California’s new rental laws that took effect in 2025 have direct implications on issues such as deposits, rent payments, and lease records, affecting the regular transactions between landlords and tenants.
It is well known that California’s housing prices and rental costs have always been among the highest in the United States, with supply not meeting demand being one of the main reasons. However, especially since the beginning of the pandemic, California lawmakers have been keen on passing bills to protect tenants, such as prohibiting the eviction of tenants who do not pay rent, leading to a significant number of landlords being forced to exit the California rental market.
Although in the recent November election, California voters overwhelmingly rejected Proposition 33, which aimed to enforce rent control for the third time, temporarily preventing the government from gaining more control over private housing, legislators have passed several related laws that will gradually come into effect.
California Governor Gavin Newsom stated that starting from 2025, the new laws will enhance protection for tenants.
According to the new AB2801 law, landlords are required to take photos at any time to document the condition of the property: starting from July 1 of this year, photos must be taken before or at the time of a tenant moving in; from April 1, photos must also be taken within a reasonable period after the tenant moves out, as well as before and after repairs and cleaning for comparison.
When a tenant vacates the property as long as the house is clean, the landlord must refund the full deposit, but if the tenant damages the property or incurs additional cleaning costs, the landlord must provide evidence in the form of photos to deduct from the deposit.
The California Apartment Association reminds landlords that the photos taken must be provided to tenants via email or USB flash drive, and written explanations of repair and cleaning costs must be provided. Familiarity with legal requirements can help reduce disputes arising from deposit issues.
Speaking of deposits, another law AB12, which came into effect in July 2024, states that regardless of whether the rental property comes furnished, landlords cannot charge tenants more than one month’s worth of deposit.
SB611 prohibits landlords from charging extra fees starting from January 1 for sending a “termination of lease notice” or for tenants opting to pay rent by check.
Previously, if a landlord initiated eviction proceedings against a tenant who didn’t pay rent and legally served them with a “Pay or Quit” notice, typically the tenant had to pay the fee for delivering the notice. With the new law in effect, landlords can no longer demand payment from tenants.
For military tenants who often have to pay higher security deposits and additional fees due to frequent moves or credit risks, SB611 also requires landlords to provide a written explanation if they charge military tenants more than double the rent as a deposit after April 1. Additionally, if a tenant has not defaulted on rent for six consecutive months, landlords must refund the excess security deposit within six months.
AB2747 requires landlords with 15 or more housing units to provide the option for tenants who pay rent on time to have their rental payment reports submitted to credit agencies to help improve their credit scores.
The new laws only apply to landlords who own 15 or more housing units, expected to impact 17 million renters in California; small landlords and subsidized housing developments are exempt.
In response, landlords can charge tenants service fees for helping with report submissions, with a maximum of $10 per month. If a tenant opts for the service but fails to pay the fee within 30 days, the landlord can suspend the service.
SB1051 expands “lock protection” to direct relatives and family members of domestic violence survivors: when the abuser is not a tenant in the same unit, if the tenant provides documentation proving they need protection from abuse or violence, the landlord must respond to the tenant’s request to change locks within 24 hours and bear the related costs.