Property Management Compliance in Sacramento: Key Regulations and Requirements

As a property manager in Sacramento, it’s crucial to stay up-to-date with the property management compliance in Sacramento that govern the industry. Failure to comply with these regulations can result in legal troubles, fines, and reputation damage. In this article, we’ll discuss the property management compliance in Sacramento that property managers need to keep in mind.

Fair Housing Laws:

One of the most critical legal considerations for property managers is compliance with fair housing laws. These laws prohibit discrimination based on race, religion, gender, familial status, national origin, and other protected categories. Property managers must ensure that they follow fair housing laws in all aspects of their operations, including advertising, tenant screening, and lease agreements.

Legal considerations for fair housing laws in Sacramento include:

  • Fair housing laws that prohibit discrimination based on protected characteristics
  • Requirement to provide reasonable accommodations to tenants with disabilities
  • Obligation to advertise properties in a non-discriminatory manner
  • Need to provide language assistance to non-English proficient tenants and applicants
  • Importance of keeping thorough records
  • Potential consequences for violating fair housing laws.

Security Deposit Laws:

Sacramento property managers must also comply with state laws governing security deposits. California law allows landlords to charge up to two months’ rent as a security deposit for unfurnished properties and up to three months’ rent for furnished properties. Property managers must provide tenants with a written receipt and an itemized list of deductions within 21 days after the tenant moves out.

Under California law, landlords can collect a security deposit from tenants at the beginning of a lease agreement. The security deposit is meant to cover any unpaid rent or damages caused by the tenant. The maximum amount of the security deposit that a landlord can collect depends on the type of rental unit.

Lease Agreements:

Lease agreements are legally binding contracts between landlords and tenants. Property managers must ensure that their lease agreements comply with all relevant state and federal laws. Lease agreements should include details such as the amount of rent, security deposit, length of the lease, and terms for renewing or terminating the lease.

In Sacramento, landlords and tenants must consider various legal factors when creating a lease agreement, such as rent control laws, security deposit limits, anti-discrimination regulations, landlord-tenant laws, termination policies, and repair responsibilities.

Tenant Screening:

Property managers must also comply with laws governing tenant screening. California law prohibits discrimination against prospective tenants based on protected categories, such as race or gender. Property managers must conduct tenant screening in a fair and consistent manner to avoid any legal troubles.

When landlords or property managers evaluate prospective tenants before renting a property in Sacramento, they must comply with fair housing laws that prohibit discriminatory screening criteria. They may request credit reports, criminal background checks, rental history, and income verification with written consent from the tenant and comply with relevant laws.

Maintenance and Repair:

Property managers have a legal responsibility to maintain their properties in a safe and habitable condition. They must ensure that all essential services, such as heat, hot water, and electricity, are available to tenants. Property managers must also promptly address any maintenance and repair issues that arise during the tenancy.

Landlords and tenants in Sacramento must consider legal requirements for rental property maintenance and repair, including the implied warranty of habitability. Landlords are responsible for repairs and maintenance of the rental property, including common areas and exterior grounds, while tenants are responsible for reporting necessary repairs and keeping the property clean. Landlords must respond promptly to repair requests, provide notice before entering the rental unit, and keep records of all repair and maintenance requests.

Is a Real Estate Broker’s License a Requirement for California Property Management Firms?

In California, property management companies that engage in certain activities related to the leasing and renting of real estate are generally required to have a real estate broker’s license. Here are some key points to consider:

  1. Broker’s License Requirement: California Business and Professions Code Section 10131 states that a real estate broker’s license is required for any person or company that, for compensation or in expectation of compensation, engages in certain real estate activities, including:
    • Renting or Leasing: Renting or leasing, or offering to rent or lease, real estate properties or parts of real estate properties.
    • Negotiating Leases: Negotiating the terms of a lease, such as rental rates, lease duration, and security deposits.
    • Collecting Rent: Collecting rent or other payments from tenants on behalf of the property owner.
    • Advertising and Marketing: Advertising or marketing real estate properties for rent or lease.
  2. Exceptions: There are some exceptions to the broker’s license requirement for property management companies. For example, an employee of a property owner who is engaged in property management activities solely for that owner may be exempt from the broker’s license requirement. Additionally, a property management company may be able to operate under the supervision of a licensed real estate broker.
  3. Property Manager License: In addition to the broker’s license requirement, California also offers a property manager license, which is a restricted license that allows individuals to engage in property management activities without the full responsibilities and requirements of a real estate broker’s license. However, property management companies as entities are not eligible for the property manager license.

It’s important for property management companies in California to understand and comply with the state’s real estate laws and regulations. If you are considering starting a property management company or are currently operating one in California, it’s recommended to consult with a legal professional or the California Department of Real Estate to ensure compliance with the applicable licensing requirements.


Staying informed about the property management compliance in Sacramento is crucial for property managers to avoid legal troubles. Compliance with fair housing laws, security deposit laws, lease agreements, tenant screening, and maintenance and repair requirements are key considerations that property managers must keep in mind. By following these regulations, property managers can protect their tenants, avoid legal troubles, and maintain a positive reputation in the industry.

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