Becoming a landlord can be rewarding. However, in California, especially for first-timers, it demands knowledge, diligence, and a proactive mindset. Here are the ten most important things to help you start off on the right foot.
1. Prepare Your Property Thoroughly
Before listing, ensure your property is in top condition. This starts with repairs. Make sure you also do a deep cleaning. As part of this process, check that all appliances, plumbing, and safety systems function properly. Minor aesthetic upgrades, like fresh paint or updated fixtures, can help attract quality tenants. Don’t just focus on what’s broken. Think about what makes the home feel livable. Swapping out old yellow lighting for bright, modern LED fixtures can make a huge difference. In California’s competitive rental market, small upgrades like this can help you stand out without breaking the bank.
Do I need to provide appliances like a fridge or washer/dryer?
It depends. In many California markets, tenants expect at least a refrigerator and stove. If you're renting to families or students, in-unit laundry can also be a huge draw.
2. Set the Right Rental Rate
Do a comparative market analysis to price the rental competitively. Setting the rent too high may deter great tenants, while setting it too low reduces your ROI. Consider amenities, location, and current market trends. Remember: under California law, you can set your own initial rate, but future increases are regulated. So, use Zillow, Rentometer, and Craigslist to compare possible initial prices. Right now, a two-bedroom unit in Culver City might rent for around $3,200/month. However, if it includes a garage, central A/C, or is walkable to public transit or schools, you might be able to charge more.
Can I change the rent after someone moves in?
Only within legal limits. If your unit is subject to California’s rent control laws, you can only raise rent once per year by a set percentage... and only with proper notice.
3. Understand and Comply With Landlord-Tenant Laws
California has strict landlord-tenant laws. Get familiar with both statewide rules (like AB 1482 rent caps, security deposit limits, and fair housing requirements) and local ordinances (if you’re in cities like Los Angeles, which has its own rent control ordinance). Join your local landlord association, and don’t hesitate to consult an attorney when in doubt. In Culver City, you may be subject to both state protections (like AB 1482) and local rent control. These can cap rent increases lower than state law allows. Know your city’s rules before you list.
What’s the maximum security deposit I can collect in California?
As of 2024, AB 12 phases in a new rule capping security deposits at one month for most tenants. Furnished and unfurnished units used to be able to charge multiple months, but that is no longer the case.
4. Market Strategically to Attract Quality Tenants
High-quality tenants typically pay on time, care for the property, and stay longer. Create detailed listings with clear photos. List on reputable sites (like Zillow, Apartments.com). Tailor your advertisement to your preferred demographic. Highlight features like proximity to transit or schools. Let’s say your rental is a two-bedroom unit near the Expo Line in Culver City. Highlight walkability, transit access, nearby parks, and proximity to downtown. Mentioning details like “10-minute walk to Sony Studios” or “next to bike path and Trader Joe’s” helps paint a picture of convenience and lifestyle.
Where should I advertise my rental?
Start with major platforms like Zillow, Apartments.com, HotPads, and Craigslist. Also consider Nextdoor, Facebook Marketplace, and local college housing boards. The wider your reach, the better your odds of finding the right tenant. In addition, if you use a property manager then they'll have their own methods to help market your rental.
5. Screen Tenants Carefully
Good screening protects your investment. Verify income, credit score, background, and rental history. Speak with prior landlords and ensure you’re consistent and compliant with fair housing laws. Martin Feinberg notes that careful screening is the first line of defense against future issues. A pro tip is to always ask for pay stubs or proof of income that shows they make at least 2.5–3 times the rent. Use tools like SmartMove or RentSpree for soft credit checks.
Can I reject someone with bad credit?
Yes, but only in certain situations. Your criteria must be consistent and non-discriminatory. You can deny applicants based on income, credit, or past evictions. However, race, age, family status, or other protected classes cannot be a factor.
6. Have a Solid Lease Agreement
Use a well-crafted, legally compliant written lease. It should detail rent, due dates, late fees, maintenance responsibilities, and house rules. Include all state-required disclosures (such as for lead paint or mold). Clear terms help prevent disputes down the road. Don’t rely on a generic lease template from the internet. Start with a California-specific lease from the California Association of Realtors. An even better idea is to ask your property manager for one that includes important state disclosures. They will include the state and local requirements as well as items based on their professional experience.
Do I have to allow pets?
No. But, if you do, specify pet rent, breed restrictions, or deposit terms. Keep in mind that service animals and emotional support animals are protected under fair housing laws. Also, while Assembly Bill 2216 did not pass, it still sets an interest in prohibiting blanket no-pet policies. It is very possible that in the future pets will need to be allowed or pet fees to be waived.
7. Respond to Tenant Complaints Promptly
California law mandates landlords address tenant complaints quickly. Delays can lead to fines or lawsuits. Maintain open communication, document all requests, and resolve issues efficiently. Psychology experts stress that empathy, clear boundaries, and promptness make tenant relations smoother. If your tenant texts about a leaking bathroom faucet on Monday and you ignore it until Friday, that small drip could turn into water damage. Worse, you'll have a tenant who no longer trusts you. Empathy, clear boundaries, and promptness make tenant relations smoother.
What’s considered a “reasonable” response time in California?
For habitability issues (like no heat, running water, or serious plumbing), landlords typically must address the issue within 24 to 72 hours. For non-urgent repairs, a 7-day response window is generally acceptable, but sooner is always better.
8. Know the Rules on Rent Increases
California’s Tenant Protection Act (AB 1482) generally caps yearly rent hikes at 5% plus local CPI, but no more than 10%. Some cities (like LA and San Francisco) have their own tighter caps. Always give legally required notice in writing before an increase, and stay informed on changing laws. In 2025, if your city’s CPI is 3.2%, then your max rent increase under AB 1482 is 8.2% (5% + CPI). Check the CPI for your region and confirm whether your property is exempt from statewide rent control.
How much notice do I need to give for a rent increase?
If the increase is under 10%, you must give at least 30 days’ written notice. For increases over 10%, you need to give 90 days’ notice.
9. Budget Smartly (Including for Emergencies)
Factor in regular and unexpected expenses—maintenance, insurance, taxes, vacancies, and legal costs. Build an emergency fund for repairs or periods when the unit is unoccupied. Say you collect $2,500/month in rent. A good rule of thumb is to set aside about 20–30% of that income for ongoing expenses like property taxes, insurance, maintenance, and vacancy periods. That means roughly $500–$750/month should go into your reserve fund. If the water heater fails (which can easily cost $1,200+), you’ll be glad you saved.
Also remember the one-time but essential expenses. Legal help for lease drafting, annual tune-ups on HVAC systems, pest control, and potentially higher utility costs if you include them in the rent.
What’s the most overlooked cost for first-time landlords?
Vacancy. Even in competitive markets, it may take 2–6 weeks to find a qualified tenant. During that time, you’re still paying the mortgage, utilities, and insurance. Budgeting for one vacant month per year is smart. A good property manager can help maintain tenants, fill vacancies, and budget for those 'rainy days'.
10. Consider the Benefits of Professional Management
If you’re overwhelmed by the legal, logistical, or emotional workload, hiring a professional property manager (like Martin Feinberg, who’s lauded for his expertise and tact) can save you time, stress, and money. They handle laws, maintenance, tenant screening, and routine communication. Seasoned landlords agree these lead to better tenant relations and property care.
So, if you have a full-time job or live far from your rental, hiring a manager is more than worth it. They’ll chase late rent, manage repairs, screen applicants, and keep you out of legal hot water. That’s especially helpful in places with local tenant protections like Santa Monica, Burbank, or Glendale.
What does a property manager usually charge?
Most charge 6–10% of monthly rent for ongoing management, and sometimes a leasing fee (equal to one month’s rent) for placing new tenants.
Expert and Martin Feinberg Insights
Being a landlord in California is both exciting and challenging. Building positive landlord-tenant relationships starts with transparency, firm boundaries, and compassion. These are qualities you can develop or outsource to an experienced property manager. Set yourself up for rental success while protecting your investment with due diligence, clear communication, and a commitment to legal compliance.
