CA General Info On Residential Lease Agreements

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California Month To Month Rental Agreement http://www.1stoplegalforms.com/FormLs/LFL_0103.

asp

WHAT IS A MONTH TO MONTH RESIDENTIAL RENTAL


AGREEMENT?
The Month to Month Residential Rental Agreement is used to create a month to month tenancy in
California. A landlord should use this agreement to

1. Clearly set forth all the terms and conditions of the tenancy with the tenant, and
2. Comply with California's requirements for renting residential real property (California Civil
Code, starting at section 1925)

The rental agreement you may create using this website is very comprehensive and may be
quickly customized to your particular needs. Simply select the answers to the questions in our
, and your signature ready document will be created. You will not need to rewrite
paragraphs that you're not sure about, add disclosures you don't know about, or fill in blanks by
hand. The helps you professionally customize your document.

NOTICES: This rental agreement contains the notices required by California law for non-separated
gas/electric meters, owner/agent identification, and database disclosure. Please read the section
below about disclosures to learn more this subject.

IF YOU WANT A LEASE FOR A FIXED TERM TENANCY (EXAMPLE: 1 YEAR), CLICK HERE.

IF YOU WANT A RESIDENTIAL RENTAL APPLICATION, CLICK HERE.

WHAT ARE ESSENTIAL TERMS FOR A CA RENTAL AGREEMENT?


"TERM" OF AGREEMENT
The term of a residential rental agreement refers to the period of time during which the tenant will
occupy the rented premises.

In a Month to Month Residential Rental Agreement, the term is indefinite. An indefinite term, also
known as a "periodic tenancy," does not terminate on a given date. Instead it continues indefinitely
until one of the parties gives notice to the other that the tenancy will terminate. The notice given
must be at least as long as the term. For a month to month tenancy, this means 30 days. This
rule may be subject to any applicable rent control law.

DESCRIPTION AND USE OF PREMISES


Properly describing the rental property is very important.

First, you can't use the same Month to Month Residential Rental Agreement for an apartment, a
condominium, and a house. Different properties require setting forth different rights in the
agreement. For example, in an apartment complex, other tenants share common areas, whereas
with a condominium, there are HOA rules to follow. Therefore, you must select the type of place
you will be renting.

Second, the premises could include or exclude a variety of items, such a parking spots or storage
space. It is important to note such items in the Month to Month Residential Rental Agreement.
Although the asks you about the most common items, if they are not applicable to
your situation, please choose "Not Applicable." Additionally, if you have an item not listed that you
wish to include or exclude, you may enter that item under the "Other" category. If you select
"Include" or "Exclude", you must describe your item in the text box provided. Please be as specific
as possible in your description.

Finally, the tenant is allowed to use the premises only for residential purposes. Depending on
whether the tenant is renting a house, or merely a unit in a large complex, the landlord may allow
or prohibit certain activities on the Premises and the surrounding areas. Each item must be marked
as "Allowed" or "Not Allowed".

PAYMENT OF RENT AND LATE CHARGES


The Month to Month Residential Rental Agreement must state where the tenant will deliver rent.
Rent can be delivered by mail or in person. Therefore, the address entered in the
should be a location that allows the tenant to personally deliver the rent.

If a late fee provision is chosen, the amount of the charge should not be too high. It must be a
reasonable estimate of the landlord's actual damage that will be caused by tenant's failure to pay
rent on time. Every landlord must assess his/her own situation. Landlords usually consider things
like the following:

whether the landlord may not be able to pay his mortgage on time because rent was paid
late, and the charges landlord will incur as a result
whether landlord may have to borrow money to cover the mortgage until tenant pays
rent, and the charges landlord will incur as a result
what landlord's lost time value of money will equal

The costs associated with these and other factors should be used to estimate the landlord's
damage. If the amount of the late charge is too high, it could be considered void. Between 3%-6%
of the overdue rent payment is usually considered fair, but again, every landlord's situation is
different. For landlord's, it is best to err on the side of a smaller late charge. It is important to
remember that a late charge provision is not supposed to be an opportunity to make a profit; it is
meant to compensate for damages that the landlord will suffer. The amount must be chosen
accordingly.

MAXIMUM AMOUNT OF SECURITY DEPOSITS (and other things you should know)

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Governing Law
Security deposits for residential tenancies are governed by California Civil Code section 1950.5.

Is There A Maximum Amount?


A landlord cannot demand or receive a security deposit that exceeds (in amount or value):
1) two month's rent for an unfurnished unit, and
2) three month's rent for a furnished unit.
If the tenant will have a waterbed on the premises, the landlord may increase the security deposit
by another ½ months rent, pursuant to California Civil Code section 1940.5.

What Exactly Counts As Security?


The definition of a security deposit is provided in California Civil Code section 1950.5(b). This
definition makes it clear that the label placed on a deposit, charge or fee is not what characterizes
that deposit, charge or fee. For example, a key deposit would still be considered part of the
security deposit. Even a charge for "last month's rent," is considered part of the security deposit.
This means that a landlord cannot charge more than the maximum amounts stated above
just by using a different name on the deposit, charge or fee. (This does not include a
separate screening fee that may be charged pursuant to California Civil Code section 1950.6.)

What Could A Tenant Be Required To Pay Upon Move-In?


The landlord can require that the tenant pay, upon move-in, the first month's rent plus a sum of
money, no matter what it's called, no greater than two month's rent (except in the case of a
furnished unit).

What Can It Be Used For?


The landlord may use from the security deposit only those amounts as are reasonably necessary
to:

1. Compensate landlord for tenant's default in the payment of rent,


2. Repair damages to the premises, exclusive of ordinary wear and tear, caused by tenant or
by a guest or licensee of tenant,
3. Clean the premises upon termination of the tenancy necessary to return the unit to the
same level of cleanliness it was in at the inception of the tenancy, and
4. Remedy any default of tenant's obligation herein to restore, replace, or return personal
property or appurtenances.

What Happens After The Tenant Moves Out?


Within three weeks after the tenant has moved out, the landlord must give the tenant an itemized
statement indicating what the security was used for and a refund of any unused amount.

RESPONSIBILITY FOR UTILITIES


Responsibility for utilities is generally a matter open to negotiation between the parties. However,
the landlord must disclose to the tenant whether the tenant's gas or electric meter serves an area
outside of the tenant's unit by including a statutory notice disclosing that fact in the Month to
Month Residential Rental Agreement. See California Civil Code section 1940.9. If you use this
wesite to customize your rental agreement, our asks you about this and includes the
proper notice in the agreement if you select "yes."

The Month to Month Residential Rental Agreement must include the responsible party for each
utility as decided between the parties. To allow for personal residences with existing service or for
modern buildings, services other than traditional utilities have been included. You may add another
service if the cost of that service is an issue. If a particular utility is not applicable to your dwelling
unit, you should select "Not Applicable" in the .

If the landlord and tenant will split the cost of a particular bill, the percentage amount that each
party will pay must be determined. This is indicated by entering the tenant's percentage amount.

Finally, if the landlord is paying for a particular utility, it is assumed that the utility will be kept in the
landlord's name.

WHAT ADDITIONAL TERMS SHOULD A QUALITY RENTAL


AGREEMENT CONTAIN?
OCCUPANCY
This provision refers to sleep-over guests. The Month to Month Residential Rental Agreement
allows tenants to have guests, but the number of guests and the duration of their stay is open to
negotiation. If a guest is to stay long term, then he/she should be added as a tenant to the Month
to Month Residential Rental Agreement. Every landlord must consider his/her/its own unique
circumstances. A large apartment complex may need stricter rules than a private residence.
Furthermore, local rent control laws may exist that would affect eviction procedures of non-tenant
persons who are staying on the premises. This should also be taken into consideration.

CONDITION OF PREMISES
Any dwelling requires repair and maintenance from time to time. The landlord and tenant must
agree who will be responsible for such repair and maintenance, and must indicate the same in the
Month to Month Residential Rental Agreement. While this issue is open to negotiation, many
factors can affect the negotiation process. Such factors include local regulations or customs,
whether the dwelling is furnished or not, whether any particular system or appliance is provided by
landlord or tenant, and general market conditions.

Whether or not the tenant is responsible for the systems and appliances (which include things such
as air conditioning, dishwasher, oven, stove, etc.), the Month to Month Residential Rental
Agreement should state what specific responsibilities the tenant has, if any. The allows

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you to enter this information. If, for example, the tenant is supposed to water the plants in the
balcony, or wash the rooftop patio every week, that information should be entered where
requested.

To prevent problems down the road, either before move-in, or very soon thereafter, the premises
should be inspected to the tenant's satisfaction. The landlord must deliver the premises in habitable
condition. Items that do not affect habitability but that never the less are unsatisfactory to tenant
should be noted. The tenant should prepare a letter to the landlord indicating all unsatisfactory
items that either 1) the landlord should repair, or 2) that should be noted as damaged or
unsatisfactory from the outset so that the tenant cannot later be blamed for the preexisting
condition.

For example, if there is a cracked tile in the entryway of the apartment, this should be noted to the
landlord. While the landlord may or may not repair this condition, it should be noted as preexisting
so that the tenant is not later held responsible for its repair. If the landlord and tenant have
inspected the premises together, both of them should sign the letter identifying the preexisting
conditions. If the tenant provides this letter after move-in (so that the landlord has not inspected
the premises with the landlord), the tenant should mail this letter certified and retain proof of the
mailing.

RULES AND REGULATIONS


Most landlords of larger apartment complexes have rules and regulations that all tenants must
follow. These rules reflect the landlord's policy about certain things (such as hours of operation for
the swimming pool, or use of a common recreation room), and may change from time to time. If
such rules exist, they should be incorporated into the Month to Month Residential Rental
Agreement. The rules should be given to the tenant with the rental agreement, and should be
posted somewhere on the building. This is not an issue for owners of single family residences
renting their own house.

If you prepare a Month to Month Residential Rental Agreement for an apartment using the
, any rules and regulations that the landlord has will be incorporated by reference. You
will have to attach those rules to the end of the Month to Month Residential Rental Agreement, and
they must be posted somewhere obvious on the building. If you are renting out your own house,
you will not need to do this unless you have your own rules and regulations for your house.

ASSIGNMENT AND SUBLETTING


Assignment and subletting refers to a tenant's right to rent his/her leased premises to another.
Since California law does not specifically allow or prohibit subleasing, a tenant's right to sublet is
determined by the rental agreement between the landlord and the tenant.

Most landlords allow subletting only upon their express written permission, which permission will
not be unreasonably withheld. This is the type of provision that will be included in your Month to
Month Residential Rental Agreement if you choose to allow subletting using the . If the
landlord has a particular reason to not allow subletting under any condition, then "No" should be
selected in response to this question.

ESTOPPEL CERTIFICATES
This is a written statement made by the tenant regarding the current status of his/her tenancy. By
signing an estoppel certificate, the tenant will be certifying certain details about the tenancy (rent,
security, etc.). Landlords of large apartment complexes will usually require such a certificate in
preparation to sell or refinance their building, although there may be other reasons for requiring an
estoppel certificate.

TENANT’S DUTIES
Aside from the obvious duty to pay rent in a timely fashion, the tenant has other duties, either
imposed by law or by the Month to Month Residential Rental Agreement.

California Civil Code section 1941.2 imposes upon a tenant certain duties. These duties include
keeping the premises clean, removing garbage from the premises, not allowing the premises to be
damaged, and using the premises only for its intended purpose (sleeping, cooking, etc.).

Additionally, the Month to Month Residential Rental Agreement you prepare using the
imposes upon the tenant the duty to cooperate with the landlord in allowing the landlord to
maintain the premises in tenantable condition as required by law. Thus, if the landlord needs to
fumigate the premises to keep it tenantable, then the tenant is required at his/her own expense to
temporarily move out to allow for the fumigation. In such case, the tenant's duty to pay rent
would be abated for those days that the tenant must move.

REFERENCE TO A RENTAL APPLICATION


Rental applications are used to collect employment, income and credit information necessary to
determine a prospective tenant's credit-worthiness. If the tenant filled out a rental application, the
landlord will be relying on the information in that application. This is important because the Month
to Month Residential Rental Agreement you prepare using the will contain language
that incorporates the rental application and makes it part of the rental agreement. Thus, if the
tenant provided false information in the application, it will be considered a breach of the Month to
Month Residential Rental Agreement.

ATTORNEYS’ FEES
This term provides that if litigation is commenced to enforce rights under the Month to Month
Residential Rental Agreement, the prevailing party (the party in whose favor the court rules) can
recover from the other party the money he/she spent for attorneys and other costs. Generally,
each party pays for their own attorney. However, if the parties agree to this type of term, the
default legal rule will be changed.

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LANDLORD'S FAILURE TO DELIVER POSSESSION


Once an agreement is signed and first monies are collected, a landlord has a duty to hand over the
keys and give the tenant possession of the premises upon commencement of the lease term.
However, sometimes, the landlord may not be able to "deliver possession" of the premises to the
tenant when promised. In legal terms, this is known as the landlord's failure to deliver possession.

A landlord may fail to deliver possession because the previous tenant does not move out when
expected. It may also happen when the apartment is vacant, but remodeling the unit is taking
longer than expected. In such situations, the landlord will likely not know when exactly possession
can be delivered. Of course, this places the tenant in a difficult position. The tenant may be relying
on moving in on a certain date because he/she has left his/her previous residence. Furthermore,
the tenant's moving expenses will likely be increasing as the delay continues.

What are the tenant's remedies in such a case? If you use the to prepare your Month
to Month Residential Rental Agreement, the tenant's remedies will be twofold. First, the tenant is
not responsible for any rent for those days that he/she does not have possession or cannot move
in. Second, there will be a set period of time after which the tenant will be allowed to cancel the
agreement and obtain a full refund of any monies paid to the landlord. Using the , you
may choose to make this time period between 3 and 10 calendar days.

Although the tenant may have suffered other damages (for example, increased moving expenses
due to the delay, or increased rent in another building), it is highly doubtful that any landlord would
agree to compensate the tenant for such damages. If you use the to prepare your
Month to Month Residential Rental Agreement, the tenant's remedies will be limited to those two
remedies discussed above.

CAN A LANDLORD PROHIBIT THE USE OF A WATERBED?


NO, BUT the Tenant must follow the conditions and procedures in California Civil Code section
1940.5.

WHAT DISCLOSURE IS REQUIRED FOR NOTICES AND PERSONAL


SERVICE?
California Civil Code section 1962 requires disclosure of the owner's information, or the owner's
agent's information, where personal service may be effected (As used herein, owner means
landlord). Additionally, California Civil Code section 1962 requires disclosure of the manager's
information. These disclosure are best made in the lease, even though California Civil Code section
1962.5 allows them to be made by posting appropriate notices on the property.

The owner's agent is someone authorized by the owner to accept personal service on the owner's
behalf. The manager is the person or company that is in charge of managing the property. In small
apartment complexes, or for people renting out their house, there may be no manager.

WHAT OTHER DISCLOSURES MAY BE REQUIRED?


The Month to Month Residential Rental Agreement you prepare using this website provides the
following notices that landlord are required by California law to provide to tenants:

1. The notice regarding non-separated gas/electric meters required by California Civil Code
section 1940.9 (if applicable),
2. Owner/landlord/agent information disclosure required by California Civil Code section
1962, and
3. The notice regarding database disclosure required by California Civil Code section
2079.10a.

A LANDLORD MAY NEED TO PROVIDE OTHER DISCLOSURES THAT DO NOT NECESSARILY NEED TO
BE CONTAINED IN A RENTAL AGREEMENT, DEPENDING ON THE PARTICULAR BUILDING AND/OR
ITS LOCATION AND OTHER SITUATIONS. For example, if your building is in a former ordnance
location, then as a landlord, you must provide tenants with a notice of former ordnance location.
Also for example, if you (landlord) have contracted with a structural pest control company for
periodic pest control services, you must give each new tenant a notice about this. You may also
be required to give notices under a particular rent control law in your area. YOU ARE RESPONSIBLE
FOR KNOWING ABOUT AND PROVIDING THE PARTICULAR NOTICES REQUIRED FOR YOUR OWN
BUILDING AND SITUATION.

WHAT IS A GUARANTOR?
A guarantor is someone who guarantees the performance of another person's obligation. In the
case of a residential rental agreement, the guarantor is obligated to pay the rent (or other monies
owed to the landlord) if the tenant fails to do so.

For how long is a guarantor liable for the tenant's obligations? That depends on the guaranty
made. A guarantor may only promise to cover the tenant for the first year, and whatever happens
after that is not the guarantor's problem. Or, the guarantor may promise to cover the tenant as
long as the tenant stays in possession of the premises. If you use the to prepare your
Month to Month Residential Rental Agreement, you may choose between these two types of
guaranties.

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THINGS TO CONSIDER
RENT CONTROL
It is important to know if you are in a rent controlled area. Every rent controlled area has different
laws/ordinances affecting landlords' and tenants' respective rights. If you are in a rent controlled
area, you should contact your applicable housing authority to learn more about your particular
rights. This website does not have any information for any particular rent controlled area.

LEGAL DISCLAIMER
By visiting and using this website, you agree to our Terms and Conditions.

The material above is NOT a complete explanation of the law regarding the form's subject matter
-- it only provides specific legal information regarding the associated form. It is not intended to
provide information outside the scope of the associated form. It is intended to explain only
certain legal concepts in simple terms in order to help the reader understand what the
form is for and how it's generally used.

Also, the above information is not legal advice. It is GENERAL legal information that merely states
the law. If you need legal advice about your own particular situation, you must hire an attorney
that can listen and apply the law to your specific facts. cannot and does
not practice law and cannot help you with your individual problem.

Also, the foregoing information and the form related hereto pertain only to California law, unless
indicated otherwise at the top of the corresponding . This website does not have
information regarding federal law or the laws of other states.

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