New California laws tighten tenant protections

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California Governor Gavin Newsom signed three bills Changes to tenant protection practices in the state last month.

• Assembly Bill 2801 requires landlords to take photographs of a unit before move-in, after move-out, and before and after any necessary repairs or cleaning, which must be provided to the tenant along with the security deposit form. This bill will come into force on July 1, 2025.
• AB 2747 requires landlords to give tenants the opportunity to report their on-time rent payments to the credit bureaus beginning April 1, 2025.
• Effective July 1, 2025, Senate Bill 611 prohibits fees for rent paid by check, posted notice fees, or the imposition of fees on military renters in excess of the standard security deposit amount beginning July 1, 2025.

AB 2801 Owner initially excluded from using the deposit for professional cleaning or for other issues not identified during the initial inspection. This was almost completely eliminated during the legislative process; The only remaining provision is that owners cannot use the deposit for carpet cleaning unless necessary to restore the unit to its original condition.

Credit reporting bill AB 2747 only applies to properties with 15 or more units. Landlords can reimburse the costs associated with complying with this bill until then charge tenants a fee to cover the costs of reporting, the California Apartment Association said in a statement to Smart Cities Dive's sister publication Multifamily Dive.

“This bill will not only help renters, but will also help future landlords know that a tenant has paid their rent on time in the past and is likely to continue to do so,” said Debra Carlton, executive vice president of state government affairs at CAA the statement.

SB 611 originally required landlord to disclose any optional fees for an apartment in its advertisements. This was deleted in a later amendment, leaving the remaining provisions regarding fees and deposits for military tenants. According to the CAA, the disclosure requirement would have placed a significant burden on landlords.

The three bills are part of a larger package signed into law on Sept. 19 that includes legislation on homelessness, housing, fee transparency and tribal housing.

The landlord/tenant charges this failed in the last meeting contain:

• AB 2187, which would have established an Office of Tenant Rights and Protection.
• AB 2216, which would have required property owners to allow common pets on apartment buildings and would not have allowed properties to charge rent or security deposits for pets. Later changes created exemptions for buildings with fewer than 16 units or households with more than one pet.
• AB 2384, which would have required the installation of emergency telephones near pool decks.
• AB 2785, which would have required properties to pay tenants interest on their security deposits and established requirements for inspection fee limits.
• SB 1154, which would have banned revenue management algorithms.

An important question remains is the fate of Proposition 33which, if passed, would expand the powers of local governments to introduce rent control. Voters will decide on this ballot measure on November 5th.