Types of Lease Agreements in California

If you have always thought that there is only one type of lease contract in California that fits all cases, you should know it is not true. While there is a simple one-page document that can be used in any rental case, still, many people prefer to fill out more complex templates and sign longer forms with all the conditions and terms.

So, here are the most popular lease agreement types in the state of California:

  •  Simple (One-page) Lease Agreement

This is the most straightforward version of the rental contract. It takes literally one page and has some mandatory details about the deal: parties’ names, lease type, payment terms, and signatures.

  • Month-to-Month Rental Agreement

In this contract, you will not state the date when the contract will expire. It is signed for an unlimited term. If one of the parties wants to cancel the agreement, they have to notify another party one month (if the tenant has lived at the premises for less than one year) or two months (if the living period is over a year) before.

  • Rent-to-Own Agreement

The parties choose this type of agreement if there is an option for a lessee to purchase the rented space. The contract also states a certain period when the lessee may buy the place.

  • Sublease Agreement

The sublease contract is used by lessees who wish to rent a part of the premises to someone else. Such deals must occur only after the lessor confirms that they do not mind if the lessee subleases a room or two.

  • Room Rental Agreement

If the house or apartment in question has more than one room and every room is rented by different lessees, it is a smart move to use the room rental contract template. Such a document will contain all the necessary details about each tenant and will presume every tenant as a separate party of the deal.

  • Commercial Lease Agreement

Besides residential premises, it is also possible to lease commercial spaces that fit an office or a shop, for example. For such cases, lessors and lessees use a special template for commercial leases.

Regardless of the lease contract type you choose for your deal, keep in mind that there are mandatory things you have to include in every lease agreement:

  • Parties’ names and contact info
  • The rented premises address
  • Rent conditions
  • The termination date (unless you use the month-to-month template)
  • Parties’ signatures.

Lease Requirements and Laws in California

Most laws regarding the topic in California are added to the Civil Code and “A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities” (or the Landlord-Tenant Handbook).

The Handbook mentioned above is a useful guide for lessors and lessees in California that tells about lease agreements, disclosures, and other peculiarities.

In California, lessees shall pay the rent on the day indicated in the lease contract as stated in the Handbook. The maximum security deposit is a sum that equals the two or three months’ rent (Civil Code, section 1950.5). The period in which a lessor shall enter the rented premises is described in sections 1950 and 1954 of the Civil Code.

Required Landlord Disclosures in California

There are plenty of mandatory disclosures in California that need to be shown to a lessee when a lease agreement is signed. The laws regulating these disclosures are included in California Civil Code, California Health and Safety Code, and Government Code.

  • Mold Disclosure

A warning to the lessee that traces of mold might appear in the premises (see Health and Safety Code, sections 26147-26148).

  • Bedbug Addendum

The lessor’s confirmation about the absence of bedbugs in the rented place (Civil Code, section 1942.5).

  • Smoking Policy Disclosure

By this disclosure, the premises owner indicates smoking zones (if any) or prohibits smoking in the premises (Civil Code, section 1947.5).

  • AB 1482 Just Case Addendum

A very specific disclosure that should be made in some instances described in the Civil Code, sections 1946.2(e) and 1947.12(d).

  • Disclosure about Lead-Based Paint

This is a mandatory disclosure in the United States for all buildings constructed before 1978.

  • Demolition Disclosure

If the lessor has permission issued by the local authorities to demolish the residential space that he plans to rent out, such a disclosure should be given to the renter (check Civil Code, section 1940.6 for more details).

  • Pest Control Disclosure

In case of any reconstruction or remediation occurring in the property, the lessor should give the lessee a report prepared by the pest control organization (Government Code, section 1099).

  • Disclosure about the Possibility of Flood

If the property is located in a region with a high risk of flooding, such a disclosure should be added to the lease contract (Government Code, section 8589.45).

  • Megan’s Law Disclosure

If the renter has a specific criminal past described in the Penal Code, section 290.46, the information about such a renter should become public and placed on a special website. Check the Civil Code, section 2079.10a, for more details.

  • Shared Utilities Disclosure

For the premises with gas or water meters, the disclosure should describe how the lessor and lessee share the costs (Civil Code, section 1940.9).

  • Ordinance Locations

If any federal or state rules for the area are given before the rental agreement is signed, the lessor should notify the lessee about them (Civil Code, section 1940.7).

Also, there are many optional disclosures that a tenant can receive from a premises owner in California, like grilling rules and a pet agreement.