Top 5 Legal Pitfalls Every California Landlord Should Avoid in 2025

As we move into 2025, California landlords must stay updated on the latest regulations to avoid potential legal pitfalls that can impact their rental business. At Real Property Management Select, serving areas like Roseville, Concord, Fairfield, and Sacramento, we understand the challenges landlords face with California’s evolving laws. Here are the top five legal pitfalls California landlords should watch for in the upcoming year.

1. Failing to Comply with Rent Control Laws

California’s Tenant Protection Act (AB 1482) limits rent increases for many properties. Landlords can only raise rent up to 5% plus the local inflation rate, with a maximum cap of 10% annually. For landlords who oversee multiple units, failing to adhere to these limits can result in fines, tenant disputes, and even legal action. Additionally, local jurisdictions may have their own rent control ordinances that supersede state laws, adding complexity for landlords operating across cities. 

Tip: If you’re managing properties in Sacramento or Concord, review both state and local rent control laws before issuing any rent increases. Real Property Management Select can help ensure you’re in full compliance.

2. Neglecting Proper Disclosure Requirements

In California, landlords are required to disclose certain information to tenants at the beginning of a lease term. This includes the presence of any environmental hazards (like lead-based paint in older homes), the existence of any shared utilities, and recent bed bug incidents. Failing to provide accurate disclosures can result in legal action and financial penalties. 

Tip: Create a checklist of all required disclosures and confirm they are included in your lease agreements. For landlords in Roseville, Concord, and surrounding areas, keeping track of these requirements is crucial for protecting your business. 

3. Mismanaging Security Deposits

California law mandates that landlords cannot charge more than two months’ rent for an unfurnished property and three months for a furnished one. When a tenant moves out, landlords must return the security deposit within 21 days, providing an itemized list if deductions are made. Any discrepancies or delays in handling security deposits can lead to tenant complaints and even lawsuits.

Tip: Keep meticulous records of all charges and inspections related to security deposits. In areas with higher tenant turnover, like Fairfield and Sacramento, a clear security deposit process helps maintain positive relationships and avoid disputes.

4. Inadequate Handling of Maintenance and Repairs

Under California’s implied warranty of habitability, landlords are legally obligated to maintain rental units in a livable condition. This includes prompt attention to issues like plumbing, heating, and electrical systems. Failure to make timely repairs can result in tenants exercising their “repair and deduct” rights, or in serious cases, filing a lawsuit.

Tip: Set up a responsive maintenance system that allows tenants to easily report issues. Real Property Management Select offers a streamlined process for handling maintenance requests across our service areas, so landlords can meet their obligations and keep tenants satisfied.

5. Overlooking Eviction Process Regulations

California has strict laws governing the eviction process, especially since the passage of the COVID-19 Tenant Relief Act. Landlords must have a valid reason, or “just cause,” for eviction, and they must follow specific notice and filing procedures. Attempting to evict a tenant without proper cause or documentation can lead to legal repercussions, fines, and delays.

Tip: Before initiating any eviction proceedings, consult with a property management professional or legal advisor. Real Property Management Select can guide landlords through each step of the eviction process to ensure compliance.

Stay Legally Compliant with Real Property Management Select

Managing properties in California requires a solid understanding of tenant rights and landlord obligations. At Real Property Management Select, we specialize in navigating these complex regulations for landlords in Sacramento, Roseville, Concord, and Fairfield. Partnering with us means you can avoid costly legal pitfalls and focus on growing your investment.

Stay compliant and stress-free—trust Real Property Management Select to handle the details.

Feel free to reach out to us for a consultation or explore our services further!