In California, landlords are not ordinarily obligated to renew a lease when it expires. This provides landlords with flexibility, allowing landlords to decide whether to continue renting to a tenant based on a variety of factors, such as the tenant’s behavior, the condition of the property or their personal plans.
Not renewing the lease
There are several reasons a landlord might choose not to renew a lease. Common motivations include persistent late rent payments, significant property damage or plans to renovate or sell the property. However, it is essential for landlords to avoid basing their decisions on discriminatory reasons as California law strictly prohibits discrimination based on race, religion or other protected categories.
Legal requirements for not renewing a lease
If a landlord decides against renewing a lease, they must follow specific legal procedures. For fixed-term leases, landlords generally do not need to provide a reason for their decision not to renew. Though, notice is needed. In California, the standard notice period is 30 days for tenants who have occupied the property for less than a year, and 60 days for those who have lived there for a year or longer.
Managing security deposits and property inspections
Once a lease ends, landlords must address the return of the security deposit and conduct a property inspection. Under California law, landlords have 21 days to return the security deposit after a tenant vacates the property. Deductions from the deposit can be made for unpaid rent, cleaning and repairs that go beyond normal wear and tear. To prevent disputes, it is advisable for landlords to carry out a detailed inspection and provide an itemized list of any deductions.
Wear and tear versus damage
“Normal wear and tear” refers to the typical aging of a property over time, such as fading paint or worn-out carpets. Damage, however, involves more significant issues, like broken windows or stained carpets. Landlords are only allowed to deduct repair costs for damages from the security deposit, not for wear and tear that is expected over time.
By adhering to these guidelines, landlords in San Francisco can manage the lease renewal process effectively while remaining compliant with California’s landlord-tenant laws.