Stockton Property Management Blog

While many Central Valley cities rely solely on statewide landlord-tenant laws, some key municipalities impose their own, local rules. For property managers of single-family homes, failing to comply with these local rental licensing and registration requirements can result in fines and legal complications, often voiding your ability to legally pursue eviction or collect rent. This guide focuses on two major Central Valley cities: Sacramento and Modesto.

Sacramento: The Tenant Protection and Relief Program

The City of Sacramento has been particularly active in regulating the rental market through its Tenant Protection and Relief Program (TPRP). The most important requirement for single-family home landlords within Sacramento city limits is mandatory property registration.

• Requirement: Owners of residential rental property within the City of Sacramento are required to register their rental unit with the city's Community Development Department. This includes single-family homes, unless they fall under a few specific, narrow exemptions (e.g., properties not legally offered for rent).

• Purpose: The registration process is primarily used to track rental stock, ensure compliance with the city’s rent control (which applies to many multi-family units, but not always to single-family homes under state law, depending on ownership structure), and fund enforcement efforts.

• Consequences of Non-Compliance: Failure to register a property by the required deadline can result in penalties and may severely limit a landlord's ability to take certain actions, such as pursuing an unlawful detainer (eviction). The city's ordinance essentially mandates a license to legally rent.

• Key Action: Sacramento landlords must ensure their property is registered annually and that the required fees are paid. They must also provide specific, mandated notices to their tenants regarding the TPRP.

Modesto: Business Licensing and Good Landlord Programs

The City of Modesto, while not imposing the same comprehensive rent control or specific tenant relief program as Sacramento, still has significant local requirements for all businesses operating within city limits, which includes rental property management.

• Business License Requirement: Anyone conducting business in Modesto, including renting out a single-family home, must obtain a City of Modesto Business License (often called a business tax certificate). This is a general requirement, not specific to housing, but it applies to landlords.

• Purpose: The business license ensures all businesses contribute to city services and are registered for local tax purposes.

• Good Landlord Program: Modesto has previously run programs, often tied to crime prevention, that offer optional certification or training for landlords. While not mandatory licensing in the traditional sense, participation is often encouraged for best practices.

• Key Action: Modesto landlords must ensure they have a current and valid city business license for their rental activity and must verify if any local ordinances have been passed recently that require additional registration or compliance specific to housing.

The Bigger Picture: Vetting the Central Valley

For your single-family home business, while Sacramento and Modesto may have specific requirements, it's a best practice to check the official websites of all the Central Valley cities where you operate, including Fresno, Bakersfield, Stockton, and smaller communities like Tracy or Lodi.

Checklist for Local Compliance:

1. Business License/Tax Certificate: Does the city/county require a general business license for renting residential property? (Most do).

2. Rental Registration/License: Does the city have a specific ordinance requiring registration of the rental unit itself (like Sacramento’s TPRP)?

3. Local Rent Control: Does the city have any local rent control or “just cause” eviction ordinances that are stricter than the statewide Tenant Protection Act (AB 1482)? For single-family homes, this is often a state exemption, but local rules can sometimes supersede or narrow the exemption.

4. Local Fees: Are there any local fees levied per unit or per tenant?

In the Central Valley, local requirements are a critical layer of compliance layered on top of state and federal law. By prioritizing the necessary local licenses and registrations in Sacramento, Modesto, and beyond, you ensure your single-family home business is operating legally, protecting your right to enforce your lease, and maintaining good standing with local municipalities.