California Rental Compliance: The Sacramento Owner's Guide (2026)

California's Tenant Protection Act (Civil Code § 1947.12, enacted by AB 1482 and tightened by SB 567 effective April 1, 2024) limits how much you can raise rent on a covered property. The increase may not exceed the lower of 5% plus the regional change in the cost of living (CPI), or 10% — measured against the lowest gross rent charged in the prior 12 months. You may not raise rent more than twice in any 12-month period.

Because the CPI component is regional and recalculated every year, the exact maximum percentage changes annually and by area — there is no single fixed number to memorize. The Act is currently scheduled to sunset on January 1, 2030.

Under Civil Code § 1946.2, once a tenant has lawfully occupied a residential property for 12 months, you can no longer end the tenancy without stating a legally recognized 'just cause' in the written termination notice. (Where multiple adults live in the unit, the trigger is at least one adult occupying 12 months, or all adult tenants occupying 24 months.)

Just causes fall into two buckets: 'at-fault' (e.g., nonpayment, lease violations) and 'no-fault' (owner move-in, withdrawal from the rental market, a government order, or a substantial remodel). The notice must state the specific ground.

If you want your property back to move in yourself or a close family member (owner, spouse, domestic partner, child, grandchild, parent, or grandparent), SB 567 now requires that the person actually occupy the unit as a primary residence for at least 12 continuous months and move in within 90 days after the tenant leaves. The termination notice must name the intended occupant and their relationship to you, and there must be no other comparable vacant unit available. If the occupant never moves in or moves out early, you must offer the unit back at the original rent and reimburse the tenant's moving costs.

A 'substantial remodel' no-fault eviction is similarly narrow: it requires permitted structural, electrical, plumbing, or mechanical work (or hazardous-material abatement) that forces the unit to be vacant for at least 30 consecutive days. Cosmetic work — paint, flooring, minor repairs — does not qualify, and you must attach a copy of the required permits to the notice.

Every no-fault eviction (owner move-in, market withdrawal, government order, demolish/substantial remodel) requires you to pay the tenant relocation assistance equal to one month's rent — by direct payment or by waiving the last month's rent.

If you recover possession in material violation of the just-cause rules, Civil Code § 1946.2(h) makes you liable for the tenant's actual damages and, at the court's discretion, their attorney's fees and costs. If you acted willfully or with oppression, fraud, or malice, the court can award up to three times the actual damages.

Single-family homes and condominiums can be exempt from both the rent cap and the just-cause rules — but only if BOTH conditions are met: (1) the property is not owned by a real estate investment trust, a corporation, or an LLC with a corporate member; AND (2) you gave the tenant the specific written notice the statute requires, stating that the property is not subject to Civil Code §§ 1947.12 and 1946.2.

This is where many owners get caught: they assume their rental house is automatically exempt and never deliver the required notice language. Without that notice, the property is NOT exempt and the full rent-cap and just-cause rules apply.

Effective July 1, 2024, AB 12 caps residential security deposits at one month's rent — for furnished and unfurnished units alike, replacing the old two- and three-month limits. There is a narrow small-landlord exception allowing two months' rent: it applies only if you are a natural person (or an LLC whose members are all natural persons) AND you own no more than two residential rental properties totaling no more than four units. Even then, active-duty service members may be charged no more than one month.

Within 21 calendar days after a tenant moves out, you must return any remaining deposit together with an itemized statement of deductions, delivered personally or by first-class mail. You may deduct only for unpaid rent, repair of damage beyond ordinary wear and tear, cleaning to the unit's move-in level of cleanliness, and authorized restoration of personal property — never for ordinary wear and tear or conditions that pre-existed the tenancy.

Bad-faith retention of a deposit can subject you to statutory damages of up to twice the deposit amount, on top of the actual deposit and any actual damages. (Note: AB 2801 renumbered the subdivisions of § 1950.5 effective July 1, 2025; the current statute on leginfo is the canonical reference.)

Since SB 329 took effect January 1, 2020, 'source of income' is a protected class under California's Fair Employment and Housing Act (Government Code § 12955) — and it explicitly includes Section 8 housing-choice vouchers, plus other public assistance. You may not refuse to rent to voucher holders, treat voucher income as inferior, advertise 'no Section 8,' or apply a blanket no-voucher policy.

If you use a minimum-income screen (say, income of 3× rent), you must apply that multiplier only to the tenant's portion of the rent — not the full rent — because the housing authority pays the rest. You may still apply neutral, uniformly-applied credit and rental-history screening.

California's implied warranty of habitability (Civil Code §§ 1941–1941.1) requires you to keep a rental tenantable. A dwelling is considered untenantable if it substantially lacks effective waterproofing and weather protection (sound roof, exterior walls, unbroken windows and doors); working plumbing and gas; hot and cold running water with approved sewage disposal; working heating; safe electrical and lighting; clean, sanitary, pest-free premises; adequate garbage receptacles; and floors, stairways, and railings in good repair.

For leases entered into on or after January 1, 2026, the list also requires that a supplied stove and refrigerator be maintained in good working order.

Under Business & Professions Code § 10131(b), anyone who, for compensation, leases or rents real property for others — or collects rents on an owner's behalf — is acting as a real estate broker and must hold a California Department of Real Estate (DRE) broker license. A narrow exemption covers an on-site resident manager of an apartment building and that manager's employees, and certain supervised employees working under a broker of record.

The practical takeaway for owners: handing your rental to an unlicensed 'manager' who collects rent for you means trusting someone operating outside the law — with no DRE oversight, trust-account rules, or recourse. SPMG operates under a licensed California broker (DRE #02243502).

State law is the floor, not the ceiling. The City of Sacramento operates a local Tenant Protection Program that layers additional requirements on top of the statewide Tenant Protection Act for certain properties, and local rules can change. Owners are responsible for complying with both state and any applicable local ordinance for the city where the property sits.

Because local rules vary by city and are updated periodically, confirm the current requirements for your specific address rather than relying on a general summary.