CA RE Broker · Cheat Sheet
| Component | Rule | ||
| Formula | 5% + local CPI OR 10% max, whichever is LESS | ||
|---|---|---|---|
| Applies to | Multi-unit buildings 15+ years old | ||
| Exempt: SFH | Unless owned by corporation, REIT, or LLC with corporate member | ||
| Exempt: condos | If individually owned (not institutional) | ||
| Exempt: new construction | Built after Feb 1, 1995 | ||
| Banking unused increases | NOT permitted | ||
| Relocation for no-fault eviction | 1 month's rent required | ||
| Type | Examples | ||
| At-Fault | Nonpayment, lease breach, nuisance, illegal activity, unapproved sublease | ||
| No-Fault | Owner/family move-in, substantial rehab, demolition, Ellis Act withdrawal | ||
| Relocation required for | No-fault evictions only | ||
| Landlord Type | Unfurnished Max | Furnished Max | |
| Most landlords (post-AB 12) | 1 month's rent | 1 month's rent | |
| Small landlord (≤2 properties, ≤4 units total) | 2 months' rent | 3 months' rent | |
| Return deadline | 21 days with itemized statement | ||
| Pet deposit | Part of security deposit total (no separate unlimited pet deposit) | ||
| Reason | Notice | ||
| Nonpayment of rent | 3-Day Pay Rent or Quit | ||
| Curable lease breach | 3-Day Perform Covenant or Quit | ||
| No-fault, tenancy ≤1 year | 30-Day Notice to Vacate | ||
| No-fault, tenancy >1 year | 60-Day Notice to Vacate | ||
| Lease Type | Tenant Pays | Landlord Pays | Common Use |
| Gross | Fixed rent only | All expenses | Multi-tenant office |
| Net (N) | Rent + taxes | Insurance, maintenance | Uncommon |
| Double Net (NN) | Rent + taxes + insurance | Maintenance | |
| Triple Net (NNN) | Rent + taxes + insurance + maintenance | Little/nothing | Freestanding retail, industrial |
| Percentage | Base rent + % of gross sales | Varies | Mall/retail |
| Ground Lease | Rent for land only (builds improvements) | Land ownership | Urban infill, 50–99 yrs |
| Rule | Detail | ||
| Landlord entry notice | 24 hours written notice (Civil Code §1954) | ||
| Emergency entry | No notice required | ||
| CSLB license threshold | Required for work $500 or more | ||
| RRP Rule trigger | Work disturbing >6 SF of painted surface in pre-1978 buildings | ||
| RRP pamphlet | "Renovate Right" — provide BEFORE work begins | ||
| Fee Type | Typical Rate | ||
| Residential management (% of collected) | 8–12% | ||
| Commercial management | 3–6% | ||
| Leasing fee (new tenant) | 0.5–1 month's rent | ||
| Lease renewal fee | $150–$300 flat |
Aligned to the California DRE broker exam content outline.
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