California law now permits Family day care at all residential properties, including rental properties. Every tenant in the state of California may now operate a family day care that provides care for up to 12 children so long as the tenant provides the landlord with advanced written notice of his or her intent to own and operate a family day care center.

In such instances, a landlord may require the tenant to have the necessary license and insurance. The landlord may also request that the tenant add the landlord as an additional insured to the tenant's insurance policy, but the landlord will be required to pay any additional premiums the tenant incurs as a result of this request. The landlord may also require an additional security deposit from the tenant, so long as the total amount retained does not exceed two months’ rent for an unfurnished rental unit, and three month's rent for a furnished rental unit.