A fixed-term lease ending next month raises the same questions every time: do I have to offer a renewal, can I raise the rent, and what happens if I do nothing? California's answer is straightforward on some points and full of traps on others. Here's the complete picture.
You Are Not Required to Renew
California law does not obligate a landlord to offer a lease renewal when a fixed term expires — unless the property is covered by AB 1482's just-cause protections or a local rent ordinance that says otherwise. For exempt properties, you can simply let the lease expire.
But "no duty to renew" is not the same as "no rules about how it ends." If you're not renewing a tenant covered by just-cause protections, you need a valid just-cause reason to terminate. And in all cases, the transition — renewal, new term, or month-to-month — should be documented in writing.
What Happens If You Do Nothing
When a fixed-term lease expires and the tenant stays with your implicit consent, the tenancy converts to month-to-month under the same terms (Civil Code §1945). The rent stays the same, the rules stay the same — but either party can now end it with proper notice, and you can change terms (including rent) with a 30- or 60-day notice under Civil Code §827.
Letting a lease lapse into month-to-month isn't always bad — it gives you flexibility. But if you wanted another 12-month locked term, doing nothing cost you that. Decide intentionally.
Rent Increases at Renewal
A renewal is the natural moment to adjust rent, and the caps follow the increase:
- AB 1482 properties: the increase is capped at 5% + CPI (max 10%), and no more than two increases per 12 months totaling within the cap
- Local rent control: the city's ordinance governs — often stricter than the state cap
- Exempt properties: market rate, but increases over 10% require 90 days' notice under §827
The renewal agreement itself should state the new rent clearly. Don't rely on a separate notice — put the number in the document the tenant signs.
Timing the Renewal Offer
Start the conversation 60–90 days before expiration. This gives you room to negotiate, screen (if you're considering changes), and — if the tenant declines — market the unit without a vacancy gap. A renewal offered two weeks before expiration is a renewal the tenant can't properly evaluate, and rushed tenants make disputes.
What the Renewal Agreement Should Include
A renewal isn't just "same lease, new dates." Confirm or update:
- New term and expiration date
- Rent amount and any scheduled increases during the term
- Security deposit — confirm the amount held; you cannot top it up beyond the AB 12 cap
- Updated terms — any rule changes, updated disclosures, or new addenda
- Signatures from all adult tenants
If nothing changes except the dates and rent, a short renewal addendum referencing the original lease is enough. If terms are changing substantially, a fresh lease is cleaner.
Renewing vs. Raising Rent on a Month-to-Month Tenant
For tenants already month-to-month, you don't need a "renewal" to raise rent — a §827 notice does it (30 days for increases up to 10%, 90 days for more). But converting a good month-to-month tenant to a fixed term has value: it locks in occupancy and lets you plan. Many landlords offer the fixed term as the trade for the increase.
Don't Punish the Renewal Decision
Raising rent or non-renewing in retaliation for a tenant exercising their rights — complaining about habitability, organizing tenants, filing a complaint — is prohibited under Civil Code §1942.5, with a 180-day presumption of retaliation after protected activity. Keep your business reasons documented and separate.
Quick Reference for Landlords
- No duty to renew — except under AB 1482 just cause or local ordinances
- Doing nothing creates month-to-month — same terms, terminable with notice
- Renewal increases follow the caps — AB 1482, local ordinance, or §827 notice rules
- Start 60–90 days out — negotiation room and no vacancy gap
- Put it in writing — new dates, new rent, signatures from all tenants
- Deposit stays capped — no topping up beyond one month's rent at renewal
Keep renewals and rent history together
LeaseConnectPro tracks lease terms, renewal dates, and rent change history per unit — so nothing lapses by accident and every increase has a paper trail.
This article is for general informational purposes and isn't legal advice. For guidance on a specific renewal situation, consult a California landlord-tenant attorney.
Frequently Asked Questions
Q: Do I have to renew a tenant's lease in California?
A: Generally no, unless the property is covered by AB 1482's just-cause rules or a local ordinance requiring renewal offers. For exempt properties, you may let the lease expire — but document the transition.
Q: What happens when a California lease expires and nobody signs anything?
A: It converts to a month-to-month tenancy on the same terms under Civil Code §1945. Either party can then terminate with proper notice, and rent can be changed with a §827 notice.
Q: Can I raise the rent when renewing the lease?
A: Yes, subject to the applicable cap — AB 1482's 5% + CPI formula, the local rent control ordinance, or §827 notice periods for exempt properties. State the new rent in the renewal document itself.
Q: How much notice do I need to give for a rent increase on a month-to-month tenant?
A: 30 days' written notice for increases of 10% or less, 90 days for increases over 10%, under Civil Code §827 — and AB 1482's annual cap still applies to covered properties.