Owning a rental in Cypress, Lakewood, or Buena Park isn’t a side gig anymore. It’s a real business with rules, dates, and paperwork that actually bite. One missed disclosure, a miscalculated rent bump, or a late notice can stall an eviction, drain cash, and invite penalties.
The upside is clarity. Once you see how the 2026 rules connect, you can make smart increases, serve clean notices, and document deposits correctly. This guide cuts the noise, flags local twists, and gives step-by-step moves to protect income and sleep better.
Key Takeaways
- Cypress has no city rent control or city just cause, so state law governs.
- Buena Park adds local just cause and relocation. Lakewood follows state law.
- Deposits are capped at one month, with narrow exceptions and new photo rules.
- Covered increases are limited to 5 percent plus CPI or 10 percent, and some exemptions require lease disclosures.
- Just cause applies after twelve months, and relocation is required for no-fault terminations.
Security Deposits in 2026
Since July 1, 2024, California has limited most security deposits to one month’s rent. This applies to both furnished and unfurnished homes.
An exception allows up to two months’ deposit only if the landlord is a natural person (not a corporation, REIT, or an LLC with corporate members) and owns no more than two residential rental properties totaling no more than four dwelling units. Most investors will not meet that test.
Plan accordingly. If you once relied on a significant deposit to offset risk, tighten screening. Verify income, review rental history, and confirm references. Use clear lease addenda for yard care, filter changes, and minor maintenance so expectations are documented.
Documentation rules also became stricter. Starting April 1, 2025, take dated photos after you regain possession and before any repair or cleaning you will deduct for, then another set after the work. For tenancies that begin on or after July 1, 2025, take move-in photos and keep them with the deposit accounting.
Rent Caps and Exemptions
Covered rentals in Cypress, Buena Park, and Lakewood follow California’s rent cap. If covered, the increase allowed is the lesser of 5 percent plus inflation (CPI) or 10 percent over any 12 months.
For Orange and Los Angeles Counties, use the Los Angeles, Long Beach, and Anaheim CPI in the statute. For increases before August 1, use the prior year’s April-to-April CPI. For increases on or after August 1, use the current year’s April-to-April CPI.
Some homes are exempt. New buildings are exempt from the certificate of occupancy for 15 years. Many single-family homes and condos are exempt if not owned by a corporation, REIT, or an LLC with a corporate member, and the lease includes the required exemption notice. Miss the notice, and the cap applies.
Just Cause Rules and SB 567
Just cause applies after 12 months of occupancy, or after 24 months if a new adult is added and not all occupants have reached 12 months.
There are two buckets: at-fault (not paying rent, serious lease violations, nuisance, criminal activity) and no-fault (owner or close relative moving in, removing the unit from the rental market, or a substantial remodel).
For no-fault, you must provide relocation equal to one month’s rent or waive the last month; some cities require more.
SB 567, effective April 1, 2024, tightened these rules. For owner move-in, the owner or an eligible relative must move in within 90 days, live there for at least 12 months, and the notice must name the person moving in.
For a substantial remodel, you need permits and work on major systems or hazardous materials that require the home to be vacant for at least 30 consecutive days.
The notice must include the scope, timeline, and copies of the permits. If plans change or work does not happen, the tenant may have a right to return. Use a step-by-step checklist and dated log to document compliance.
Local Overlays
Cypress follows state rules, so compliance is simpler than in some nearby cities. Buena Park adds its own just-cause and relocation requirements that may exceed the state minimums, so confirm the amount before serving a no-fault notice.
Lakewood is an incorporated city in Los Angeles County; county rent stabilization applies only in unincorporated areas, so most Lakewood rentals follow the state Tenant Protection Act.
Because local programs evolve, review each city’s website quarterly and keep a one-page overlay summary in every property file.
Habitability and Fair Housing
Habitability is non-negotiable. California requires weatherproofing, working plumbing and electricity, hot and cold water, heating, and premises free of trash and vermin. When a repair request arrives, respond promptly, communicate timelines, and document the fix.
Tenants have repair-and-deduct rights in limited circumstances after notice and a reasonable time to cure. Use a work order system that timestamps requests and completions, and schedule safety checks for heaters and alarms.
Fair housing rules bar discrimination based on protected characteristics and source of income. The source of income includes vouchers. Do not run ads or policies that exclude voucher holders.
Income standards for voucher users must be based solely on their share of revenue. Train staff, audit criteria, and keep written reasons for any denial.
FAQ
What is the 2026 rent cap for covered homes?
The lesser of 5 percent plus CPI or 10 percent in twelve months.
How much notice is required for a rent increase?
Give 30 days at 10 percent or less, and 90 days if more.
Can I end a tenancy at lease expiration?
If just cause applies, you need a qualifying reason and relocation for no fault.
What is the maximum security deposit?
One month of rent, with required photo documentation and itemized accounting.
Compliance Is Your Cash-Flow Moat
In 2026, precision pays. Standardize leases, lock in exemption language, automate rent increase timelines, and photograph the unit at move-in, move-out, and after repairs. Verify rent math before any increase, and confirm whether each property is covered or exempt.
For terminations, run a just cause checklist, attach permits when needed, and keep a dated log. When unsure, slow down and document. This playbook cuts surprises, protects margins, and builds credibility with residents and regulators.
Ready to turn rules into results? PMI Patron serves Cypress, Buena Park, and Lakewood with plain-English compliance audits, clean notices, and an ROI calculator tuned to your market.
We’ll be your compliance command center so you can focus on growth and steady cash flow. Call us today!
