A Guide to Lease Agreements in California
In the simplest terms, a lease agreement in California is a legally binding contract between a property owner and a lessee (tenant). A property owner is required to sign a lease with a renter if they hope to collect rent from that individual. A lease is not always required, but without one, owners will be considered the hand of the State of California to collect rent. Once the tenant pays the agreed-to amount of rent, it then becomes a contract that is enforceable by law.
The agreement has two parties: the lessor (landlord) and lessee (tenant). In California, there is no need to have a specific type of lease for a residential or commercial property. You may choose between a standard rental lease or a lease agreement specific to your needs. For instance , you may choose to have a renter lease a room in your home or an office space in your building, both of which would require different stipulations and verbiage to meet the needs of both parties.
Lease agreements are considered binding regardless of whether they are written or oral. However, when a lease is oral it can cause issues in a court if one of the parties denies the existence of the arrangement. The best approach to establishing an agreement between a landlord and tenant is to use a written contract. Verbal contracts are always open to interpretation, which could lead to legal action in the future.
How Tenants Can Legally Break a Lease
As a tenant in California, it is reassuring to know that the law is on your side. There are several defenses under California law that help to justify breaking a lease. These include the following:
Implied warranty of habitability: California tenants have the right to a habitable dwelling. The term "habitable" is well-defined in California law, and the definition includes safe, sanitary, and fit for human habitation. Landlords who do not keep their units inhabitable risk being sued for the tort of breach of implied warranty of habitability. If you try to break your lease because the unit was uninhabitable, however, you must show that the habitability issues were not your fault and that you properly notified your landlord of the issues. Your landlord must have had a reasonable amount of time to fix the issues before you can terminate the lease on these grounds.
Unconscionable commercial lease clause: Commercial leases are often nigh impossible to terminate early. They are, however, subject to the Unfair Practices Act – a consumer protection law. Consequently, if a commercial lease has a clause that the court deems unreasonable to the point of being unconscionable, it is subject to termination. Consider a commercial lease that has a penalty of, say, $20,000 for not giving 30 days notice before vacating the unit.
Domestic violence: California law forbids landlords from discriminating against tenants (which includes leaseholders) on the basis of certain factors. These include definition under government code 120175 or s.12122. These definitions include age, color, ancestry, race, religion, creed, gender, marital status, sexual orientation, ethnicity, national origin, disability, medical condition, genetic information and the exercise or support of the rights of victims of domestic violence, sexual assault, stalking, and similar issues. If a tenant is being harassed at the unit they are renting due to one or more of these things, they can be evicted. Tenants in this situation are allowed to break a lease if the alleged harasser is the landlord or manager.
Unhealthy apartment conditions: There are laws to protect renters from being forced to live in unsafe or unhealthy conditions. For example, fires and plumbing failures could create unsafe living conditions. If this should occur, and the landlord either cannot or will not repair the issue, the tenant may break the lease.
Military deployment: Your California tenant rights also extend to military personnel. If you are an active member of the military and you are deployed to a different part of the state or country, you have the right to break your lease without owing any penalties. You have to give your landlord 30 days’ notice that you are terminating the lease, however.
The presence of these four factors – and a few other uncommon legal scenarios – means that under California law, breaking a lease is justified.
Abuse or Domestic Violence
Gaining some control over your surroundings is vital. California law assists this process through protections for victims of domestic violence, sexual assault, stalking, elder abuse, and abuse of dependent adults who need to break a lease and move for their safety. When an individual is under a restraining order he or she may immediately terminate a lease.
The requested documentation includes:
- The restraining order or lockout order
- documentation of the service of the order to the other party, or provision of $1000, as described above
- notification of all parties to the lease, landlord, or complex manager(s) of the termination of the rental agreement
- Notification to the court’s opinion to any objections they may have to the termination of the rental agreement
- A statement signed under penalty of perjury, either acknowledging or denying discrimination.
The victim may also seek a court to obtain a copy of any lessee’s request for rental history record for such victim if the victim is a party to such request. A victim who seeks to break a rental agreement under this section shall not be liable for any rent that accrues after the date notice of such termination was given to the landlord.
Breach of Health and Safety Codes
Violations of the State health and safety codes in a rental property can also provide a legal basis for breaking a lease agreement.
The applicable California statute states:
"Any tenant of real property in a city or county, and any real estate management for that tenant, may notify a local agency or department of a violation, as specified in [Section 1941.2] of this code," in the event that the property owner or landlord has failed to adequately repair substandard living conditions. Further, a tenant who reported such violations may not be retaliated against for reporting the violation or withholding payment of rent until the tenant could withhold rent as provided under Section 1942.
As such,
A tenant of real property in a city or county, may notify a local agency or department of a violation, as specified in [Section 1941.2] of this code," in the event that the property owner or landlord has failed to adequately repair substandard living conditions.
If a renter fails to fulfill their lease agreement, the landlord has the right to seek eviction. However, if the tenant is able to determine that the landlord was guilty of neglecting important repairs that affected the habitability of the rental property, that tenant may be able to break the lease agreement before the landlord files for an eviction.
Active Military Duty
In certain circumstances, a service member can break a lease because of military service. Under the Servicemembers Civil Relief Act (SCRA), you can terminate a lease by giving oral or written notice to the landlord and presenting him or her with a copy of military orders.
First, the leased premises must be occupied by the service member or occupied by an immediate family member on the service member’s behalf. You must be on active duty and receiving military housing allowance, or stationed more than 35 miles away from the leased premises, or you must have leased or purchased housing before receiving military orders for a permanent change of duty station or deployment. In other words, if you were living somewhere else or did not need the house for your family, you would not be entitled to break the lease if you got deployed. Your military orders must be permanent change of duty orders or temporary change of station orders that end on or after the date of your notice to terminate the lease or the moving date.
Also, your military unit must be prevented from giving the landlord 30 days’ notice. So if your unit is back home that can handle any problems, you are limited in your rights to break a lease.
The SCRA provides protection only to service members and their dependents. A roommate who does not serve in the military cannot break the lease just because their friend has to leave.
Landlord’s Wrongdoing
The most obvious instances of "landlord violation" occur when a landlord enters the unit in the middle of the night and attempts to install a video camera. Obviously, if your landlord were to do this, you would not have to provide him any notice to vacate for him to lose his right to collect any unpaid rent. However, most violations are less obvious.
A long-standing requirement of California law is that the rental unit must be fit for human habitation at the beginning of the lease term. Thus, no matter how long you may have lived in the apartment or home, it must still be habitable. If it is not, you have a complete defense to any action to collect rent for that period. Cases have found that the presence of mold can render a unit uninhabitable .
But, even more commonly, a unit may be uninhabitable if the landlord has had notice of a repair problem but has failed to repair it. For example, if your heater goes out and you notify the landlord, he must fix it within a reasonable period of time and if he fails to do so it will become a complete defense to any subsequent attempt to collect rent.
These rights, however, are somewhat illusory because they are not easy to enforce unless the landlord expressly lists every single service for which he is charging rent and then grants credit for any deficiencies in such services.
There are any number of municipal codes that govern the obligations of landlords to maintain their rental properties. However, the procedures involved are seldom user friendly, and they are no guarantee that a court would grant you any form of relief.
Illness or Death
In the eyes of California law, certain illnesses and death are legal grounds for breaking a lease. The most common types include:
- Medical condition – A tenant can be excused from a lease if they are diagnosed with a serious illness or condition that makes it difficult or unsafe for them to live in the rental property. These illnesses generally include cancer, chronic obstructive pulmonary disease (COPD), severe anxiety, multiple sclerosis, and AIDS. Each of the above types of illnesses leads to unique difficulties that impair the safety or safety of your health. Generally, the assistance of a medical professional is required to provide the necessary verification that you’ve been diagnosed with a medical condition that qualifies you to break your lease.
- Pregnancy – Pregnancy is a temporary condition that may require you to break a lease. A new parent may need to break some or all of their rental agreement for up to 60 days after giving birth or adopting a child.
- Death – Under California’s laws, if a tenant dies during a rental period, their estate does not have to honor the rest of the lease. Essentially, any rent or lease breaks that require their signature becomes null and void; the landlord will also be required to return any unused funds from the tenant’s rent or security deposit within 30 days of being notified of their death. The only exceptions to this rule are if your lease expressly states that no one other than the tenant can terminate the lease; or if the deceased was part of a joint tenancy (such as a child or cohabitant).
The End of a Term
When the lease term is specified to end on a certain date, the landlord and tenant are bound to the agreement until that date unless a legal ground for early termination becomes available – such as a breach of the lease – or the parties mutually agree to early termination in writing. In certain situations, a lease may expire but allow for an option for renewal by the tenant at the end of the term, which the tenant can accept or reject without giving any reason.
A problem arises when the tenant wants to continue residency but the landlord does not want to extend the term of the lease. The fact that the tenant is in possession of the premises is an indication that the tenant is accepting the terms of the lease as to the duration. However, the landlord may be entitled to possession even if the tenant is not in breach of the lease. In California, there is no law that requires a landlord to renew a lease or extend a lease that has reached the end of its term but which contains no renewal or extension clause.
If the lease allows for a tenant to renew the term for a certain period, all of the terms and conditions of the original lease apply unless either the lease requires renegotiation of terms or the parties have agreed to a change in terms. If either of those two scenarios is absent, the renewal of the lease is granted by the lease itself without any change to terms or conditions, and the post-renewal relationship is governed by the terms and conditions of the original lease.
Proceedings
If you have determined that you may have a legal reason to terminate your lease, it is important to take the proper steps. The first thing you should do is provide your landlord with written notice of your intentions to vacate. This helps to ensure that your case is properly documented. You should include as much information as possible as to why you believe you should be released from your obligations under the lease. For example, if you have mold in your unit, you should provide information on when the issue started, any communications you have had with the landlords or property manager, any documented repair requests, and any other supporting evidence of the mold problem . When providing notice, specifically provide your landlord with a date by which you will move and vacate the rental. If you have no intention of moving out, clearly state that you are notifying them that you are "terminating the lease." In California, landlords who receive notice from a tenant to move and terminate the lease have to respond within 5 days the notice was given. If the landlord agrees to the termination, you should always be sure to obtain this in writing. You can send the termination, and the approval (if provided) via email, certified mail, or even hand delivery. If your landlord fails to meet the 5-day deadline, you should send another notice and make note of it in case he needs to be reminded a few days before your scheduled date to move.