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Real estate

California lease agreement template

Managing commercial or residential property leases in California? Try this free California lease agreement template.

California lease agreement template preview
Want to manage California lease agreements faster and more efficiently? Click on the image above to book a demo.
California lease agreement template preview
Want to manage California lease agreements faster and more efficiently? Click on the image above to book a demo.
Our templates are for general information only. You should not rely on them, and Juro is not liable for any reliance on them. The templates might contain errors, including unlawful provisions and might create risks and liabilities if used. The templates are not legal advice, nor a substitute for it. By accessing any template, you accept these terms and agree that any use is at your own risk. Some of these templates were created using generative AI with human-assisted prompts.
Our templates are for general information only. You should not rely on them, and Juro is not liable for any reliance on them. The templates might contain errors, including unlawful provisions and might create risks and liabilities if used. The templates are not legal advice, nor a substitute for it. By accessing any template, you accept these terms and agree that any use is at your own risk.

What is a California lease agreement?

A California lease agreement is a legally binding document that sets out the terms and conditions for renting residential or commercial property in the state of California.

It's designed to ensure that landlords and tenants are fully aligned on their expectations of each other, and that all leases comply with state legislation.

Leasing in California: what you need to know

Before you jump into a lease agreement in California, you'll want to get a better understanding of what the landscape looks like for landlords and tenants. Here are a few headlines:

  • California has strict rent control laws and affords a lot of protection to tenants in the state, so landlords will need to familiarise themselves with these requirements
  • California has the second highest rate of rental housing of all states in the US, with more than 49 per cent of housing units occupied by renters
  • The cost of renting a property has risen 26 per cent since January 2020, with renting in Marin, San Francisco, Santa Cruz, Santa Clara, or San Mateo costing the most on average
  • According to research by Census Bureau. a million households in California report being behind on rental payments, and the share of renters who feel severely cost burdened by rental payments is the third highest in California compared to the rest of the US
  • Statista estimate that the revenue of real estate and leasing in California will amount to approximately $136bn by the end of 2024.
  • California's largest cities are experiencing a decline in rental prices, with Oakland and Sacramento experiencing the largest drops

Which laws in California are relevant to lease agreements?

Lease agreements in California are primarily governed by the California Civil Code, which covers extensive legal ground concerning tenant and landlord rights, responsibilities, and procedures. Key areas include:

Security Deposit Limits and Returns (Civil Code 1950.5)

Under these provisions, landlords can only charge up to two months' rent for unfurnished units and three months for furnished units. The deposit must be returned within 21 days of move-out, with itemized deductions for damages, unpaid rent, or cleaning beyond normal wear and tear.

Tenant Rights to a Habitable Premise (Civil Code § 1941)

This section details how landlords must maintain units in liveable condition, ensuring working plumbing, heating, electricity, and a safe structure. Tenants can withhold rent, repair and deduct, or move out if habitability issues persist.

Eviction Rules and Procedures (Civil Code § 1946)

Under Civil Code § 1946, California evictions require proper notice. This notice is outlined as follows:

  • 30 days for tenants living in a unit for less than a year
  • 60 days for tenants living in a unit for over a year

This legislation also distinguishes between just cause evictions and no-fault evictions:

  • Just cause evictions include non-payment of rent, lease violations, or illegal activity, with landlords providing a 3-day notice to cure or quit.
  • No-fault evictions (e.g., owner move-ins or Ellis Act removals) require landlords to offer relocation assistance or a rent waiver.

California's Tenant Protection Act

Under California's Tenant Protection Act, rent increases capped for most rental properties built before 2009, but some properties will be exempt.

Notably, local ordinances in cities like Los Angeles, Oakland, and San Francisco often impose stricter controls.

Other leasing laws in California

On top of this, landlords in California must also adhere to federal regulations, such as the Fair Housing Act, which prevents discrimination based on race, color, national origin, religion, sex, familial status, or disability.

Who manages California lease agreements?

Lease agreements are typically managed by landlords or property management companies who act on behalf of landlords.

The managers’ responsibilities include: drafting and customizing lease agreements based on the template; ensuring leases comply with all applicable laws; collecting rents and managing security deposits; addressing tenant concerns and maintaining the habitability of the premises, and executing lease renewals and terminations.

In most cases, specialized legal teams may oversee the agreements to ensure ongoing compliance with real estate laws in California, and manage any contractual disputes.

When are lease agreements used in California?

California lease agreements are used whenever a property owner (landlord) rents out residential or commercial property to a tenant under specific terms. More specifically, there are a few common lease agreement uses cases in California:

1. Residential tenancies

Residential lease agreements, also known as tenancy agreements, are used for renting homes, apartments, or condos. They typically have a fixed term (e.g., 12 months) or are month-to-month agreements.

Example: A family rents an apartment in Los Angeles under a 12-month lease. The agreement specifies the monthly rent, due dates, security deposit amount, and rules about pets or noise.

2. Commercial leases

Commercial lease agreements are used for renting out commercial spaces, such as offices, retail stores, or industrial warehouses. They often involve longer terms and more complex negotiations.

Example: A small business rents an office in San Francisco for three years. The office lease agreement outlines rent, maintenance responsibilities, and what types of businesses can operate in the space.

3. Short-term or vacation leases

Short-term lease agreements apply to short-term rentals, often used for vacation homes or Airbnb-style properties. They typically cover shorter periods (a few days to a few months).

Example: A couple rents a beach house in San Diego for a week. The vacation or airbnb agreement covers the rental dates, total cost, and rules about property use during their stay.

4. Agricultural or land leases

When landowners lease their land for agricultural purposes, such as farming or grazing, these agreements detail land use and often include terms for maintenance and crop sharing, among other things

Example: A farmer leases 50 acres of land in the Central Valley for growing crops. The land lease agreement details the permitted crops, rent based on harvest yield, and water rights.

In all cases, the lease agreement serves to legally protect both parties by clearly defining the terms of the rental relationship. For it to do this properly, you'll need to make sure your California lease agreement is drafted using a robust template, and that it covers everything it needs to.

What should a California lease agreement template include?

A comprehensive California lease agreement template should include the following key elements to ensure landlords and tenants clearly understand their rights and obligations under California law.

  • Names of parties: Full legal names of the landlord (or property manager) and tenant(s), and contact details for each party.
  • Property address: Full address of the rental property, including unit number if applicable.
  • Lease start and end date: Specify whether it is a fixed-term lease (e.g., 12 months) or a month-to-month agreement. Include the exact start and end dates to make the contract duration clear.
  • Lease renewal/termination terms: Detail how the lease can be renewed or terminated by either party.
  • Rent amount: The monthly rent amount and the due date (e.g., 1st of each month).
  • Payment method: How rent should be paid (e.g., check, online payment, bank transfer).
  • Late fees: Include the amount and date after which rent is considered late, along with any associated penalties or fees.
  • Deposit amount: State the total security deposit amount (up to two months' rent for unfurnished units, three months for furnished).
  • Conditions for deductions: Clarify what can be deducted from the deposit (e.g., damage, unpaid rent, cleaning fees beyond normal wear and tear).
  • Deposit return: Mention that the deposit must be returned within 21 days after the tenant vacates, with an itemized list of any deductions.
  • Utility responsibility: Clearly state who is responsible for paying for utilities (e.g., gas, water, electricity, trash removal).
  • Included services: Indicate any services provided by the landlord (e.g., landscaping, internet, pest control).
  • Landlord responsibilities: Detail what the landlord is responsible for maintaining (e.g., plumbing, heating, electrical systems).
  • Tenant responsibilities: Outline the tenant's responsibility for maintaining the unit (e.g., keeping it clean, notifying landlord of repairs).
  • Repair requests: Procedures for tenants to report maintenance issues, and clear timeframes for when these will be remedied.
  • Implied warranty of habitability: Confirm that the landlord must provide and maintain a habitable premise as per Civil Code § 1941.
  • Mold disclosure: If applicable, landlords must notify tenants of any known mold hazards.
  • Permitted use: Specify that the property is for residential use only and any restrictions (e.g., no home-based businesses without permission).
  • Occupancy limits: Limit the number of occupants in the rental unit and, where possible, outline who these occupants will be.
  • Subletting: State whether subletting or assigning the lease is allowed. If it is, include conditions (e.g., landlord’s written approval).
  • Notice for entry: Clarify the landlord’s right to enter the rental unit (e.g., for repairs, inspections, or showing the unit to potential tenants), including the requirement of providing 24 hours' notice.
  • Restrictions on modifications: Specify whether the tenant is allowed to make alterations to the unit (e.g., painting, installing shelves) and if landlord approval is required.
  • Rent control: Indicate whether the property is subject to rent control laws, such as those under AB 1482 (statewide rent caps) or local ordinances.
  • Early termination: Outline the conditions under which the tenant or landlord may terminate the lease early (e.g., military service, domestic violence, major habitability issues).
  • Penalties for breaking the lease: Include any fees or obligations if the tenant breaks the lease before the end of the term.
  • Notice requirements: Detail how and when notices (e.g., notice to vacate, rent increases) must be given. Follow Civil Code § 1946 requirements for notice periods.

How are California lease agreements usually created and managed?

Managing California lease agreement templates manually typically involves several steps. Let's explore each of these stages in a bit more detail now.

1. Legal advice

Landlords or property management companies often consult with legal professionals to ensure the lease agreement complies with state and local laws, including the California Civil Code and any applicable local rent control ordinances.

Legal advice is especially important for ensuring that all tenant rights, disclosures, and landlord obligations are included.

2. Use of templates

The landlord or property manager creates a standardized lease agreement template that complies with California state laws. This document is often drafted by a legal professional to ensure all legal requirements are met.

In some cases, these standard lease agreement templates will already exist and can be customized to meet the specific terms of the rental property and the landlord's preferences.

3. Customization

For each new lease, the landlord or property manager manually updates the template with specific details such as the tenant’s name, the property address, rent amount, lease term, and other relevant information. Adding things like local ordinances or rent control rules is particularly common at this stage.

4. Negotiation of terms

Before a lease agreement is finalized, there is often a negotiation phase between the landlord (or property manager) and the tenant. This step allows both parties to discuss and agree on specific terms. This doesn't usually involve much contract redlining, but rental amounts and payment terms sometimes come into question.

5. Agreeing and signing

Once customized, the lease agreement is printed out and signed by both the landlord and the tenant. This usually involves arranging a meeting where both parties can review and sign the document.

However, some more sophisticated workflows will enable the parties to sign the document digitally using an electronic signature. This offers a more convenient way to close the deal.

Post-signature, copies of the signed lease agreement are made. Both the landlord and the tenant keep a copy for their records.

6. Record keeping

The landlord or property manager files their copy of the signed lease agreement in a physical or digital filing system. This might involve storing paper copies in a filing cabinet or scanning and saving digital copies on a computer or cloud storage service.

It's wise to capture the key contract data at this point, but this is a step often overlooked by most California-based landlords and letting agencies.

7. Renewal or termination

As the lease term approaches its end, the landlord or property manager manually reviews the agreement to determine if it will be renewed or terminated. If renewing, the process starts again with updating the template and obtaining new signatures. If terminating, the landlord ensures all end-of-lease procedures are followed, such as final inspections and return of the security deposit.

Depending on the outcome, you might find these templates useful:

However, managing lease agreements manually can be time-consuming and prone to errors, which is why many landlords and property managers are moving towards digital contracting solutions, like Juro, that streamline these processes.

Manage California lease agreements in Juro

Juro's AI-native contract management platform offers real estate professionals and landlords a faster, more convenient way to manage their real estate contracts, from lease agreements to rent-to-own agreements, and real estate purchase contracts.

Here’s how.

Automated contract templates

Juro allows landlords and property managers to create automated contract templates that comply with California’s legal requirements. These templates can be easily customized to include key lease terms like rent amount, security deposits, maintenance responsibilities, and disclosures (e.g., lead paint, mold).

The platform also includes dynamic fields that can be filled in automatically, ensuring that tenant-specific details such as names, rental amounts, and lease dates are quickly populated without the need for manual data entry.

Additionally, Juro's customizable rules, conditions, and workflows can ensure lease agreements meet all the requirements of California’s Civil Code and local ordinances (e.g., rent control in cities like Los Angeles or San Francisco), varying these per location.

Collaborative workspace

Juro enables real-time contract collaboration, allowing landlords and tenants to negotiate lease terms directly in the document. The platform eliminates back-and-forth emails by letting both parties suggest edits, add comments, and agree on terms all within the contract itself.

Juro tracks all changes made during contract negotiations, providing a clear audit trail. This is crucial for lease agreements where terms like rent amounts, lease duration, and maintenance responsibilities may be subject to negotiation.

If a landlord requires internal approvals (e.g., from property management teams or legal advisors), Juro’s automated approval workflows can route the agreement to the appropriate people for approval before finalizing the lease.

Native eSignature functionality

Juro provides a way to add legally binding electronic signatures, making it easy for both landlords and tenants to sign the lease agreement online without needing physical paperwork. This speeds up the contract execution process and ensures that the contract is signed securely and in compliance with California law.

Juro is also browser-native, meaning both parties can access, review, and sign the lease agreement from any device, whether it’s a computer, tablet, or smartphone. This accessibility is key for fast-tracking the leasing process, especially in a competitive rental market.

Secure document storage

Juro offers a centralized, searchable contract repository, where all lease agreements are stored securely in the cloud. Landlords and property managers can easily access past and current lease agreements, making it easy to surface critical information like rent amounts, tenant obligations, or property rules.

Leases can also be tagged and categorized for easy filtering, enabling landlords to organize documents by property, lease duration, tenant name, or lease status (active, expired, etc.). This simplifies the process of managing multiple leases for landlords with large portfolios.

In short: Juro is an effective tool for managing California lease agreements, offering end-to-end functionality for lease creation, negotiation, execution, and management. Its automation, real-time collaboration, and compliance features help landlords and property managers streamline their processes, ensure legal compliance with California laws, and reduce administrative overhead.

To find out more about how Juro can benefit businesses in the real-estate industry, check out this guide to real estate contract management, or book your personalized demo by hitting the button below.

Want more free lease agreement templates?

It's worth noting that different states will have different laws around leasing, and your lease agreement templates should comply with, or be varied to comply with, these. Below are some state-specific, simple lease agreements to help you get started:

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