Los Angeles, and in particular Culver City, and be a great place to own property. It has a high quality of living and people are usually willing to pay more to live there. However, this may not be a no-brainer. Property owners need to be aware of the legal requirements involved. Otherwise they'll become a cautionary tale. Hiring a professional property management company is not just convenient, but critical for your protection.
1. Rental Agreements, Leases & Required Disclosures
California’s landlord-tenant statutes (Civil Code §§ 1940–1954.1) mandate that rental agreements (whether oral or written) include a long list of required disclosures. In Los Angeles, this means:
Clearly identifying all parties and the property address.
Specifying rent, due dates, and payment methods.
Stating security deposit terms and rules.
Providing legally required disclosures about lead-based paint (for pre-1978 properties), bedbugs, mold, and even the existence of pest control contracts.
Missing any of these disclosures can allow tenants to break the lease, sue for damages, or defend against eviction... even if they haven’t paid rent. One recent high-profile lawsuit targeted deceptive lease terms that tried to waive tenants’ rights. The case resulted in hefty penalties and ongoing litigation.
2. Security Deposits
Legal Maximum (as of July 2024): Only 1 month’s rent as a security deposit, whether the unit is furnished or unfurnished. Small landlords (owning 2 properties with 4 or fewer units) may be able to charge up to 2 months.
Return Deadline: Must return the deposit (with an itemized statement if there are deductions) within 21 days after the tenant moves out.
If you miss the deadline, or make improper deductions, tenants can sue for up to 2–3 times the deposit amount in penalties. This can be the case even if it's an honest mistake. A property management company can ensure strict compliance to avoid costly litigation.
3. State Rent Control & Rent Increases (AB 1482)
Rent Increase Cap: Most apartments built before January 1, 2005 are subject to AB 1482. Annual rent increases are capped at 5% plus local inflation (CPI), up to 10%.
Required Notices: Landlords must provide official written notice in all covered leases, or risk losing key legal exemptions.
“Just Cause” for Eviction: Owners must prove a legally valid reason to end a tenancy.
Violating rent cap laws can result in tenants not only suing for overcharges but also for damages and attorneys’ fees. Recent lawsuits in LA have targeted landlords for sharp increases and improper surcharges, leading to expensive settlements.
4. Los Angeles Rent Control & Just Cause Eviction Laws
Rent Increases: Under LA’s Rent Stabilization Ordinance (RSO), the 2024 allowable increase is capped at 4–6%, depending on utilities paid.
Additional Requirements: Registration of rental units, notice postings, extended relocation assistance for “no fault” evictions, and other local obligations.
Just Cause Protections: Only very specific reasons may justify eviction, and every step of the process must be meticulously documented.
Failing to register or improperly evicting can lead to lawsuits by both tenants and the City. Penalties can include mandatory rent refunds, relocation assistance, and even criminal prosecution in severe cases.
5. Termination for Owner Move-In or Renovation
Under state and LA law, if you want to evict a tenant so you or your family can move in—or to perform major renovations:
Notice: You must provide official written notice with a legally specified reason.
Relocation Fee: Tenants are generally entitled to a relocation payment, typically equal to at least one month’s rent.
Failing to provide the right notice or fee gives tenants grounds to sue or even to regain their apartment. Many self-managing owners land in court for skipping these requirements.
6. Tenant Screening & Application Fees
Application Fee Limit: Screening fees must only cover actual costs, be disclosed up front, and be promptly refunded if not used (Civil Code § 1950.6). For 2025, the cap is $66.92 in cities like Berkeley, and similar statewide rules apply.
Transparency: Landlords must provide disclosure of their screening process and criteria.
Overcharging fees or failing to give refunds can be grounds for small claims suits. Repeated violations may draw attention from local tenant organizations and city prosecutors.
Real-Life Legal Disasters: What Happens When Owners Get It Wrong
Unsafe Conditions Result in $2.3 Million Settlement: In one case, a self-managing owner (via Realty World Selzer Property Management) was ordered to pay $2.3 million after a tenant suffered a brain injury due to unaddressed safety hazards. The court found negligent property management directly led to the tenant’s harm.
LA’s PAMA Management Lawsuit: A major property manager in Southern California now faces state litigation after repeated violations of rent caps, illegal evictions, unsafe conditions, and misleading disclosures. The Attorney General seeks millions in penalties and the court may bar the company from managing properties in California.
Don’t Risk It All: Hire a Professional Property Manager
California and Los Angeles rental laws are intricate, ever-changing, and strictly enforced. The legal and financial risks for even minor mistakes are enormous. A full service property management company:
Keeps you compliant with every state and local rule.
Handles paperwork, notices, and disclosures.
Minimizes risk of lawsuits, city fines, and tenant disputes.
Lets you relax, knowing your investment is protected.
Managing a rental property is a legal minefield... don’t go it alone.
