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California Rental Laws Every Merced Landlord & Tenant Should Know

September 9, 2022
California Rental Laws Every Merced Landlord & Tenant Should Know - Article Banner

Renting out a home in Merced can feel pretty risky. The state laws governing how you lease, manage, and maintain your home are strict, and tenants have a lot of protection. 


Compliance is not optional, however, and the fines and fees for any violations are not cheap. 


We’ve put together a brief list of the California rental laws you should know, whether you’re a Merced landlord or a Merced tenant. 


California’s Implied Warranty of Habitability


One of the most basic requirements you have as a landlord is to provide a property that’s safe and habitable. When you sign a lease agreement and move in your residents, you agree to an implied habitability warranty. 


Some of the easy violations of this implied warranty of habitability would be:



  • No water
  • No heat
  • Presence of mold
  • Improper ventilation
  • Gas or sewage leak
  • Pest infestations
  • Unsanitary conditions 


Don’t rent your property out unless it is clean, in good condition, and safe for residents.


California Fair Housing Laws


California’s
fair housing laws go beyond the protections provided by the federal Fair Housing Act. There are more protected classes. In California, you cannot discriminate in rental housing based on:


  • Race.
  • Skin color.
  • Religion or creed.
  • National origin or ancestry. 
  • Sex.
  • Physical or mental disability.
  • Familial status.
  • Sexual orientation
  • Age
  • Gender identification
  • Gender expression
  • Veteran or military status
  • Citizenship 
  • Primary language
  • Marital status
  • Source of income
  • Genetic information


These protected classes are constantly evolving, and in some cases, fair housing laws extend to screening practices in new ways. For example, in some cities, it is not permitted to run a criminal background check until after a tenant has been approved for a property. 


Rent Control in Merced and California


Statewide rent control went into effect on January 1, 2020, and that new law applies to multi-family properties that are at least 15 years old and any single-family homes owned by a corporation. 


If you own a multi-family building or you’re renting out units in a building, you’re likely going to need a solid understanding of rent control limits and requirements. It caps rental increases to five percent plus the cost of living increase set by the Consumer Price Index. 


Check your lease agreement. It must reflect whether your property is bound by the statewide rent control law. The language has to be specific, so make sure you have an attorney-approved template or verbiage provided by a local Merced property manager. 


Evicting Tenants in Merced 


Eviction law is specific, and it needs to be followed to the letter, otherwise, your eviction case can be thrown out of court. You’ll have to start the entire process again, and that will be expensive.


When your property falls under The Tenant Protection Act, you cannot simply terminate a tenancy because you don’t want to rent your unit to a particular tenant anymore. You can’t evict a tenant because you want to start over with a higher rental amount. You must have just cause if you want to terminate a tenancy and not renew a lease agreement. 


Just causes include nonpayment of rent, property damage, lease violations, and criminal activity. If you’re evicting for a reason that isn’t considered just cause, a tenant relocation payment will be required. 


Section 8 Tenants in Merced


One of the statewide laws that were included in the Tenant Protection Act of 2019 concerns Section 8 tenants and renters who benefit from housing voucher programs. All applicants must be considered for your property and screened consistently, regardless of how they earn their income. Those housing vouchers used by Section 8 tenants can be legally considered a source of income. 


This impacts how you market your rental property and screen your potential tenants. In the past, you could actively advertise that you did not accept Section 8 tenants for a property. There was some distinction about whether certain units were approved for Section 8. This is no longer legal.


Update and document your qualifying rental criteria. When it comes to being fair to Section 8 tenants, all of your screening criteria can remain the same. Those income standards can, however, be met when a housing voucher brings in enough money for the tenants to qualify to rent your home. 


Security Deposit Laws 


Security deposit laws are also important to know, and we can tell you that this is one area where Merced landlords and property owners make a lot of mistakes. Tenants make mistakes too, and we can tell you that the majority of tenant disputes occur because of misunderstandings or arguments over the security deposit. 


Here’s what you need to know about security deposit laws and your Merced rental:


  • Security deposit limits

There are limits to how much you can collect in a security deposit. For unfurnished units, you cannot charge more than two months’ rent. If you’re renting out a furnished unit, you can charge up to three months' rent for the security deposit.


  • Deposits are refundable. 

There is no such thing as a non-refundable security deposit. 


  • Deposits must be returned within 21 days

At the end of the lease term, you have 21 days after a tenant moves out to return the security deposit and/or an itemized accounting of why money was withheld and what it’s being used for. 


Most trouble starts when it comes to security deposit deductions.


You can use the deposit for damage, unpaid rent, and unpaid utilities. You can use it to clean the unit. You cannot use the security deposit to make repairs and replacements that are normal wear and tear items. 

Educate on Law

These are some of the most important laws you need to understand and comply with when it comes to rental properties in Merced and the surrounding areas. Don’t put yourself at risk of making an expensive legal mistake. If you cannot take the time to educate yourself on the state laws and how they apply to your property, please contact us at Wisdom Property Management & Realty, Inc. We lease, manage, and maintain investment properties in Merced, Atwater, Livingston, Winton, and Delhi.



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It is time to get social, and we’re going to insist you become an influencer even if you don’t naturally gravitate towards the likes of Instagram, Facebook, and other social media platforms. Leveraging social media to market rental properties in Merced and throughout California is essential. You gain a lot more traction on social sites than you do by simply posting a listing on Zillow or HotPads. All of your potential renters are on social media, and you should be there too. Let’s talk about some tips, assuming you’re not already going viral on the ‘gram. Part One: Put Together Your Profile A successful social media strategy starts with a profile that will attract the kind of attention you want. If you’re already a presence on social media, that’s great. If you’re just getting started to better market your rental home , be intentional about how you present yourself. Your audience will likely be potential renters who will view your page and consider the homes you have to offer. If you’re posting homes for rent on your personal social media pages, you can easily include all of the people you already know in your network. However, you also want to make sure your personal page is professional. If you’re prone to angry political posts, you might alienate a lot of potential renters on the other side. Your social media presence, as a landlord, needs to be welcoming to everyone. Generally, we recommend that you establish a separate profile for the work you plan to do sharing your rentals. This will help narrow your social media postings on that particular profile to the rental property you’re marketing or related topics. Visitors won’t get confused, and they won’t have to scroll past photos of your pets and vacations to find the homes you offer for rent. Before you start posting about your available rental properties, you’ll want to make sure you have all of the pertinent information on your profile. There has to be updated contact information, for example. You’ll also want a credible profile photo. Maybe it’s a snapshot of the property you’re trying to rent. It could be a picture of the neighborhood or even a photo of the state or region you’re in. A picture of yourself is also fine, as long as it’s professional. Reaching the Right Social Media Audiences When we’re talking about social media marketing, it’s important to understand that the audience is everything. Social spaces are crowded, and you want to reach the right people. According to the Pew Research Center, more than 72 percent of Americans use social media daily. By using hashtags, joining local or industry-specific groups, and following popular sites and spots throughout Merced, you’ll focus on the people who are looking for a new rental home or on the people who know people who are looking for a new rental home. Create a Social Media-Friendly Listing What will get the most attention on social media sites? Photos and videos. These will be your most important tools when we talk about posting your rental listing on social media sites. This is the type of content that gets attention. It gets likes. It gets shares. It gets comments. All of those things will expand your audience and increase your reach. Although text plays an essential role in social media, and you’ll use it to share details such as: Rental amount Move-in ready dates Rental qualifications Security deposit amounts Images and videos are especially crucial. You’ll want to upload clear and crisp photos so that they render well on mobile devices. You’ll want short, engaging videos that showcase your property and provide people with a glimpse of how things look. If you want to be more impactful with how you market Merced homes for rent on social media, focus on the property’s layout, show real-time room sizes, give viewers a close-up of amenities , and an idea of the property’s location. When you have special features to show off, such as walk-in pantries, garden tubs, smart home technology like video doorbells, and fenced backyards, video is a great way to show those things off while giving viewers an idea of what it’s like to actually be there. Plenty of social media platforms are built for video; you can use Instagram reels, Facebook and Instagram live videos, Snapchat story updates, and of course YouTube. Hashtags are Essential Please tell us you know what a hashtag is. They’re helpful when you’re posting because they get the attention of your target audience. Using hashtags on your posts makes them more accessible because when people search for a particular hashtag, your post will be there, ready for them to view. Use specific hashtags that identify your location, the type of property, or the neighborhood name. Try #Mercedrentals, #Mercedhomeforrent, #Mercedapartment, and similar hashtags to get attention and focus on your desired audience. Promote Your Merced Rental Listing
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