Lease and Rental Agreement Disclosures: Agent for Service of Process and Rent Payments
California law requires rental property owners or their agents to provide to tenants specific information in the rental agreement (if no written agreement exists, the owner must still provide to the tenant, in writing, this information). This information must be provided to the tenant in specific formats and must be given to tenants periodically. Below is an overview of the specific requirements.
A. Required Disclosures in the Rental Agreement – An owner of one or more rental units or a party signing a rental agreement or lease on behalf of the owner must do all of the following:
1. Disclose in the rental agreement or lease the name, telephone number, and usual street address at which personal service may be made of each person who is:
- Authorized to manage the premises.
- An owner of the premises or a person who is authorized to act for and on behalf of the owner for the purpose of service of process and for the purpose of receiving and receipting for all notices and demands.
2. Disclose in the rental agreement or lease the name, telephone number, and address of the person or entity to whom rent payments are to be made.
- If rent payments can be made personally, the usual days and hours that the person will be available to receive the payments must also be disclosed.
- At the owner’s option, the rental agreement or lease can disclose the number of either:
- The account in a financial institution into which rent payments may be made, and the name and street address of the institution; provided that the institution is located within five miles of the rental property.
- The information necessary to establish an electronic funds transfer procedure for paying the rent.
3. Disclose in the rental agreement or lease the form or forms in which rent payments are to be made by the tenant.
B. Copies of the Rental Agreement to be Provided – The owner or agent must:
- Provide to the tenant within 15 days of its execution a copy of the rental agreement or lease.
- Once each calendar year thereafter, if requested by the tenant, the owner or owner’s agent must provide an additional copy of the rental agreement or lease to the tenant within 15 days.
- If the owner or owner’s agent does not possess the rental agreement or lease or a copy of it, the owner or owner’s agent shall instead furnish the tenant with a written statement stating that fact and containing the information required by paragraphs 1, 2, and 3 of Section A above.
C. Oral Rental Agreements – In the case of an oral rental agreement, the owner, or a person acting on behalf of the owner for the receipt of rent or otherwise, shall furnish the tenant, within 15 days of the agreement, with a written statement containing the information required by paragraphs 1, 2, and 3 of Section A above. Once each calendar year thereafter, if requested by the tenant, the owner or owner’s agent shall provide an additional copy of the statement to the tenant within 15 days.
D. Current Information – New Agents & Owners- The information required by this law must be kept current. This law extends to and is enforceable against any successor owner or manager, who must comply with this law within 15 days of succeeding the previous owner or manager.
E. Agents Who Fail to Comply – A party who enters into a rental agreement on behalf of the owner who fails to comply with this law is deemed an agent of each person who is an owner:
- For the purpose of service of process and receiving and receipting for notices and demands.
- For the purpose of performing the obligations of the owner under the law and under the rental agreement.
- For the purpose of receiving rental payments, which may be made in cash, by check, by money order, or in any form previously accepted by the owner or owner’s agent, unless the form of payment has been specified in the oral or written agreement, or the tenant has been notified by the owner in writing that a particular form of payment is unacceptable. (Note: Except under specific circumstances, California law prohibits owners from requiring a tenant to pay rent or a security deposit in cash only. See Civil Code Section 1947.3 and/or CAA’s Industry Insight – Cash Only Policy.)
In the event an owner, successor owner, manager, or agent fails to comply with the requirements of this law, service of process by a tenant with respect to a dispute arising out of the tenancy may be made by registered or certified mail sent to the address at which rent is paid, in which case the provisions of Section 1013 of the Code of Civil Procedure shall apply.
F. Mailing of Rent or Notices by Tenant – If the address provided by the owner does not allow for personal delivery, then it shall be conclusively presumed that upon the mailing of any rent or notice to the owner by the tenant to the name and address provided, the notice or rent is deemed receivable by the owner on the date posted, if the tenant can show proof of mailing to the name and address provided by the owner.
G. Alternative Posting of Required Information – The information required by Section A.1. above can be alternatively disclosed by the owner or agent to the tenant in the following way:
- In each dwelling structure containing an elevator a printed or typewritten notice containing the information required by Section A.1. above shall be placed in every elevator and in one other conspicuous place.
- In each structure not containing an elevator, a printed or typewritten notice containing the information required by Section A.1. above can be placed in at least two conspicuous places at the property.
- In the case of a single unit dwelling structure, the information to be disclosed under this section may be disclosed by complying with either one of above two preceding paragraphs.
Related Items and Information
- Civil Code Section 1962, 1962.5, and 1962.7
- Civil Code Section 1947.3
- Code of Civil Procedure 1013