A California rent clause should state the rent, the due date, who is paid and how, because Civil Code § 1962 requires the lease to disclose the name, phone number and address of the person to whom rent is paid and the form or forms of payment. Civil Code § 1947.3 then requires at least one way to pay that is neither cash nor electronic transfer, and bars any fee for paying by check. Returned checks carry charges capped by Civil Code § 1719, and late fees are judged under Civil Code § 1671.

The short version

  • Disclose in the lease who manages the property, who accepts legal notices, and who receives rent, with names, phone numbers and addresses (§ 1962(a)).
  • State the forms of payment. At least one must be neither cash nor electronic funds transfer, and no fee may be charged for paying by check (§ 1947.3).
  • Any payer may require a written receipt (Civil Code § 1499).
  • A bounced check service charge is capped at $25 for the first check and $35 for each later check to the same payee (§ 1719(a)(1), current as of October 19, 2026).
  • California sets no statutory dollar or percentage cap on late fees; residential late fees are judged under the liquidated-damages rule in § 1671(d).
  • List the gross rent and any concessions separately in the lease (§ 1947.12(a)(1)).

What the clause should cover

ItemWhat to includeWhy
AmountThe monthly rent as a number, plus any other recurring charges stated separatelyClear base for increases and notices
ConcessionsAny discount or free month listed separately from the gross rent§ 1947.12(a)(1) requires it, and concessions are excluded from the cap base
Due dateThe day of the month rent is due and what happens if it falls on a weekend or holidayAvoids disputes about when rent is late
PayeeName, phone number and address of the person or entity to whom rent is paid§ 1962(a)(2)
In-person paymentsIf rent may be paid in person, the usual days and hours someone is available§ 1962(a)(2)(A)
Bank or electronic optionInstead of in-person details, an account at a financial institution within five miles of the rental, or EFT setup information§ 1962(a)(2)(B), at the owner's option
Payment formsEach accepted form, including at least one that is neither cash nor EFT§§ 1962(a)(3), 1947.3
Manager and noticesName, phone number and street address for personal service of whoever manages the property and whoever accepts notices and legal papers§ 1962(a)(1)
First monthWhether the first month is prorated and the amount due at move-inPractice; avoids move-in confusion
Returned paymentsThe check charge, stated within § 1719 limits§ 1719
Late feeThe amount, when it applies, and any grace period§ 1671(d)
Rent reportingThe offer to report positive rent payments, unless the landlord is exemptCivil Code § 1954.07

The manager and notice information may instead be posted in the building under Civil Code § 1962.5: in every elevator and one other conspicuous place, or in at least two conspicuous places if there is no elevator. A single-unit dwelling may use either method. The other § 1962 duties still apply.

Payment methods

For the clause, § 1947.3 means: list at least one accepted form that is neither cash nor EFT (a check or money order, for example), charge nothing for paying by check, and do not write a cash-only rule into the lease; cash-only is a temporary step allowed for up to three months after a dishonored check, with written notice. A lease term waiving § 1947.3 is void. The third-party payment rules and the rest of the statute are on the rent payments page linked below.

Electronic payment has a consequence at move-out. If the landlord received the deposit or rent electronically, the deposit balance must be returned electronically to an account the tenant designates, unless the parties agree in writing on another method (§ 1950.5(h)(1)(A)). The full payment and reporting rules are on the rent payments and rent reporting page.

Receipts, bounced checks and late fees

Receipts

Civil Code § 1499 gives any debtor the right to require a written receipt from the creditor. It is a general right on request, not limited to cash. A simple practice is to issue a receipt for every payment, showing the date, amount, method and period covered.

Returned checks

Under § 1719(a)(1), a person who passes a check on insufficient funds owes the check amount plus a service charge of no more than $25 for the first check and no more than $35 for each later check to that payee. A separate route allows treble damages (at least $100 and no more than $1,500) if a written demand is sent by certified mail and the drawer does not pay within 30 days (§ 1719(a)(2)). No charge applies for a stop payment made to resolve a good-faith dispute, a bank error confirmed in writing, or a delay in a direct deposit of Social Security or government benefits (§ 1719(a)(3) to (a)(5)). These limits are written for checks; whether a lease may set a different fee for a returned electronic payment is not settled in the statute, so ask counsel before adding one.

Late fees

Residential late fees are judged under § 1671(d), which makes a liquidated-damages clause in a residential lease void unless the amount is set because actual damages would be impracticable or extremely difficult to fix. No statute sets a maximum. See late fees for the rule.

Writing the clause, step by step

  1. Fill in the § 1962 contacts first. Name the manager, the person who accepts notices, and the payee, with phone numbers and addresses.
  2. Choose the payment forms. Include at least one that is neither cash nor EFT, such as a check or money order, and do not charge for checks.
  3. Set the due date and the late-fee terms in plain words, including any grace period.
  4. State the returned-check charge within § 1719.
  5. Make the 3-day notice match. A notice to pay rent or quit must give the amount due, the payee's name, phone number and address, and the in-person hours, the bank account details or the EFT statement (Code of Civil Procedure § 1161(2)). If the lease and the notice say the same thing, the notice is easier to prepare correctly. See three-day notices.
  6. Give the tenant a copy of the signed lease within 15 days of the tenant signing, and another once each calendar year on request (§ 1962(a)(4)).
  7. Keep the information current. A new owner or manager must update it within 15 days of taking over. Until it does, it may not serve a 3-day notice or evict for nonpayment of rent that accrued while it was out of compliance, although the tenant still owes the rent (§ 1962(c)).

Clause mistakes to avoid

  • Accepting only cash, or only electronic payment.
  • Charging a convenience fee for paying by check.
  • Leaving out the payee's address or the in-person hours.
  • Setting a returned-check charge above $25 for the first check.
  • Folding a free month into the stated rent instead of listing it separately.
  • Using a due date that differs from the date in the 3-day notice template.

For owners

Keep a payment log with dates, amounts, methods and receipts. If a tenant with a disability asks to change the due date, treat it as a reasonable accommodation request: the fair housing regulations give the example of a tenant who receives disability benefits on the 6th asking to pay rent on the 6th (2 CCR § 12176(f)(8)). Apply the same payment rules to every tenant. If you use a property manager, the lease should name the manager as the payee and contact.

For renters

Check that the lease tells you who to pay, where and how. You are entitled to at least one way to pay that is not cash or electronic transfer, and you cannot be charged for paying by check. Ask for a receipt whenever you pay; you have a right to one under § 1499. If the owner's address does not allow personal delivery and you mail rent to the address in the lease, it is deemed received on the date posted if you can show proof of mailing (§ 1962(f)).

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

Can a California landlord require rent to be paid online only?

No. Civil Code § 1947.3 requires at least one form of payment that is neither cash nor electronic funds transfer. A landlord may offer online payment and the parties may agree to it, as long as another form, such as a check or money order, is also authorized.

Can a landlord charge a fee for paying rent by check?

No. Since January 1, 2025, § 1947.3 bars a fee for paying by check. A landlord may charge a service fee for a check that bounces, within the limits in § 1719.

What is the maximum bounced check fee for rent in California?

Under Civil Code § 1719(a)(1), the service charge is capped at $25 for the first check passed on insufficient funds and $35 for each later check to the same payee, as of October 19, 2026. A treble-damages remedy is available only after a certified-mail demand that goes unpaid for 30 days.

Does a landlord have to give a receipt for rent?

Civil Code § 1499 gives any payer the right to require a written receipt for a payment. It applies on request and is not limited to cash. Many owners issue a receipt for every payment so both sides have a record.

What must the lease say about who receives rent?

Civil Code § 1962(a) requires the name, telephone number and address of the person or entity to whom rent is paid, the usual days and hours for in-person payment if allowed, or a nearby bank account or EFT details instead, and the forms in which rent may be paid.

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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