Leasing a property you own

A successful rental starts before the lease is signed. Preparing the property, setting clear rental terms, screening consistently, documenting condition and checking the current rules all matter. Here is what each stage involves.

See the shared process both sides follow →

At a glance

The twelve stages from the ownership side

Select the stage you are at and you will jump straight to it.

Prepare the Property
Set Rental Terms and Screening Criteria
Market and Show the Property
Receive Applications
Screen and Decide Consistently
Document Any Hold
Sign the Lease and Collect Move-In Funds
Deliver Possession and Document Condition
Manage the Tenancy
Renew or End the Tenancy
Handle Move-Out and Final Condition
Complete the Security Deposit Accounting

Stage by stage

What to do and what to verify

Jump to a stage

Prepare the Property
Set Rental Terms and Screening Criteria
Market and Show the Property
Receive Applications
Screen and Decide Consistently
Document Any Hold
Sign the Lease and Collect Move-In Funds
Deliver Possession and Document Condition
Manage the Tenancy
Renew or End the Tenancy
Handle Move-Out and Final Condition
Complete the Security Deposit Accounting

Stage 1

Prepare the Property — Prepare the property

Offer a property that is legally rentable, physically ready, accurately described and administratively organized.

What to do

Confirm property readiness and habitability.
Identify repairs before marketing.
Confirm appliances and systems.
Determine actual parking and garage rights.
Verify HOA or community leasing requirements and occupant access where applicable.
Establish utility and yard responsibilities.
Determine the lease term.
Determine the security deposit consistent with current law.
Prepare property-specific disclosures.
Establish a recordkeeping system.
Decide who will handle maintenance and emergency requests.

What to confirm for this rental

Whether HOA rental rules are current.
Whether the prior lease form is still legally current.
Which amenity access applies to occupants rather than owners.

Common mistakes

Assuming old HOA rental rules remain current.
Assuming ownership amenities transfer automatically.
Assuming an owner's tax, insurance or HOA facts determine the tenant's obligations.

Verified Sep 18, 2026

· Sources (1)

California Department of Real Estate

Stage 2

Set Rental Terms and Screening Criteria — Establish terms and screening criteria

Decide the rental terms and establish lawful, documented screening criteria before receiving applications.

What to do

Set asking rent, lease length and move-in availability.
Set the security deposit consistent with current law.
Establish lawful screening criteria and the application process.
Set documentation requirements.
Set the pet policy subject to applicable law.
Set renter-insurance requirements.
Define utilities, parking, occupancy and yard responsibilities.
Confirm HOA or community requirements.

What to confirm for this rental

Whether the deposit amount is consistent with current law.
Whether the screening criteria are documented in writing.

Common mistakes

Improvising screening standards applicant by applicant.

Verified Sep 18, 2026

· Sources (2)

Stage 3

Market and Show the Property — Market and show the property accurately

Accurately present the property and give prospective tenants enough information to make an informed decision.

What to do

Use accurate listing information.
Do not state pet, parking, utility, furnished or HOA facts that have not been verified.
Disclose known and property-specific matters when required.
Put agreed repair promises in writing.
Provide accurate showing information.
Avoid Fair Housing-problematic advertising or steering.
Preserve listing and communication records.

What to confirm for this rental

Parking rights actually conveyed.
Utility responsibility.
Community access for occupants.

Common mistakes

Advertising an amenity the tenant will not actually have access to.

Verified Sep 18, 2026

· Sources (2)

Stage 4

Receive Applications — Receive applications under a documented process

Receive complete applications under a documented and legally current process.

What to do

Provide screening criteria and process in writing where required.
Track completed applications in the required order.
Do not charge a screening fee before the application is actually considered where current law so requires.
Use the correct current screening-fee rules.
Provide required receipts and refunds.
Protect applicant information.
Document whether the application was considered.

What to confirm for this rental

The current statutory screening-fee limit.
Which screening service will be used and what it charges.

Common mistakes

Confusing a provider's price with California's legal fee rules.

Current California rules that apply here — Application screening framework; Application screening fee limit; Copy of the consumer credit report; A California rental agreement may be oral or written

Application screening framework: Under the framework described in the DRE 2026 guide and effective beginning in 2025, the landlord's screening process is provided in writing with the application, completed applications are considered under established screening criteria in the order received, the first applicant meeting those criteria is approved, and an applicant is not charged a screening fee unless or until the application is actually considered.; California · Last verified September 18, 2026 · Source: California Department of Real Estate, California Legislative Information
Application screening fee limit: California limits the application screening fee a landlord may charge, and the maximum is adjusted over time. Verify the current authoritative amount before relying on any figure.; California · Last verified September 18, 2026 · Source: California Department of Real Estate, California Legislative Information
Copy of the consumer credit report: The DRE guide states that when an applicant paid an application fee and the landlord obtained the applicant's consumer credit report, the landlord must provide a copy of the report within seven days of receiving it.; California · Last verified September 18, 2026 · Source: California Department of Real Estate
A California rental agreement may be oral or written: California rental agreements may be oral or written. A written agreement is strongly recommended so the terms are clear and documented.; California · Last verified September 18, 2026 · Source: California Department of Real Estate

Verified Sep 18, 2026

· Sources (3)

Stage 5

Screen and Decide Consistently — Screen and decide consistently

Apply established criteria consistently and communicate the result properly.

What to do

Verify authorized screening information.
Evaluate lawful income documentation.
Follow current Fair Housing rules.
Follow current rules governing criminal-history screening.
Follow consumer-reporting and adverse-action requirements.
Provide required report copies and notices.
Approve the first qualifying applicant when the applicable screening process requires it.
Retain documentation appropriate to the transaction.

What to confirm for this rental

Whether an accommodation request applies.
Which notices the consumer report triggers.

Common mistakes

Changing standards between applicants.
Deciding an ambiguous compliance question without guidance.

Current California rules that apply here — Application screening framework; Copy of the consumer credit report

Application screening framework: Under the framework described in the DRE 2026 guide and effective beginning in 2025, the landlord's screening process is provided in writing with the application, completed applications are considered under established screening criteria in the order received, the first applicant meeting those criteria is approved, and an applicant is not charged a screening fee unless or until the application is actually considered.; California · Last verified September 18, 2026 · Source: California Department of Real Estate, California Legislative Information
Copy of the consumer credit report: The DRE guide states that when an applicant paid an application fee and the landlord obtained the applicant's consumer credit report, the landlord must provide a copy of the report within seven days of receiving it.; California · Last verified September 18, 2026 · Source: California Department of Real Estate

Verified Sep 18, 2026

· Sources (3)

Stage 6

Document Any Hold — Document any hold in writing

Document any agreement to remove the property from the market before possession.

What to do

State the amount and the property.
State the holding period.
State whether marketing stops.
State the approval and rejection outcomes.
State what happens if the applicant cancels.
State whether the money applies to first month's rent or the security deposit.
State refund and retention conditions.
State the deadline for signing and funding.
Provide a receipt.

What to confirm for this rental

Whether the hold and the security deposit are documented separately.

Common mistakes

Taking a hold with no written agreement.

Verified Sep 18, 2026

· Sources (1)

California Department of Real Estate

Stage 7

Sign the Lease and Collect Move-In Funds — Execute the lease and collect move-in funds

Execute a complete agreement and collect permitted move-in funds.

What to do

Use a current lease form.
Identify all parties correctly.
State rent and payment terms, deposit and term.
State occupants, utilities, parking and yard responsibility.
State maintenance contacts and repair promises.
Attach all addenda and HOA or community rules where applicable.
Include legally required disclosures and renter-insurance terms.
Collect the correct move-in money.
Deliver signed copies as required.

What to confirm for this rental

Whether a small-landlord exception applies before relying on it.

Common mistakes

Splitting one statutory security deposit into separate pet, key or cleaning deposits to exceed the lawful limit.

Current California rules that apply here — Security deposit limit and small-landlord exception; A California rental agreement may be oral or written

Security deposit limit and small-landlord exception: The DRE 2026 guide describes California's general rule limiting a residential security deposit to one month's rent, with a statutory small-landlord exception that can permit up to two months' rent when the requirements are met.; California · Last verified September 18, 2026 · Source: California Department of Real Estate, California Legislative Information
A California rental agreement may be oral or written: California rental agreements may be oral or written. A written agreement is strongly recommended so the terms are clear and documented.; California · Last verified September 18, 2026 · Source: California Department of Real Estate

Verified Sep 18, 2026

· Sources (2)

Stage 8

Deliver Possession and Document Condition — Deliver possession and document condition

Deliver the agreed property and create a defensible record of condition.

What to do

Complete the required landlord photographs.
Document move-in condition.
Complete the condition checklist.
Provide keys and access.
Provide maintenance and emergency contact information.
Confirm agreed work.
Preserve photos and checklists.
Provide applicable community access information.

What to confirm for this rental

Community gate registration and parking procedures for occupants.

Common mistakes

Delivering possession before the condition record exists.

Current California rules that apply here — Landlord move-in photographs; 2026 stove and refrigerator habitability requirement

Landlord move-in photographs: The DRE 2026 guide states that, as of 2025, landlords are required to photograph the rental immediately before or at the commencement of the tenancy to document its condition. A tenant should still keep their own dated documentation.; California · Last verified September 18, 2026 · Source: California Department of Real Estate
2026 stove and refrigerator habitability requirement: The DRE identifies a 2026 rule requiring a working stove and refrigerator for habitability, unless the landlord and tenant mutually agree that the tenant will provide their own stove and/or refrigerator.; California · Last verified September 18, 2026 · Source: California Department of Real Estate

Verified Sep 18, 2026

· Sources (1)

California Department of Real Estate

Stage 9

Manage the Tenancy — Administer the tenancy

Maintain the property, administer the lease, communicate and preserve records.

What to do

Keep a rent ledger.
Keep maintenance records.
Communicate about repairs in writing.
Respond to habitability issues.
Use lawful entry notices.
Coordinate with the HOA or community.
Administer lease compliance.
Handle changes to the tenancy properly.
Follow current rent-increase rules.
Retain required records.

What to confirm for this rental

Whether a local ordinance affects rent changes for this property.

Common mistakes

Relying on generic website copy for a fact-specific dispute.

Current California rules that apply here — Landlord entry and the 24-hour presumption; 2026 stove and refrigerator habitability requirement

Landlord entry and the 24-hour presumption: The DRE guide states that California permits landlord entry only for specified reasons, and that absent contrary evidence 24 hours' advance written notice is presumed reasonable in most ordinary entry situations, subject to exceptions.; California · Last verified September 18, 2026 · Source: California Department of Real Estate, California Legislative Information
2026 stove and refrigerator habitability requirement: The DRE identifies a 2026 rule requiring a working stove and refrigerator for habitability, unless the landlord and tenant mutually agree that the tenant will provide their own stove and/or refrigerator.; California · Last verified September 18, 2026 · Source: California Department of Real Estate

Verified Sep 18, 2026

· Sources (3)

Stage 10

Renew or End the Tenancy — Renew or end the tenancy correctly

Determine whether the tenancy continues and follow the correct process if terms change or occupancy ends.

What to do

Review lease expiration.
Identify the current tenancy type.
Verify applicable rent-increase restrictions.
Determine whether just-cause requirements apply.
Determine whether an exemption applies.
Verify local ordinances.
Use current notice and form requirements.
Document service.
Notify the tenant of pre-move-out inspection rights where required.

What to confirm for this rental

Whether the Tenant Protection Act applies to this property.
Which local ordinance applies at the property's legal location.

Common mistakes

Applying a simplified 30- or 60-day rule to every situation.
Using an outdated notice form.

Current California rules that apply here — Month-to-month tenant notice

Month-to-month tenant notice: The DRE 2026 guide states that a tenant in a month-to-month tenancy generally gives written notice at least 30 days before moving. This example is not a universal termination rule, and landlord termination requirements are different and fact-specific.; California · Last verified September 18, 2026 · Source: California Department of Real Estate, Judicial Branch of California

Verified Sep 18, 2026

· Sources (3)

Stage 11

Handle Move-Out and Final Condition — Pre-move-out and final condition

Give the tenant the required opportunity to understand potential deductions and document final condition correctly.

What to do

Send notice of the right to request an initial inspection.
Schedule a requested inspection within the applicable window.
Allow the tenant to be present where required.
Provide the required itemization after the initial inspection.
Document the final possession date.
Take required photographs after possession is returned and before deductible work.
Perform only reasonably necessary deductible work.
Take required photographs after that work.
Retain invoices, receipts and estimates.

What to confirm for this rental

The applicable inspection window for this tenancy.

Common mistakes

Skipping the notice of the right to request an initial inspection.

Current California rules that apply here — Initial (pre-move-out) inspection

Initial (pre-move-out) inspection: The DRE guide states that the landlord must notify the tenant of the right to request an initial inspection, that the tenant may request it and be present, that it generally occurs during the final 14 days of the tenancy, and that it gives the tenant an opportunity to address cleaning or repairs that could otherwise result in deductions. Exceptions apply.; California · Last verified September 18, 2026 · Source: California Department of Real Estate

Verified Sep 18, 2026

· Sources (1)

California Department of Real Estate

Stage 12

Complete the Security Deposit Accounting — Close out the deposit

Return funds and provide required accounting within the legally required period.

What to do

Calculate only lawful deductions.
Prepare the itemized statement.
Include required supporting documentation.
Return the undisputed balance.
Comply with photograph requirements.
Use the required digital refund method when applicable.
Preserve proof of delivery.
Retain transaction records.

What to confirm for this rental

Whether the tenant paid rent or the deposit digitally.

Common mistakes

Deducting for normal wear and tear.

Current California rules that apply here — Lawful security deposit deductions; 21-day deposit accounting; Deposit-related photographs; 2026 digital security deposit refund rule

Lawful security deposit deductions: The DRE guide identifies deductions for specified purposes such as unpaid rent, cleaning necessary to return the property to its move-in level of cleanliness excluding normal wear and tear, repair of tenant or guest damage beyond normal wear and tear, and certain restoration or replacement of personal property when authorized by the rental agreement.; California · Last verified September 18, 2026 · Source: California Department of Real Estate
21-day deposit accounting: The DRE guide states that a landlord generally has 21 days after the tenant moves out to provide the required refund and accounting documentation.; California · Last verified September 18, 2026 · Source: California Department of Real Estate
Deposit-related photographs: The DRE guide describes 2025 requirements for landlord photographs taken after possession is returned and before deductible repair or cleaning work, and again after that work is completed.; California · Last verified September 18, 2026 · Source: California Department of Real Estate
2026 digital security deposit refund rule: Beginning January 1, 2026, the DRE guide states that if the tenant paid the security deposit or rent by a digital payment method, the landlord must return the security deposit by a digital payment method unless the parties agree in writing to another method.; California · Last verified September 18, 2026 · Source: California Department of Real Estate

Verified Sep 18, 2026

· Sources (2)

When to get current legal guidance

Fair Housing questions, accommodation requests, criminal-history screening, adverse action, notices and terminations carry real legal exposure. Confirm the current rule before acting.

Official help and legal resources →

This is general educational information about the California residential leasing process. It is not legal advice, it is not specific to any property or situation, and rules change. Verify anything you rely on with the official sources below or with a qualified professional.