We understand how much effort you exert to keep your California rental property safe and in compliance with state and local rental laws.
Well, following all the legal ordinances is great, but here's the thing: you can still find yourself in hot water if you overlook the rules of disclosure. Specifically, disclosure to prospective tenants some necessary documents and information about your rental property.
Having a rental home business is not just all about collecting rent. You must also build trust and a harmonious relationship with your tenants while ensuring they follow the rules written on their lease agreement.
And one of the most important ways to keep your business safe is by doing your moral obligation for landlord disclosures.
Follow along with us as we help you build stronger relationships with your tenants and protect your rental business by learning the most important California rental disclosure laws that every landlord must follow.
Why Do Landlord Disclosures Matter?
Adhering to landlord disclosure as a California landlord is not just about being good to your tenants. It’s a part of the state, federal, and local laws that you must adhere to. ignoring these laws can lead to serious legal consequences.
Landlord disclosures are important because they clearly inform tenants of important details written in their rental agreements. Your tenants will be more likely to be happy about their homes if they know what to expect in the rental units they live in.
As a landlord, this means longer leases and fewer problems for you.
A. What Is a Landlord Required to Disclose?
As a California landlord, you must provide prospective tenants with certain information before they move in. Here are some of the most important ones:
Housing Code Violations
In California, you are responsible for reporting any housing code violations in your rental property. By doing this, you can prevent claims and inform renters about any possible legal risks of renting the property.
Lead-Based Paint Disclosure
The US federal government requires you to inform tenants about any known lead-based paint risks in rental properties built before 1978. If you’re renting out an older home, this is one of the most crucial landlord disclosures to ensure your tenants' safety, particularly those with little kids.
Mold and Environmental Hazards
When moisture is mixed with air, molds can grow on almost anything organic, like wood, paper, rugs, food, and insulation. However, having lots of it at home can harm your tenants' health since they can cause allergic reactions and respiratory problems.
What to do: Inform your tenants about any existing molds in your rental property and show them where the mold grew in the past, along with records of the repairs or mold removal.
Registered Sex Offenders
Having specified registered sex offenders who live in the neighborhood or nearby is also an important part of your landlord disclosure. Knowing that your tenants are safe is more important than just following the law.
B. Other Required Landlord Disclosures for Prospective Tenants
Pest Control
You must notify prospective tenants about pest control services beforehand, especially if you have this service regularly. This is part of maintenance transparency in your rental property.
Security Deposit
You need to indicate a clear rule about security deposits in your lease agreement to ensure that your tenants understand how you collect, use, and refund them. Having a transparent rule about security deposits can save you from problems in the future.
Smoking Policy
In California, you must disclose the smoking policy of your property to your tenants. This is because you have a responsibility to warn them of possible dangers or health hazards present. This can also help to promote smoke-free living spaces for tenants.
C. Landlord Disclosures in the Lease or Rental Agreement
This part of disclosure requirements is a bit complicated, so it is advisable for landlords to consult a landlord-tenant attorney or other legal experts regarding this matter.
Emergency Services and Toxic Hazards
Landlords must disclose how close their property is to emergency services or if there are toxic hazards near their rental property to ensure the health and safety of everyone.
Local Ordinances and Rules
In addition to the federal law about renting, you must also inform prospective tenants about the local laws and ordinances that can affect them. Having a website maintained by a professional manager could be helpful in keeping your current and potential tenants informed.
Written Notices and Disclosure Forms
Providing written notices and disclosure forms is essential. Include agreements about nonrefundable fees, rent control laws, and any changes to the rental property. This keeps everything documented and clear.
How to Properly Inform Tenants
Properly informing tenants about the rental property disclosures is essential when you start your real estate investment. Remember that transparency is the key! You can do this by walking your potential tenants through your property's condition. Make sure that you prepare all the necessary disclosure forms and provide them to your tenants before they move in.
Legal Risks When A Landlord Fails to Disclose Information
When a landlord fails to provide tenants with the required disclosures for their property, they can face lawsuits, fines, and the termination of their rental agreements. Some landlords can face actual damages. This is the amount the landlord is supposed to pay the renter to make up for damages that can be calculated, like lost wages, moving costs, or medical bills.
Protect Your Rental Property by Staying Informed!
Understanding and following California's rental disclosure rules isn't just the law. It's also about making sure your renters feel safe and secure. By keeping up with changes to the law and reviewing your disclosure processes, you can keep yourself and your business safe from possible legal problems.
However, rental and housing laws change all the time, so you have to keep up with the most recent news and updates in your state and city. You can check the full list of disclosure requirements in California online or stay updated about the latest rental market news in Tracy, CA.
Fortunately, there is an alternative way to keep your business updated and in compliance with the law. You can now do this without hassle when you partner with a reliable property management company in California. We at HBR Rentals will guide and assist you in managing your property and making sure that you comply with all federal, state, and local laws.
You can check out our full-service Tracy property management services and start with a free consultation with us today!
So take action now—consult with legal professionals, inform your tenants, and make compliance a priority.
