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National · Statutory Compliance · 4 min read

Owner-Occupied Small Landlord Exemptions Under State Fair Housing Laws (Mrs. Murphy Exemption by State)

Direct statutory answer

Owner-occupied small landlords are exempt from certain Fair Housing Act requirements under state-specific laws, including the Mrs. Murphy Exemption in California. This guide outlines the legal obligations and exemptions for independent residential landlords.

Answer Block: Owner-occupied small landlords are exempt from certain Fair Housing Act requirements under state-specific laws, including the Mrs. Murphy Exemption in California. This guide outlines the legal obligations and exemptions for independent residential landlords.

Permitting & Zoning Standards

ADU Rules

In many states, including California, landlords can rent accessory dwelling units (ADUs) on their properties. However, the rules vary by state and locality. For example, in California, landlords must adhere to specific zoning laws regarding ADUs (e.g., City of San Francisco Zoning Ordinance).

Owner-Occupancy Requirements

Some states allow owner-occupied small landlords to rent their properties without meeting certain Fair Housing Act requirements. For instance, in California, under the Mrs. Murphy Exemption (Cal. Civ. Code § 54), an owner-occupied property with one to four units is exempt from certain Fair Housing Act requirements (e.g., California Department of Fair Employment and Housing).

Parking Minimums

Parking requirements for rental properties also vary by state and locality. In California, landlords are generally required to provide one parking space per dwelling unit (Cal. Civ. Code § 1947.20). However, this requirement can be waived for owner-occupied properties under certain circumstances (e.g., City of San Francisco Parking Ordinance).

Lease Structuring, Utility Metering, and Disclosures

Lease Agreement

Landlords must provide a lease agreement that complies with state-specific requirements. In California, the lease must include certain disclosures and terms (e.g., California Civil Code § 1947.25). Landlords should also ensure that the lease agreement includes provisions for utility metering and maintenance responsibilities.

Utility Metering

Landlords must ensure that rental properties are equipped with appropriate utility meters. In California, landlords are required to provide tenants with access to their own utility meters (Cal. Civ. Code § 1947.30). Landlords should also ensure that tenants are responsible for paying their own utility bills.

Disclosures

Landlords must provide certain disclosures to tenants, including information about the property and any applicable fees. In California, landlords must provide tenants with a notice of eviction and a notice of non-compliance (Cal. Civ. Code § 1947.35). Landlords should also ensure that tenants are aware of any applicable lease terms and conditions.

State Landlord-Tenant Act Compliance

Notice Periods

Landlords must provide tenants with proper notice periods for eviction and other important events. In California, landlords must provide tenants with a 30-day notice period for eviction (Cal. Civ. Code § 1947.45). Landlords should also ensure that tenants are aware of any applicable lease terms and conditions.

Deposit Handling

Landlords must handle tenant deposits in accordance with state-specific laws. In California, landlords are required to provide tenants with a receipt for any deposit paid (Cal. Civ. Code § 1947.50). Landlords should also ensure that any deposit is returned to the tenant within 30 days of the termination of the lease (Cal. Civ. Code § 1947.55).

Fee Caps

Landlords must ensure that any fees charged to tenants are reasonable and in compliance with state-specific laws. In California, landlords are required to provide tenants with a notice of any fees charged (Cal. Civ. Code § 1947.60). Landlords should also ensure that any fees are reasonable and in compliance with state-specific laws.

Defensible Record-Keeping & Compliance Checklist

  1. Lease Agreement: Ensure that the lease agreement complies with state-specific requirements.
  2. Utility Metering: Provide tenants with access to their own utility meters and ensure that tenants are responsible for paying their own utility bills.
  3. Disclosures: Provide tenants with necessary disclosures, including information about the property and any applicable fees.
  4. Notice Periods: Provide tenants with proper notice periods for eviction and other important events.
  5. Deposit Handling: Handle tenant deposits in accordance with state-specific laws, providing tenants with a receipt and returning any deposit within 30 days of the termination of the lease.
  6. Fee Caps: Ensure that any fees charged to tenants are reasonable and in compliance with state-specific laws.

By following these guidelines, independent residential landlords can ensure that their properties are compliant with state-specific Fair Housing Act requirements and avoid potential legal issues.

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