California Room Lease Agreement Basics

Overview of Room Lease Agreements in California

In the state of California, a Room Lease Agreement refers to a contractual arrangement in which a landlord (or lessor) rents out a single room to a tenant (often called a "roommate") within a larger accommodation. These room leases are common in shared living situations such as house, apartment, or dormitory settings and can involve multiple individuals living under the same roof. While it is often the case that these room leases are quite informal in nature, the legal implications can be nearly identical to those of a traditional residential lease .
The concept of a Room Lease Agreement encompasses both the traditional rental arrangement and the legal protections it affords to both the landlord and tenant. It spells out the various obligations in terms of usage of the space, roommate conduct (in some cases), payment of rent and utilities, maintenance of the premises, and potentially even consumer protection related to fair housing, accessibility, health and safety standards. It is imperative that these agreements include clear terms or terms of attachment in writing so each party to the agreement understands their legal obligations in the letting and rental situation.

Key Elements of a California Room Lease

When practicing in California, it is imperative that you understand that "room leases" or "room rentals" are governed by their own unique rules and regulations. It is important to keep in mind when drafting the terms of what will eventually become an enforceable agreement between the parties.
In California, one of the most basic and essential components of a room lease is the "rent." For a room lease, it is common for the occupant to pay rent for merely a room, oftentimes a room in a house or multi-unit building, rather than a self-contained apartment. The rent can be paid on a weekly or monthly basis, or even daily. One important note that should be conveyed to your client is the amount of rent that is due and when.
Next, the duration or "term" of the room lease should be discussed and clearly laid out in writing in the agreement. Terms can range from a month to month, yearly, weekly or even daily. More often than not, terms are listed as month to month, which is generally considered to be more favorable to all parties. Keep in mind it can be difficult to terminate agreements which are daily, weekly or monthly. However, monthly agreements can also be terminated at the discretion of the property owner.
Another important aspect of the terms of an agreement is the "security deposit." Some landlords forego this requirement, but more commonly, a security deposit is required to hold the room, apartment or unit. Security deposits usually come back in full to the renter if the property is returned in the same condition as when it was rented. However, this is not the case if damage or repairs are required to return the unit to its original condition. Please note if your client uses the room solely as a dwelling and not for a purpose related to business or profession, only the first month’s rent and/or a security deposit in an amount no more than two month’s rent can be collected.
Finally, there may be "rules" or "house rules" which are expressly stated by the property owner or landlord. House rules may seem onerous at times by larger property owners, but these rules are usually in place for a specific reason, many of which are safety or security purposes. Some common house rules include, quiet hours, occupancy limits, use of common areas, and restrictions on pets, among many others.
Keep in mind, these are just a few examples of the terms which are required to make an enforceable agreement between a landlord and tenant in a room lease. More often than not, the terms will be very similar to a standard lease agreement.

Legal Requirements and Rules

Room Lease Agreements are governed by several California laws. For example, California Civil Code Section 1946 governs the legal requirements for the term and length of a lease. A California lease is either immovable and fixed for a certain time or terminable at the pleasure of the lessor or the lessee without a specific duration. Room leases can be written or oral, and if the lease does not specify its duration, it is subject to a monthly rental payment schedule. California Civil Code Section 1947 governs the amount of rent a landlord may charge in accordance with local rent restrictions.
California Civil Code Section 798 governs occupancy by elderly persons so long as they are at least 55 and have signed a residency agreement.
It is important to note that California Code of Civil Procedure Section 1161 and broker licensing laws apply to room leases. Code of Civil Procedure Section 1161 generally provides a basis on which a landlord can evict a tenant from a room; however, the circumstances specifically confront statutory problems that legislators may later clarify.

Tenants’ and Landlords’ Rights and Obligations

Room lease agreements in California must include the rights and responsibilities of both the tenant and the landlord. Those terms define what is expected from both parties, above and beyond the standard terms included in a lease agreement.
As a general principle of agreement law, the terms of the contract cannot be changed by one party after it is signed without the consent of both parties. If either party to a room lease agreement fails to live up to the specified terms of the agreement, a reasonable person would view that as a breach of the agreement.
Tenant Rights
Under the terms of a room lease agreement, the tenant is given the right to have maintenance work, plumbing repairs and other work done at the rental property without undue delay. The tenant also has the right to a rental property that is in a safe, clean and habitable condition. The tenant has the right to have key access to communal areas and restrictive lockups are a violation of tenant rights. Tenants also retain the right to personal privacy and should be allowed to hide keys if desired.
Landlord Rights
Under the terms of the room lease agreement, the landlord has the right to receive rent on time and should be compensated for any damage that exceeds normal wear and tear. The landlord can enforce reasonable restrictions on access to shared areas and should provide adequate opportunities for tenant and landlord to come and go. If the landlord and tenant have mutually agreed to the keeping of pets, the landlord can not charge unreasonable amounts for damages caused by the pet. There are also limits on the amount of money a landlord can charge as a security deposit.

Common Issues and Solutions

Common disputes with respect to California room lease agreements involve the rental amount, the condition of the premises and any refund of deposits. The two main areas that result in tenant inquiries involve either the amount of rent charged by the landlord or whether or not the landlord has returned the security deposit. Tenants may also ask if the landlord can enter the leased premises without permission. The short answer is that absent an emergency, the landlord should provide the tenant with notice of entry.
Rent amount disputes with respect to a room lease agreement can be relatively common. Many tenants are surprised to learn that for a room lease, the landlord does not have to provide a written lease agreement and can set the rent payment to any amount, payable on any date. Keep in mind though, that a room lease agreement is the least protective type of lease or rental agreement for the tenant, and these types of agreements should not be entered into lightly. First, the tenant should not pay more than $50 in advance. Second, the room must be residential in nature and not just a room used for illegal or immoral purposes. Third, the landlord or owner of the premises must live on-site for more than six months out of the year.
Disputes with respect to security deposits are also common. The landlord must return the deposit in full less any amounts for damage to the room and not for normal wear and tear or unpaid rent. If the landlord refuses to return the security deposit , or from the amount deducted, then the tenant has a number of options. First, the tenant can attempt to mediate the dispute with the landlord. Second, the tenant can file an action in small claims court for return of the security deposit. This type of action is simple and inexpensive. The tenant is limited in small claims court to $10,000 in damages, however, which is generally sufficient for disputes over the return of a security deposit. Finally, the tenant may also file a lawsuit against the landlord if the lease is in writing and does not contain the mandatory disclosures. If the room lease agreement did not disclose the rental amount, the landlord could be liable for the amount charged plus double the amount owed plus reasonable attorney’s fees.
In addition, the tenant may also file a complaint with Department of Consumer Affairs. However, if the landlord is not licensed with the Department of Real Estate, the strap of money claimed by the tenant may exceed the bonding requirement for landlord complaints. For many tenants though, filing a complaint with the Department of Consumer Affairs is a quick way to resolve a serious dispute with a landlord.

How to Write an Effective Room Lease Agreement

A room lease agreement is not just a right to use a room or space in a house. Carefully drafted, the room lease agreement will highlight the benefits of your house to attract the right tenant, and address the unique concerns of houses versus apartments (e.g. sharing bathrooms). If drafted poorly, the room lease agreement could become a source of contention even after a tenant has signed it.
We offer the following tips for drafting a strong room lease agreement, which minimize your chance to be in conflict with tenants:

1. Clear language: The room lease agreement should use language that is clear, concise, and explains exactly what rights you and tenant have under the agreement. In California, it is unlawful to execute an agreement that is misleading, tries to make a tenant give up rights under the law, or is unintelligible.
2. Anticipate issues: Careful consideration of issues that can come up allows you to address them in the room lease agreement. Some anticipated issues include:

a. Privacy: Will tenant have access to all rooms, including sitting rooms, bedrooms, bathrooms, and kitchens? Limiting tenant’s access is legal only if there is a "sound and earnest reason for it," such as a bedbug infestation.
b. Caretaking: Address who will clean shared spaces, pay maintenance fees, or conduct any home remedy for pest control.
c. Restrictions: Limitations on friends visiting, alcohol, or smoking will save the host from constant conflicts with tenant. In California, tenant can never be evicted or subject to utility shutoff without notice.

3. Unforeseen circumstances: Address what happens when someone other than a tenant moves in, gets kicked out or abandons the room, or if tenant dies. The above could affect rent payments or deposits, and affect how long others may stay in the house.

Summary and Recommendations

In summary, a California Room Lease Agreement is a specialized type of lease agreement that covers the rental of a room within a residential property. While these agreements share many standard residential lease terms and conditions, they also incorporate specific provisions that pertain to the unique living arrangement between the landlord and the tenant. Understanding the nuances of these agreements can help both landlords and tenants navigate their rights and obligations more effectively.
What are the best practices for entering into a California Room Lease Agreement? For tenants, it’s crucial to do your due diligence before signing the agreement . Make sure to review all provisions carefully, clarifying any ambiguous terms with your landlord to avoid misunderstandings. Before signing, also make sure to do an official walkthrough of the room and the common areas, bringing along a copy of the lease agreement to verify that the room is as described. For landlords, similarly, reviewing the agreement in detail with the tenant can prevent potential hitches further down the road. And—this is easier said than done—always repair any leaking faucets or other maintenance issues before the tenant moves in.