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New Rental Laws Affecting California Property Owners in 2025

Donny Piwowarski, Broker

The real estate market is competitive—and now more than ever, agents need to stand out. This is where Donny Piwowarski comes in...

The real estate market is competitive—and now more than ever, agents need to stand out. This is where Donny Piwowarski comes in...

Apr 16 5 minutes read

New Rental Laws Affecting California Property Owners in 2025

By Donny Piwowarski, Broker | Hero Real Estate

As part of our commitment to keeping landlords informed and ahead of the curve, here’s a breakdown of the most impactful rental housing laws passed in California during Q1 of 2025. These changes cover everything from tenant screening to rent reporting and new rules around security deposits, evictions, and more. While some of these laws go into effect on January 1, 2025, others roll out later in the year. Here’s what you need to know:

📋 Tenant Screening Changes (AB 2493)

Effective Jan. 1, 2025

If you charge an application screening fee, you must now:

    •    Accept applications in the order received

    •    Approve the first applicant who qualifies based on your written screening criteria

    •    Provide your screening criteria in writing at the time the application is requested

This means every applicant must receive full transparency upfront — no more “pick and choose” methods.

🔐 Security Deposit Rules Just Got Stricter (AB 2801)

Effective April 1, 2025 / July 1, 2025

Landlords are now required to take photographs of the rental unit:

    •    Before the tenant moves in

    •    After the tenant vacates (before any deductions are made)

    •    After any cleaning or repairs are completed

Photos must be shared with the departing tenant. For tenancies starting July 1, 2025, the move-in photo documentation becomes mandatory.

📊 Rent Reporting – Market Rate Units (AB 2747)

Starting Jan. 1, 2025

Landlords with market rate units must offer tenants the option to have positive rent payments reported to a credit bureau:

    •    For new leases (April 1, 2025 and onward): offer at lease signing and once a year

    •    For existing leases: offer by April 1, 2025 and yearly thereafter

A fee (up to $10/month) can be charged to cover actual reporting costs.

❗ Exemptions apply for smaller landlords unless they own multiple properties and are structured as an REIT, LLC (with corporate member), or corporation.


💸 Rent Reporting – Affordable Housing (SB 924)

The existing requirement for owners of assisted housing developments to offer rent reporting remains in place, with no expiration date. Same cost cap and exemptions as above apply.

🚫 New Restrictions on Fees & Notices (SB 611)

Effective April 1, 2025

    •    Landlords cannot charge tenants fees for paying rent/security deposits by check

    •    No charges allowed for serving/posting/delivering any notice

    •    For military tenants: If you charge a higher security deposit, you must include a written explanation in the lease. This extra amount must be returned within 6 months if rent is paid on time.

🛡️ Domestic Violence Protections (SB 1051)

Effective Jan. 1, 2025

If a tenant (or household member) has experienced abuse or violence, you must:

    •    Change the locks within 24 hours at your own expense

    •    If you don’t, the tenant can change the locks and you must reimburse them within 21 days

    •    The tenant must give you a key and written notice within 24 hours

🏠 Changes to the Eviction Timeline (AB 2347)

Starting Jan. 1, 2025

    •    Tenants now have 10 days (up from 5) to respond to an unlawful detainer

    •    Courts will fast-track hearings for motions previously used to delay evictions for 30+ days

This balances tenant protections with a more efficient process for landlords.

🧱 Balcony Inspection Deadline Extended (AB 2579)

New deadline: Jan. 1, 2026

Property owners with 3+ unit multifamily buildings have one extra year to comply with mandatory inspections for balconies and elevated exterior elements.

🔍 Final Thoughts

Keeping up with California’s evolving landlord laws is critical to protecting your investment and operating within compliance. If you have questions about how any of these changes affect your rental properties, I’m happy to walk you through the impact and ensure your lease agreements, notices, and systems are updated.

Let’s keep your portfolio protected and profitable in 2025 and beyond.

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