Understanding the Latest Landlord-Tenant Laws and Best Practices in Elk Grove and Beyond

Want to stay up on latest Rental Laws? Look no further.

I recently had the opportunity to attend a meeting with a Property Manager who has been in the industry for 20+ years. He shared invaluable insights into the latest landlord-tenant laws and best practices. Here’s a breakdown of the key takeaways to help both Landlords and Tenants navigate these changes effectively.

Screening Criteria for Single-Family Rentals (SFRs) and Duplexes 

(Property Management Recommended) Written Criteria: Screening criteria, such as credit history, must be documented in writing. Prioritize applicants who provide complete and accurate information over applicants who may not have completed application correctly. 

Application Fees: If you choose not to run a credit check on the first applicant, the application fee is non-refundable.

Reporting Prompt Payments:

Landlords with 15 or more units are now required to report tenants' prompt payments to credit bureaus. The maximum fee chargeable to tenants is $10, with disclosure required. For larger operations, this fee could range up to $15.

Landlords with fewer than 4 units are exempt from this requirement.

Security Deposits Caps on Deposits:

For one property on a single lot (e.g., Elk Grove, Mendocino, or Chico): One month’s rent.

For two properties on separate parcels: Two months’ rent.

For four units on one property: One month’s rent.

These caps went into effect on January 1, 2025, with long-term tenants grandfathered in.

Move-In Documentation:

Landlords must photograph the property and its contents at move-in. For instance, photograph the inside of a refrigerator, including its serial number.

Tenants must receive a rental copy of this documentation.

Deposit Deductions:

Itemize all deductions (e.g., a $100 charge for blind replacement) with detailed explanations.

Regional Rental Inspection ProgramsSacramento County:

In unincorporated areas and the City of Sacramento, manual inspections are required if photographic evidence isn’t provided.

Elk Grove:

While there is no rental inspection program, conducting your own inspections is highly recommended.

24-Hour Entry NoticesLandlords must provide tenants with a 24-hour notice to enter the property. However, for routine maintenance such as battery or filter changes, you can include these as health and safety inspections in the lease agreement. Alternatively, offer a maintenance service for an additional monthly fee (e.g., $35).

Prohibition on Late and Miscellaneous Fees Effective April 1, 2025, landlords can no longer charge late fees or miscellaneous fees. Rent payments made late cannot result in penalties.

Section 8 and Property Standards Landlords must ensure properties meet broom-swept clean standards, paying particular attention to appliances like microwaves, ovens, and stoves.

Eviction Laws and Timelines Reasons for Eviction:

Non-payment of rent.

Nuisance activities (e.g., meth labs).

Property damage or smoking violations.

Owner or immediate family occupancy (must be a primary residence for at least 12 months; failure can lead to legal action by the tenant).

Rent-Controlled Properties:

Tenants in rent-controlled properties cannot be evicted without proper cause.

Tenants with over 5 years of occupancy require 60-day notice, with the last month’s rent waived.

Notice Updates:

The timeline for eviction notices has increased from 5 business days to 10 days.

Pet PoliciesUse resources like PetSecurity.com to screen tenants for pet-related claims.

If tenants violate no-pet agreements, landlords can issue a 30-day notice to comply or quit.

Special Considerations for Military TenantsActive-duty military personnel cannot be required to fulfill lease terms if they are deployed. 

Insurance RequirementsLandlords can require renters' insurance but must accommodate religious exemptions. A workaround is purchasing a $25 homeowner insurance policy in the tenant’s name.

Market Trends The rental market has stabilized due to rising interest rates, reducing tenant turnover. Many landlords are retaining tenants to avoid potential vacancy losses.

Inventory has increased in areas by

  Sky River and Folsom, causing some investors to experience financial strain.

By staying informed about these changes, landlords and tenants can better navigate the rental market and maintain compliance with California’s evolving laws. As always, consult with a qualified professional for specific legal advice.

Feel free to share this blog with your network to ensure everyone benefits from these updates!