Coastal San Diego · Buyer guides · Rentals

Buying a rental property in San Diego: tenant rules

Short answer: If you buy a home that has tenants, the lease and the tenants’ rights usually come with it. California has a just-cause rule for many rentals. That means an owner needs a reason the law allows to end a tenancy. The City of San Diego has its own rule too. Read both before you write an offer.

I help buyers in La Jolla and around coastal San Diego who want a rental, a second home or a place with a unit to rent. The tenant rules shape what you can do after you buy.

This guide quotes the main rules and lists the papers to ask for. It is not legal advice.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help buyers in coastal San Diego look at rentals with clear eyes and the right papers in hand. You can talk about fees with Weston directly. This form does not give a commission quote.

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Related: Selling with tenants · Short-term rentals · Second homes · Trading into another property · Guides · Buying in a trust or company · How to hold title · Selling a duplex

What California law says

California Civil Code section 1946.2(a) says:

“Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy.”

In plain words, once a tenant has lived there long enough, you need a reason the law allows to end the lease. Some homes are exempt. State law also limits rent increases for many rentals, in Civil Code section 1947.12.

What the City of San Diego adds

The City of San Diego has its own tenant rules in its Municipal Code. Section 98.0704 says:

“A landlord shall not terminate a tenancy without just cause. For purposes of this Division, just cause includes at-fault just cause and no-fault just cause.”

State law says a local rule that protects tenants more can apply instead. The City rule covers homes inside City limits only. Other cities in the county follow state law or their own rules.

Exemptions are worth checking

Both rules list homes that are exempt, like some newer homes and some owner-lived homes. The exact wording matters, and it can change.

Ask an attorney whether the home you want is covered, before you remove your contingencies (the conditions that let you cancel).

Papers to ask for

• A copy of every lease and any changes to it.
• A list of deposits the seller holds and who will get them.
• Any notices the seller has sent or received.
• A signed statement from each tenant about the lease terms, if the seller can get one.

Sellers, see my selling with tenants guide for the other side.

Match the home to your plan

If you want to move in, ask early how the rules affect that. If you want short stays, see my short-term rentals guide. If you want a part-time home, see my second home guide. Buying with sale money from another rental? See my guide to trading into another property.

General information only

This guide explains the rules and process. It is not legal advice. Tenant rules change. Ask an attorney about your own purchase.

More on sandiego.homes

• Selling with tenants: when an owner sells
• Short-term rentals: short stays
• Second homes: part-time homes
• 1031 exchange: trading into another property

• More: All guides · La Jolla · Real estate terms

Talk with Weston about buying a rental

Tell me what kind of rental you want and how you plan to use it. I’ll help you gather the right papers before you commit.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

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Have another question? Quick answers to common questions

Sources

• California Civil Code § 1946.2
• City of San Diego Municipal Code Ch. 9, Art. 8, Div. 7 (Residential Tenant Protections)
• sandiego.homes — Selling with tenants
• sandiego.homes — Short-term rentals