A fixed-term lease has a last day, and the last day is where most misunderstandings begin. The resident assumes the lease will simply continue, the housing provider (landlord) assumes a new one will be signed, and for a few weeks nobody is sure which is true. California has a clear answer for each of those moments, and it is worth knowing before the calendar gets close.
Three things can happen at the end of a lease
| What happens | How it works | What to watch |
|---|---|---|
| A new lease or written extension is signed | Both sides agree to new terms for a new period | The rent follows the state limit and notice rules |
| The resident stays and rent is accepted, nothing signed | The tenancy is presumed renewed on the same terms, a month at a time when rent is monthly | Either side can end it later with the notice periods below |
| Someone gives notice to end it | The tenancy ends on the date in the notice | A covered home needs a just cause for an owner notice after 12 months |
If the resident stays and nothing is signed
Civil Code 1945 covers this. If a resident remains in possession after the lease ends and the owner accepts rent, the two sides are presumed to have renewed on the same terms and for the same time, not more than one month when the rent is payable monthly, and in no case more than one year. Put simply: a fixed-term lease that quietly rolls past its end date usually becomes a month-to-month tenancy on the old terms.
That is fine for many households. It does mean the old lease terms continue as they were, and rent that was meant to change at renewal does not change on its own. A rent change needs its own written notice, covered in our guide to California rent increases.
Automatic renewal clauses
Many leases say they renew by themselves unless someone gives notice. Civil Code 1945.5 puts a condition on that. In a residential lease, an automatic renewal or extension term can be voided by the party who did not prepare the lease unless the clause appears in at least eight-point boldface type in the body of the lease, and a recital that the clause is there appears in the same bold type right before the place where the resident signs. A resident cannot waive this protection. If your lease form has an automatic renewal clause, look at how it prints.
Ending a month-to-month tenancy
Once a tenancy is month-to-month, Civil Code 1946.1 sets the notice for a residential dwelling:
| Who gives notice | How much notice |
|---|---|
| The owner | At least 60 days before the end date |
| The owner, when the resident has lived there less than one year | At least 30 days |
| The owner, in a qualifying sale | At least 30 days, if the home can be sold separately, a sale is in escrow with a buyer who is a person and plans to live there at least a year, and the notice is given within 120 days of opening escrow (the statute has a few more conditions) |
| The resident | At least as long as the rental period, so 30 days for monthly rent |
The notice is given the way the Code of Civil Procedure describes for notices, or by certified or registered mail. An owner's notice has to include the state's short statement about reclaiming belongings left behind, and neither an owner nor an agent may charge a fee for serving or delivering the notice. A resident can also give their own notice after receiving the owner's, for an earlier date, as long as it covers at least one rental period.
After 12 months, an owner notice needs a just cause
For most homes, Civil Code 1946.2 says that once a resident has lived there continuously for 12 months, the owner cannot end the tenancy without a just cause, and the cause has to be written in the notice. That includes simply letting a lease expire. Two families of reasons count:
- Reasons tied to the lease or the resident's conduct (the law calls these "at-fault" just causes), such as unpaid rent, a serious lease violation that was not corrected after written notice, a nuisance, criminal activity, subletting against the lease, refusing lawful entry, or the resident not leaving by the date in their own written notice. Also on the list: after a written request, the resident does not sign a renewal or extension for a similar term with similar provisions, as long as those terms are lawful.
- Reasons tied to the owner's plans or the law (the law calls these "no-fault" just causes), such as the owner or a close relative moving in for at least 12 months (with conditions), taking the home off the rental market, complying with a government order, or demolishing or substantially remodeling the home. For these, the owner pays one month's rent as relocation help within 15 days of the notice, or waives the last month's rent in writing before it comes due. Leaving that out makes the notice void.
Some homes are exempt. One that comes up often is a single-family home or condominium whose owner is not a corporation, a real estate investment trust or a limited liability company with a corporate member, when the lease contains the required exemption notice (the same notice described in our rent increase guide). For tenancies that started or renewed on or after July 1, 2020, that notice sits in the lease itself, so the lease is the first place to look.
A simple renewal rhythm
These dates are a working suggestion that fits the notice rules above, not a legal requirement:
- About 90 days before the lease ends: check the current rent against the state limit and any city rule, and decide on the offer.
- About 60 days before: send the renewal offer in writing, with the new rent and term, so both sides have time to say yes, ask a question or plan a move.
- About 30 days before: if nothing is signed, decide together whether the tenancy will roll to month-to-month, and put that in a short written note.
If you are a resident
If you plan to stay, ask for the renewal terms in writing and compare the new rent with what you pay now. If you plan to leave, give your written notice for the date you actually intend to be out, because the law treats the date in your own notice as the date you will hand the home back. Our notice to vacate page has the practical steps, and our security deposit guide explains what happens to the deposit afterward.
Where to go from here
Renewal is also the moment the rent is reviewed, so the rent increase guide is the natural next read. If you would rather hand the calendar, the notices and the paperwork to a manager, a consultation is a simple way to ask how we would run it for your home.
This guide is general information for California rental owners and residents, not legal advice, and laws and local ordinances change. For a specific situation, consult a California landlord-tenant attorney. Croskey Real Estate is an Equal Housing Opportunity provider. DRE #01990430.
Frequently asked questions
What happens when a fixed-term lease ends in California and the tenant stays?
If the resident stays and the owner accepts rent, California presumes the tenancy was renewed on the same terms for the same time, not more than one month when rent is monthly (Civil Code 1945). In practice it usually becomes month-to-month.
How much notice does a landlord have to give to end a month-to-month tenancy?
For a residential dwelling, at least 60 days, or 30 days if the resident has lived there less than a year or in a qualifying sale (Civil Code 1946.1). In a home covered by Civil Code 1946.2, the notice also needs a stated just cause after 12 months.
How much notice does a tenant give to leave a month-to-month tenancy?
At least as long as the rental period, which is 30 days for monthly rent (Civil Code 1946.1). The notice goes in writing, in the way the Code of Civil Procedure describes or by certified or registered mail.
Is an automatic renewal clause in a lease valid in California?
It can be, but under Civil Code 1945.5 it is voidable by the party who did not prepare the lease unless it appears in at least eight-point boldface type, with a matching bold recital right before the signature line.
Can a landlord refuse to renew a lease in California?
Not freely in a covered home after the resident has lived there 12 months. The owner needs a just cause written in the notice (Civil Code 1946.2). Reasons tied to the owner's plans or the law (called "no-fault" just causes) require relocation help of one month's rent or a waived last month. A resident not signing a written renewal offer for a similar term is one of the listed causes tied to the lease or the resident's conduct (called "at-fault" just causes).
Can the rent go up when a lease is renewed?
Yes, within the state limit and any city rule. For most homes the increase is capped at the lower of 5 percent plus local inflation or 10 percent over 12 months, with 30 or 90 days of written notice depending on the size of the increase.
