Help! I'm Brand-New to This and Don't Know Where to Start!

So, you’ve decided to rent out a property in Berkeley, and now your head is spinning. Whether you're renting for the first time or just dipping your toe into the city's rental market, you’re not alone. Berkeley has some of the most complex rental laws in California, but don’t panic. We’re here to help.

This guide will walk you through the essentials, from property classification and business licensing to compliance and best practices.

Step 0: Do You Need a Berkeley Business License?

If you collect rent in Berkeley, you may be required to register as a business and pay annual rental housing taxes, even if you own just one property.

You’ll need a business license if you own:

• A single parcel with three or more dwelling units, or

• Five or more dwelling units total across any number of parcels in Berkeley

This applies to dwelling units, not just rental units, including owner-occupied ADUs or Golden Duplexes. The City counts how many units you own, not how many you rent out.

Use BPOA’s Business Tax Worksheet to check your status
Find the Business License Application in the Other Important Forms and Information section of the Rental Housing Forms Library on the BPOA website
Use the City's step-by-step guide or downloadable form to apply directly. There is no online portal, but you can access the materials at the City of Berkeley’s Business Licenses page: https://berkeleyca.gov/doing-business/operating-berkeley/business-licenses

Step 1: Submit an Amended Registration Statement (If You Just Bought the Property)

If you recently purchased a Berkeley rental property, you’re required to submit an Amended Registration Statement to the Berkeley Rent Board. This updates the City's records with the new ownership and ensures that the property remains in compliance.

What to do:

• Find the Amended Registration Statement form in the Required Berkeley Rent Registration Forms section of the Rental Housing Forms Library on the BPOA website

• Fill out updated owner and contact information

• Submit it promptly, even if no changes have been made to the tenancy

Failing to update the registry can interfere with rent increases, interest calculations, and tenant notifications.

Step 2: Identify What Kind of Property You’re Renting

Your responsibilities depend on how your property is classified under the Rent Stabilization Ordinance (RSO). The three main categories are:

• Fully Covered: Most multi-unit buildings built before 1980

• Partially Covered: Single-family homes, condos, and newer construction

• Exempt: Owner-occupied units that share kitchen or bath, Golden Duplexes, specific ADUs, and some two-unit properties containing one SFR and one ADU, one of which is owner-occupied

Step 3: Understand When to Register

Contrary to what some owners believe, you don’t register your property before placing a tenant. Initial registration with the Rent Board happens only after a tenancy begins.

• File a Registration Statement once the lease is signed and the unit is occupied

• After that, registration becomes an annual obligation by July 1st (even if the rent doesn’t increase)

• Registration is required even for partially covered units, as long as eviction protections apply

Step 4: Be Careful with Your Rental Listing

Creating a rental ad? Pause before you hit “publish.”

• Avoid subjective language like “quiet,” “safe,” or “perfect for…”

• Don’t ask prospective tenants to “tell you about themselves”

Stick to neutral, factual descriptions of the property and amenities.

Step 5: Screen Tenants Legally

The city and state have specific rules about:

• Application fees and required disclosures

• Credit reports and background checks

• The Fair Chance Housing Ordinance, which limits how and when you can consider criminal history

Use our Leasing & Screening section in the Knowledge Hub to stay on the right track.

Step 6: Use the Right Forms

Standard lease templates from online platforms often fail to comply with Berkeley law. BPOA provides:

• A city-specific lease template

• Required addenda and disclosures

• Step-by-step guidance to help you navigate the paperwork while you’re still learning the ropes

Head to the Rental Housing Forms Library to get started.

Step 7: Explore the Knowledge Hub

As a BPOA member, you have access to dozens of compliance-focused articles. Use the dropdown filter to browse by topic, including:

• Compliance & Regulations

• Leasing & Screening

• Fair Housing

• Security Deposit Guidance

• Starting/Ending a Tenancy

• Marketing & Pricing

Once logged into the BPOA website, you can access the Knowledge Hub from the Content Library section.

Step 8: Ask for Help

Not sure what applies to you? Unsure if your lease is compliant? That’s why we’re here.

Email us at bpoa@bpoa.org
Call us at (510) 525-3666

You don’t have to figure it all out alone.