- California rental laws significantly impact landlords, governing rent increases, security deposits, evictions, notices, habitability, and fair housing compliance.
- AB 1482 limits rent increases and requires just cause for many evictions, making it essential for landlords to understand whether their properties are covered or exempt.
- Strict rules apply for security deposits and tenant notices, and mistakes can lead to costly disputes, delays, and legal penalties.
- Proactive property maintenance and compliance management help reduce legal risk, particularly regarding habitability standards.
If you own rental property in Arcadia, Pasadena, or anywhere across the San Gabriel Valley, California's landlord-tenant laws shape almost every decision you make.
From how much you can raise rent to how you handle a security deposit, the rules are detailed, they change often, and getting them wrong is expensive. A single deposit dispute or improper notice can cost you thousands and stall your cash flow for months.
At Fertig & Gordon Companies, we've managed property in this market since 1978. That's 46-plus years of watching California rental laws evolve, and 46-plus years of keeping local owners compliant while protecting their returns.
We built this guide as a plain-English reference for landlords who need to understand the rules without wading through legal code.
Our vertically integrated model means we handle maintenance, turnovers, and habitability standards with in-house crews, so we control the parts of the law most companies outsource and hope go right.
Below, we cover the core areas of California landlord-tenant law that matter most for San Gabriel Valley owners. When you're ready for help, call us at 626-461-5283.
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The Core Areas of California Rental Law Every Owner Must Know
California rental laws cover far more ground than most first-time owners expect. Here's how the major pieces fit together, with practical notes for properties in Arcadia and the surrounding cities.
Rent Control and AB 1482
The Tenant Protection Act of 2019 (AB 1482) is the statewide rule that affects most San Gabriel Valley landlords. It caps annual rent increases at 5% plus the local CPI, with a hard ceiling of 10% in any 12-month period.
For most owners in Arcadia and Pasadena, that means increases land somewhere in the high single digit range in 2026. AB 1482 also requires "just cause" to end a tenancy once a renter has lived in the unit for 12 months.
Not every property is covered: single-family homes and condos owned by individuals (not corporations) are often exempt, but only if you serve the proper written exemption notice.
Cities like Pasadena have layered their own rent stabilization rules on top of state law, which makes compliance even more detailed for properties inside city limits.
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Security Deposits
As of mid-2024, most landlords can collect no more than one month's rent as a security deposit, whether the unit is furnished or not. Small landlords who own no more than two properties with four or fewer units total may collect up to two months under a narrow exception.
You must return the deposit, with an itemized statement, within 21 days of move-out. For any deductions over $125, you're required to attach receipts or invoices.
We document property conditions with photos and handle repairs directly, meaning deposit disputes rarely escalate.
Eviction Procedures
Evicting a tenant in California is a formal court process called unlawful detainer, and you cannot skip steps. You can't change locks, shut off utilities, or remove belongings to force someone out. Doing so exposes you to serious penalties.
The process starts with the correct written notice, moves to a court filing if the tenant doesn't comply, and ends with a sheriff-enforced lockout if you win.
Under AB 1482's just-cause rules, you'll also need a valid reason and, in some no-fault cases, relocation assistance equal to one month's rent.
Notice Periods
A pay-or-quit notice for unpaid rent generally gives the tenant three business days. A rent increase under 10% requires 30 days' written notice, an increase above that threshold (where allowed) requires 90 days.
Ending a month-to-month tenancy typically requires 30 or 60 days depending on how long the tenant has lived there. Serving these notices the wrong way, or counting the days incorrectly, restarts the clock and delays everything.
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Habitability Requirements
California's implied warranty of habitability means every rental must meet basic standards, meaning working plumbing, heat, hot water, weatherproofing, safe electrical, and freedom from pest infestations.
Tenants have remedies if you fail to maintain these, including rent withholding and "repair and deduct." When a habitability issue surfaces, we fix it fast, with no contractor markup and no slow vendor leaving you exposed to a tenant claim.
Lease Agreements and Fair Housing
Your lease is your first line of defense, and California requires specific disclosures, including lead paint for older buildings, bedbug history, flood zone status, and more.
Separately, federal and state Fair Housing laws prohibit discrimination based on race, religion, disability, familial status, source of income (including Section 8), and other protected categories.
Source-of-income protection trips up many San Gabriel Valley owners who don't realize they can't reject an applicant solely for using a voucher.
See our Alhambra property management and San Gabriel property management pages for city-specific support.
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Why Local Owners Choose Fertig & Gordon for Compliance and Management
Since 1978, Fertig & Gordon Companies have run a vertically integrated operation with in-house crews for plumbing, landscaping, repairs, and turnovers. That gives you three concrete advantages under California law.
First, faster habitability fixes, with same-day emergency plumbing and 24/7 response, so a maintenance complaint never becomes a legal claim. Second, predictable costs with no contractor markup games, which protects your cash flow.
Third, direct accountability. When something needs fixing, our team handles it, and you know exactly who's responsible.
We're licensed and insured under CA DRE #02008031, BBB-listed, and led by two co-presidents who bring complementary expertise. Kristen Smith holds the CCAM designation, and Kelly Stanaway brings a background from Trammell Crow and Arthur Andersen.
We've also invested in better systems and technology, including owner and tenant portals, to keep communication clear and response times tight.
And because we offer consulting alongside full management, even self-managing landlords can tap our compliance knowledge without handing over full control.
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. This blog was posted in 2026 and laws pertaining to property management may have changed, rendering this information outdated by the time you’ve read it.
