There was a first-time landlord in Pasadena who welcomed their first tenant. They did not include a pet clause in the lease, and a few months later, they discovered that the tenant had a large dog. Upon reviewing the lease, they found there was no basis to prevent it. If they had clearly included the clause from the beginning, this situation could have been avoided.

The average rent in Pasadena as of August 2026 is $2,750 (Zumper). A one-bedroom apartment averages $2,296, while a two-bedroom averages $3,200. When setting the rent, it's important to use this average as a guideline but adjust based on the actual number of bedrooms, condition, and location of the property.

Once the rent is set, it's time to advertise. Post listings simultaneously on platforms like Zillow, Apartments.com, and Zumper, clearly stating whether pets are allowed, parking availability, and the number of bedrooms and bathrooms along with photos to reduce issues like the previous example.

When selecting a tenant, check their credit score, proof of income, and previous rental history. Income is typically expected to be at least three times the rent. The same criteria should be applied to all applicants.

The lease should include the rental period, monthly rent and due date, security deposit, pet policy and conditions, repair responsibilities, and termination conditions without fail. Any ambiguities left in the lease will inevitably lead to problems later.

• Adjust rent based on the number and condition of bedrooms
• Clearly state pet and parking conditions in the advertisement
• Screen applicants based on credit score, income, and rental history
• Include a pet clause in the lease
• Check the security deposit cap and return timeline

California has set a security deposit cap of one month's rent under AB 12 starting July 2024. Individual landlords with four or fewer rental units can receive up to two months' rent as an exception. Security deposits must be returned or an itemized statement sent within 21 days after move-out (Civil Code Section 1950.5). If rent is unpaid, the process can begin after a 3-day notice, and for no-cause lease terminations, a 30-day notice is required if the tenant has lived there for less than a year, and a 60-day notice if more than a year.

When receiving applications, a screening fee can be charged, but there is a cap. As of 2026, it is $65.86, and if the actual cost is less, the difference must be refunded (Civil Code Section 1950.6).

There are also limits on rent increases. If the building is over 15 years old, AB 1482 limits annual increases to the inflation rate plus 5%, with a maximum of 10%. Tenants who have lived there for over a year cannot be evicted without just cause. Single-family homes owned by individuals can be exempt if a notice is included in the lease.

Landlords are also required to maintain essential systems like plumbing, heating, and security features in good working order. Repair requests must be addressed within a reasonable time. It's especially important to keep track of clauses that, if not included in the lease, may lose their basis later, such as pet policies.

On the day the tenant moves in, it's wise to document the condition of the property with photos and notes. Recording the state of the walls, floors, and appliances in advance makes it easier to distinguish between pre-existing damage and new damage when settling the security deposit after move-out. It's even better to confirm and get signatures from the tenant.

Decide in advance whether to set the lease term for a fixed year or on a month-to-month basis. A fixed one-year lease provides stability without vacancy concerns, while a month-to-month lease allows for easier tenant changes but comes with vacancy risks. If you're new to this, starting with a one-year fixed lease might be a good option.

Review any existing homeowner's insurance as well. Homeowner's insurance for primary residences and rental insurance have different coverage. If you don't switch to landlord insurance, you may not be adequately covered for incidents that occur while the tenant is living there.

Specific conditions may vary by county. It is advisable to consult with a real estate professional or a rental law attorney before signing the lease. This article is for informational purposes only and does not constitute legal advice.