March 10 2025, by Christie Slatcher

As we move into 2025, several new laws will impact landlords across California. At Jamison Management Company, we believe in keeping property owners informed and prepared. This year’s legislative changes introduce new requirements for tenant screening, security deposits, rental payment reporting, and more. Understanding these laws is crucial to staying compliant and maintaining successful rental operations.

Here’s what you need to know:

1. Tenant Application Fees & Screening (AB 2493)

Landlords have long been allowed to charge application screening fees, but under the new law, additional restrictions apply:

  • No Fees If No Units Are Not Available: Landlords cannot charge a screening fee if they know or should have known that no unit is available within a reasonable timeframe.
  • Two Screening Options:
    1. First Come, First Qualified, First Served: Fees can only be charged if landlords process applications in this manner and provide applicants with written rental criteria.
    2. Fee Refunds: If landlords do not use the first-come system, they must refund the fee to any applicant who is not selected within seven days of tenant selection (or 30 days, whichever is sooner).
  • Consumer Credit Report Obligation: Landlords must provide a copy of the applicant’s credit report within seven days of receiving it.

What This Means for Landlords:

Ensure that your application process aligns with these new requirements and be prepared to refund fees if necessary.

2. Security Deposit Rules & Documentation (AB 2801)

Security deposit deductions have stricter guidelines, and landlords must now document and justify deductions more thoroughly.

  • Deductions Allowed Only for Necessary Repairs: Deductions cannot be used to improve the property beyond its original condition, excluding normal wear and tear.
  • Professional Carpet Cleaning Restrictions: Landlords cannot charge for professional carpet cleaning unless it’s necessary to return the carpet to its original state (again, excluding normal wear and tear).
  • Mandatory Photo Documentation:
    • Before Lease Begins: Landlords must take photos of the rental unit before or at the start of a tenancy.
    • Move-Out Inspection: Landlords must take photos of the unit after a tenant moves out, prior to cleaning or repairs.
    • Post-Repair Photos: Additional photos must be taken after repairs or cleaning.
    • Required with Security Deposit Statement: If deductions are made, landlords must provide an itemized statement along with the photos.

What This Means for Landlords:

Implement a photo documentation process for all rental units. Consider using an online portal to store and share photos with tenants.

3. New Limits on Additional Security Deposits for Service Members (AB 2801)

  • If a service member tenant is conditionally approved (due to credit history or other factors) and is charged an additional deposit, the landlord must:
    • Provide a written explanation for the deposit amount.
    • Refund the additional deposit within six months if the tenant stays current on rent.

What This Means for Landlords:

If you rent to service members, update your lease agreements to reflect this new requirement and ensure compliance.

4. No More Fees for Legal Notices & Personal Check Payments (SB 611)

  • Landlords cannot charge tenants for serving legal notices (such as pay-or-quit or lease termination notices).
  • No Extra Fees for Paying with Personal Checks: Landlords cannot impose additional charges on tenants who choose to pay rent by check.

What This Means for Landlords:

Adjust your policies to remove any fees for notice service or check payments.

5. Mandatory Rental Payment Credit Reporting Option (AB 2747)

  • All landlords must offer tenants the option to report their on-time rent payments to a credit bureau.
  • The offer must include:
    • An opt-in form (electronic or mailed).
    • Details on which credit bureau will receive the report.
    • Any applicable fees (capped at $10/month).
  • Landlords cannot use rent payments to cover reporting fees or deduct them from the security deposit.
  • Exemption: This does not apply to landlords with fewer than 15 units, unless they own additional rental properties.

What This Means for Landlords:

Ensure your lease agreements include the required opt-in offer. If applicable, communicate with a credit bureau to set up reporting.

6. Domestic Violence Protections & Lock Changes (SB 1051)

  • Tenants who are victims of domestic violence can request a lock change at the landlord’s expense.
  • If the landlord fails to change the locks, the tenant may do so and must provide a key to the landlord.
  • Landlords must reimburse the tenant within 21 days for the cost of changing the locks.

What This Means for Landlords:

Be prepared for lock change requests and update policies accordingly.

7. Extended Response Time for Eviction Cases (AB 2347)

  • Tenants now have 10 days (instead of 5) to respond to an unlawful detainer (eviction) notice.
  • New “motion to strike” option allows tenants to challenge portions of an eviction lawsuit.

What This Means for Landlords:

Expect longer eviction timelines and consult legal counsel before filing.

8. Unbundled Parking Charges in New Developments (AB 2898)

  • For new construction (completed after Jan. 1, 2025) in certain counties, parking charges must be separate from rent.
  • Exemption: Section 8 and VASH voucher holders do not have to pay separate parking fees.

What This Means for Landlords:

If you own new construction in Alameda, Fresno, Los Angeles, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Clara, Shasta, or Ventura counties, ensure parking fees are separate from rent.

Key Takeaways for Landlords

  • Revise application screening policies to comply with new fee regulations.
  • Implement photo documentation for security deposit claims.
  • Adjust lease agreements to include the rental payment reporting opt-in.
  • Remove any fees for personal check payments or legal notices.
  • Be mindful of security deposit restrictions for service members.
  • Prepare for longer eviction timelines and new tenant protections.

At Jamison Management Company, we’re committed to helping landlords navigate these legal changes smoothly. If you need assistance implementing these new laws at your properties, contact us today.