Redwood City has become one of the most dynamic rental markets on the Peninsula, with new developments downtown and strong demand from tech workers, Stanford affiliates, and young professionals. But the city's landlord-tenant regulations are more complex than many property owners realize. Understanding these rules is essential to operating successfully and avoiding costly legal mistakes.
California's Statewide Tenant Protections
Assembly Bill 1482, the Tenant Protection Act, applies to most rental properties in California built more than 15 years ago. It caps annual rent increases at 5 percent plus the local Consumer Price Index, with a maximum of 10 percent. It also requires just-cause for eviction after a tenant has occupied the unit for 12 months.
In Redwood City, this statewide law is the primary framework governing most residential rentals. Single-family homes are exempt if the owner provides written notice to the tenant, and properties built within the last 15 years are also exempt. But for the majority of multi-family rentals and older single-family homes without the required notice, AB 1482 applies.
Just-Cause Eviction Requirements
Under just-cause protections, landlords can only terminate a tenancy for specific reasons. These fall into two categories:
- At-fault causes. Nonpayment of rent, breach of the lease, nuisance behavior, criminal activity, or refusal to allow the landlord reasonable access for repairs.
- No-fault causes. Owner move-in, withdrawal of the unit from the rental market under the Ellis Act, substantial renovation that requires the unit to be vacant, or compliance with a government order. No-fault evictions require relocation assistance equal to one month's rent.
Failing to follow proper just-cause procedures can expose landlords to significant liability, including claims for wrongful eviction and tenant harassment. The procedural requirements are specific and must be followed precisely.
Rent Increase Procedures
For properties subject to AB 1482, rent increases require 30 days written notice for increases of 10 percent or less, and 90 days notice for increases over 10 percent. The notice must comply with California Civil Code requirements and should be delivered via a legally recognized method such as personal service or certified mail.
Even for exempt properties, best practice is to provide reasonable notice and document all communications. Professional landlords on the Peninsula maintain detailed records of every tenant interaction.
Security Deposit Rules
California law caps security deposits at two months' rent for unfurnished units and three months for furnished units. The deposit must be returned within 21 days of move-out, accompanied by an itemized statement of any deductions. In Redwood City's rental market, where deposits can be $8,000 to $15,000, proper handling of security deposits is both a legal obligation and a business practice that protects your reputation.
Habitability Standards
California's implied warranty of habitability requires landlords to maintain rental units in a condition fit for human occupancy. This includes functioning plumbing, heating, electrical systems, weatherproofing, and adequate sanitation. In older Redwood City neighborhoods like Woodside Plaza and Friendly Acres, maintaining habitability in aging housing stock requires ongoing investment and prompt attention to maintenance requests.
Staying Compliant
The regulatory landscape for landlords in California continues to evolve. I recommend that all Redwood City property owners maintain a relationship with a real estate attorney who specializes in landlord-tenant law. The cost of legal guidance is a fraction of the cost of a compliance mistake. If you need a referral, I am happy to help.