New California Rental Laws Every Landlord Should Know in 2025

As a property owner or manager in California, staying informed about the latest rental laws is essential for maintaining compliance and avoiding potential legal issues. The California legislature has enacted several new laws that will impact landlords and property managers starting in 2025. Understanding these changes is critical for anyone involved in the rental housing industry in the East Bay and beyond.

Tenant Screening Changes

California's approach to tenant screening is changing significantly in 2025. Under AB 2493, authored by Assemblywoman Gail Pellerin, landlords must now follow a first-come, first-served approach when reviewing rental applications. This means you'll need to:

• Accept applications in the order they're received

• Approve the first applicant who meets your established screening criteria

• Provide your screening criteria in writing to applicants along with the application

This change aims to create a more transparent and fair application process, but it requires landlords to adjust their current screening procedures to ensure compliance.

Security Deposit Documentation Requirements

AB 2801, authored by Assemblywoman Laura Friedman, creates new documentation requirements for security deposits. Starting in 2025, landlords who collect security deposits must take photographs of rental units at three specific times:

• Immediately before or at the start of the tenancy (required for tenancies beginning on or after July 1, 2025)

• Within a reasonable time after the unit is returned but before any repairs or cleaning for which deductions will be made

• After repairs or cleaning are completed

Notably, landlords must provide these photographs to departing tenants. This documentation will serve as evidence of the property's condition and help justify any security deposit deductions.

Rent Payment Reporting Options

Two new laws address rent payment reporting to credit bureaus:

For market-rate housing (AB 2747): Property owners must offer tenants the option to have their positive rental payment information reported to at least one nationwide consumer reporting agency. This requirement applies to:

• Leases entered on or after April 1, 2025 (offer must be made at lease signing and annually thereafter)

• Existing leases as of January 1, 2025 (offer must be made by April 1, 2025, and annually thereafter)

For affordable housing (SB 924): This law removes the previous January 1, 2025, repeal date for the requirement that affordable housing owners offer rent payment reporting options to tenants.

In both cases, landlords can charge tenants up to $10 monthly to cover the actual costs of reporting. Smaller property owners (buildings with 15 or fewer units) are exempt, with some exceptions for larger corporate landlords.

Fee Restrictions and Notices

SB 611, authored by Senator Caroline Menjivar, prohibits landlords from charging:

• Any fee for rent or security deposit payments made by check

• Fees for serving, posting, or delivering notices

Additionally, after April 1, 2025, if a landlord charges a military service member a higher-than-standard security deposit, the lease agreement must include a statement explaining the higher fee. The additional security deposit amount must be returned after six months if the tenant is not behind on rent.

Domestic Violence Protections

SB 1051 introduces important protections for victims of domestic violence. This law requires landlords to:

• Change locks for a tenant within 24 hours of being informed that the tenant or household member has been a victim of abuse or violence

• Bear the expense of changing the locks

• Reimburse tenants who change locks themselves (if the landlord fails to do so within 24 hours)

Tenants must notify the property owner within 24 hours of changing locks and provide the landlord with a key.

Eviction Process Adjustments

AB 2347 makes two significant changes to the eviction process:

• Extends the tenant's time to respond to an unlawful detainer complaint from 5 days to 10 days

• Shortens the time for hearings on specific motions typically used to delay evictions (previously allowing delays of up to 35 additional days)

This balanced approach gives tenants more time to respond while reducing potential delaying tactics.

Balcony Inspection Deadline Extension

AB 2579 extends the deadline for property owners to conduct mandatory inspections of balconies and exterior elevated elements in multifamily buildings (three or more units). The deadline moves from January 1, 2025, to January 1, 2026, giving property owners an additional year to complete these required safety inspections.

Preparing Your Properties for Compliance

To ensure your rental properties remain compliant with these new laws, consider taking these proactive steps:

1. Review and update your tenant screening procedures to implement the first-come, first-served approach

2. Establish a system for photographing units at the required intervals

3. Create a process for offering rent payment reporting to tenants

4. Update your fee policies to eliminate check payment fees and notice fees

5. Implement protocols for quickly responding to lock change requests from domestic violence victims

6. Adjust your eviction timelines to account for the extended response period

7. Schedule balcony inspections before the new 2026 deadline

Implications for East Bay Landlords

These new laws will have particular relevance for property owners in the East Bay region. With competitive rental markets in cities like San Ramon, Pleasanton, Dublin, and Livermore, implementing proper screening procedures and documentation practices is critical. The changes to the eviction timeline and fee restrictions will affect operations throughout Contra Costa and Alameda Counties.

FAQs About California's 2025 Rental Laws

Do I need to change my application process to comply with the new screening law?

Yes. You'll need to document the order in which applications are received and approve the first qualified applicant who meets your screening criteria. Your screening criteria must be provided in writing when applications are requested.

When do I need to start taking photos of rental units for security deposit purposes?

For existing tenancies, you must begin taking photos when tenants move out, starting April 1, 2025. For new tenancies beginning on or after July 1, 2025, you must take photos at the start of the tenancy.

Are all landlords required to offer rent reporting services to tenants?

No. This requirement doesn't apply to owners of residential buildings with 15 or fewer units, unless the landlord owns multiple buildings and is structured as a real estate investment trust, corporation, or LLC with at least one corporate member.

What are the consequences of not complying with the domestic violence lock change requirement?

If you fail to change locks within 24 hours after being notified, you must reimburse the tenant for the cost if they change the locks themselves. Additionally, non-compliance could lead to legal liability issues.

How will the extended timeline for eviction responses affect my property management?

The extension from 5 to 10 days for tenants to respond to unlawful detainer complaints means you should adjust your expectations for the eviction timeline. However, the new law does reduce the time for certain delay tactics, potentially balancing out the overall timeline.

Staying informed about these legal changes is an essential part of successful property management. By understanding you can protect your investment while providing safe, compliant housing for your tenants.