California Junk Fees for Rental Properties — SB 611 Compliance Guide (2026)

What Is SB 611 and Why Does It Matter Now?

On January 1, 2020, California Senate Bill 611 amended Civil Code §1946.2 to prohibit landlords from charging "junk fees"—fees that are arbitrary, excessive, or lack a legitimate business purpose. What sounds straightforward in the statute has become one of the most litigated and misunderstood landlord compliance issues in California.

The law was designed to address predatory rental fee practices that had become common nationwide: $50 "application processing" fees that involved no processing, $75 "lease renewal" charges for printing a new lease, $100 "administrative" fees with no documented cost basis. Consumer advocates saw tenants being nickel-and-dimed before they even moved in.

Fast-forward to 2026: enforcement has accelerated. The California Attorney General's office, dozens of county district attorneys, and tenant rights organizations have filed actions against large property managers and landlords. Small landlords managing 2–75 units often assume they're too small to be noticed. They're wrong.

In October 2024, the AG's office issued guidance clarifying that any landlord—including mom-and-pop operations—can face complaints from tenants, legal aid organizations, or prosecutors. The penalty structure is designed to be painful even at small scale: $50–$200 per violation per tenant. Charge five tenants an illegal $75 fee? That's $375–$1,500 in penalties, plus you must refund the original fees, plus you pay the tenant's attorney.

For self-managing landlords using spreadsheets or basic property management tools, the risk is compounded: you don't have a system flagging prohibited fees before they're charged, and you have no audit trail to show compliance intent if a complaint lands.

Understanding Civil Code §1946.2: The Exact Statutory Language

California Civil Code §1946.2 states that a landlord cannot require a tenant to pay any fee, other than:

• Rent
• A security deposit (limited to one month's rent for tenancies of less than one year; two months' rent for longer tenancies)
• A nonrefundable pet deposit or pet rent (if specified in the lease and state law allows)
• Deposits for utilities that the tenant directly controls
• Fees expressly authorized by law

The statute then adds the critical prohibition: "A landlord shall not demand, request, or accept any payment from a tenant or prospective tenant, except as provided in this section, for rent, a deposit, an installment of a deposit, or a fee, including, but not limited to, any of the following: (1) A payment for a key or lock replacement. (2) A payment for a doorbell, mailbox, or other similar amenity. (3) A late fee charged in a manner inconsistent with the requirements of subdivision (d)."

Notice the broad language: "except as provided in this section." This is the enforcement hook. If a fee doesn't fit one of the five categories above, it's prohibited. No exceptions for custom situations, no "but we always charged this," no "it covers our costs."

The statute also includes specific rules on late fees (covered separately in Civil Code §1946.2(d)), which we address below. But the junk fee prohibition in subdivisions (a)–(c) is absolute and fact-specific.

Prohibited Fees Under SB 611: The Complete List

Application Processing Fees

One of the most commonly violated rules. Under §1946.2, you cannot charge an application fee at all—even if you perform credit checks or background verification. The statute does not include "application processing" as one of the five allowed fee categories.

Exception: Some courts and the Attorney General have recognized that a landlord may charge a fee to cover the actual, documented cost of a credit report or background check, but only if:

• The fee is itemized and broken down by service (e.g., "Credit Report: $15")
• You provide the tenant with an itemized receipt showing the actual cost incurred
• The fee does not exceed the actual third-party cost
• You collect it after obtaining written consent from the prospective tenant (not as a condition of application)

Best practice for self-managing landlords: Do not charge an application fee. If you use a credit screening service, absorb the cost as part of your tenant acquisition expense. The compliance risk and administrative burden of defending an "actual cost" fee exceeds the $20–$30 you'd recover per application.

Lease Renewal or Lease Modification Fees

You cannot charge a tenant to renew their lease or amend lease terms. This includes fees labeled as "lease extension fees," "renewal processing fees," or "amendment charges." The tenant renewal process is considered part of the ordinary landlord business operation, not a separate service.

Case example: A property management company in San Francisco charged $75 to renew a lease (2023). The tenant filed a complaint with the AG. The company was ordered to refund the fee to the tenant and paid $200 in statutory penalties plus the tenant's $5,000 attorney bill.

Document Preparation or Delivery Fees

You cannot charge for preparing, printing, copying, scanning, notarizing, or delivering lease documents, move-in inspection reports, or other landlord-tenant paperwork. This is a basic landlord responsibility.

Prohibited examples:

• $25 "lease printing fee"
• $50 "document delivery charge"
• $15 "notarization fee"
• $30 "inspection report generation fee"

Administrative, Processing, or Convenience Fees

Vague "administrative" or "processing" charges for move-in procedures, file management, or general landlord record-keeping are prohibited. These fees must be tied to a specific, lawful service that is not already covered by rent or security deposits.

Prohibited: "$100 move-in administrative fee"

Potentially allowed (if narrowly documented): "$50 change-of-lock fee" (actual cost to hire a locksmith to rekey the property), but only if this is incurred outside normal tenant turnover and is a response to a specific tenant request or lease violation.

Key or Lock Replacement Charges

§1946.2 explicitly lists "a payment for a key or lock replacement" as prohibited. You cannot charge a tenant for rekeying locks between tenancies or providing replacement keys.

Exception: If a tenant loses a key and requests a replacement, you may charge the tenant a fee equal to the actual, documented cost of producing that replacement key (typically $5–$15). This must be:

• Itemized with the actual cost
• Consented to by the tenant in writing
• Applied only to keys lost by the tenant (not routine lock maintenance)

Amenity or Utility Charges (Beyond Utilities)

You cannot charge for doorbells, mailboxes, light bulbs, fire extinguishers, or other building amenities. §1946.2 explicitly names "a payment for a doorbell, mailbox, or other similar amenity" as prohibited.

The phrase "or other similar amenity" is intentionally broad and includes:

• Parking space fees (beyond the security deposit allowed under §1950.7)
• Trash collection or trash bin charges
• Common area maintenance fees
• Gym, pool, or recreational facility fees (unless these are bundled into rent in a market-rate property)

Late Fees Charged Incorrectly

While late fees are permitted, they are heavily regulated under §1946.2(d). Violations of the late fee rules are treated as junk fee violations.

The rules:

• A late fee may not be charged unless the lease explicitly permits it
• A late fee must be reasonable, not to exceed 5% of the monthly rent
• A late fee cannot be charged if rent is paid within 6 calendar days of the due date
• Once a late fee is collected, you cannot charge it again for the same late payment (no duplicate late fees)
• A late fee cannot exceed the actual costs incurred for collection activities (and must be itemized if challenged)

Common violation: Charging a $150 late fee on a $2,000 rent payment (7.5% of rent, exceeds 5% cap). Penalty: $50–$200 per tenant plus refund of excess fees.

Fees That Are Still Allowed Under California Law

To avoid overcorrection, clarify which fees remain lawful:

Fee Type	Legal Status	Conditions / Limits
Rent	✓ Allowed	Subject to local rent control ordinances (LA RSO, SF, Oakland, etc.)
Security Deposit	✓ Allowed	1 month for tenancies under 1 year; 2 months for longer tenancies. Must be returned per CC §1950.7
Pet Deposit or Pet Rent	✓ Allowed	Pet rent (monthly fee) permitted; pet deposit permitted under §1950.7 (subject to per-unit caps in some cities)
Utility Deposits (directly controlled by tenant)	✓ Allowed	Limited to actual utility costs; must be tied to tenant's own utility account
Late Fees	✓ Allowed (regulated)	Max 5% of monthly rent; cannot charge before day 6 of late payment; must be itemized if challenged
Parking Deposits (if separate metered)	✓ Allowed	Under §1950.7, treated similarly to pet deposits; must be refundable
Actual Lock Rekeying (routine turnover)	✓ Allowed	Cost is landlord responsibility between tenancies; cannot be passed to tenant
Replacement Keys (tenant-lost)	✓ Allowed (limited)	Only actual cost of key cutting ($5–$15); requires tenant written consent; not routine locks

Enforcement Mechanisms and Penalties

Civil Code §1946.2(e): Statutory Penalties

If a tenant proves you charged a prohibited junk fee, the consequences are multifaceted:

• Refund of the full fee to the tenant (mandatory)
• Civil penalty of $50–$200 per violation per tenant (statutory damages; not caps but range enforced by courts)
• Tenant's attorney fees (if the tenant sues or is represented by legal aid)
• Costs and interest on the refunded amount

Example calculation: You charge 10 tenants a $75 "administrative fee" in 2025. Five tenants file complaints with a legal aid organization in 2026. Outcome:

• Refund: 5 × $75 = $375
• Statutory penalties: 5 × ($50–$200) = $250–$1,000
• Attorney fees: Typically $3,000–$8,000 if the tenant organization brings a class action or individual suit
• Total exposure: $3,625–$9,375 for five tenants

Enforcement Agencies

California Attorney General's Office — Statewide enforcement authority. Since 2023, the AG has issued two guidance documents and filed actions against property management companies. Small landlords are not exempt.

County District Attorneys — Local prosecutors can bring civil or criminal enforcement under §1946.2. Many counties (Los Angeles, San Francisco, Alameda, San Diego) have tenant rights task forces.

City/Local Housing Authorities — Cities like Los Angeles, San Francisco, and Oakland have their own enforcement units and can refer cases to the DA or AG.

Tenant Rights Organizations — Legal aid nonprofits (e.g., Bay Area Legal Aid, Legal Aid Foundation of Los Angeles) frequently file complaints on behalf of tenants and can pursue class actions.

Individual Tenants — A tenant can sue directly under §1946.2 for refund plus statutory damages. With attorney fee provisions, this is a low-barrier claim for legal representation.

2024–2026 Enforcement Uptick

In 2024, the California Attorney General issued a compliance memo specifically targeting:

• Application fees charged without itemization or cost justification
• Lease renewal fees
• Administrative or processing fees not tied to documented costs
• Late fees exceeding 5% or charged before day 6

The memo signaled that small property managers and independent landlords would be monitored. Several small property management firms (managing 50–200 units) faced settlements of $15,000–$50,000 in 2024–2025.

Expect increased enforcement in 2026 as tenant advocacy groups have shifted focus to small landlord compliance.

How to Audit Your Current Leases and Fee Structure

Step-by-Step Compliance Audit

Step 1: List All Fees Mentioned in Your Lease

Go through your current lease template and list every fee you charge or reserve the right to charge. Include:

• Application fee
• Processing or administrative fee
• Late fee
• Lease renewal fee
• Move-in fee or "move-in kit" fee
• Parking fee
• Pet deposit or pet rent
• Utility deposit
• Key replacement fee
• Lock change fee
• Trash or common area fee
• Document delivery or copy fee
• Any "other fees" clause

Step 2: Cross-Reference Against §1946.2 and the "Allowed" Table Above

For each fee, determine if it appears in one of the five allowed categories or is explicitly prohibited. If a fee is not explicitly allowed, assume it's prohibited unless you can document:

• The actual, itemized cost incurred
• Tenant written consent at signing
• That the fee does not exceed actual costs

Step 3: Identify High-Risk Fees

Mark as "high-risk" any of these:

• Application fees above $0 (most defensible position: do not charge)
• Lease renewal fees
• Administrative or processing fees with vague descriptions
• Late fees exceeding 5% of monthly rent
• Document preparation or delivery charges

Step 4: Revise Your Lease Template

Remove or clarify every high-risk fee. Replace with language like:

"Tenant shall pay monthly rent of $2,000 due on the 1st of each month. A late fee of $100 (5% of rent) will be charged if rent is received after the 6th day of the month. Tenant shall pay a refundable security deposit of $2,000. Tenant shall pay a nonrefundable pet rent of $25/month for approved pets."

Step 5: Document Cost Basis for Any Remaining Fees

If you charge a fee that is borderline (e.g., actual lock-rekeying cost, replacement key fee), maintain:

• Itemized invoices from vendors (locksmith receipts, credit bureau charges)
• Written tenant consent before charging
• Records of the actual amount charged to you

Step 6: Implement a Compliance Flag in Your System

If you manage properties manually with spreadsheets, create a "Fees Compliance Checklist" to review before charging any fee. Better: use a platform with built-in compliance rules that prevent prohibited fees from being charged in the first place.

Sample Compliant Lease Language

Prohibited Version: "Tenant shall pay Landlord a $75 application processing fee and a $50 lease administration fee upon signing."

Compliant Version: "Tenant acknowledges that Landlord does not charge application processing fees or administrative fees. Tenant shall pay rent and security deposit as outlined in Sections 2 and 3 below."

Special Considerations for Local Ordinances

SB 611 sets a state floor, but some California cities have enacted stricter rules. Always check your city's municipal code:

• Los Angeles — RSO and prop controlled units have additional restrictions on application fees and renewal charges
• San Francisco — Rent Ordinance §49.1 prohibits application fees; SF Administrative Code also restricts parking and pet deposits
• Oakland — Just Cause Ordinance and CMC §8.22 impose stricter security deposit and fee caps
• Berkeley — Municipal Code §13.76 strictly limits all non-rent charges

If you operate in one of these cities, you are already subject to stricter rules than the state minimum. Ensure your lease complies with the city, not just the state.

FAQs on SB 611 Junk Fees

Q: Can I charge an application fee if I itemize the credit check cost?

A: The strictest compliance position is no—SB 611 does not include application fees as an allowed category. The "actual cost" exception is not explicitly stated in the statute and is debated among enforcement agencies. Some prosecutors accept itemized fees equal to actual third-party credit report costs ($15–$25). Most do not. Best practice: absorb the cost as a business expense. The compliance risk and potential penalty ($50–$200 per applicant) exceeds the recovery.

Q: Can I charge a tenant $50 to rekey the locks after they move in (for tenant security)?

A: No. Rekeying locks between tenancies—including for new tenant security—is a routine landlord responsibility and cannot be charged to tenants. The cost is your business expense. §1946.2 explicitly prohibits "a payment for a key or lock replacement." If a tenant requests a rekeying for additional locks or changes and this is outside your standard practice, you may charge the actual locksmith cost, but only with written tenant consent.

Q: What if my lease has an "other fees" clause that doesn't specify what those fees are?

A: Delete it immediately. An open-ended "other fees" clause is unenforceable under §1946.2 and creates liability. You cannot charge undefined fees. Every fee must be specifically stated in the lease with an amount or formula. Any fee not listed or authorized by law is prohibited.

Q: I charged five tenants an "administrative fee" in 2023. What should I do?

A: (1) Calculate the total amount charged to each tenant. (2) Issue written refunds with interest (California law typically allows 7% annual interest from the date charged). (3) Document the refunds with a letter explaining the fee was determined to violate SB 611. (4) Consult an attorney about whether to notify tenants of potential claims or wait. (5) Cease the practice immediately. (6) Retain records of refunds for 4+ years in case of future audits. Proactive refunds significantly reduce penalty exposure if a complaint is later filed, though penalties can still apply.

Q: Does SB 611 apply to commercial tenants or only residential?

A: SB 611 applies only to residential rental properties. Commercial leases are not covered. However, if you rent mixed-use properties (e.g., residential units above a commercial space), the junk fee prohibition applies to the residential units.

Q: What if a city ordinance permits a fee that SB 611 prohibits—which law applies?

A: California law controls. SB 611 is a state statute that preempts conflicting local rules. If a city ordinance permits an "administrative fee" but SB 611 prohibits it, §1946.2 governs statewide. Follow the most restrictive rule (the state prohibition).

How to Stay Compliant Going Forward

Best Practices for Self-Managing Landlords

• Use a standardized lease template that has been reviewed by a California real estate attorney and updated for SB 611 compliance
• Limit fees to those expressly allowed: Rent, security deposit, late fees (5% max), pet deposits/rent, and utility deposits only
• Do not charge application fees. Absorb the cost of credit and background checks as a business expense. The compliance risk is too high.
• Document all late fees in writing before charging, with the exact percentage or amount
• Keep itemized invoices for any vendor services (credit reports, background checks) but do not pass these costs to tenants unless permitted by §1946.2
• Train yourself on local ordinances — If you manage in Los Angeles, San Francisco, Oakland, or Berkeley, you have city-level restrictions above SB 611
• Implement a compliance review process before charging any new or unusual fee. Ask: Is this fee in the five allowed categories? If not, is it prohibited? If uncertain, err on the side of not charging.
• Use a platform that enforces compliance rules — Self-managing with spreadsheets leaves compliance gaps and no audit trail. A lease management system with built-in compliance rules prevents prohibited fees from being charged in the first place.

Document Retention

Maintain records for at least 4–6 years:

• Signed leases with all fee provisions clearly outlined
• Bank deposits or payment records showing fee collection
• Refund records (if you later refunded a junk fee)
• Proof of tenant consent for any fee charged (e.g., signed acknowledgments)
• Vendor invoices if you charged a fee tied to actual cost

Compliance is the Difference Between Small and Scalable

Self-managing a portfolio of 2–75 rental units means balancing operational efficiency with legal risk. Junk fee violations are among the easiest compliance traps for independent landlords to fall into—especially if you're using inherited lease templates or relying on spreadsheets.

The cost of a single junk fee complaint can exceed $5,000 in refunds, penalties, and attorney fees. Over a 10-unit portfolio with five tenancies per year, this is a material business risk.

A compliance-first approach to lease design and fee collection—implemented once and then automated—protects you from unexpected liability and allows you to scale without multiplying risk. LeaseBase's compliance engine is designed to flag prohibited fees before you charge them, maintain audit trails that prove your intent, and keep your leases updated as state and local law changes.

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.