Understanding California's subletting laws, regulations and contracts

Your tenant lands a six-month contract out of state and asks to sublet their unit while they're gone. Say yes to the wrong subtenant and you inherit an occupant you never screened, who owes you nothing directly, living in a property you insure. California law and city ordinances give landlords real tools here, but your lease terms and city rules determine most of the risk. Your screening process handles the rest.

What is a sublet contract in California?

A sublet contract (or sublease) is an agreement in which the original tenant rents out all or part of their unit to a new occupant while keeping their own lease with the landlord intact. A sublease has three roles. The original landlord consents. The original tenant (called the sublessor, sublandlord, or master tenant) keeps the master lease. The subtenant moves in and pays rent to the sublessor.

A sublease is different from a lease assignment. In Kendall v. Ernest Pestana, Inc., the California Supreme Court drew the line this way: an assignment transfers the lessee's entire interest, while a sublease transfers only part of it and leaves the original lessee a right of reentry during the unexpired term. In practice, an assignment hands the whole lease to someone else. A sublease keeps the original tenant on the hook. Even where a landlord consents to a transfer, Kendall notes that "the original lessee remains liable to the lessor as a surety."

How subletting works under California law

California has no statewide statute governing landlord consent for residential subletting. Residential landlords and tenants start with the lease. The DRE guide states that if the rental agreement does not prohibit subleasing or assignment, the tenant can sublet the unit or assign the lease. Commercial leases are the exception: Civil Code §§ 1995.010–1995.340 supply a full statutory framework for nonresidential transfers, but that chapter applies only to leases for other than residential purposes.

Subletting without required consent carries serious consequences. Under CCP § 1161(4), subletting contrary to the lease "thereby terminates the lease," and the landlord may serve a three-day notice to quit and recover possession. For tenants with 12 months of continuous lawful occupancy, Civil Code § 1946.2(b)(1)(G) lists unauthorized subletting as an at-fault just cause for eviction, though the owner must first give notice with an opportunity to cure under § 1946.2(c).

When roommates share a lease, a further rule applies. Co-tenants share joint and several liability for the entire rent, and private roommate agreements do not bind the landlord. Berkeley Student Legal Services advises that both the landlord and the co-tenants must approve a replacement roommate; the people living with the newcomer get some say in who that is.

The master lease and what it controls

The master lease is the ceiling on everything a sublease can grant. A sublessor transfers only a portion of their own interest, so as a drafting matter the sublease should not run past the master lease's expiration, permit pets the master lease forbids, or allow uses it prohibits, and it should say plainly that the subtenant's right to occupy ends when the master lease does.

For rent, start with the master lease and local caps. The Costa-Hawkins Act, Civil Code § 1954.53(d), lets a lease expressly set the rental rates that apply if the unit is sublet, and if the original occupants no longer permanently reside there, an owner may raise rent on a lawful sublessee who did not reside there prior to January 1, 1996. Some cities cap what the master tenant can collect: in San Francisco, a master tenant cannot charge any subtenant more than a proportional share of the total rent paid to the owner, and Oakland applies the same proportional-share limit.

Getting landlord consent

Secure the landlord's consent in writing, every time. This works the same whether you're the owner reviewing the request or the master tenant assembling it. The tenant submits a written request naming the proposed subtenant, the sublease dates, and the terms. Then the landlord signs a landlord's consent form attached to the sublet contract. Don't rely on a handshake or a phone call: verbal landlord's consent protects nobody at eviction time.

Statewide, California sets no fixed deadline for a residential landlord to respond. The only statutory timing language, "within a reasonable time" in Civil Code § 1995.260, applies to commercial leases. Local ordinances are stricter. In San Francisco, a landlord has 14 days from receipt of a tenant's written request to approve or deny a new occupant; silence or an unreasonable denial means city law treats the request as approved. Oakland has the same 14-day deemed-approval rule. Los Angeles bars unreasonable withholding of consent to an additional adult tenant under LAMC § 151.09.A(2)(b) and § 165.03.B, and converts a guest into a tenant after 30 consecutive days.

In San Francisco, a landlord may not evict a tenant for a lease breach if the landlord unreasonably denied or withheld consent. In that case, the request is deemed approved by law and the tenant cannot be evicted for the new occupant moving in.

How to screen a prospective subtenant

Screen a subtenant the way you would screen any tenant, because functionally that is what they are. The steps below apply whether you're the owner running the check or the master tenant doing it for the owner's review.

1. Collect a written rental application: Get identity, income, rental history, and references before anything else. In San Francisco, Rent Board Rule 6.15A gives the landlord 5 calendar days after receiving the tenant's sublet request to ask for an application or background-check information, and the tenant then has 5 calendar days to provide it.
2. Pull a credit report: Civil Code § 1950.6 caps application screening fees at $30 adjusted annually for inflation. The California Apartment Association reports the cap at $65.86 as of December 2025, while the Department of Real Estate's guide lists $62.02 from the December 2023 CPI period. The statute defines "landlord" as an owner of residential rental property and does not expressly reach non-owner sublessors, so a master tenant should treat the cap as the safe ceiling. It also requires an itemized receipt and a copy of the credit report to the applicant within 7 days.
3. Run a background check with the required notices: Under the federal FCRA, rejecting an applicant, raising rent or deposit, or requiring a co-signer based on a consumer report triggers an adverse action notice. California's ICRAA requires written notice to the applicant within three days of requesting an investigative consumer report for a dwelling unit.
4. Apply fair housing rules: California's Civil Rights Department CRD regulations define "owner" to include a sublessee, so a master tenant screening a subtenant carries FEHA obligations. Housing providers cannot consider arrests without conviction or sealed records, and they may not use blanket bans on applicants with criminal history. Gov. Code § 12955 also limits using credit history against an applicant, particularly in the source-of-income and subsidy context, without offering the option to show alternative evidence of ability to pay, such as pay records or bank statements.
5. Consider a guarantor or co-signer: A guarantor is optional, but it helps when a subtenant has thin credit or a short income history, since the sublessor stays on the hook for the master lease regardless.

What counts as a reasonable basis to deny:

• Where a local ordinance or your lease requires a reasonable basis, use the factors California's commercial case law identifies as a guide. Start with the proposed subtenant's financial responsibility. Then consider whether the intended use fits the property and whether the person can fulfill the lease terms.
• Oakland treats occupancy caps as reasonable: two people in a studio, three in a one-bedroom, four in a two-bedroom, six in a three-bedroom, eight in a four-bedroom.
• Oakland treats a denial based on the tenant's refusal to hand over a copy of the sublease, or on tenant organizing, as unreasonable.
• Under Rent Board Rule 6.15A, creditworthiness is a reasonable basis only when the new occupant will be legally obligated to pay rent.

Key clauses and capabilities every sublet contract needs

A sublet contract that says who pays what and nothing else will fail you the first time something goes wrong. Whether you start from a sublet contract template or draft from scratch, build in each of these:

• Rent terms: State the amount, the due date, and who pays whom. Almost always the subtenant pays the sublessor, who pays the landlord. Specify whether rent is a fixed figure or rent plus a utility share.
• Security deposit: Name the amount and who holds it. Under Civil Code § 1950.5 as amended by AB 12, deposits are capped at one month's rent, or two months for small natural-person landlords, and the itemized statement plus any remaining deposit is due within 21 calendar days after the tenant vacates. Per § 1950.5(b),(e), a deposit may cover unpaid rent and repair of tenant-caused damage beyond normal wear and tear, but landlords may not deduct for ordinary wear and tear. Bad-faith retention can cost up to twice the deposit. Section 1950.5 speaks in terms of landlords and owners, so a non-owner sublessor should follow its 21-day and photo duties anyway.
• Start date, end date, and termination notice: Tie the sublease term to the master lease and spell out how much written notice either party must give to end it early.
• Utilities, parking, and household responsibilities: Assign each utility account by name (electricity, gas, internet, water) and make clear who pays which utilities by the due date. Leave any utility unassigned and you will be arguing over a surprise bill at the end of the month. Do the same for parking spaces and shared chores; leave those undefined and you will referee that argument too.
• House rules: Carry over the master lease's rules on pets, smoking, guests, and alterations word for word. Draft the sublease so it is never more permissive than the lease above it.
• Governing law and indemnification: State explicitly that the sublease is governed by California law. That way no one can argue over which state's rules apply if a dispute comes up. You also need an indemnification clause requiring the subtenant to indemnify you for any damage or claims they cause, since you remain on the hook to the landlord under the master lease no matter what your subtenant does.
• Move-in inspection with documented existing damage: Walk the unit together and record its condition. California now requires photos: for tenancies beginning on or after July 1, 2025, Civil Code § 1950.5(g) requires landlords to photograph the unit at the start of the tenancy, and landlords have had to take move-out photos before and after any repairs claimed against the deposit since April 1, 2025.
• Subtenant insurance: Require the subtenant to carry renters insurance and to provide a certificate naming the sublessor as an interested party before move-in.

Liability and default

The original tenant remains liable to the landlord for the full rent no matter what the subtenant does. A subtenant, by contrast, generally is not directly liable to the landlord because they have neither privity of estate nor privity of contract. So when a subtenant stops paying, the landlord looks to the original tenant, and the original tenant must chase the subtenant under the sublet contract.

The sublessor does have teeth. A master tenant can evict a subtenant (though not a co-tenant), and on lease termination for breach, Civil Code § 1951.2 allows recovery of unpaid rent plus amounts needed to compensate for all detriment proximately caused by the breach.

Required disclosures and attachments

Federal law requires the lead-paint disclosure. The other three attachments can save you in a dispute:

• Lead-Based Paint Disclosure: The federal disclosure rule applies to all transactions to lease target housing, "including subleases," and 40 CFR § 745.103 defines "Lessor" to include anyone offering housing for sublease. For pre-1978 housing, the sublessor must include the Lead Warning Statement, disclose known hazards, list available records, and provide the EPA pamphlet "Protect Your Family From Lead in Your Home." Under 40 CFR § 745.113, those duties belong in the sublease process. Federal rules exempt leases of 100 days or fewer.
• Landlord Consent Form: The signed written approval, so no one later disputes whether consent existed.
• Move-In Inspection Form: The condition checklist and photos both parties signed at move-in, which controls deposit deductions at move-out.
• Security Deposit Receipt: Documentation of the amount received, when, and by whom, which matters for the itemization duties above.

How California subletting rules fit the broader picture

California's lease-controls approach sits between them: more permissive than New York, stricter than Wisconsin.

• New York: Tenants in buildings with four or more residential units have a statutory right to request a sublet by certified mail under RPL § 226-b. The landlord gets 10 days to request more information and must respond within 30 days of the request or the additional information, whichever is later; if the landlord fails to send notice, the statute treats that failure as consent to the proposed subletting.
• Wisconsin: Under Wis. Stat. § 704.09, fixed-term and year-to-year tenants may transfer their interest unless the lease expressly restricts it, at-will and short-period tenants need landlord consent, and no statute sets a landlord response deadline. Transfer or consent "does not relieve the transferring party of any contractual obligations under the lease," which matches California's surety rule from Kendall. Co-tenants on one lease share joint and several liability, so you can pursue any roommate for the entire rent; a sublessor stays liable to the landlord under the master lease regardless of what the subtenant does.
• California: No statewide deemed-consent rule and no building-size threshold. Only local ordinances like San Francisco's and Oakland's 14-day rules come close.

Commercial subleases in California run on a different track entirely, with statutory defaults favoring transferability (§ 1995.210) and a commercially-reasonable-objection standard from Kendall that residential leases lack statewide.

You must pay tax on sublet income. The IRS treats it as rental income, you generally report it on Schedule E, and Publication 527 lets a sublessor deduct the rent paid to the landlord against what the subtenant pays; FTB guidance says California always treats rental income and losses as passive.

What's next for California landlords and tenants?

Before you draft, confirm the current CPI-adjusted screening fee cap, the security deposit deadlines, and your city's current ordinance text, and run the final document past a local attorney. AB 414, effective January 1, 2026, requires landlords to return remaining security deposits electronically when the tenant paid rent or the deposit electronically, unless the parties agree in writing to personal delivery or first-class mail; it leaves the 21-day deadline and deposit caps untouched. The Legislature scheduled Civil Code § 1946.2, the statute that makes unauthorized subletting an at-fault eviction ground, for repeal on January 1, 2030, so the just-cause framework has a built-in sunset.

California lawmakers may tighten screening rules mid-year. AB 2064, still in the committee process as of May 6, 2026, would bar using credit history in rental applications without offering applicants the option of alternative proof of ability to pay and would add criminal history to FEHA's prohibited inquiries.

For property owners, a sublease also changes your risk picture. An occupant you approved on paper but never met is now living in the unit, and the master tenant, not the subtenant, is the only party who owes you rent. Landlord insurance in California typically responds to sublet-related damage, but ask your carrier whether your policy treats a sublet occupant as a permitted occupancy before you sign the consent form. Get a quote in minutes at quote.steadily.com.

FAQ

Use these quick answers to check the practical rule before you draft or approve a sublease. Local ordinances can change the answer, so confirm the city rule before anyone moves in.

What is a sublet contract and who are the parties?

The original tenant (sublessor or master tenant) rents the unit to a subtenant and keeps their own lease with the landlord. The deal has three parties: the landlord and tenant remain under the master lease, and the tenant and subtenant sign the sublease. If the lease requires approval, the landlord should sign a separate written consent form.

Do I need written permission to sublet, and what happens if I skip it?

If your lease requires consent, get it in writing. Subletting in violation of the lease terminates it under CCP § 1161(4), invites a three-day notice to quit, and is at-fault just cause under Civil Code § 1946.2 after 12 months of occupancy.

How should I screen a subtenant?

Take a written application, pull a credit report, and run a background check with FCRA and ICRAA notices. The screening fee cap is CPI-adjusted; the California Apartment Association put it at $65.86 in December 2025, so check the current number. FEHA binds sublessors too, so protected-characteristic rules and criminal-history limits apply.

What clauses make a sublet contract enforceable in practice?

Cover the rent amount and payment flow, deposit terms, exact start and end dates, termination notice, utility and parking assignments, house rules matching the master lease, a documented move-in inspection, and a subtenant insurance requirement.

How is the security deposit handled?

AB 12 caps the deposit at one month's rent for most landlords, two months for qualifying small landlords, and the landlord returns it with an itemized statement within 21 calendar days of vacancy. Photos back any deduction, and bad-faith retention can cost up to double the deposit.

Who pays the landlord if the subtenant defaults?

The original tenant pays. A subtenant has no direct contract with the landlord, so the sublessor covers the rent and pursues the subtenant separately.

Can a sublease permit things the master lease prohibits?

No. The sublease transfers only part of the tenant's own interest, so it should never outlast the master lease or grant rights the master lease denies.

Do subletting rules vary by state and city?

Rules vary widely. New York gives tenants in 4+ unit buildings a statutory sublet right with a 30-day deemed-consent deadline; Wisconsin lets fixed-term tenants transfer unless the lease says otherwise; California leaves it to the lease statewide, with 14-day deemed-approval rules in San Francisco and Oakland.