What To Do When You Purchase a Berkeley Property With Tenants and No Leases

You’ve purchased a rental property in Berkeley.

The seller gave you estoppels and leases for most units — but for one or two units, there’s no written lease and no estoppel certificate on file.

Now what?

Here’s a step-by-step guide to understanding your responsibilities and protecting your property.

1. Recognize That These Tenancies Are Still Protected

A verbal rental agreement is still a lawful agreement.
Even without a written lease, tenants are protected by Berkeley’s Rent Stabilization Ordinance (RSO) and Just Cause for Eviction Ordinance.

Pro Tip: Unless you have clear evidence to the contrary, you should assume the tenancy is month-to-month.

2. You Cannot Force a New Lease

You may offer the tenant a written lease, but they are not required to sign it.
In Berkeley, tenants cannot be evicted simply because they refuse to sign a lease.
Their tenancy remains valid and protected even without a written agreement.

Pro Tip: Proceed respectfully and carefully — you inherit the tenancy as it exists.

3. Document What You Can About the Tenancy

Start building a paper trail right away:

• Confirm the rent amount, payment due date, occupant names, and any known terms.

• Send a Welcome Letter summarizing the tenancy information ("According to our records, your monthly rent is $____, due on the ___ of each month...").

• Maintain detailed records of all rent payments, notices, communications, and repairs.

Pro Tip: If the tenant continues to pay rent without objection after you send a confirmation, this strengthens your position.

4. Serve All Required State and Local Disclosures

Even without a lease, you must serve the required disclosures:

State-Mandated Disclosures:

• Lead-Based Paint Disclosure (for properties built before 1978), plus the EPA booklet Protect Your Family from Lead in Your Home.

• Mold Disclosure, plus the booklet Information on Dampness and Mold for Renters in California.

• Bed Bug Disclosure (required for all residential tenancies, even when sharing kitchens or bathrooms with the owner).

• Pest Control Disclosure (if routine pest services are ongoing).

• Asbestos Disclosure (for properties built before 1981, if you have knowledge or reason to suspect asbestos-containing materials).

Berkeley-Specific Disclosures:

• Tenant Protection Ordinance (TPO) Notice
  ➔ Informs tenants of their rights under Berkeley’s Tenant Protection Ordinance. Required at the start of tenancy or immediately if missing.

• Rent Stabilization Ordinance (RSO) Coverage Notice, aka Notice of Tenants Rights
  ➔ Required if the unit is fully or partially covered by rent control. Explains that the unit is regulated under Berkeley’s Rent Ordinance.

• No Smoking Addendum
  ➔ Prohibits smoking inside units and common areas under Berkeley’s No Smoking Ordinance (BMC 12.70). Should be included with the lease or served separately.

• "Smoke-Free Laws in Berkeley" Brochure
  ➔ Must be provided to all tenants. Explains Berkeley’s smoking rules and tenant rights under the City's secondhand smoke laws.

Safety Compliance:

• Ensure working smoke detectors and carbon monoxide detectors are installed and operational as required by California law.

5. Understand How Rent Control and Eviction Protections Apply

• Fully Covered Units:
  Rent is capped by a Lawful Rent Ceiling based on Berkeley Rent Board rules. If you don't have a Vacancy Registration on file, you may need to request records from the Rent Board.

• Partially Covered Units:
  Rent control does not apply, but Just Cause eviction protections still do.
  You cannot terminate the tenancy without a valid reason under Berkeley law.

Rent increases must still comply with California’s Civil Code notice requirements.

6. Plan Carefully for the Future

Regardless of whether the tenancy started informally or verbally, you must comply with Just Cause eviction rules moving forward.
You may not terminate the tenancy simply because you want new terms, new tenants, or a written lease.

Document everything, serve notices properly, and manage the tenancy lawfully.

Note on Rental Housing Safety Program (RHSP) Inspections:
Berkeley rental housing providers are required to conduct an annual Rental Housing Safety Inspection of each unit using the City's RHSP Checklist. You must document the inspection, share a copy with your tenant/s,  and keep records on file, even if no issues are found.

Special Note: Holdover Occupants from Prior Tenancies
If you discover that the occupant is not an original tenant but a holdover — a replacement or subtenant left behind after the original tenants moved out — you still must treat them as a protected tenant under Berkeley’s Rent Ordinance.

• You cannot evict solely because they are a holdover.
• Just Cause protections apply.
• You may offer a new lease, but they can refuse without forfeiting their rights.
• Rent control rules (if applicable) may allow you to reset the rent if proper re-registration occurred — check the Rent Board’s records carefully.

Pro Tip: Always investigate whether the prior owner filed a Vacancy Registration and updated records when the last original tenant left.

Bottom Line:

Even without a written lease, Berkeley tenants have strong legal protections.
Landlords must focus on clear documentation, legally required disclosures, and full compliance with Rent Ordinance rules to protect their property and investments.