Across California, the need for accessible, affordable child care continues to rise. Many licensed providers meet this demand by operating small or large family child care homes right where they live. But that arrangement can sometimes create tension between landlords and tenants, particularly when a landlord isn’t aware of the state’s strong protections for home-based businesses.
Under California Health and Safety Code §1597.41, landlords cannot deny housing, evict, or restrict tenants simply because they operate a licensed family child care home. This law reinforces that such child care operations are considered a residential use of the property, not a commercial one.
For landlords and property managers, understanding how this rule works is essential to avoid legal pitfalls while maintaining positive tenant relationships.
Key Takeaways
California landlords cannot refuse to rent to or evict tenants for operating licensed in-home daycare programs.
The law applies to both small and large family child care homes.
These homes are legally defined as residential use properties, even though children are cared for there.
Landlords can still enforce standard lease terms unrelated to the daycare, such as rent payments and property care.
Violations may result in costly discrimination complaints and state investigations.
Proactive communication and compliance protect landlords from risk.
Understanding HSC §1597.41
The purpose of HSC §1597.41 is to remove housing barriers for licensed child care providers, ensuring that working families have more options for local, high-quality child care.
The law defines a “family child care home” as a residence where a licensed provider cares for up to 8 children (small) or up to 14 children (large). Importantly, both types are protected under the same statute.
Under this law, landlords cannot:
Refuse to rent to a tenant because they intend to operate a child care home.
Evict a tenant solely for operating one.
Impose restrictions that interfere with state-licensed daycare operations.
However, landlords can:
Enforce standard lease terms like rent payment, noise, or property maintenance.
Require proof of liability insurance or request the tenant to sign a waiver if they choose not to obtain coverage.
Be listed as an “additional insured” on the tenant’s child care insurance policy.
The law makes clear that running a licensed family daycare does not change the residential nature of the property. This ensures providers are treated like any other tenant under housing law.
Case Example: Enforcement in Action
A recent case reported by KQED News demonstrates how seriously California enforces these protections.
A Bay Area landlord faced a discrimination complaint after allegedly trying to evict a tenant for operating a licensed child care business in her rental home. The case was investigated by the California Civil Rights Department (CRD), leading to a settlement and new policy commitments from the landlord.
The state emphasized that refusing or attempting to remove a tenant for operating a family child care home violates both fair housing laws and the Health and Safety Code. This enforcement serves as a clear reminder: landlords who overlook or ignore this rule risk significant penalties, reputational harm, and legal fees.
Landlord Responsibilities and Rights
While HSC §1597.41 limits how landlords can regulate daycare operations, it also allows for reasonable protections.
Here’s what compliance looks like in practice:
Lease Terms: Avoid clauses that prohibit or restrict family child care operations. Such language violates state law.
Insurance: Landlords can require proof of liability insurance (up to specified limits) or a signed waiver if the tenant opts out. You can view details and sample forms in the CDSS guidance for child care providers.
Communication: Encourage tenants to notify you of their intent to operate a daycare before starting. Open communication helps prevent misunderstandings.
Maintenance: Landlords may still enforce maintenance standards and safety inspections, provided they do not single out daycare providers unfairly.
If a landlord violates these provisions, tenants can file a complaint with the Civil Rights Department (CRD) or the Department of Social Services (CDSS), which may investigate and seek remedies, including damages and attorney’s fees.
Balancing Risk and Supporting Community Needs
For many landlords, the idea of a business operating in a rental property can raise understandable concerns. Questions about wear and tear, noise, or insurance liability often come up. Yet California law views family child care as an essential community service, not a commercial enterprise.
In practice, licensed providers must meet strict health, safety, and capacity standards set by the state. Their homes are inspected regularly and must carry appropriate licensing documentation. In most cases, these operations are well-managed, low-impact, and help meet a critical statewide shortage of child care options.
Landlords who understand and follow the law not only protect themselves from costly legal disputes but also contribute to stronger, family-friendly communities.
At Advantage Property Management Services, we help landlords navigate laws like HSC §1597.41 with confidence. Our team ensures that lease agreements, communication, and property management processes comply with California regulations while protecting your investment.
Best Practices for Property Owners
Verify Licensing: Confirm the tenant’s license through the California Department of Social Services database.
Use Compliant Lease Language: Avoid generic “no business” clauses that may violate the law.
Maintain Routine Inspections: Continue standard property evaluations for safety and maintenance.
Keep Insurance Documentation: Request proof of daycare liability coverage or a signed waiver.
Educate Your Team: Ensure leasing agents and property managers understand the daycare protections outlined in the law.
Partner with Experts: Working with a professional property management firm ensures compliance and proactive tenant relations.
For an additional resource, download the California Child Care Providers Fact Sheet (PDF) created by the San Diego Housing Commission. It outlines housing protections and remedies for family child care home providers.
FAQs
Can a landlord refuse to rent to someone who plans to run a daycare at home?
No. Under HSC §1597.41, it’s illegal for a landlord to deny tenancy because the applicant operates or plans to operate a licensed family child care home.
What if the property isn’t zoned for commercial use?
Zoning does not apply here. The law defines family child care homes as a residential use, even if the tenant runs a daycare.
Can a landlord charge extra rent or fees for daycare operations?
No. Charging more rent or adding fees based on child care activity violates the law.
Are landlords liable for accidents that occur during daycare hours?
Generally not. Landlords can protect themselves by requesting proof of liability insurance or a signed waiver as permitted under the statute.
Can a landlord limit the number of children or hours of operation?
No. Those limits are determined by the tenant’s state license, not by the landlord.
What happens if the daycare causes excessive noise or damage?
Landlords can still enforce standard lease terms regarding noise, property maintenance, and payment obligations, as they would with any other tenant.
Protecting Your Property, Supporting Local Families
California’s family child care home law is designed to balance tenant rights, landlord protections, and community needs. Understanding and following HSC §1597.41 keeps landlords compliant while supporting essential child care access across the state.
By working with a professional management company like Advantage Property Management Services, landlords gain the guidance and oversight needed to handle these situations correctly. Our team helps you stay compliant, protect your property, and foster positive tenant relationships that strengthen your community.
Additional Resources
California’s AB 414 and Electronic Security Deposit Refunds: What Landlords Need to Know in 2026
AB 628 Requires California Landlords To Provide a Refrigerator
