Are you looking for information on the California month to month rental agreement? Do you want to know what are the regulations regarding this agreement? Do you want to know about the notice requirements for both landlords and tenants?
Keep reading to know the details. You can get a California month to month rental agreement template from CocoSign. CocoSign offers several templates for you to select from.
What Is a California Month to Month Rental Agreement?
A California month to month rental agreement is a binding document formed under the light of state regulations. It is a binding document that outlines a formal relationship between the landlord and a tenant to rent a residential building. This is done in exchange for the monthly rent.
The California month to month rental agreement does not have any end date. However, either of the parties involved can terminate it monthly. Otherwise, the agreement is renewed every month.
The lease agreement working on the month to month basis provides a dynamic relationship between a landlord and a tenant. There is a flexibility to change terms as long as rules regarding the provision of notice for change are followed.
Therefore, the month to month agreement proves beneficial for landlords. They can demand a change in rent through a single notice instead of waiting for the lease term to end.
On the other hand, this agreement is viable for tenants who intend to stay in a building for a shorter period. However, tenants have to pay higher rent with the month to month agreement as compared to the fixed-term agreement.
What Are the Specific Regulations for California Month to Month Rental Agreements?
The California State has specific rules and regulations that are must to follow with a month to month residential lease agreement. These regulations are applicable to both the tenants and the landlords.
Some of the specific regulations by the state of California for the month to month rental agreements include:
The month to month rental agreements give the landlords the flexibility to increase the rent per month for their building. The landlords can demand a raise in rent as much as they want or think appropriate.
However, in the rent-controlled areas, the law limits the amount that can be increased on rent. This limit depends on the building/unit, year, and municipality.
It is a must for the landlord to issue a 30 days’ notice before increasing the rent amount. In traditional leases, a landlord cannot demand a raise in rent until the lease agreement expires.
Generally, it is not mandatory on the landlord to provide a reason for terminating the month to month rental agreement. However, it is always preferable to provide a written statement. It eliminates doubts regarding eviction based on discrimination or retaliation, which is prohibited.
A 30/60 days notice is mandatory for both the tenant and the landlord to provide either before leaving the unit. However, both can provide less notice if the other one fails to follow the lease terms.
It is mandatory for the landlord to fix maintenance issues in the unit before renting it so that it is habitable. This is true for both month to month lease and traditional lease. Habitability issues include:
- Broken door handles and locks
- Broken heater
- Unsanitary living condition
- Gas leaks
- Sewage leaks
- Poor ventilation
- Pest infestation
- Peeling paint (might contain lead)
- Mold growth
- Illness causing bacteria
It is legal for a tenant to take action against a landlord not providing habitable conditions of the unit.
Month-to-Month Leases Vs. Fixed-Term Leases in California
There is a clear difference between the month-to-month lease agreement and the traditional lease agreement in California. While there is no fixed answer to which one is better, each has its pros and cons. These are mentioned next.
1. The California month to month lease agreement provides the flexibility of terminating it at any time with proper notice. While with the fixed term leases both have to wait for the termination lease at a fixed date.
2. Unlike a traditional lease, a month to month lease does not bring any penalty to the tenant upon termination. Moreover, goodwill remains between both the landlord and the tenant.
3. A month-to-month lease is renewed every month automatically and the parties involved don’t need to carry out any legal process. Whereas, a traditional lease has to be renewed through a proper process for another fixed term.
4. It is feasible for the landlord to change the terms of the lease at any time with a month-to-month agreement. All it requires is a legal notice. While with the traditional lease, landlords can only change terms at the renewal of the lease. These changes include rent increase, pet policy, smoking policy, sublease policy, or any other.
Notice Requirements for California Landlords and Tenants
The California law has requirements imposed on notices issued by the landlords and the tenants for a month-to-month agreement. These requirements are must to follow.
Notice Requirements for California Landlords
The notice requirements on the landlords don’t require them to provide a reason for demanding eviction from the tenant. However, if the reason is based on discrimination or retaliation grounds, it is considered illegal.
The time for a notice from the landlord is 30/60 days depending on the time the tenant has lived in the unit. A landlord must specify the deadline for tenancy termination.
It is legal for a landlord to specify fewer notice days for certain reasons. These include non-payment of rent, violation of lease terms, and violation of basic responsibilities (e.g. drug dealing).
Notice Requirements for California Tenants
Like a landlord, a tenant must provide a 30 days’ notice to the landlord before terminating the agreement.
However, it is important for a tenant to refer to an agreement before sending out a notice. This is because sometimes agreements state-specific date for sending a notice like the first of the month.
It is legal for a tenant to move out with less notice for certain reasons. This includes the landlord violating the agreement or not fulfilling legal responsibilities (e.g. health hazards).
You have read about the California month to month rental agreement and its benefits for the landlord and the tenants. You have also read about the legal requirements for notices sent by any party involved. Hence, you can get a California month to month rental agreement template from CocoSign.
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