If you are renting out your own home for the first time, do these first: decide whether the statewide rent cap and just-cause rules cover you (a single-family home or condo owned by an individual can be exempt only if the lease includes the exact statutory notice, § 1947.12(d)(5)); stay within the security-deposit limit (§ 1950.5(c)); give the required disclosures; check city rules; and plan for taxes and insurance.
Is my house exempt from the rent cap and just-cause law?
Possibly. Residential property that can be sold separately from any other dwelling is exempt from both laws if the owner is not a REIT, a corporation or an LLC with a corporate member, and the tenant was given the statutory exemption notice in the lease (for tenancies that began after July 1, 2020). See Civ. Code § 1947.12 and Civ. Code § 1946.2, and run your facts through the exemption checker. A local ordinance may still apply, and emergency price caps under Penal Code § 396 can apply even to exempt homes: see the tracker.
How much deposit can I collect?
For tenancies where security is demanded on or after July 1, 2024, the general limit is one month’s rent. Civ. Code § 1950.5 lets a small landlord (a natural person, or an LLC whose members are all natural persons, who owns no more than two residential rental properties with no more than four units in total) charge up to two months, with exceptions. Read subdivision (c) before you set the amount, and see the security deposits guide.
Which disclosures must I give?
California and federal law require several disclosures at the start of a tenancy, depending on the property’s age and location. The state forms and disclosures page lists each one with its legal source.
How do I raise rent or end a tenancy later?
See the notices guide, the rent increase wizard and the eviction process. Never lock a tenant out or shut off utilities.
What about taxes and insurance?
Rental income is taxable and a building is depreciated over 27.5 years: see the rental property tax guide. Your homeowner’s policy and your mortgage may not allow renting; ask your insurer and lender before the lease starts.
Should I hire a property manager?
Many owners do. Read how to hire a property manager and grade candidates with the scorecard. In California, anyone who manages rentals for others for compensation generally needs a real estate license.
Frequently asked questions
Can I charge two months of deposit?
Only if you meet the small-landlord conditions in Civil Code § 1950.5(c); the general limit for deposits demanded on or after July 1, 2024 is one month’s rent.
Do I have to give just cause to end a tenancy on my own house?
Not if the home qualifies for the single-family exemption and the lease includes the statutory exemption notice (Civil Code § 1946.2(e)(8)). Otherwise a just cause is required.
Which official sources should I read?
- Civ. Code § 1947.12 (rent cap)
- Civ. Code § 1946.2 (just cause)
- Civ. Code § 1950.5 (security deposits)
- California DRE: landlord-tenant guidebook
This guide is general information about California law as of Nov 13, 2026, and local ordinances may be stricter. Check the linked sources or consult a qualified attorney. Read the disclaimer.
Have a question about your situation, want tips, or need a referral? Email the CLRC team at [email protected]. We share general information, not legal advice, and we’re not a law firm.