So, you’ve finally found tenants who want to lease your California rental property – congrats! Now is the time to write an air-tight lease agreement to ensure both you and your tenants are protected. As you sit down to write it, though, you ask yourself, “Do all tenants have to be on a lease in California?”
The legal answer is no. However, as with almost everything in the world of real estate, there is much more to it.
We’re diving into the details and nuances of which tenants should be included on the lease for your California property and the consequences of unsigned tenants.
The Importance of a Lease Agreement
A lease agreement is a legally binding document between a landlord and a tenant. The document outlines the agreed-upon terms and responsibilities of both parties during a certain time period.
For example, a lease indicates the amount of rent each month and when it is due, late rent fees, pet policies, and how tenants should make maintenance requests or move-out notices.
The lease also protects landlords if a tenant breaks the terms outlined in the agreement. This includes non-payment of rent. In this case, the landlord can legally begin the eviction process.
If you’re just starting your landlord journey, always remember that it is crucial to have a thoroughly written lease signed between you and your tenant. This avoids many legal issues and protects both parties.
Do All Tenants Have to Be on a Lease?
Legally, all tenants do not have to be on a lease agreement in California. However, landlords should definitely consider including all tenants of legal age on the lease.
There are some exceptions to this rule, though, depending on the situation of your tenant.
Who Should Be on the Lease?
At least one tenant who is 18 years of age should be on the lease for your California rental property. When someone signs a lease, they are agreeing to be responsible and held liable for any damage to the property or missed rent payments.
Essentially, this means that if other tenants are living in the property, the tenant who signed the lease agreement is the one taking the fall if lease terms are violated.
Who Does Not Have to Be on the Lease?
In certain situations, there is no need for every single person living in your rental property to be on the lease.
These tenants include:
- Minors – Children or dependents under the age of 18 do not have to be on the lease when living with their parents
- Temporary Guests – Visitors or guests who stay less than 30 days do not have to be on the lease – if they stay longer, this could change though.
- Live-In Aids or Caregivers – Individuals who are live-in aides or caregivers for a disabled or elderly tenant might not need to be on the lease. These individuals are typically there to provide care and may not be considered tenants in the traditional sense.
- Subtenants – If a tenant subleases the property with the landlord’s permission, the subtenant does not need a new lease as the previous tenant will still be responsible for the payment of rent and any damages.
- Spouses or Domestic Partners – While it’s a good idea to have both spouses on the lease, some couples may not agree to this.
- Roommates with Informal Agreements – In some cases, a tenant may rent out a room in the property to a roommate who is not on the lease. If this is the case, landlords should have a Co-Tenant Addendum listing each roommate’s information in addition to the lease.
- Non-Resident Family Members – If the tenant invites their family members to stay with them in the rental property for a period of time, they do not have to be on the lease.
It’s important to consider all situations when deciding who should be included in the lease, as it can lead to sticky legal situations in case of violations.
Disclaimer: The information provided is intended for general knowledge and informational purposes only, and does not constitute legal advice. California tenant-landlord law is complex and subject to change. It is strongly recommended that you consult with an attorney for advice regarding your individual circumstances.
Consequences of Tenants Not on a Lease
You might have leased your rental property to a tenant and they have roommates, partners, or other legal-aged people living in the property. But what risks do landlords take when some of the occupants are not on the lease?
No Right to Evict
When a tenant is not on a lease, and they fail to pay rent, the landlord does not have a right to formally evict them. This is due to not having an agreement that the occupant will pay rent on a certain day of the month in a specific amount.
This can result in a squatter situation, which can be a very long and frustrating process for landlords.
Lack of Responsibility for Damages
When a tenant signs a lease, they often provide a security deposit to cover any damage that may happen throughout the lease term. If an occupant is not on the lease, then they cannot be held responsible for covering any property damage they may have caused.
Difficult to Enforce Rules
Without a signed lease stating the rules and expectations of the tenants and occupants living in your California rental property, it can be extremely difficult to enforce these rules. Unless illegal activity takes place, there is almost nothing the landlord can do.
Write an Air-Tight Lease with Lotus Property Services
One of the most difficult parts of owning rental properties is making sure everything is compliant and air-tight to protect both yourself and your property.
The best way to ensure 100% compliance with local and federal real estate laws is by working with a reliable and experienced property management company like Lotus Property Services.
Our full-service property management company is ready to take on the little details and tasks required to manage and maintain a rental along with the large-scale tasks like writing a comprehensive and legally binding lease agreement.
Through our years of experience, we’ll ensure all the right people are on the lease to avoid any potential legal issues.
If you enjoyed this article, make sure to read How to Get Rid of Bad Tenants Without an Eviction next!