Owning rental property in Long Beach can be a smart investment, but one legal slip-up can turn it into an expensive headache. Tenant laws are strict, and even an honest mistake can cost thousands. Here are some common legal traps and how to avoid them.
Think of security deposits as a boomerang: if you don’t handle them right, they’ll come flying back at you, but with legal trouble attached. California law limits security deposits to two months’ rent for unfurnished units and three months for furnished ones. Fail to return the deposit within 21 days? You might owe double in penalties.
How to avoid it: Document everything. Take photos before and after a tenant moves out. Keep receipts for repairs. And if deductions are necessary, provide an itemized list. Not sure if you’re doing it right? CMC Realty and Property Management can handle deposits and keep you compliant.
You find a great tenant, or so you think. A few months later, they stop paying rent. Eviction takes months and costs over $3,500 on average in California. That’s not counting lost rental income.
How to avoid it: Always run a thorough background check, including credit, rental history, and employment verification. At CMC Realty, we screen tenants for you, ensuring you get responsible renters, not professional squatters.
Including the wrong language in your lease can land you in hot water. California law bans “no pet” policies for service animals, limits late fees, and requires habitable conditions. A lease with illegal clauses? It can be voided by a court.
How to avoid it: Use a lease tailored for California laws. Generic leases from the internet won’t cut it. At CMC Realty and Property Management, we provide landlord-approved leases that protect you and keep you legal.
California has strict habitability laws. A leaking roof, broken heater, or pest infestation can lead to withheld rent or even legal action. Ignoring repairs? Tenants can sue for up to $12,500 in small claims court.
How to avoid it: Stay on top of maintenance requests. Fix problems fast. Need help? At CMC Realty, we have a network of reliable contractors to keep your property in top shape without breaking the bank.
Thinking of kicking out a non-paying tenant with a quick text message? Think again. California law requires a 3-day, 30-day, or 60-day notice, depending on the situation. Serve it wrong, and you’ll have to start over.
How to avoid it: Follow legal procedures to the letter. If you’re unsure, CMC Realty and Property Management can handle eviction notices properly, so you don’t end up in court.
Long Beach landlords must follow the California Tenant Protection Act, which caps annual rent increases at 5% plus inflation (or 10% max). Raising rent too high? You could be forced to refund the excess or face legal action.
How to avoid it: Stay updated on local and state rent control laws. Or let CMC Realty and Property Management manage rent increases legally and strategically.
Denying a tenant because they have kids, are on Section 8, or speak another language? That’s a lawsuit waiting to happen. Fair housing violations can lead to fines up to $16,000 for a first offense.
How to avoid it: Treat all applicants fairly. Focus on financial qualifications, not personal details. If in doubt, CMC Realty and Property Management ensures you stay compliant with fair housing laws.
Fires, floods, or lawsuits from injured tenants can wipe out your profits in a heartbeat. Yet 25% of landlords don’t have the right insurance coverage. Working with a property management company like New Age Realty Group ensures you’re connected with trusted insurance providers who can help you get the coverage you need, including property damage, liability, and rental income protection.
Long Beach has some of the strictest landlord laws in California. One mistake can cost thousands. But with expert help from CMC Realty and Property Management, you can avoid legal pitfalls and focus on what matters: growing your rental income stress-free.
Want to stay on the right side of the law? Contact us today!
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