Dear California Landlord,
This letter is to inform you of the rights of an individual looking to start a family child care home (an in-home daycare or preschool) in their rented property.
Here are some facts for your reference:
- Family child care homes are limited to either 8 or 14 children depending on whether they are under a small or large license. Children are supervised for less than 24 hours a day while parents or guardians are away. Family child care homes are regulated by the California Child Care Licensing Program.
- You cannot evict a tenant for starting a family care home in a property they rent from you. You also cannot increase their rent drastically from year to year or increase it because they have started a family child care home. Doing do may violate the Fair Housing and Employment Act and invite a potential lawsuit. All rent increases must be within the local law.
- You may ask for an increased security deposit but the amount must not exceed the maximum allowed under law. The maximum security deposit for unfurnished residences is equal to 2 months’ rent and the maximum for furnished residences is equal to 3 months’ rent. These amounts are in addition to payment of the first month of rent. See Section D of the California Health and Safety Code Section 1597.40 and Section C of California Civil Code Section 1950.5.
- Tenants starting family child care homes must either (1) maintain liability insurance coverage, or (2) post a bond, or (3) in lieu of the insurance or bond, keep a file of parent affidavits informing the parent that you do not have liability coverage.
- They do not have to have liability insurance. They are only required to choose one of the three options. If they purchase liability insurance, and live in a rental unit or in a home covered by an association or covenant agreement, they can name the landlord or association as an additional insured on the policy.
- The above-mentioned laws still apply even if the tenant lives in Section 8 or HUD supported housing. See page 6 of the CDSS Tenant Rights.
- If you are worried about wear and tear on the property, understand that family child care directors have a strong incentive to keep areas neat and clean to attract families and adhere to licensing requirements. The Licensing Board spot-checks homes to be sure they are safe and well-maintained.
If you have any questions about this, feel free to email us at firstname.lastname@example.org
The Wonderschool Team
Family Child Care Tenant Rights from the Community Care Licensing Division
Know the Law About Family Child Care Homes in California Rental Property – For Landlords from the Child Care Law Center