When a California lease ends and the owner accepts rent, Civil Code § 1945 presumes the tenancy renewed on the same terms, for no more than one month when rent is monthly. A clause that renews or extends the lease automatically is voidable by the party who did not prepare the lease (usually the tenant) unless it appears in at least eight-point boldface type in the body of the lease, with a boldface recital just above the tenant's signature (Civil Code § 1945.5). Any renewal rent on a covered property must stay within the rent cap.

The short version

  • No renewal and no notice, but rent accepted: presumed month to month on the same terms (§ 1945).
  • An automatic renewal or extension clause is "voidable by the party who did not prepare the lease" unless it meets the § 1945.5 boldface rules. If it is voided, the § 1945 presumption applies.
  • A waiver of § 1945.5 is void.
  • For a covered tenancy, refusing a written renewal offer of "similar duration with similar provisions" is an at-fault just cause (§ 1946.2(b)(1)(E)). Adding an owner move-in clause still counts as a similar provision.
  • A renewal is an increase point: covered properties stay within 5% plus the local CPI change, or 10%, whichever is lower, over 12 months (Civil Code § 1947.12).
  • Some rules apply to leases "renewed" or "extended" after a set date, so a renewal is a good time to update required lease terms.

What happens at the end of the term

A lease term can end in one of four ways, and each has a different result:

What happensResultRule
Tenant moves out on the end dateTenancy ends; deposit returned within 21 daysCivil Code § 1950.5(h)(1)
Tenant stays, owner accepts rentPresumed renewed on the same terms, at most one month when rent is monthlyCivil Code § 1945
Both sign a renewal or extensionNew term on the agreed termsThe new agreement
Lease has an automatic renewal clauseRenews per the clause if it meets § 1945.5; otherwise the tenant may avoid itCivil Code § 1945.5

The § 1945 rule is a presumption, not an automatic one-year renewal. A 12-month lease followed by an accepted monthly payment is presumed to continue for one month at a time.

The just-cause rule keeps running underneath all of this. Once a covered tenant has lived in the unit for 12 months, the owner needs a just cause stated in a written notice to end the tenancy, and a lease simply expiring is not on the list. See just-cause eviction and fixed-term lease or month-to-month.

Automatic renewal clauses: the § 1945.5 rules

An automatic renewal clause is any lease term that renews or extends the lease, for all or part of the full term, if the tenant stays or fails to give notice of intent not to renew. Under § 1945.5, the party who did not prepare the lease may avoid it unless:

  1. the renewal provision appears in at least eight-point boldface type (if the lease is printed) in the body of the lease, and
  2. a recital that the provision is in the body of the agreement appears in at least eight-point boldface type immediately before the place where the tenant signs.

If either is missing, the clause is "voidable by the party who did not prepare the lease," usually the tenant. Voidable is not the same as void: the clause holds unless the tenant chooses to avoid it. If the tenant does, § 1945 applies instead. Any waiver of § 1945.5 is void as against public policy.

What the clause should cover

ItemWhat to includeWhy
TriggerExactly what renews the lease: staying in possession, not sending notice, or bothThe statute covers both triggers
LengthHow long the renewal or extension lastsThe clause can renew for all or part of the full term
Notice to opt outHow many days before the end date, in writing, to whom and howAvoids disputes about whether notice was given
Rent on renewalWhether rent changes and how it is setCovered properties must stay within § 1947.12
Type size and placementEight-point boldface or larger, in the body of the lease§ 1945.5
Signature recitalA boldface statement just above the tenant's signature that the renewal clause is in the body§ 1945.5

Clause mistakes to avoid

  • Putting the renewal clause in an addendum or a footnote instead of the body of the lease.
  • Printing the clause in bold but leaving out the recital above the signature line.
  • Asking the tenant to waive § 1945.5. That waiver is void.
  • Leaving the opt-out notice vague, so neither side can tell whether the lease renewed.
  • Using a renewal clause to raise rent past the cap on a covered property.

Offering a renewal, step by step

  1. Check the calendar. Note the end date, the tenant's 12-month and 24-month marks, and the date any rent change would take effect.
  2. Decide the terms. For a covered tenancy, a renewal offer "of similar duration with similar provisions" matters: if the tenant refuses it after a written request, that refusal is an at-fault cause under § 1946.2(b)(1)(E). Terms must not violate § 1946.2 or other law.
  3. Work out any rent change. On covered properties, the increase is measured against the lowest gross rent charged in the 12 months before the effective date, and rent may go up in no more than two increments in a 12-month period. For San Diego County, the cap is 8.2% for increases effective August 1, 2026 through July 31, 2027. The rent increase calculator checks the math, and rent increase notices covers the notice rules for month-to-month tenancies.
  4. Send the offer in writing. Give the tenant the renewal terms and a reasonable time to review them. Keep a copy.
  5. Update the required terms. A renewal triggers several dated rules (see the checklist below).
  6. Sign and deliver copies. Give the tenant a copy of the signed renewal within 15 days of the tenant signing (Civil Code § 1962(a)(4)).

Renewal update checklist

  • Rent cap and just-cause notice, or the exemption statement: for tenancies commenced or renewed on or after July 1, 2020, it must be in the lease (or, for the § 1946.2(f) notice, in the lease, an addendum or a signed notice).
  • Owner move-in clause: for leases entered into on or after July 1, 2020, an owner move-in termination requires the tenant's written agreement or a lease clause (§ 1946.2(b)(2)(A)). Adding it to a renewal is a "similar provision" (§ 1946.2(b)(2)(A)(ii)).
  • Stove and refrigerator: the AB 628 rules in Civil Code § 1941.1 apply to leases entered into, amended or extended on or after January 1, 2026, including the refrigerator opt-out statement if the tenant supplies their own.
  • Bulk internet: for tenancies renewed on or after January 1, 2026, the tenant must be allowed to opt out of a third-party internet subscription (Civil Code § 1942.8).
  • Lead paint: a renewal of pre-1978 housing does not need a new federal disclosure if everything was already disclosed and nothing is new (40 CFR part 745).
  • Translation: if the lease was negotiated primarily in Spanish, Chinese, Tagalog, Vietnamese or Korean, a later document making substantial changes is part of the contract under Civil Code § 1632.

For owners

Plan renewals early and treat every tenant the same way: the same timeline, the same kind of offer letter, the same documentation. A refusal is a just cause only if the offer was in writing and on similar terms, so keep the offer and any reply. Do not rely on an automatic renewal clause unless it meets the boldface rules; otherwise the tenant can walk away from it. For a fuller start-of-tenancy routine, see what a Coronado property manager does.

For renters

Read the lease for any automatic renewal language and check where it appears. If you want to leave at the end date, give written notice by the date the lease requires and keep proof. If you receive a renewal offer, compare its length and terms with your current lease. If you stay without signing and your landlord accepts rent, you are presumed to be renting month to month on the same terms.

Local rules

Some cities add rules on top of state law, such as local just-cause, relocation or rental registration ordinances, so check your city's code. Coronado has no local rent-control or just-cause ordinance as of October 2026 (based on a review of its code's contents).

Frequently asked questions

Do California leases renew automatically?

Not unless the lease says so. Without a renewal clause, a tenant who stays after the end date while the owner accepts rent is presumed to have renewed on the same terms for no more than one month when rent is monthly (§ 1945). A renewal clause that does not meet the § 1945.5 boldface rules is voidable by the party who did not prepare the lease.

What makes an automatic renewal clause enforceable in California?

The renewal provision must be in at least eight-point boldface type in the body of the lease, and a boldface recital that it is there must appear immediately before the tenant's signature. Without both, the party who did not prepare the lease may avoid the clause, and a waiver of these rules is void.

Can a landlord refuse to renew a lease in California?

For a tenancy not covered by Civil Code § 1946.2, the lease can end on its terms. For a covered tenancy past 12 months, the owner needs a just cause from the statute to end it, and the end of the term is not one. Not renewing does not by itself remove a covered tenant.

What happens if a tenant refuses to sign a renewal?

For a written lease that ended on or after January 1, 2020, a tenant's refusal to sign an extension or renewal of similar duration with similar provisions, after a written request from the owner, is an at-fault just cause under § 1946.2(b)(1)(E). The new terms must not violate § 1946.2 or other law.

How much can rent go up at renewal?

On covered properties, no more than 5% plus the regional CPI change, or 10%, whichever is lower, over any 12-month period, in no more than two increments (§ 1947.12). Exempt properties are not limited by the cap. Discounts and concessions are excluded when finding the base rent.

This is general information, not legal advice. Laws change; confirm the current text and your situation with a California attorney.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Sources

Verified October 19, 2026.

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