California Landlord Glossary

A

AB 1482 (Tenant Protection Act of 2019)

The California law that caps annual rent increases on much older rental housing and, after 12 months of occupancy, requires “just cause” to end a tenancy. It lives in Civil Code §§ 1946.2 and 1947.12, with exemptions listed in those sections. Source: Civ. Code § 1947.12, Civ. Code § 1946.2 Also called: rent cap; statewide rent cap

Abandonment (notice of belief of abandonment)

When a tenant has left and rent has gone unpaid, a landlord may serve a notice of belief of abandonment. The rent must have been due and unpaid for at least 14 consecutive days, and the lease ends no sooner than 15 days after personal service or 18 days after mailing unless the tenant responds in writing as the statute describes. Source: Civ. Code § 1951.3

Accessory dwelling unit (ADU) and junior ADU

A second, smaller home on a residential lot (ADU) or a unit carved out of an existing home (JADU). Under AB 1482, an owner-occupied two-unit building is exempt only if neither unit is an ADU or JADU, and an owner who rents out one ADU can still qualify for the owner-occupied house exemption from just cause. Source: Civ. Code § 1947.12(d)(6), Civ. Code § 1946.2(e)(5)–(6) Also called: ADU JADU

Assistance animal (service animal, emotional support animal)

An animal that helps a person with a disability. A landlord’s pet rules, pet fees and pet deposits are handled differently from a reasonable accommodation request for an assistance animal. Treat requests under fair-housing law, not under the pet policy. See the fair housing guide. Also called: support animal

At-fault just cause

A reason to end a covered tenancy that is based on something the tenant did, such as not paying rent, breaching a material lease term, creating a nuisance or committing waste. Listed in Civil Code § 1946.2(b)(1). Source: Civ. Code § 1946.2

B

Base rent for the rent cap (lowest rent in the prior 12 months)

AB 1482 measures the cap from the lowest gross rent charged during the 12 months before the new rent takes effect, and allows no more than two increases in any 12-month period. If rent went from $2,000 to $2,100 four months ago, the base is $2,000. The wizard asks for it. Source: Civ. Code § 1947.12 Also called: lowest gross rental rate

C

Calendar day

Every day counts, including weekends and holidays. Notice periods such as 30, 60 and 90 days, and the 21-day security deposit deadline, are stated in days and, as a rule, counted this way. See the notice date calculator. Source: Code Civ. Proc. § 12

Cap rate (capitalization rate)

Net operating income divided by the property’s price or value, shown as a percentage. It lets you compare income properties without regard to financing. Use the cap rate calculator. Also called: capitalization rate

Cash flow

Money left after operating expenses and loan payments. Positive cash flow means the property puts money in your pocket each month. See the rental cash flow calculator.

Cash for keys (buyout agreement)

A voluntary written agreement in which a tenant moves out by an agreed date for a payment. It cannot be forced by threats, and it does not replace relocation assistance that the law already requires. See the comparison tool. Source: Civ. Code § 1940.2 Also called: cash-for-keys

Cash-on-cash return

Annual pre-tax cash flow divided by the cash you actually invested (down payment, closing costs and upfront repairs). See the cash-on-cash calculator.

Certificate of occupancy

The local government document that says a building may be lived in. Housing issued a certificate of occupancy within the previous 15 years is exempt from the AB 1482 rent cap and just-cause rules, unless it is a mobilehome. Source: Civ. Code § 1947.12(d)(4) Also called: 15-year exemption

Court day

A weekday that is not a judicial holiday. A 3-day notice and the 10-day response to an eviction lawsuit are counted in court days. See the notice date calculator. Source: Code Civ. Proc. § 1167, Code Civ. Proc. § 1161

Cure (opportunity to cure)

A chance to fix a lease violation, such as an unauthorized pet, within the time stated in a notice. For a curable violation of a lease term, the notice to perform conditions or quit must give the tenant time to cure; a later notice without a cure period can then follow if the problem is not fixed. Source: Code Civ. Proc. § 1161, Civ. Code § 1946.2 Also called: perform covenants or quit

D

Digitally altered image (AB 2025)

A photo or rendering in a rental ad that was generated by AI or edited to add, remove or change features such as furniture, flooring, landscaping or views. From January 1, 2027, such an ad needs a conspicuous disclosure and the original image. See the law tracker. Source: Civ. Code § 1940.11 Also called: AI-altered photo

E

Emergency price cap (price gouging)

After a declared emergency, Penal Code § 396 can bar rent increases above a set percentage (usually 10%) for a set period. Local ordinances can do the same. See the emergency order tracker. Source: Penal Code § 396 Also called: anti-price-gouging; emergency rent cap

Entry notice

Written notice a landlord gives before entering a rental unit. Twenty-four hours is presumed reasonable; mailing the notice at least six days before entry is also presumed reasonable. The notice must state the date, approximate time and purpose, and entry must be during normal business hours unless the tenant agrees. See the entry notice section of the calculator. Source: Civ. Code § 1954 Also called: 24-hour notice; notice of entry

F

Fair housing

Federal and California laws that prohibit discrimination in renting, advertising, screening and the terms of a tenancy. They apply to every decision a landlord makes, from ad wording to which applicants are accepted. See the fair housing guide. Also called: FEHA discrimination

Fair market rent (FMR)

A HUD estimate of what a modest rental unit costs in an area. Under the emergency price-gouging law, a unit not rented in the prior year is generally capped at 160% of the HUD fair market rent, as the order cards on the tracker state. Source: Penal Code § 396 Also called: HUD FMR

Fixed-term lease

A lease for a stated period, such as 12 months. The tenancy ends on the end date, but just-cause rules and local ordinances can still limit what a landlord does when it expires. Compare month-to-month tenancy. Source: Civ. Code § 1946.2

G

Gross rent multiplier (GRM)

Purchase price divided by gross annual rent. A quick, rough comparison tool that ignores expenses. Use the GRM calculator. Also called: GRM

H

Holdover

When a tenant stays after a lease or notice period has ended. The landlord generally cannot use self-help; the remedy is an unlawful detainer lawsuit. Source: Code Civ. Proc. § 1161

I

Initial inspection (pre-move-out inspection)

On a tenant’s request, a landlord must offer a walk-through no earlier than two weeks before the tenancy ends so the tenant can fix identified problems before deductions. The landlord gives at least 48 hours’ written notice of the time unless both sign a waiver. Source: Civ. Code § 1950.5

Itemized statement

The written accounting of a security deposit: the basis for and amount of each deduction and what is being returned. It is due within 21 calendar days after the tenant vacates, with receipts or the work description for larger deductions and photos for repairs or cleanings. See the deposit deadline calculator. Source: Civ. Code § 1950.5 Also called: security deposit accounting

J

Judicial holiday (court holiday)

A day the California courts are closed by law. In counting a 3-day notice, Saturdays, Sundays and judicial holidays are excluded. The Judicial Council publishes the official list. Source: Code Civ. Proc. § 135, Code Civ. Proc. § 1161 Also called: court holiday

Just cause

A legally recognized reason for ending a tenancy. After 12 months of occupancy, state law requires the termination notice to state a just cause, either at-fault or no-fault. Some properties are exempt, and stricter local ordinances may apply instead. Source: Civ. Code § 1946.2 Also called: good cause

M

Month-to-month tenancy

A tenancy that renews each month until ended by notice. A landlord gives 30 days’ notice if the tenant has lived there under a year (subject to just-cause rules) or 60 days if a year or longer; a tenant gives 30 days. Source: Civ. Code § 1946, Civ. Code § 1946.1

N

No-fault just cause

A reason to end a covered tenancy that is not the tenant’s fault, such as the owner moving in, withdrawing the unit from the market, a government order to vacate, or a qualifying demolition or substantial remodel. It triggers relocation assistance or a final-month rent waiver equal to one month’s rent. Source: Civ. Code § 1946.2

Notice to quit

A notice that tells a tenant to leave by a date. A 3-day notice to quit is the usual first step before an unlawful detainer case for non-payment or a serious violation. Source: Code Civ. Proc. § 1161 Also called: termination notice

O

Ordinary wear and tear

Normal deterioration from living in a unit. A landlord cannot deduct for it from a security deposit. Source: Civ. Code § 1950.5

P

Pay or quit (3-day notice to pay rent or quit)

A written notice demanding unpaid rent within three days, excluding Saturdays, Sundays and judicial holidays, or the tenant must vacate. It must state the amount and the payee’s information as the statute requires. Source: Code Civ. Proc. § 1161 Also called: 3-day pay or quit

Pet policy (SB 1296)

A written statement of what pets a rental allows, restricts or prohibits. From April 1, 2027, landlords must have one, link it in ads and listings, and give a copy with every application. It does not change the rights tied to service animals and assistance animals. See the law tracker. Source: Civ. Code § 1942.7.5 Also called: pet addendum

Proof of service

A signed record of how, when and by whom a notice was delivered. If a case reaches court, you will need it to show that the notice was served properly. Source: Code Civ. Proc. § 1162

Property management agreement

The written contract between an owner and a manager that sets the fees, the manager’s authority, repair approval limits, owner reserves, reporting and how the agreement ends. Also called: management contract

Property manager (California licensing)

Someone who rents, leases, finds tenants for or collects rent on property for another person for compensation. In California that work generally requires a DRE real estate broker license, with exemptions such as resident managers. See the hiring guide. Source: Bus. & Prof. Code § 10131, Bus. & Prof. Code § 10131.01 Also called: PM; managing broker

Q

Quiet enjoyment

A tenant’s right to use the home without unreasonable interference by the landlord, including harassment or improper entry. Source: Civ. Code § 1927

R

Reasonable accommodation

A change to a rule or practice that gives a person with a disability an equal chance to use and enjoy a home, such as allowing an assistance animal despite a no-pets rule. See the fair housing guide.

Regional CPI (consumer price index)

The index used in the AB 1482 formula, 5% plus the 12-month change in the local CPI, capped at 10%. The Attorney General publishes the figure for each region, and it changes each August 1. The wizard looks it up for you. Source: Civ. Code § 1947.12 Also called: CPI

Relocation assistance

Money, equal to one month’s rent, or a waiver of the final month’s rent, that a landlord must provide when ending a covered tenancy for a no-fault just cause. It must be paid within 15 calendar days of serving the notice if it takes the form of a payment, and the notice must tell the tenant about it. Some cities require more. Source: Civ. Code § 1946.2

Rent control (local rent stabilization)

A city or county ordinance that limits rent increases, sometimes more tightly than state law. The Attorney General maintains a chart of local limits. See the county directory. Also called: rent stabilization

Repair and deduct

A tenant remedy: after notice and a reasonable time, a tenant may fix a problem that makes the unit untenantable, if the cost is no more than one month’s rent, and deduct it from rent. It is available no more than twice in any 12-month period. The statute presumes 30 days is a reasonable time. Source: Civ. Code § 1942

Resident manager

A manager who lives at an apartment building, complex or court and manages it. Resident managers and their employees are exempt from the broker license requirement for leasing and rent collection. Source: Bus. & Prof. Code § 10131.01 Also called: on-site manager

Retaliation

Taking an adverse step, such as raising rent or ending a tenancy, because a tenant used a legal right like requesting repairs or complaining to an agency. California law restricts this. Source: Civ. Code § 1942.5 Also called: retaliatory eviction

S

Secured property tax

The tax on land and buildings, generally 1% of assessed value plus voter-approved debt. It is billed in two installments: the first is due November 1 and delinquent after December 10, and the second is due February 1 and delinquent after April 10. See the rental tax guide. Also called: property tax

Security deposit

Money a landlord holds to cover unpaid rent, damage beyond ordinary wear and tear and cleaning needed to return the unit to its move-in condition. Limits and return rules are in Civil Code § 1950.5; a lease cannot call a deposit “nonrefundable.” Source: Civ. Code § 1950.5 Also called: deposit

Service (of a notice)

Delivering a legal notice in a way the law recognizes: personal delivery, substituted service with a copy mailed, or posting and mailing. Mailing a notice can add time under some rules; see the notice date calculator for conservative guidance. Source: Code Civ. Proc. § 1162, Code Civ. Proc. § 1013 Also called: serving a notice

Source of income

Where a person’s money comes from, such as wages, benefits or a rental subsidy. California fair housing law and some local laws, including the City of San Diego’s, limit discrimination based on lawful source of income. See the San Diego County page.

Straight-line depreciation (27.5 years)

The way the IRS lets owners deduct the cost of a residential rental building, in equal parts over 27.5 years. Land is not depreciated. See the rental tax guide. Also called: depreciation

Substituted service

Serving a notice by leaving a copy with a person of suitable age and discretion at the tenant’s home or work and mailing a copy, used when the tenant cannot be found. The conditions are in the statute. Source: Code Civ. Proc. § 1162

T

Trust fund account

A bank account a real estate broker keeps for money that belongs to others, such as rent and security deposits. Funds stay there until paid out on the owner’s instructions, with records reconciled at least monthly. Source: Bus. & Prof. Code § 10145 Also called: trust account

U

Unlawful detainer

The court case a landlord must file to recover possession of a rental. Only a court, through the sheriff, can remove a tenant; landlords may not change locks, remove doors or cut off utilities. Source: Code Civ. Proc. § 1161 Also called: eviction lawsuit

Untenantable

Not fit to live in. A unit with debris, no running water or another serious defect can be untenantable, which affects rent and the tenant’s remedies. See the habitability guide. Source: Civ. Code § 1941.1, Civ. Code § 1941.8 Also called: uninhabitable

V

Vacancy cost

Rent lost while a unit sits empty, usually days vacant times daily rent plus turnover costs. Use the vacancy cost calculator. Also called: vacancy loss

W

Warranty of habitability

A landlord’s duty to keep a rental fit to live in, with working plumbing, heat, weather protection and other basics listed in Civil Code § 1941.1. See the habitability guide. Source: Civ. Code § 1941.1 Also called: habitability

Writ of possession

The court order, carried out by the sheriff, that returns a rental to the landlord after a successful unlawful detainer case. Source: Code Civ. Proc. § 715.010

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