Biggest Mistakes San Diego Landlords Make

This guide is for owners who manage their own San Diego rentals, or who are deciding whether to keep doing it. The rules have changed a lot since 2023, and many costly mistakes come from following a rule that used to be true.

Each mistake below is tied to the statute or ordinance behind it, with its effective date, as of September 2026.

At a glance

1. Raising rent past the AB 1482 cap

For covered units, Civil Code section 1947.12 limits increases to 5% plus the local CPI, or 10%, whichever is lower, over any 12 months. In San Diego County that is 8.8% for increases effective 1 August 2025 through 31 July 2026, and 8.2% for increases effective 1 August 2026 through 31 July 2027. It is measured from the lowest rent charged in the prior 12 months, and no more than two increases are allowed in 12 months.

The common mistake is assuming a single-family home or condo is exempt. It is exempt only if it is not owned by a REIT, a corporation or an LLC with a corporate member, and the tenant was given the exact statutory exemption notice. Since SB 567 (operative 1 April 2024), a tenant can sue over an above-cap increase, with up to three times damages if the violation was willful. The cap is repealed on 1 January 2030 unless extended.

2. Assuming just cause waits 12 months in the City of San Diego

Under state law (Civil Code section 1946.2), just cause applies after 12 months of occupancy. The City of San Diego's Residential Tenant Protections Ordinance, effective 24 June 2023, applies it from the start of any tenancy longer than 30 days, excluding fixed terms of 3 months or less.

• Relocation. A no-fault termination requires relocation assistance of two months' rent, or more in cases the ordinance defines, paid within 15 days of the notice or taken as a rent waiver. Failing to pay can mean liability of at least three times the amount.
• Notice form. The notice must be in at least 12-point type. Under section 98.0710, added in 2024, a notice that does not comply is void, so the process starts over.
• Exemptions mirror the state law, and for single-family homes and condos owned by individuals, the exemption notice must be in the lease for tenancies begun or renewed on or after 1 January 2024. Section 8 tenancies are not exempt.

The Housing Commission must also be notified within 3 business days once its online portal exists, so check its current instructions.

3. Using City of San Diego rules in Chula Vista

Chula Vista has its own Residential Tenant Protection ordinance, Chula Vista Municipal Code chapter 9.65, effective 1 March 2023 and amended on 20 February 2024 to align with SB 567. Like the City of San Diego's, it applies just cause without the state's 12-month wait, and it requires relocation assistance for no-fault terminations. Its amounts and notice steps differ from San Diego's, so read the current chapter 9.65 or ask the City before serving a notice there. Imperial Beach adopted its own just-cause ordinance too, effective 22 March 2025. Our list of Chula Vista property management companies includes questions to ask about local rules.

4. Collecting too much security deposit

Since 1 July 2024, AB 12 (Civil Code section 1950.5(c)) caps total security at one month's rent, furnished or unfurnished, on top of the first month's rent. A pet deposit counts toward the cap. The only exception allows two months for a small landlord: a natural person, or an LLC whose members are all natural persons, owning no more than two rental properties with no more than four units in total. That exception does not apply when the tenant is a service member.

5. Skipping move-in and move-out photos

AB 2801 added photo duties to Civil Code section 1950.5. From 1 April 2025, the landlord must photograph the unit after the tenant returns possession and before any repairs, and again after repairs. For tenancies beginning on or after 1 July 2025, the landlord must also photograph the unit immediately before or at the start of the tenancy. Deductions are limited to restoring the move-in condition, and a bad-faith failure to comply forfeits the claim.

6. Refunding the deposit the wrong way

The 21-day deadline has not changed, but the method has. Under AB 414, from 1 January 2026, if the tenant paid the deposit or rent electronically, the landlord must return the remaining deposit electronically, unless both sides agreed in writing to another method. The landlord must also tell the tenant of that right in writing near the end of the tenancy. Otherwise the default is personal delivery or a check. With several adult tenants, the default is one check payable to all of them, unless they all agree in writing to split it.

7. Charging junk fees

SB 611 bans charging a tenant a fee for serving, posting or delivering any notice, including three-day notices (from 1 February 2025), and bans any fee for paying rent or a deposit by check. It also covers service members: if a service member is charged a higher deposit than standard because of credit, rental history or similar factors, the landlord must explain it in writing by lease signing and return the extra amount after no more than six months if the tenant is current on rent. Separately, SB 478 (Civil Code section 1770(a)(29), 1 July 2024) requires advertised prices to include all mandatory fees except government taxes.

8. Entering without proper notice

Civil Code section 1954 requires written notice of the date, approximate time and purpose of entry. Twenty-four hours is presumed reasonable, or six days if the notice is mailed. Entry must be during normal business hours unless there is an emergency or the tenant consents. No notice is needed in an emergency, when the tenant is present and consents, or after the tenant has abandoned the unit. Put all three items in the written notice every time.

9. Planning around a 5-day eviction answer

AB 2347, effective 1 January 2025, gives a tenant 10 days, excluding weekends and court holidays, to respond to an unlawful detainer complaint, up from 5. It also sets hearings on demurrers and motions to strike 5 to 7 court days after filing.

10. Skipping the rental unit business tax

The City of San Diego imposes the Rental Unit Business Tax on anyone who owns, operates or manages the rental of residential property, including a single rented condo or house. It is generally due 1 March. For 1 to 10 units, it is $50 plus $5 per unit, plus the state's $4 disability-access fee. The penalty is the greater of $25 or 10%, plus 1% a month, and the City can bill back up to three years.

11. Renting short term without the right license

The City of San Diego's short-term residential occupancy ordinance has four tiers: Tier 1 for 20 days a year or fewer, Tier 2 for home-sharing with the host on site, Tier 3 for whole homes outside Mission Beach (capped at 1% of city housing units) and Tier 4 for whole homes in Mission Beach (capped at 30% of Mission Beach units). As of 15 September 2026, Tier 3 had 799 licenses available and Tier 4 had none, with applications closed. Tiers 3 and 4 also require at least 90 days of use a year and a transient occupancy tax certificate. An ADU may not be rented for less than 31 consecutive days, so it cannot be a short-term rental.

12. Using an old lease form

A lease template from a few years ago can miss several requirements:

• Appliances (AB 628). For leases entered into, amended or extended on or after 1 January 2026, a working stove and refrigerator are habitability items under Civil Code section 1941.1. The stove cannot be opted out. The refrigerator can be opted out only at the tenant's request, with the statute's exact checkbox wording in the lease, and the landlord may not make the tenancy conditional on the tenant supplying one.
• Megan's Law notice (Civil Code section 2079.10a). The notice pointing to www.meganslaw.ca.gov. By its text it covers single-family and 5-or-more-unit leases; including it in every lease costs nothing.
• Flood disclosure (Government Code section 8589.45). Required in leases since 1 July 2018, including the MyHazards web address and a statement that the owner's insurance does not cover the tenant's belongings.
• Lead paint. For housing built before 1978, the EPA lead pamphlet, a Lead Warning Statement and any known lead reports, with signed copies kept for three years.
• Former military ordnance (Civil Code section 1940.7). If the landlord actually knows of a former ordnance site within one mile, it must be disclosed in writing before the lease is signed. The statute's findings cite the 1983 Tierrasanta explosion here in San Diego.
• Mold. The written disclosure duty in Health and Safety Code section 26147 is not yet in force, because it waits on state exposure standards. Visible mold is still a substandard condition under section 17920.3, so it must be fixed.

Our owners and residents page and FAQs cover how McKee handles leases and owner questions.

Frequently asked questions

Does the City of San Diego's just-cause rule apply to a new tenant?

Yes, unless the unit is exempt. The Residential Tenant Protections Ordinance, effective 24 June 2023, applies from the start of any tenancy longer than 30 days, excluding fixed terms of 3 months or less. State law waits 12 months, but City of San Diego addresses follow the city rule.

Do I have to return the deposit electronically?

Only if the tenant paid the deposit or rent electronically, under AB 414 (from 1 January 2026), and then only unless both sides agreed otherwise in writing. Otherwise the default is personal delivery or a check, still within 21 days.

Do I owe the rental unit business tax on one condo?

Yes, if it is in the City of San Diego. The tax applies to single-family homes and condos as well as apartments, and the City can bill up to three years back.

Rules differ by city, property and date. This is general information, not legal advice.

If keeping up with these rules is more than you want to handle, compare firms in our list of San Diego property management companies. McKee Properties manages rentals across San Diego from its Coronado office; see our owners and residents page or contact us.