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So Your Tenant Wants to Offer Day Care at Your Rental Property . . .

Family day care at residential rental property is permitted by California state statutes. The tenant’s right to provide day care in the home that he/she rents is provided for in the California Health and Safety Code. The Health and Safety Code provides that "every provision in a written instrument entered into relating to real property which purports to forbid or restrict the conveyance, encumbrance, leasing, or mortgaging of the real property for use or occupancy as a family day care home for children is void and every restriction or prohibition in any such written instrument as to the use or occupancy of the property as a family day care home for children is void."

A tenant may operate either a small family day care, that is, one that cares for up to 8 children, or a large family day care with up to 12 children. Either of these operations may be operated by your tenant without your approval, although the tenant must notify the landlord in writing of his/her plans to do so. You may also require that the tenant have the necessary license and insurance to run a day care, and you may request to be added to the tenant’s insurance policy as an additional insured. If you do make the request to be added to the insurance policy, the tenant may ask you to pay any additional premiums that result from this request. You may further require an additional security deposit from the tenant, keeping in mind, however, that the total deposit may not exceed the maximum deposit allowed by the California Civil Code, which is an amount equal to two months’ rent for an unfurnished dwelling.

60-Day Notice to Terminate Resurrected

Sorry, folks, it’s back to 60 days! A residential landlord is, once again, required to give a month-to-month tenant 60-days’ notice in order to terminate the tenancy. However, you may give a tenant 30-days’ notice if he/she has resided in the property for less than one year. Another exception to the 60-day notice requirement is in the case of a property that is in escrow to be sold. Keep in mind that this river only runs one way. If the tenant is giving notice to vacate, he may give the landlord 30 days’ notice, regardless of the length of the tenancy. This can be a catch-22 for a landlord who decides to sell his property and gives his tenant 60 days’ notice to vacate. The tenant, in turn, can give the landlord 30 days’ notice of his intent to vacate, thus leaving the landlord with an empty property for 30 days prior to putting it on the market. Like its predecessor, this law has a sunset clause. It will sunset on December 31, 2009, so it remains to be seen what will happen between now and then. Stay tuned!