Ziegel Group Realty
Sherman Oaks REALTORS® – Property Management – Leasing Services – Real Estate Attorney

Before you decide on a rental unit, there are several other points to consider. For example: Is an oral rental agreement legally binding? What are the differences between a lease and a rental agreement? What are some of the advantages and disadvantages of each? This section answers these and other questions.

RENTAL AGREEMENTS AND LEASES

General information

Before you can rent a rental unit, you and the landlord must enter into one of two kinds of agreements: a periodic rental agreement or a lease. The periodic rental agreement or lease creates the tenant’s right to live in the rental unit. The tenant’s right to use and possess the landlord’s rental unit is called a tenancy.

A periodic rental agreement states the length of time (the number of days) between the rent payments – for example a week (seven days) or a month (30 days). The length of time between rent payments is called the rental period.

A periodic rental agreement that requires one rent payment each month is a month-to-month rental agreement, and the tenancy is a month-to-month tenancy.51 The month-to-month rental agreement is by far the most common kind of rental agreement, although longer (or shorter) rental periods can be specified.

If the periodic rental agreement requires that rent be paid once a week, it is a week-to-week rental agreement and the tenancy is a week-to-week tenancy.52

In effect, a periodic rental agreement expires at the end of each period for which the tenant has paid rent, and is renewed by the next rent payment.53 A periodic rental agreement does not state the total number of weeks or months that the agreement will be in effect. The tenant can continue to live in the rental unit as long as the tenant continues to pay rent, and as long as the landlord does not ask the tenant to leave.

In a periodic rental agreement, the length of time between the rent payments (the rental period) determines three things:

  • How often the tenant must pay rent;
  • The amount of advance notice that the tenant must give the landlord, and that the landlord must give the tenant, if either decides to terminate (end) the tenancy; and
  • The amount of advance notice the landlord must give the tenant if the landlord decides to change the terms of the rental agreement other than the rent.54 (Special rules apply to the amount of advance notice that the landlord must give the tenant to raise the rent (see Rent Increases)).

Oral rental agreements

In an oral rental agreement, you and the landlord agree orally (not in writing) that you will rent the rental unit. In addition, you agree to pay a specified rent for a specified period of time – for example, a week or a month. This kind of rental agreement is legally binding on both you and the landlord, even though it is not in writing unless a tenant and a landlord agree to the lease of a rent unit for more than one year, the agreement must be in writing.55 If such an agreement is not in writing, it is not enforceable. If you have a valid oral agreement and later have a disagreement with your landlord, you will have no written proof of the terms of your rental agreement. Therefore, it’s usually best to have a written rental agreement.

However, even if the agreement is oral, the landlord must give you a written statement regarding the name, street address, and phone number of the landlord or agent for receipt of legal notices; the contact information for the person who is to accept the rent; and how the rent is to be paid (for example by cash, check or money order.)56

It’s especially important to have a written rental agreement if your tenancy involves special circumstances, such as any of the following:

  • You plan to live in the unit for a long time (for example, nine months or a year);
  • Your landlord has agreed to your having a pet or water-filled furniture (such as a waterbed); or
  • The landlord has agreed to pay any expenses (for example, utilities or garbage removal) or to provide any services (for example, a gardener).

Written rental agreements

A written rental agreement is a periodic rental agreement that has been put in writing. The written rental agreement specifies all the terms of the agreement between you and the landlord – for example, it states the rent, the length of time between rent payments, and the landlord’s and your obligations. It may also contain clauses on pets, late fees, and amount of notice.

The length of time between rent payments is important. In most cases, the amount of advance notice that the landlord gives you when notifying you of changes in the terms of the tenancy must be the same as the length of time between rent payments. For example, if you have a month-to-month rental agreement, the landlord usually must give you 30 days’ advance written notice of changes such as an increase in the charge for parking or an increase in the security deposit.

In addition, the amount of advance written notice that you give the landlord before you move out of the rental unit must be the same as the length of time between rent payments. For example, in a month-to-month rental agreement, you must give the landlord at least 30 days’ advance written notice in order to end the rental agreement (see Tenant’s notice to end a periodic tenancy). If you have a week-to-week rental agreement, you must give the landlord at least seven days’ advance written notice in order to end the rental agreement.

Normally the amount of advance written notice that the landlord gives the tenant to change the terms of the tenancy must be, at a minimum, the same as the length of time between rent payments. However, the landlord and tenant can specifically agree in writing to a shorter amount of notice (a shorter notice period).57 A landlord and a tenant who have a month-to-month rental agreement might agree to 10 days’ advance written notice for a change in the terms of the agreement (other than the rent). This would allow the landlord, for example, to increase the charge for parking or end the tenancy by giving the tenant 10 days’ advance written notice. Similarly, the tenant could end the tenancy by giving the landlord 10 days’ advance written notice. However, the notice period agreed to by the landlord and the tenant can never be shorter than seven days.58

If you have a written periodic rental agreement, special rules apply to the amount of advance notice that the landlord must give you to raise the rent.

Leases

A lease states the total number of months that the lease will be in effect – for example, six or 12 months. Most leases are in writing, although oral leases are legal. If the lease is for more than one year, it must be in writing.59

It is important to understand that, even though the lease requires the rent to be paid monthly, you are bound by the lease until it expires (for example, at the end of 12 months). This means that you must pay the rent and perform all of your obligations under the lease during the entire lease period.60

There are some advantages to having a lease. If you have a lease, the landlord cannot raise your rent while the lease is in effect, unless the lease expressly allows rent increases. Also, the landlord cannot evict you while the lease is in effect, except for reasons such as your damaging the property or failing to pay rent.

A lease gives the tenant the security of a long-term agreement at a known cost. Even if the lease allows rent increases, the lease should specify a limit on how much and how often the rent can be raised.

The disadvantage of a lease is that if you need to move, a lease may be difficult for you to break, especially if another tenant can’t be found to take over your lease. If you move before the lease ends, the landlord may have a claim against you for the rent for the rest of the lease term.

Before signing a lease, you may want to talk with an attorney, legal aid organization, housing clinic, or tenant-landlord program to make sure that you understand all of the lease’s provisions, your obligations, and any risks that you may face.

SHARED UTILITY METERS

Some buildings have a single gas or electric meter that serves more than one rental unit. In other buildings, a tenant’s gas or electric meter may also measure gas or electricity used in a common area, such as the laundry room or the lobby. In situations like these, the landlord must disclose to you that utility meters are shared before you sign the rental agreement or lease.61 If you become a tenant, the landlord must reach an agreement with you about who will pay for the shared utilities.

Rental units in older buildings may not have separate water meters or submeters. California law does not specifically regulate how landlords bill tenants for water and sewer utilities. Ask the landlord if the rental unit that you plan to rent has its own water meter or submeter. If it does not, and if the landlord will bill you for water or sewer utilities, be sure that you understand how the landlord will calculate the amount that you will be billed.62

TRANSLATION OF PROPOSED RENTAL AGREEMENT

A landlord and a tenant may negotiate primarily in Spanish, Chinese, Tagalog, Vietnamese or Korean for the rental, lease, or sublease of a rental unit. In this situation, the landlord must give the tenant a written translation of the proposed lease or rental agreement in the language used in the negotiation before the tenant signs it.63 This rule applies whether the negotiations are oral or in writing. The rule does not apply if the rental agreement is for one month or less.

The landlord must give the tenant the written translation of the lease or rental agreement whether or not the tenant requests it. The translation must include every term and condition in the lease or rental agreement, but may retain elements such as names, addresses, numerals, dollar amounts and dates in English. It is never sufficient for the landlord to give the written translation of the lease or rental agreement to the tenant after the tenant has signed it.

However, the landlord is not required to give the tenant a written translation of the lease or rental agreement if all of the following are true:

  • The Spanish-, Chinese-, Tagalog-, Vietnamese-, or Korean-speaking tenant negotiated the rental agreement through his or her own interpreter; and
  • The tenant’s interpreter is able to speak fluently and read with full understanding English, as well as Spanish, Chinese, Tagalog, Vietnamese or Korean (whichever was used in the negotiation); and
  • The interpreter is not a minor (under 18 years of age); and
  • The interpreter is not employed or made available by or through the landlord.

If a landlord who is required to provide a written translation of a lease or rental agreement in one of these languages fails to do so, the tenant can rescind (cancel) the agreement.

What is unlawful discrimination?

A landlord cannot refuse to rent to a tenant, or engage in any other type of discrimination, on the basis of group characteristics specified by law that are not closely related to the landlord’s business needs.35 Race and religion are examples of group characteristics specified by law. Arbitrary discrimination on the basis of any personal characteristic such as those listed under this heading also is prohibited.36 Indeed, the California Legislature has declared that the opportunity to seek, obtain and hold housing without unlawful discrimination is a civil right.37

Under California law, it is unlawful for a landlord, managing agent, real estate broker, or salesperson  to discriminate against a person or harass a person because of the person’s race, color, religion, sex (including pregnancy, childbirth or medical conditions related to them, as well as gender and perception of gender), sexual orientation, marital status, national origin, ancestry, familial status, source of income , or disability.39 California law also prohibits discrimination based on any of the following:

  • A person’s medical condition or mental or physical disability; or
  • Personal characteristics, such as a person’s physical appearance or sexual orientation that are not related to the responsibilities of a tenant;40 or
  • A perception of a person’s race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability or medical condition, or a perception that a person is associated with another person who may have any of these characteristics.41

Under California law, a landlord cannot use a financial or income standard for persons who want to live together and combine their incomes that is different from the landlord’s standard for married persons who combine their incomes. In the case of a government rent subsidy, a landlord who is assessing a potential tenant’s eligibility for a rental unit must use a financial or income standard that is based on the portion of rent that the tenant would pay.42 A landlord cannot apply rules, regulations or policies to unmarried couples who are registered domestic partners that do not apply to married couples.43 Nor can a landlord inquire as to the immigration status of the tenant or prospective tenant or require that a tenant or prospective tenant make any statement concerning his or her immigration or citizenship status.44 However, a landlord can request information or documents in order to verify and applicant’s identity and financial qualifications.45

It is illegal for landlords to discriminate against families with children under 18. However, housing for senior citizens may exclude families with children. “Housing for senior citizens” includes housing that is occupied only by persons who are at least age 62, or housing that is operated for occupancy by persons who are at least age 55 and that meets other occupancy, policy and reporting requirements stated in the law.46

Limited exceptions for single rooms and roommates

If the owner of an owner-occupied, single-family home rents out a room in the home to a roomer or a boarder, and there are no other roomers or boarders living in the household, the owner is not subject to the restrictions listed under “Examples of unlawful discrimination“.

However, the owner cannot make oral or written statements, or use notices or advertisements which indicate any preference, limitation, or discrimination based on race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, or disability.47 Further, the owner cannot discriminate on the basis of medical condition or age.48

A person in a single-family dwelling who advertises for a roommate may express a preference on the basis of gender, if living areas (such as the kitchen, living room, or bathroom) will be shared by the roommate.49

Examples of Unlawful Discrimination

Unlawful housing discrimination can take a variety of forms. Under California’s Fair Employment and Housing Act and Unruh Civil Rights Act, it is unlawful for a landlord, managing agent, real estate broker, or salesperson to discriminate against any person because of the person’s race, color, religion, sex (including pregnancy, childbirth or medical conditions related to them, as well as gender and perception of gender), sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, medical condition, or age in any of the following ways:

  • Refusing to sell, rent, or lease.
  • Refusing to negotiate for a sale, rental, or lease.
  • Representing that housing is not available for inspection, sale, or rental when it is, in fact, available.
  • Otherwise denying or withholding housing accommodations.
  • Providing inferior housing terms, conditions, privileges, facilities, or services.
  • Harassing a person in connection with housing accommodations.
  • Canceling or terminating a sale or rental agreement.
  • Providing segregated or separated housing accommodations.
  • Refusing to permit a person with a disability, at the person with a disability’s own expense, to make reasonable modifications to a rental unit that are necessary to allow the person with a disability “full enjoyment of the premises.” As a condition of making the modifications, the landlord may require the person with a disability to enter into an agreement to restore the interior of the rental unit to its previous condition at the end of the tenancy (excluding reasonable wear and tear).
  • Refusing to make reasonable accommodations in rules, policies, practices, or services when necessary to allow a person with a disability “equal opportunity to use and enjoy a dwelling” (for example, refusing to allow a person with a disability’s companion or service dog).38

Resolving housing discrimination problems

If you are a victim of housing discrimination (for example, if a landlord refuses to rent to you because of your race or national origin), you may have several legal remedies, including:

  • Recovery of out-of-pocket losses.
  • An injunction prohibiting the unlawful practice.
  • Access to housing that the landlord denied you.
  • Damages for emotional distress.
  • Civil penalties or punitive damages.
  • Attorney’s fees.

Sometimes, a court may order the landlord to take specific action to stop unlawful discrimination. For example, the landlord may be ordered to advertise vacancies in newspapers published by ethnic minority groups, or to place fair housing posters in the rental office.

A number of resources are available to help resolve housing discrimination problems:

  • Local fair housing organizations (often known as fair housing councils). Look in the white (business) and yellow pages of the phone book. The National Fair Housing Alliance maintains a searchable database of local organizations that advocate for fair housing.
  • Local California apartment association chapters. Look in the white (business) and yellow pages of the phone book. The California Apartment Association maintains a list of local apartment association chapters.
  • Local government agencies. Look in the white pages of the phone book under City or County Government Offices, or call the offices of local elected officials (for example, your city council representative or your county supervisor).
  • The California Department of Fair Employment and Housing investigates housing discrimination complaints (but not other kinds of landlord-tenant problems). The department’s Housing Enforcement Unit can be reached at (800) 233-3212 TTY (800) 700-2320. You can learn about the department’s complaint process on their website.
  • The U.S. Department of Housing and Urban Development (HUD) enforces the federal fair housing law, which prohibits discrimination based on sex, race, color, religion, national origin, familial status, and handicap (disability). To contact HUD, look in the white pages of the phone book under United States Government Offices, or visit their web site.
  • Legal aid organizations provide free legal advice, representation, and other legal services in noncriminal cases to economically disadvantaged persons. Legal aid organizations are located throughout the state. Look in the yellow pages of the phone book under Attorneys, or go to http://lawhelpca.org/. The Legal Aid Association of California also maintains a directory of legal aid organizations at www.calegaladvocates.org.
  • Private attorneys. You may be able to hire a private attorney to take legal action against a landlord who has discriminated against you. For the names of attorneys who specialize in housing discrimination cases, call your county bar association or an attorney referral service.

You must act quickly if you believe that a landlord has unlawfully discriminated against you. The time limits for filing housing discrimination complaints are short. For example, a complaint to the Department of Fair Employment and Housing must be filed within one year from the date of the discriminatory act.50 First, write down what happened, including dates and the names of those involved. Then, contact one of the resources listed above for advice and help.