2020. This provides rent stabilization for the entire state of California, implementing restrictions on how much landlords can raise the rent. You’ll need to know if your property is covered by this law. Typically, it’s for multi-family units that are at least 15 years old. 

If your property is exempt from rent control, you’ll need to make sure your lease agreement reflects that. Specific language is needed. 

Just cause eviction covers the reasons you’re permitted to evict a tenant from your property. You cannot move them out simply because you don’t want to rent to them anymore. You need reasons, such as nonpayment of rent or criminal activity. Otherwise, you may have to pay a relocation fee that’s the equivalent of one month’s rent.

California Security Deposits 

You can find yourself in a lot of trouble and thousands of dollars poorer if you make a mistake with your tenant’s security deposit. Here’s a quick look at what you need to know:

• There are limits to what you can collect. Up to the equivalent of two months’ rent is acceptable for an unfurnished rental home (three months’ rent for a furnished home).
• You have to return the deposit within 21 days of a tenant moving out. 
• If you’re withholding any money from the deposit, you need to provide an itemized list explaining how much you kept and why. 

Remember, you need to offer your tenants a pre-move-out inspection so they know what to expect in terms of security deposit deductions. It’s also important not to deduct wear and tear. You can deduct for tenant damage, cleaning, and overdue rents, but not normal wear and tear issues. 

Los Angeles Property Management and the Laws

Lots of new laws have been introduced over the last year or two. For example, it’s now your responsibility to provide organic waste recycling when you’re renting out a building with five units or more.