Quick answer: SUM Property Management offers flat-fee rental management in Modesto, and the short version of the law is this: Modesto has not adopted a rent-control ordinance of its own, so California statute is the entire rulebook. That means AB 1482's 5%-plus-CPI cap (10% maximum) on covered units, a one-month security deposit under AB 12, 24 hours' written notice to enter, 30- or 90-day rent-increase notices depending on size, and a court process for every eviction.
SUM Property Management offers flat-fee rental management in Modesto and across Stanislaus County, which means we serve these notices and calculate these caps every week. This is the practical version for an owner with a house in La Loma, a duplex near Village One, or a rental out toward Sylvan: what California actually requires, where single-family homes get an exemption, and which mistakes cost real money. One framing point first — because Modesto has no local rent-control ordinance layered on top, you are dealing with state law and nothing else, which makes this a shorter list than a Bay Area owner faces.
Key Takeaways
- AB 1482 caps annual increases on covered units at 5% plus regional CPI, to a 10% maximum, and requires just cause to end a tenancy after 12 months.
- A single-family home or condo is generally exempt from both — but only if it is not owned by a corporation, REIT, or an LLC with a corporate member, and you serve the tenant the written exemption notice the statute requires.
- Security deposits are capped at one month's rent (AB 12, since July 1, 2024), with a narrow two-month allowance for small natural-person landlords, and must be returned itemized within 21 days.
- Rent-increase notice is 30 days for an increase of 10% or less in 12 months and 90 days if it is more (Civil Code 827) — separate from the AB 1482 cap.
- Modesto has not adopted its own rent-control ordinance, so state law is the whole rulebook — but always confirm current city and county requirements before acting.
Start with the question that decides most of the others — whether AB 1482 covers your unit at all:
| Property | Rent cap and just cause | What it turns on |
|---|---|---|
| Single-family home or condo, owned by a person | Generally exempt | Exemption holds only if you served the required written notice |
| Single-family home owned by a corporation, REIT, or an LLC with a corporate member | Covered | Ownership structure, not the building |
| Duplex where the owner lives in one unit | Generally exempt | Owner occupancy from the start of the tenancy |
| Apartment or multifamily building 15+ years old | Covered | Certificate of occupancy date, on a rolling 15-year window |
| Newly built housing | Exempt while under 15 years old | The exemption expires as the building ages |
| Deed-restricted affordable housing | Generally exempt | The restriction itself |
That rolling 15-year window matters: an apartment building exempt when you bought it becomes covered the year it turns 15. Check the certificate of occupancy date rather than relying on what was true at purchase.
How much can you raise the rent on a Modesto rental?
On a covered unit, no more than 5% plus the regional Consumer Price Index in any 12 months, and never more than 10% total, with a maximum of two increases in that period. The CPI component changes annually and by region, so look up the current figure for the Modesto area before you calculate rather than reusing last year's number. On an exempt single-family home there is no statutory cap on the amount at all — the constraint is the notice, not the number, and the market.
The notice period comes from Civil Code 827 and applies either way: 30 days' written notice for an increase of 10% or less within 12 months, and 90 days if the increase is larger. That 90-day rule catches owners of exempt homes by surprise, because they correctly conclude there is no cap and then incorrectly assume 30 days is always enough. Our self-management guide walks the same sequence step by step.
What is the security deposit limit, and when must you return it?
One month's rent for most landlords, furnished or unfurnished, since July 1, 2024 under AB 12. There is a narrow exception: a natural person — not a corporation or LLC — who owns no more than two residential properties totaling no more than four units may collect up to two months, except from a service member. If you hold your Modesto rental in an LLC, the exception does not apply to you.
Return is governed by Civil Code 1950.5: within 21 days of move-out, with an itemized statement of every deduction, and receipts or invoices where the work exceeds the statutory threshold. You may deduct unpaid rent, cleaning to return the unit to its move-in condition, and damage beyond normal wear and tear — not ordinary wear, not upgrades. Dated move-in and move-out photos are what make a deduction defensible; without them a dispute usually resolves in the tenant's favor.
What notice do you need to enter, raise rent, or end a tenancy?
Entry requires 24 hours' written notice under Civil Code 1954, during normal business hours, stating the purpose — repairs, inspection, or a showing — with a genuine emergency the only exception. Ending a month-to-month tenancy takes 30 days' notice if the tenant has been there under a year and 60 days if a year or more, and on a covered unit you also need a just-cause reason, stated in the notice.
An eviction is a court case, always. California calls it an unlawful detainer, it starts with the correct notice served correctly, and it ends with a sheriff's lockout — never a changed lock, a shut-off utility, or removed belongings. Self-help eviction is where a well-meaning owner turns a rent problem into a damages claim against themselves. We covered the real arithmetic in what an eviction costs a Modesto landlord.
Not sure whether your unit is covered, or whether the exemption notice was ever served? That is a short conversation, not a project:
Which screening and fee rules apply to Modesto landlords?
Screening is where the rules are least intuitive. Civil Code 1950.6 caps the application screening fee — the cap is adjusted for inflation each year and has been in the low-to-mid sixties in recent years — requires a receipt, and requires you to refund the unused portion. Charge above the current cap and you owe it back. Under SB 329 you may not refuse an applicant because they hold a Housing Choice Voucher, and the voucher counts as income when you apply an income standard.
Federal fair housing law and California's Fair Employment and Housing Act both apply to a two-door landlord the same way they apply to a large operator: written criteria, applied identically to every applicant, and no criteria that function as a proxy for a protected class. A verified assistance animal is not a pet — no pet rent, no pet deposit — though the tenant remains liable for damage. If you deny based on a credit or background report, the federal Fair Credit Reporting Act requires an adverse-action notice naming the reporting agency so the applicant can correct an error.
Two smaller rules that catch owners out: late fees must be reasonable and stated in the lease (Civil Code 1671) rather than set as a penalty, and Civil Code 1947.3 bars requiring rent in cash only, so a tenant must have a payment route other than cash or electronic transfer. Our management services cover all of this as standard.
Does Modesto add anything on top of state law?
Modesto has not adopted its own rent-control or just-cause ordinance, so for rent caps and tenancy terminations, state law is the whole rulebook — a genuine advantage over owning in the Bay Area, where a city layer sits on top of everything above. That is not permanent, and cities across California have added local rules in recent years, so confirm current city and county requirements before a rent increase or a termination rather than assuming today's answer holds next year.
Where Modesto does differ is practical rather than legal: an older housing stock in the central neighborhoods means habitability complaints arrive more often, and Stanislaus County Superior Court sets the pace of any eviction, not you. Both argue for getting the paperwork right the first time. If you would rather not track any of it, that is what we do — see Modesto property management or our flat fee.
What SUM costs
| Service | What you pay |
|---|---|
| Monthly management | Flat 7% of collected rent |
| Multiple properties | 4% |
| Tenant placement | 50% of one month's rent (one-time) |
| Setup / vacancy / renewal / inspection / cancellation | $0 |
| Compliance | Included — notices, deposit accounting, disclosures |
| Maintenance | In-house |
| Rent collection | Online, or cash at CVS, 7-Eleven or Walmart |
For an owner comparing that against self-managing, the fee is the visible cost and the compliance is the invisible one. A single missed exemption notice or a deposit returned on day 25 can cost more than a year of management on a typical Modesto rental.
The short version for a Modesto owner
California tenant law rewards precision and punishes improvisation. Serve the exemption notice if your house qualifies. Look up the current CPI figure before you calculate an increase, and use 90 days when the increase tops 10%. Keep the deposit at one month unless you genuinely fall inside the small-landlord exception, and return it itemized inside 21 days. Give 24 hours before you enter. Never handle an eviction outside court. SUM Property Management is a landlord-owned team in the valley operating under CA DRE Broker #01004922 — we own rentals here too, so your property gets treated like ours. For a straight answer on your own unit, book a free consultation, call or text (209) 299-2100, email info@sumpropertymanagement.com, or use our contact page.