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As a landlord, you already have plenty to manage. With the introduction of new laws for 2025, it’s more important than ever to understand how these changes impact your investment property. The good news? Many of these changes are already accounted for in our property management process, ensuring compliance without disruption to you. Below is a clear breakdown of the most critical updates and what they mean for your rental property.
AB 2493 — Application Screening Fees
Effective January 1, 2025
What’s Changing? Landlords can no longer charge screening fees unless they follow one of two specific processes. The traditional approach of collecting fees for all applicants regardless of outcome is no longer allowed. Here’s the breakdown:
- Option 1: Process applications on a first-come, first-qualified, first-granted basis. This means you review applicants in the order they apply, and once you select a tenant, you must stop processing the rest.
- Option 2: Allow screening fees to be charged to all applicants but refund the fees for any applicant who is not selected, regardless of the reason.
What’s New for Credit Reports? Landlords are now required to provide applicants with a copy of their credit report within 7 days of receiving it, even if the applicant does not request it. This can be done via email, mail, or personal delivery.
What We’re Doing: Our existing process already follows Option 1. We process applications on a first-come, first-qualified, first-granted basis. This system ensures applicants are treated fairly and consistently. Additionally, we have procedures in place to ensure compliance with the credit report disclosure requirement, providing applicants with access to their reports within the required timeline.
Effective April 1, 2025
What’s Changing? Security deposit deductions are getting stricter. The law aims to ensure landlords do not use security deposits to “improve” properties at the tenant’s expense. Here’s what’s new:
- Landlords can only deduct costs from the security deposit for items that exceed normal wear and tear.
- Landlords can no longer impose a blanket requirement for professional carpet cleaning at move-out. The new rule limits charges to tenants for carpet cleaning unless it is necessary to restore the carpet to its original condition, excluding normal wear and tear.
- When can you charge for carpet cleaning?
- Stains: Food, drink, pet, or other stains can justify cleaning charges.
- Odors: Odors from pets, smoking, or spills could justify a charge, but they must be documented.
- Excessive Dirt: Ground-in dirt beyond normal traffic patterns may justify a cleaning charge.
What We’re Doing: We’ve already adopted procedures to ensure compliance with these updated deposit rules. We carefully document the condition of properties before and after a tenancy and handle security deposit deductions with transparency. Our goal is to protect you from disputes while ensuring tenants are treated fairly under the law.
AB 2801 — Photo Requirements for Move-In, Move-Out, and Repairs
Effective April 1, 2025
What’s Changing? Landlords must now take photos at three key points:
- Before tenancy begins (at move-in)
- After possession is returned (when the tenant moves out)
- After cleaning and repairs are complete (to document final condition)
If any deposit deductions are made, these photos must be shared with the tenant along with an itemized list of deductions.
What We’re Doing: Our process already includes taking photos before tenant move-in and after move-out. We also require vendors to submit photos upon completion of any repairs or maintenance. To ensure compliance with AB 2801, we have enhanced our process to provide these completion photos to the tenant as part of the final deposit statement.
SB 611 — Prohibited Fees for Notices
Effective January 1, 2025
What’s Changing? Landlords can no longer charge tenants fees for issuing the following types of notices:
- 3-Day Notice to Pay Rent or Quit
- 3-Day Notice to Perform Covenant or Quit
- 60-Day Notice to Terminate Tenancy
Even if your lease agreement specifies that the tenant will cover the costs of notices, this provision is now unenforceable. Any costs associated with posting, mailing, or serving notices must be absorbed by the landlord.
What We’re Doing: Our process has been updated to ensure full compliance with SB 611. We do not charge tenants for posting, mailing, or serving notices, and our internal procedures reflect this regulatory change.
AB 2747 — Tenant Credit Reporting
Effective January 1, 2025
What’s Changing? This law only applies to landlords structured as an LLC, Corporation, REIT, or other corporate ownership entity. Individual owners and trusts are exempt. Landlords must now offer tenants the option to have their rental payment history reported to a credit bureau.
What We’re Doing: Tenants who apply through our system already benefit from positive reporting to the credit bureaus. This helps tenants build their credit history, making our rentals more attractive to qualified prospective tenants.
AB 2347 — Tenant Response Time for Unlawful Detainers
Effective January 1, 2025
What’s Changing? Tenants now have more time to respond to an eviction lawsuit. Here’s the key update:
- The deadline for tenants to respond to an Unlawful Detainer (eviction lawsuit) is extended from 5 court days to 10 court days, excluding weekends and holidays.
- Positive for Landlords: The timeline for the court to hear opposition from the landlord is shortened. Previously, certain motions could take up to 30 days. Now, opposition hearings must be held within 5-7 court days, ensuring a faster path to resolution.
What We’re Doing: If an eviction becomes necessary, we will work with your attorney or paralegal to ensure they have the documentation and information needed to facilitate the process. Our role is to support the eviction process while ensuring compliance with the updated timeline requirements.
AB 2579 — Extended Deadline for Balcony and Load-Bearing Inspections
The compliance deadline for balcony and elevated exterior load-bearing wood inspections has been extended to January 1, 2026. This provides property owners with more time to complete inspections and address any required repairs.
AB 2622 — Higher Contractor Licensing Threshold for Repairs
The threshold for requiring a licensed contractor for maintenance, repairs, and improvements has increased from $500 to $1,000. This means that work costing $999 or less for materials and labor can be performed by an unlicensed handyperson rather than a licensed contractor. This gives property owners greater flexibility to handle smaller repairs and maintenance tasks without involving a licensed contractor, potentially reducing costs for routine maintenance.
- AB 2493: Changes screening fee rules and requires landlords to provide applicants with their credit report.
- AB 2801: Updates rules on deposit deductions for cleaning, repairs, and carpets; adds photo documentation requirements at move-in, move-out, and after repairs.
- SB 611: Prohibits landlords from charging tenants for notices like 3-day notices or 60-day termination notices.
- AB 2747: Landlords structured as LLCs, corporations, or REITs must offer tenants the option to report rental payments to credit bureaus.
- AB 2347: Extends tenant response time for eviction lawsuits but shortens the timeline for courts to hear landlord motions.
- AB 2579: Extends the deadline for balcony and elevated exterior load-bearing wood inspections to January 1, 2026.
- AB 2622: Increases the contractor licensing threshold from $500 to $1,000 for repairs and improvements.
This article is intended for informational purposes only and does not constitute legal advice. The application of these laws may vary based on specific facts and circumstances. We recommend consulting with a qualified attorney to ensure compliance with applicable laws and to address any unique issues related to your property. While every effort has been made to ensure the accuracy of this information, laws are subject to change, and no guarantee is made regarding its completeness or applicability. The authors of this content disclaim any liability for decisions made based on this information.
